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Pauma wins lawsuit against Harrah's

SAN DIEGO, California – (PRESS RELEASE) -- Today a San Diego jury of eight men and four women found that in 2004 Harrah's intentionally interfered with a proposed $300 million hotel/casino project between Caesars Entertainment and the Pauma Band of Luiseno Mission Indians of the Pauma Yuima Reservation, which is located in North San Diego County. The Pauma Tribe was awarded $30 million in damages as a consequence of the intentional interference.

At trial, the Pauma Tribe alleged that it entered a deal with Caesars Entertainment in June 2004 to build a $300 million Caesars resort hotel/casino on Pauma's North San Diego County reservation. On July 14, 2004 the proposed $9.5 billion merger between Harrah's and Caesars was announced. Because Harrah's operated a competing casino on the adjoining Rincon reservation, there was a conflict in Harrah's operating both the Rincon resort and the Pauma project. Pauma alleged that because of these conflicts, Harrah's took steps to interfere with the Pauma deal with Caesars. Pauma alleged that Harrah's and Caesars took steps to kill the Pauma deal to avoid suit by Rincon. Plaintiff Pauma alleged, and the jury agreed, that Harrah's conduct was intended to and did ultimately stop the Caesars Pauma Project from being built, and that the Pauma Tribe suffered lost profits and added costs totaling $30 million.

The Tribe was represented by Dennis Stewart and Kirk Hulett of Hulett Harper Stewart LLP, San Diego, California. Harrah's was represented by Roger Magnuson of Dorsey & Whitney LLP, Minneapolis, Minnesota.

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