Hilton appeals $25.2 million judgment to Nevada high court

Wednesday, Sept. 14, 2005 | 9:53 a.m.

CARSON CITY -- The state Supreme Court was asked Tuesday to cancel a $25.2 million jury award to Reno Hilton guests who became violently ill during an intestinal virus outbreak in 1996.

Attorney David Frederick argued that Washoe District Court Judge Steven Elliott erred in not defining "despicable conduct" that would justify punitive damages. Lawyers for people stricken by the gastrointestinal virus said that conduct occurred when Reno Hilton supervisors hindered ill employees from taking sick leave.

Frederick also challenged Elliott's determination that the damages should be paid by Park Place Entertainment, which took over operation of the Reno Hilton after the Norwalk virus outbreak that caused more than 1,000 guests and employees to suffer from severe diarrhea and vomiting.

The attorney said the Washoe County Health Department urged the Reno Hilton to reconsider any policies that resulted in employees coming to work sick, and the resort's cooperation during the crisis was "a long, long ways from despicable conduct that warrants punitive damages."

Attorney John Echeverria, representing some of the claimants in the case, countered that jurors heard testimony about management practices that had sick workers fearing they'd lose their jobs. He also said the resort didn't go along with the Health Department -- until the agency threatened to shut down the property.

Echeverria added that Park Place, in acquiring the Reno Hilton assets, also assumed its liabilities -- and that includes the big punitive damage award. The resort has since gone through further ownership changes and is now part of Harrah's Entertainment Inc. pending another sale.

The state Supreme Court took the arguments under submission and will rule at a later date.