High court dismisses Reno Hilton’s appeal

Friday, Feb. 25, 2005 | 10:02 a.m.

CARSON CITY -- The Nevada Supreme Court on Thursday dismissed the appeal of the Reno Hilton, which was hit with a $25.2 million punitive damage judgment in connection with the outbreak of a Norwalk-like virus in May and June 1996 that left hundreds of guests and employees ill.

The court said there were still pending matters in the class-action suit in the district court in Reno. Considering appeals piecemeal could result in a significantly increased caseload and confusion in the district court, the court said.

The suit against the Hilton was divided into two phases in district court. The first phase consisted of a jury trial on the issues of liability and class-wide punitive damages.

The jury found that the Hilton's policy of unpaid sick leave for its employees caused the outbreak of the virus. The suit maintains the Hilton's policy forced the employees to work while they were sick and that helped spread the disease that caused vomiting and diarrhea.

In addition the hotel never notified new guests about the virus.

The second phase of the lawsuit has not yet been heard. It will consist of individual hearings for each class member to assess compensatory damages.

The Hilton appealed the first outcome, but the state Supreme Court said the full case must be decided in district court before it would step in.