Astoria Entertainment, Inc. v. Edwards

159 F. Supp. 2d 303, 2001 U.S. Dist. LEXIS 13187, 2001 WL 965066
CourtDistrict Court, E.D. Louisiana
DecidedAugust 22, 2001
DocketCIV A 98-3359
StatusPublished
Cited by7 cases

This text of 159 F. Supp. 2d 303 (Astoria Entertainment, Inc. v. Edwards) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Astoria Entertainment, Inc. v. Edwards, 159 F. Supp. 2d 303, 2001 U.S. Dist. LEXIS 13187, 2001 WL 965066 (E.D. La. 2001).

Opinion

ORDER AND REASONS

DUVAL, District Judge.

Before the Court are Motions to Dismiss filed by the following defendants: (1) Edwin W. Edwards and Andrew Martin (rec. doc. 97); (2) Edward J. DeBartolo, Jr. (rec.doc. 83); (3) Stephen Edwards (rec. doc. 89); (4) Robert Guidry (rec.doc. 88); (5) Louisiana Gaming Enterprises, Inc. (“LGE”) and Boomtown, Inc. (collectively referred to as “Boomtown”)(ree.doc. 85); (6) Crown Group, Inc. (“Crown”) (rec.doc. 87); and (7) Boyd Kenner, Inc., Boyd Gaming Corporation, Boyd Louisiana, L.L.C. (“Boyd”) (rec.doc. 107) against plaintiff Astoria Entertainment, Inc. (“Astoria”). 1 The motions were set for hearing on June 20, 2001 and the Court entertained oral argument on all motions on July 11, 2001. The Court has heard the arguments of counsel and has considered the pleadings, memoranda and relevant law and finds for the reasons that follow.

I. Facts and Procedural Background

A. General Background

This litigation arises out of the riverboat gaming licensing process. Accordingly, a brief overview of the relevant gaming laws is a necessary backdrop to analyze plaintiffs allegations.

In 1991, the Louisiana Legislature enacted the Louisiana Riverboat Economic Development and Gaming Control Act (“the Act”), codified at Louisiana Revised Statutes 4:501-562. The law became effective July 18, 1991. 2 The Act proscribed the licensing process for those seeking to operate riverboat gambling casinos. Section 525 of the Act limited the maximum number of licenses to fifteen, with 6 being the maximum number of licenses issued in any one parish.

Parts II and III of the Act created two separate and distinct bodies within the Department of Public Safety and Corrections and vested each with separate duties and responsibilities in furtherance of the Act’s purposes. 3 See State Through Dept. of Public Safety and Corrections v. Louisiana Riverboat Gaming Commission and Horseshoe Entertainment, 94-1872 (La.5/22/95), 655 So.2d 292. Louisiana Revised Statutes 4:515 created the Gaming Enforcement Division, which was vested with regulatory and enforcement powers. The other body was referred to as the Riverboat Gaming Commission (“The Commission”). The Commission was “a rule and policy making body ... appointed by the governor and confirmed by the *308 Louisiana Senate.” Id. Pursuant to La. R.S. 4:511 the Commission was to promulgate rules to provide for and determine riverboat routes, minimum levels of insurance to be maintained by licensees, specifications for design, appearance, accommodations and constructions of riverboats, and other qualifications. The Commission was also given oversight authority with the power to “hear and determine all appeals relative to the granting, suspension, revocation, condition, or renewal of all licenses, permits and applications.” La. R.S. 4:511.

Under its rulemaking powers, the Commission required any prospective riverboat operator to apply to the Commission for a Certificate of Preliminary Approval (“CPA”). See La. Admin. Code 42:XIII.S03. 4 The first eight Certificates of Preliminary Approval were awarded in March of 1993. The second round, where the remaining seven certificates were awarded and from which most of the allegations in this litigation arise, took place on June 18, 1993. See Indictment at p. 3.

Astoria filed its original complaint on November 12, 1998. The Original One Count Complaint was premised solely on the defendants’ alleged violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C.1961 et seq., and sought civil damages under section 1964 of the statute. Named as RICO defendants in the original complaint were: Edwin Edwards, Edward DeBartolo, Jr., DeBartolo Entertainment Louisiana Gaming, Inc., Hollywood Casino Corp., Stephen Edwards, Andrew Martin, Cecil Brown, Bobby Johnson, Gregory Tarver, Robert Guidry, Treasure Chest Casino, L.L.C., Boyd Kenner,Inc., Louisiana Gaming Enterprises, Inc., Robert List, Hollywood Park, Inc., Sam Gilliam, Floyd Landry, Gia Kosmitis, Dr. Lewis James, Veronica Henry, and Barton Conradi.

On February 2, 1999, plaintiff voluntarily dismissed all defendants except Edwin Edwards, Edward DeBartolo, Stephen Edwards, Andrew Martin and Robert Guidry pursuant to Rule 41 of the Federal Rules of Civil Procedure (rec.doc. 29). On April 11, 1999, this matter was stayed pending the prosecution and conclusion of the criminal proceeding in the Middle District of Louisiana captioned United States v. Edwin Edwards, et al., Cr. No. 98-165B (see rec. doc. 55). The stay was lifted on February 23, 2001 (rec.doc.65), soon after the criminal convictions were returned and sentences imposed.

Astoria filed an amended complaint on March 6, 2001 (rec.doc. 68). In addition to the original RICO cause of action, the amended complaint asserts violations of the Sherman and Clayton Antitrust Acts (Count IV) against Edwin Edwards, Robert Guidry, and all defendants who received CPA’s on June 18, 1993, as well as several causes of action under Louisiana state law. In addition to the new causes of action, plaintiff named several new defendants, some of whom were previously dismissed, and limited the RICO allegations to Edwin Edwards, Andrew Martin, and Stephen Edwards. Added as defendants for non-RICO causes of action were Boyd Kenner, Inc., Boyd Gaming Corp., Boyd Louisiana, L.L.C., Crown Group, Inc., Louisiana Gaming Enterprises, Inc., Boomtown, Inc., Hollywood Park, Inc., Players International, Inc., Metro Riverboat Associates, Inc., Hilton Hotel *309 Corp., Park Place Entertainment Corp., and Coregis Insurance Company. The newly alleged state law claims are “Civil Conspiracy to Corrupt the Riverboat Gaming Licensing Process and to Eliminate Competition” (Count I), “Corruption of Riverboat Gaming Process” (Count II), “Violation of Louisiana Antitrust Laws” (Count V), “Violations of the Louisiana Unfair Trade Practices Act” (Count VI), and “Abuse of Privilege to Practice Law” (Count VII).

The focus of plaintiffs complaint is that it “would have received a Certificate of Preliminary Approval and ultimately a license in the absence of corruption.” Amended Complaint at ¶ 6. Describing what it perceived to be the practical role of the Certificate of Preliminary Approval, plaintiff alleges that “[e]ompetitors for a license first needed to obtain a Certificate of Preliminary Approval before applying to the State Police and undergoing a “suitability” inquiry.” Amended Complaint at ¶ 5. Astoria alleges that it did not receive a Certificate of Preliminary Approval (“CPA”) at the June 18, 1993 Louisiana Gaming Commission meeting even though its officials were told the company was well qualified.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Edwards v. Mashego
N.D. Alabama, 2020
Coll v. First American Title Insurance
642 F.3d 876 (Tenth Circuit, 2011)
Jebaco, Inc. v. Harrah's Operating Co., Inc.
587 F.3d 314 (Fifth Circuit, 2009)
ASTORIA ENTERTAINMENT, INC. v. DeBartolo
12 So. 3d 956 (Supreme Court of Louisiana, 2009)
ASTORIA ENTERTAINMENT, INC. v. DeBartolo
988 So. 2d 832 (Louisiana Court of Appeal, 2008)
Bradley v. Phillips Petroleum Co.
527 F. Supp. 2d 625 (S.D. Texas, 2007)
Love Terminal Partners v. City of Dallas, Tex.
527 F. Supp. 2d 538 (N.D. Texas, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
159 F. Supp. 2d 303, 2001 U.S. Dist. LEXIS 13187, 2001 WL 965066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astoria-entertainment-inc-v-edwards-laed-2001.