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Court Rejects Harrah's Motion to Dismiss

LAS VEGAS-The US District Court for the Northern District of New York denies a motion to dismiss a $1.8-billion judgment enforcement action commenced against Harrah's in June 2007.

By Brian K. Miller | Updated on December 05, 2007

LAS VEGAS-The US District Court for the Northern District of New York this week denied a motion by Harrah’s Operating Co. Inc. to dismiss a $1.78-billion judgment enforcement action commenced by the Catskill Litigation Trust against Harrah’s in June 2007 on behalf of the St. Regis Mohawk Tribe. With interest and other costs, the amount owed stands at nearly $3 billion, according to the Tribal Court, which issued the original judgment. In its most recent quarterly report Harrah’s states that the lawsuit is “without merit.”

The lawsuit by the Catskill Litigation Trust seeks to collect the money under class action judgments of the St. Regis Mohawk Tribal Court issued in March 2001 for $1.78 billion against Caesars Entertainment, which Harrah’s acquired in 2005. In 2003, US District Court for the Northern District of New York dismissed litigation concerning the validity of the judgment because a settlement was in the works but retained jurisdiction to reopen the litigation if the settlement didn’t occur.

In June 2007, on behalf of the St. Regis Mohawk Tribe, the Catskill Litigation Trust filed a lawsuit to have the judgment enforced with interest, which the Tribal Court says amounts to $1 billion as of July 2007, bringing the total amount it says is owed to nearly $3 billion. Harrah’s filed the motion to dismiss the case on Aug. 13.

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