Harrah's Vicksburg Corp. v. Pennebaker

812 So. 2d 163, 2001 WL 1336452
CourtMississippi Supreme Court
DecidedOctober 31, 2001
Docket2000-CA-00583-SCT
StatusPublished
Cited by43 cases

This text of 812 So. 2d 163 (Harrah's Vicksburg Corp. v. Pennebaker) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrah's Vicksburg Corp. v. Pennebaker, 812 So. 2d 163, 2001 WL 1336452 (Mich. 2001).

Opinion

812 So.2d 163 (2001)

HARRAH'S VICKSBURG CORPORATION, A Nevada Corporation and Ameristar Casinos Inc., A Nevada Corporation
v.
E.L. PENNEBAKER, Jr., James Belisle, Multi Gaming Management, Inc., A Minnesota Corporation and Multi Gaming Management of Mississippi, Inc., A Mississippi Corporation.

No. 2000-CA-00583-SCT.

Supreme Court of Mississippi.

October 31, 2001.
Rehearing Denied February 7, 2002.

*164 Neville H. Boschert, R. David Kaufman, Jackson, Attorneys for Appellants.

William E. Spell, Clinton, Wayne Dowdy, Attorney for Appellees.

Before McRAE, P.J., MILLS and WALLER, JJ.

MILLS, J., for the Court:

¶ 1. On February 27, 1998, E.L. Pennebaker, Jr. (Pennebaker) and James F. Belisle (Belisle), Multi Gaming Management, *165 Inc. (MGM) and Multi Gaming Management of Mississippi, Inc. (MGM of MS) filed an amended complaint against Harrah's Vicksburg Corporation (Harrah's), Ameristar Casinos, Inc. (Ameristar), Riverboat Corporation of Mississippi Vicksburg (Isle of Capri) and Deposit Guaranty National Bank (Deposit Guaranty) alleging that they conspired to oppose and defeat a proposal by Horseshoe Gaming, Inc. (Horseshoe) seeking approval of the Mississippi Gaming Commission (MGC) to build a casino and automobile racetrack project on the Big Black River in Warren County approximately fifteen miles east of Vicksburg. Pennebaker and the others asserted that the casinos and the bank violated Mississippi gaming statutes and antitrust laws, tortiously interfered with contracts between them and Horseshoe, and illegally conspired to defeat the Horseshoe application pending before the MGC. The defendants filed motions for summary judgment which were subsequently denied. The trial court did, however, grant summary judgment for the defendants with the plaintiffs' consent on the plaintiffs' fraud claim. Prior to trial, Isle of Capri reached a settlement with the plaintiffs and was dismissed as a defendant.

¶ 2. A jury trial was held October 18, 1999, through October 27, 1999. Prior to the case going to the jury, the plaintiffs agreed that the claims of Belisle, MGM of MS, and MGM should be made as one claim with MGM as the plaintiff. The jury returned a verdict in favor of Pennebaker for $1,042,000 and for MGM in the amount of $2,950,000 for restraint of trade, conspiracy, and tortious interference with contract. Taking into account the Isle of Capri settlement, the court entered final judgment in favor of Pennebaker for $942,000 and MGM for $2,850,000. All post-trial motions for judgment notwithstanding the verdict or, in the alternative, for new trial, were denied. The defendants timely perfected this appeal. After filing the appeal, Deposit Guaranty settled with the plaintiffs, and this Court entered an order dismissing the bank as an appellant. Only Harrah's and Ameristar are appellants in this appeal.

FACTS

Background

¶ 3. In 1990, the Mississippi Legislature legalized gaming along the shores of the Gulf Coast and along the Mississippi River. See Miss.Code Ann. § 97-33-1(a), (b) (2000). "More specifically, in the river counties, the Mississippi Code authorizes gaming `[o]n a vessel as defined in § 27-109-1 whenever such vessel is on the Mississippi River or navigable waters within any county bordering on the Mississippi River, and in which the registered voters of the county in which the port is located have not voted to prohibit such betting, gaming, or wagering on vessels as provided in § 19-3-79.'" Miss. Casino Operators Ass'n v. Miss. Gaming Comm'n, 654 So.2d 892, 893-94 (Miss.1995) (quoting Miss. Code Ann. § 97-33-1(b)) (emphasis in original).

¶ 4. The legislature established the Mississippi Gaming Commission to regulate the development and operation of gaming in this state. Miss.Code Ann. § 75-76-1 to -34 (2000). "The legislature delegated broad powers to the MGC for handling the development of gaming in Mississippi." Casino Magic Corp. v. Ladner, 666 So.2d 452, 459 (Miss.1995). The Gaming Control Act has vested the MGC with the authority to determine the locations of casinos in Mississippi. See Miss. Casino Operators Ass'n, 654 So.2d at 894. The MGC has the express authority to make the final decision on findings of site suitability as well as other financial and character suitability *166 factors required for a gaming license in Mississippi. Ladner, 666 So.2d at 459.

¶ 5. The MGC is charged with the authority and responsibility to promulgate regulations "as it may deem necessary or desirable in the public interest in carrying out the policy and provisions of [the Act]." Miss.Code Ann. § 75-76-33(1). The MGC also has the authority to make appropriate investigations both to determine whether there has been a violation of the act or of any regulations adopted under the act and "to determine any facts, conditions, practices, or matters which it may deem necessary or proper to aid in the enforcement of any such law or regulation." Id. § 75-76-103(1)(a), (b).

Gaming in Warren County

¶ 6. The City of Vicksburg is located within Warren County on the Mississippi River. The residents of Warren County have voted pursuant to Miss.Code Ann. § 19-3-79 to allow riverboat gaming in that county. The Mississippi Legislature has not authorized gaming in Hinds County which adjoins Warren County.

¶ 7. The MGC has licensed four casinos to operate in Vicksburg. These are Harrah's, Ameristar, Isle of Capri, and Rainbow. None of these casinos has ever opposed the licensing of additional casinos in Vicksburg.

¶ 8. In 1993, MGM sought to develop a casino and automobile racetrack near Redwood, Mississippi, on the Yazoo River in Warren County, ten miles north of Vicksburg. The MGC granted MGM's initial application for preliminary approval of the Redwood site. MGM defaulted on its payments for the options to buy the Redwood site, however; and the landowners sued for payment or rescission of the options. MGM settled with the landowners and set out to find another location for its proposed casino and race track.

The Big Black River Proposal

¶ 9. The Big Black River forms the boundary between Warren County and Hinds County. Warren County lies generally to the west of the river and Hinds County to the east; however, less than a mile south of the Interstate 20 intersection with the Big Black River, the river turns and runs east/west for approximately four miles, roughly parallel to the interstate with Warren County to the north and Hinds County to the south. The "Flowers" exit, or Exit 15, is the only exit on Interstate 20 along this four-mile stretch of the river.

¶ 10. In April 1996, MGM acquired options to buy a piece of property on this four-mile stretch of the Big Black, running from the river to the interstate just west of the Flowers exit. This area was known as the "Henry" property. MGM filed an application with the MGC for approval of this property as a legal and suitable site for gaming.

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Bluebook (online)
812 So. 2d 163, 2001 WL 1336452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrahs-vicksburg-corp-v-pennebaker-miss-2001.