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Partnership disputes suit over casino expansion settled

When Florida investors team up to work together on a large-scale project, a range of complications can occur. In many cases, these disputes lead to litigation between parties, which can put the project at the center of the dispute on hold. This was the case with a recent lawsuit involving issues of partnership disputes over expansion plans for a large gaming establishment known as the SugarHouse Casino.

The dispute arose over terms of a partnership between local investors and investors located in location different from that of the casino. The casino continued to operate during the course of the litigation, but expansion plans for the establishment were delayed. A $142 million expansion was set to add a parking garage, poker room, more gaming tables and as many as 800 additional slot machines.

Local investors argued that the expansion plan was not sufficiently ambitious. They felt that the terms of the existing partnership gave them the right to express a ‘supermajority’ vote on the matter. Investors in Chicago, however, disagreed. The two sides reached a settlement in late January. Details of the settlement have not been made available as of the time of this report, and it is unclear how the expansion plans will move forward.

As this case demonstrates, partnerships can experience difficulties, especially in regard to a large-scale project with a budget reaching nearly $150 million. While many partnership disputes can be resolved in the early stages, in some cases litigation is required to reach a solution. For members of a partnership who feel that a serious disagreement on terms is on the horizon, the best course of action is to determine one’s rights under Florida law.

Source:, “SugarHouse investors resolve dispute over business plans,” Jennifer Lin, Feb. 1, 2013


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