Judge rejects defamation complaint against Aladdin

Wednesday, April 23, 2003 | 11:03 a.m.

A Clark County District Court judge has ruled that former Aladdin Chief Executive Richard Goeglein can't sue the hotel's owners for defamation, but left the door open for a Nevada Supreme Court appeal on the matter.

Judge David T. Wall dismissed the defamation complaint, but certified the issue for appeal, something attorney Pam Lawson said was likely to occur.

It was Goeglein's first appearance in court in connection with his suit against Aladdin Gaming Holdings. Goeglein filed suit in District Court in October 2001, a month after he was fired by the Aladdin for cause.

Goeglein's suit accused the Aladdin of wrongful termination, breach of contract and defamation. Now that the contested defamation portion of the suit has been heard, attorneys will begin the lengthy process of discovery and deposing witnesses on the other issues, which will likely take at least six months to complete.

Goeglein's attorneys will determine by next month whether to appeal the defamation issue to the Nevada Supreme Court.

Lawson argued that by firing Goeglein for cause, Aladdin Gaming defamed him. She said the company fired him for cause so they wouldn't have to pay him a severance package guaranteed in his contract.

By definition, a for-cause firing, Goeglein's suit says, includes gross negligence that isn't corrected after a written warning from the board, the revocation of Goeglein's gaming license, a material breach of Goeglein's employment agreement, embezzlement or conviction of a felony. Goeglein has said none of those things occurred.

"If they fire him for cause, they're home free," Lawson told Wall. "And that's just what they did."

Aladdin Gaming attorney Pauline Lee did not argue the circumstances of Goeglein's dismissal, but told Wall there was no basis for a defamation claim since the company's board did not say anything publicly about the firing.

Lee said most of the publicity about the firing was generated by Goeglein himself in recent media interviews prior to the court case.

Goeglein broke his silence about his firing, design flaws at the property and criticism about the hotel-casino's ownership in an interview with the Las Vegas Sun in March.

Lawson said recent case law from other states supports her contention that a for-cause firing defamed Goeglein. That point, she said, would be argued to the Supreme Court.