High court upholds decision to throw out company's libel suit

THE ASSOCIATED PRESS

CARSON CITY - The Nevada Supreme Court on Friday upheld a lower court's decision to throw out a libel suit Sahara Gaming Corp. brought against the Culinary Union.

Sahara Gaming, now called the Santa Fe Gaming Corp., filed the suit after a letter sent by the union scuttled a casino development and property deal in 1995.

In the letter sent to Players International Inc., union Secretary-Treasurer Jim Arnold quoted a statement in a lawsuit filed by an executive with a Mississippi gaming company called Treasure Bay Gaming and Resorts Inc., against Sahara and its chairman and chief executive officer, Paul Lowden.

The statement by Francis L. Miller, the founder and former chairman and chief executive officer of Treasure Bay, accused Sahara and Lowden of failing to live up to their part of a deal to manage the Treasure Bay casinos. The casinos filed for bankruptcy protection eight months after opening.

Two weeks after Arnold sent the letter, Players International canceled its agreement with Sahara.

Sahara sued, claiming parts of the letter were libelous. District Judge Donald Mosley threw out the libel suit, finding that the statements in the letter were accurately copied from a lawsuit. Sahara then appealed to the high court.

"I felt sure we were right all along," Arnold said Friday.

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