Union loses arbitration request in dispute with Adelson

Friday, July 5, 2002 | 11:12 a.m.

A federal judge on Wednesday denied a motion by the Culinary Union to force Sheldon Adelson's Las Vegas Sands Inc. to go to arbitration to resolve claims that the union violated an old contract.

Las Vegas Sands, which owns the Venetian megaresort, was the owner of the Sands hotel-casino that was imploded in November 1996.

Adelson sued the union in 1997, alleging it violated an agreement with the old Sands hotel-casino when it allegedly applied political pressure to delay or deny licenses, permits and approvals for the Venetian in an effort to force Adelson to recognize the union.

The union said Adelson's claims should be arbitrated by a labor relations expert because that process is less expensive and faster than a court trial.

The union said it "acted reasonably to what appeared to be an attack on its own existence by Adelson; his decisions to not follow other Las Vegas employers in offering jobs to displaced union members and not follow the standard industry agreement concerning union organizing procedures."

But Las Vegas Sands challenged the union's request for arbitration, saying the Culinary missed a deadline in the old contract for such a demand.

U.S. District Judge Philip Pro agreed, saying he found Adelson's claim for breach of good faith and fair dealing is not subject to the arbitration clause.