Jury Sides With Newton in Casino Lawsuit

12/23/2003 9:47 AM, AP


A federal jury has ruled in favor of singer Wayne Newton and his corporate production company in a civil case brought by a Mississippi-based casino.

The Isle of Capri Casinos Inc. lawsuit sought almost $20 million from Newton and Erin Miel Inc. for an alleged breach of a joint venture relationship and promissory estoppel.

The claim stems from a law that enables a party to seek recovery for a reasonable reliance on a promise made that affects its survival — in this case, the survival of Isle of Capri in Tunica.

In its complaint, the casino claimed it had entered into a verbal agreement with Newton in March 1999 to develop theaters at the corporation's casinos across the country where he would regularly perform. The first theaters were then built at the new Isle of Capri in Tunica with plans to use Newton's name in marketing.

Attorneys for Newton and EMI argued the singer had never entered into any such joint venture, and the notion that Isle of Capri could rely solely on Newton's name to invest in the Tunica market was not reasonable.

Newton's attorneys claimed negotiations ceased once Newton became a full-time performer in Las Vegas, where he currently resides.

John Dunbar, an Isle of Capri attorney, said Newton made an agreement with the casino but later pulled out while the theaters were under construction to take a better offer in Las Vegas.

The Isle of Capri in Tunica soon went under and was forced to close.

Terms of the agreement included using Newton's name in marketing of the new theaters, performing regularly at Isle of Capri locations and avoiding any performances within two miles of any Isle of Capri casino.

Newton's current employer, Boyd Gaming Corporation, now owns The Isle of Capri's former location in Tunica and was originally named in the lawsuit. It was removed from the case earlier this year.

A fraud claim against Newton and EMI was dismissed during the trial, which was held in Oxford earlier this month.