Casino files suit against resident

Published 12:06 am Tuesday, April 10, 2012

NATCHEZ — Roth Hill casino developers have filed a $50 million lawsuit against a Natchez resident who recently filed an appeal to the Natchez Board of Aldermen’s approval of a third amendment to the city’s lease with the developers.

Natchez Casino OpCo LLC, formerly Natchez Gaming Enterprises LLC, alleges in the suit that resident Neil Varnell filed a “meritless appeal to delay and cloud the legal certainty of the lease sufficiently to make it difficult, if not impossible, for Natchez OpCo to obtain (a) clear title to the Roth Hill site,” according to court documents.

Attorneys for Natchez OpCo and Varnell appeared in front of Judge Forrest “Al” Johnson in Adams County Circuit Court Monday in a hearing for a motion for expedited discovery filed by Natchez OpCo.

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Varnell’s appeal was filed against the City of Natchez in Adams County Chancery Court in February. It is an appeal on the record, meaning a judge reviews the facts of the case by what is reflected in the record and the objections of each party through bills of exception.

Natchez OpCo attorney Neville H. Boschert of the Jones Walker firm in Jackson said at the hearing that Varnell’s failure to timely file a bill of exception was an effort to delay the appeal process and kill the casino project. The bill must be given to the city and signed by the mayor before it is filed.

Boschert said that Natchez OpCo must show a clear title to the site in order to obtain permanent financing from the casino’s investors.

“We believe we have a clear title, but this appeal is just clouding it,” he said.

Boschert said Varnell had no right to even file the appeal, which he said has no merit, and said Varnell is only doing so to try to stop the casino, as he said Varnell did when Varnell and resident Gwen Ball filed an appeal against the sale of the former pecan factory site to condominium developers. The appeal was eventually denied by the Mississippi Supreme Court.

“They lost the battle but won the war because the condo project did not happen,” he said.

After the appeal, condo developers failed to receive a permit from the Mississippi Department of Archives and History to continue with the project.

Legally Natchez OpCo cannot intervene in the appeal filed by Varnell because it is not an aggrieved party, but Boschert said Natchez OpCo is being damaged by Varnell’s appeal. The company is seeking $50 million in damages and asking the court to either dismiss the appeal or enter a preliminary or permanent injunction ordering Varnell to show why the appeal should not be dismissed for lack of standing.

Boschert said a lengthy appeal process may cause the casino project to lose its funding and requested an expedited two-week discovery period instead of the 30-day period set by law.

Varnell’s attorney, Wilson Carroll, said Natchez OpCo filed the lawsuit against Varnell in attempt to indirectly interfere with Varnell’s appeal.