Judge to rule on suit over car dealerships

Diana Sahagun

Thursday, Sept. 13, 2001 | 8:25 a.m.

District Judge Sally Loehrer will decide Oct. 5 whether to dismiss a lawsuit filed against Courtesy Automotive Group Owner Joseph Scala.

Her decision will take into consideration a 1997 law that forbids certain libel actions that are designed to intimidate citizens who participate in government.

A bill approved by the Nevada Legislature in 1997 protects citizens from "SLAPP suits," or Strategic Lawsuits Against Public Participation, if they, in good faith, communicate with government officials.

Scala's motion -- filed by attorney Mark James last week -- argues that he had the right to lobby Councilman Michael Mack earlier this year about a proposed rival car dealership in the northwest, but as a result was being subjected to a SLAPP suit.

Scala has become the centerpiece of a lawsuit that was filed against the city of Las Vegas, Mack, and Councilman Larry Brown, after the council voted in June to deny a car dealership application proposed by rival car dealer John Staluppi Jr.

Mack disclosed after the vote that he had an outstanding $60,000 loan from Scala and asked for the application to be reconsidered. The application was denied a second time.

The suit alleges the councilmen joined their colleagues in denying Staluppi's dealership on Rancho Drive because they had been lobbied by Scala, who owns land inside Town Center where the council plans to create an automall. The councilmen maintain they voted against the Staluppi dealership because it went against the intent of Town Center, which groups all commercial uses into one area near U.S. 95 and Centennial Parkway.

Scala is being sued by Staluppi for allegedly interfering with the dealership application by lobbying Mack and Brown and visiting City Hall on numerous occasions. Scala is also accused of interfering by improperly contributing campaign funds and by making and excessive loans to Mack in an effort to influence his vote.

In January, Scala made a $10,000 contribution to Mack's 2001 campaign, according to reports filed with the city clerk. Mack amended his campaign form in August to show he accepted trucks from Scala's Courtesy Automotive during the campaign.

In the motion, James alleges that Staluppi's attorney, Anthony Sgro, has no evidence to prove that Scala intentionally acted to disrupt the Staluppi application. Instead, James argues, Scala acted in good faith to protect his own business interests, his property inside Town Center.

James said in the motion that the true purpose of the lawsuit is to stifle Scala's political participation. James also chides Sgro for some of his alleged statements to four other attorneys.

Included in the motion were sworn affidavits from four local attorneys who said Sgro had told them that if the city gave Staluppi the dealership he would "make everything go away" -- the lawsuit and two ethics complaints filed against Mack and Brown. The complaints have since been dismissed against Brown.

The affidavits are from attorney Richard Wright, Mack's private attorney; William Henry, the city's senior litigator; attorney Stan Hunterton, Brown's private attorney; and Pamela Larson, from Hunterton's firm.

Hunterton alleges in his affidavit that Sgro was attempting to use the ethics complaint as a way of "extorting a car dealership for his client."

Sgro did not return calls for comment.