|By Donald Wittkowski, The Press of
Atlantic City, Pleasantville, N.J.McClatchy-Tribune Regional News
July 15, 2011--ATLANTIC CITY -- Avoiding a drawn-out legal fight, the current and former owners of Resorts Casino Hotel have reached a settlement of their lawsuits over millions of dollars in cash and gaming credits.
Attorneys representing both sides said terms were confidential. They declined to comment further other than to say the settlement was reached with the help of a court mediator.
Both sides had clashed over money from the casino's cash cage, as well as payments for employee wages, health care costs and withholding taxes. In addition, they fought over Casino Reinvestment Development Authority funds and promotional gaming credits that were part of a subsidy agreement between the Atlantic City casino industry and New Jersey's horseracing tracks.
The litigation began when Resorts International Hotel Inc., the casino's former owner, filed a Superior Court lawsuit in December seeking nearly $5 million from a group of lenders and the casino's current owner, DGMB Casino LLC. DGMB responded with a countersuit against Resorts International.
DGMB is an acronym for co-owners Dennis Gomes and Morris Bailey. Also named as a defendant in Resorts International's suit was RAC Atlantic City Holdings LLC, a group of lenders that took control of the casino in 2009 after it defaulted on its $360 million mortgage. RAC sold Resorts to Gomes and Bailey in December for $31.5 million.
Judge William C. Todd III, who was overseeing the litigation, warned in January that the complexities of the case likely would have led to a marathon court fight unless there was a settlement. A management conference had been scheduled July 27 before Todd, but lawyers disclosed Thursday that the suits would be dropped.
"The matter has been settled and the terms are confidential," said Nicholas F. Moles, general counsel for DGMB.
Gilbert L. Brooks, an attorney for Resorts International, said the settlement was tentative at this point because the terms still had to be put in writing.
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