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Tuesday, Sept. 1, 2009 | 12:50 p.m.
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Ed Scheetz
Michelle Hatchel
A new lawsuit charges that the operator of the Hard Rock resort in Las Vegas shares liability for the 2007 drug overdose death of a hotel executive's girlfriend by consenting to the executive's promiscuous and drug-abusing lifestyle.
The lawsuit, filed Friday in Las Vegas by family members of 23-year-old Michelle Hatchel, contains numerous revelations and allegations about her death including:
--Charges the hotel executive, Ed Scheetz, lied to Las Vegas police about the circumstances involving the death of Hatchel.
--Hatchel had been traumatized by the deaths of friends in the Columbine High School massacre in 1999 and Scheetz capitalized on her emotional troubles to induce her into drug use and sexual activity.
--A wrongful death suit filed against Scheetz by Hatchel's father has already been settled for a substantial sum.
--After Hatchel's death, Scheetz moved to dismiss divorce proceedings with his wife and then transferred to his wife their $8 million Connecticut estate to protect his assets from a wrongful death lawsuit and -- by staying married -- to preclude his wife from having to testify against him.
Scheetz could not immediately be reached for comment on the lawsuit Tuesday and a spokeswoman said co-defendant Morgans Hotel Group does not comment on pending litigation. New York-based Morgans co-owns and manages the Las Vegas Hard Rock.
Friday's lawsuit in U.S. District Court in Las Vegas was filed on behalf of Hatchel's mother, Kim Hatchel; as well as her grandmother, brother and aunt. Besides Scheetz and Morgans Hotel Group, it names as a defendant Annie Darrohn, described as a former girlfriend of Scheetz's.
Three weeks after Hatchel died in 2007, Morgans said Scheetz resigned as Morgans president and chief executive officer for personal reasons.
Officials at the time said Hatchel was found dead on Aug. 29, 2007, in a rented condominium at Turnberry Towers on Paradise Road where Scheetz had been staying.
Police at the time said they received a call from Scheetz about 8 p.m. reporting his girlfriend was not breathing. The Clark County Coroner's Office found she died of an overdose of the opiate pain killer oxycodone and cocaine.
Friday's lawsuit claims that Scheetz lied to police when he told them Hatchel was alive when he went to work at 9 a.m. on Aug. 29 and that, again contrary to what he told police, there were at least two individuals in the condominium when he called to report the woman was not breathing.
Hatchel was a resident of Colorado, where she had met Scheetz at a Denver nightclub in 2005 and had a relationship with him, the suit says.
It says in the summer of 2007 she was flown to New York to be with Scheetz on a flight arranged by Scheetz's secretary at Morgans and then was flown to Las Vegas on Morgans' private jet.
After arriving in Las Vegas, Scheetz was spending time with both Hatchel and Darrohn and in phone calls and text messages to friends, Hatchel expressed unhappiness with the ex-girlfriend's presence and feared for her safety, the lawsuit charges.
The lawsuit says the last text on her cell phone, which was drafted, incomplete and unsent, said: "I think they are trying to".
The lawsuit, alleging assault and battery, wrongful death, infliction of emotional distress and civil conspiracy, goes on to claim:
--Scheetz provided Hatchel the cocaine and oxycodone that killed her.
--Darrohn failed to "timely aid her in recovery" or seek medical assistance.
--Scheetz had sent Hatchel a photo of himself bound and tied at his ankles, legs and wrists with a text saying he was tied up and bloody; and then sent photos of himself having sex with a woman with his hand around her neck "strangling/choking her" and "she doesn’t look like she likes it;" along with another photo showing him having sex with a second woman; along with a nude photo of Hatchel he had taken of her the night before she died.
--The photo of Hatchel was sent about 1:30 p.m. on the date of her death, the suit says.
--Hatchel was "assaulted and battered" between Aug. 18 and Aug. 29, 2007, and sustained bruises and abrasions including a black eye.
--The condominium where Hatchel died was leased by Scheetz and Morgans Hotel Group and was used for entertaining guests of the defendants and "for the hedonistic lifestyle of Scheetz, which said lifestyle was in the course and scope of his employment as chief executive officer of Morgans Hotel Group" and that the premises were used for supplying controlled substances including cocaine.
The lawsuit seeks $645 million in general and punitive damages.
"As a result of the wrongful acts of the defendants ... as part of a civil conspiracy or otherwise as alleged herein to establish liability in defendants ... by importing, transporting, selling, exchanging, bartering, supplying, prescribing, dispensing, giving away or administering controlled substances including cocaine and oxycodone to the decedent Michelle Hatchel, defendants .. did proximately cause the wrongful death of the decedent Michelle Hatchel," the suit charges.
"As a direct and proximate result of the assault and battery of the decedent Michelle Hatchel, she suffered physical harm and injuries including bruises and abrasions about her face, arms and legs ... as well as mental distress, emotional harm, emotional distress, fear, apprehension of harm, mental anguish, fear, stress, and/or mental and emotional suffering and physical pain," the suit alleges.
As for the alleged role of Morgans and the Hard Rock in Hatchel's death, the suit charges:
"A part of the Hard Rock marketing’s strategy its target demographic patrons included hedonistic sexually permissive and promiscuous lifestyle which also included use of illegal and/or illegally obtained ... controlled substances including but not limited to cocaine and oxycodone and as CEO of said named corporate defendants, defendant Scheetz's own lifestyle ... was a living example of said Hard Rock image and all of his actions, inactions, and/or omissions herein were within the course and scope of his employment.
"Corporate defendants paid for and/or reimbursed defendant Scheetz for his illicit activities including those activities that occurred in the private jet or in the leased premises at Turnberry Place in Las Vegas and as such they are jointly and severally liable for the damages proximately caused by the defendants."
"Scheetz was an individual who lived a hedonistic lifestyle involving himself, with his employer’s full knowledge and consent, with multiple sexual partners, often at the same time, and the consistent and voluminous use and abuse of the controlled substance cocaine and the giving, providing, transporting, supplying and administering of cocaine and other controlled substances including oxycodone to others including to the decedent Michelle Hatchel," the suit alleges.
The lawsuit says Morgans and Scheetz in January 2007 had been sued by a female employee charging sexual harassment. It said Scheetz's lifestyle was well known by his peers.
"Morgans Hotel Group and all other named corporate defendants knew or in the exercise of reasonable and ordinary care should have known of the defendant Scheetz's hedonistic proclivities based upon common knowledge within said corporate network of his employers and also as a result of the lawsuit for sexual harassment filed against them," the plaintiffs allege.
It sounds like everyone involved is guilty of poor judgement. Whatever happened to common decency? And now someone wants money for this screwed up made-for-tv-movie plot?
If this true, these execs should be ashamed and found liable for corrupting someone so young and beautiful. I do not remember this death being in the news. She was only 23 and probably not exposed to these expensive hard drugs in CO.
100% Schmuck. His wife is no better. . .
$645 million? You gotta be f**king kidding me! So much for the idea of a grieving family losing a cherished family member! It's people like these gold-diggers that ruin the system for honest people! I hope they get squat!
The Hard Rock Corporation is in deep trouble if these allegations are true and the only way these companies will learn is the hard way by paying out settlements such as these. If Scheetz was using drugs on the premises of a residence paid for by his employer as the allegations state, Morgans Hotel Group is going to end up with a bad case of the "Scheetz" by the time this is settled. If this happened to my daughter I would nail them to the wall.
The hard rock should be found liable for the 645 million bucks, plus interest.
A sad story...if the Morgans Hotel Group and other top executives of the Hard Rock were well aware of his (Scheetz) conduct, this really puts the spotlight on the Gaming Control Board who is charged with the supervision of companies and executives in the Gaming Industry. How many times must Las Vegas get up off of the canvas? Not sure how many executives include "hedonism" as a job function!
If what the article says is true and the condo was co-leased by Morgans Hotel Group they will almost surely pay a huge settlement for this. The lawyers will follow the money and if they can't get it from Scheetz, Morgans Hotel Group will be the deep pockets they will persue.
The true hypocrisy of corporate America (and America) is evident in this and the recent story of the death of D.J. AM in New York. Both of these people were employed (directly and indirectly) by business with gaming licenses. Both of these business (Hard Rock & Palms) cater to a "hip" demographic. On one hand they want to "appear" to be hip and cool but on the other hand they prohibit their staff from engaging in any activities that make their guest, executives, owners and contracted help "hip & cool". This includes drug use, engaging the services of prostitutes and who knows what else...The Hypocrisy of this is so obvious that hopefully these places will pay huge cash (what they value most)in order to maintain the "veil" of legitimacy. If for one minute these people were held accountable to the same standards that they hold there front line staff to, they would not be able to survive. They could not pass the drug test for starters. This is part of a larger problem that plagues America. When America can wake up and look itself in the mirror and accept what it is, ,maybe then it can start to solve it's problems. Until then, it's going to be a rough ride. The chickens really are coming home to roost!!
That's a whopper of a lawsuit.
Who'd want to get served one of those?
Nobody, methinks.
If metro can get away with right out lies,why then cant these execs?Vegas is the most corruped city in the world!This city could have been anything it wanted to be,but greed took it all down.It will be just as dry as the lake is in just a matter of a few more years!LOST AND WASTED!
This is an abuse of the judicial system. It's a sad story and that's about all. The stockholders of this company have to start exercising some control over management.
Sounds like Hard Rock knowingly employs and enables a sexual predator.
Gee! Another story of a old wealthy pervert and another young gold digger gone bad.First off,was she introduced to these drugs in her past or by this old scumbag? Why would she be "intersted" in a man over twice her age? I think we all know the answer to that one? What's the average ages for the patrons of that Denver nightclub? Why was he there? I think we also know the answer to that one as well? Life is full of choices.No one forced her to make the choice she made.This kind of thing has happened before and will happen again and it happens all over America not just Vegas.If this creep and his scummy partners are proven without a doubt that they are guilty to these charges I hope this girls family takes every cent they can get from them as that is the only way you can get these elites to change the way they do things in the future. Just what is a life worth? 20 dollars or several million? I guess it only matters to lawyers.If the defendent was poor they would'nt even take the case but if "rich?" well that's worth it to them isn't it?
It makes sense to me that the corporation shares responsibility.
Surely they have a sexual harassment policy, so given that if this guy was out of control, someone from headquarters needed to have an idea what he was up to.
I don't want to be his judge and jury, but what in God's name was he thinking?
Plus, with deep pockets it makes perfect sense to pursue the corporation and in big amounts no less.
IMO, someone is going to pay dearly for this one.
I agree denro.If this idot's partners knew what this guy uses that condo for they are indeed going to pay dearly as they should.The lawyers are going to find everyone who ever partied in that condo to testify as to the things that occurred while they were there and the crap is going to hit the fan.These hotels have these policies concerning sexual harassment,drug use etc. in place by operating law of business.If the owners are proven to have known any breaches of these policies in the past and especially breaches that resulted in a death of a young woman by the behavior of a wealthy partner,they will lose badly in court.This is no doubt going to be a case where both sides will try to outlast the other financially.Then...a book will be published by some parasite soon after.This will probably be on tv soon to boost the ratings as well.The hyenas will be coming out from every rock on this one.
It does not matter if Scheetz's business partners had knowledge of illegal activity in the condo. Even if they truly did not know (highly unlikely) Morgans Hotel Group will pay the price for not having the diligence to monitor the behavior of their executives. This case makes me wish I had become a lawyer.
All she had to do was say "no"! But this little skank wanted the rich wild life and chose to put herself in the situation of being around sleezey individuals. Her death, sad though it may be is largely her responsibility. All involved should do time.
I met this young lady one time. She was a friend of a friend. She seemed very sweet and for those that thought she was a "skank", well definately not true. Did you all not see the picture of "Scheetz"? The poor guy couldn't get a "date" on his looks. What a great guy he is, should have partnered up with Dr. Murray for a good time to be had by all. Justice always prevails, now or later.
melbedewy-please be respectful of the dead-she's no skank- she's someone's daughter, sister, and/or friend.