Hilton
Appeals $25.2 Million Judgment to Nevada High
Court
The state Supreme Court
was asked Tuesday to cancel a $25.2 million
jury award to Reno Hilton guests who became
violently ill during an intestinal virus outbreak
in 1996.
Attorney David Frederick argued that
Washoe District Court Judge Steven Elliott erred
in not defining "despicable conduct"
that would justify punitive damages. Lawyers
for people stricken by the gastrointestinal
virus said that conduct occurred when Reno Hilton
supervisors hindered ill employees from taking
sick leave.
Frederick also challenged Elliott's determination
that the damages should be paid by Park Place
Entertainment, which took over operation of
the Reno Hilton after the Norwalk virus outbreak
that caused more than 1,000 guests and employees
to suffer from severe diarrhea and vomiting.
The attorney said the Washoe County Health
Department urged the Reno Hilton to reconsider
any policies that resulted in employees coming
to work sick, and the resort's cooperation during
the crisis was "a long, long ways from
despicable conduct that warrants punitive damages."
Attorney John Echeverria, representing some
of the claimants in the case, countered that
jurors heard testimony about management practices
that had sick workers fearing they'd lose their
jobs. He also said the resort didn't go along
with the Health Department -- until the agency
threatened to shut down the property.
Echeverria added that Park Place, in acquiring
the Reno Hilton assets, also assumed its liabilities
-- and that includes the big punitive damage
award. The resort has since gone through further
ownership changes and is now part of Harrah's
Entertainment Inc. pending another sale.
The state Supreme Court took the arguments
under submission and will rule at a later date.
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