Industry

Japanese Casino Tycoon Ordered To Pay U.S Legal Firm $50m Fee

Summary

  • US court asks Kazuo Okada to pay $50 million fee
  • Fee must be paid to his former legal representative Bartlit Beck LLP
  • Dispute occurred over lawsuit against Wynn Resorts

A three-judge panel of the U.S. Court of Appeals for the Seventh Circuit ruled unanimously that Japanese casino tycoon and a billionaire Kazuo Okada should pay $50 million to law firm Bartlit Beck LLP for its services. Bartlit Beck had represented Okada against casino group Wynn Resorts Ltd in a 2012 dispute. After the case was settled in 2018, Okada reneged on the fee payment.

Okada Had No Intention to Attend 2019 Proceedings

The firm’s association with Okada goes back to a legal dispute with Wynn Resorts, popularly known as the Aruze USA dispute. In 2012, Okada was ejected from the Wynn Resorts’ board as the casino operator cited that the former was unsuitable and was a significant risk to its licences. Okada had held the largest stake in Wynn via Aruze USA Inc., a subsidiary of his company, Universal Entertainment Corp, which the group had voted to cancel. Wynn had also sent a promissory note to Okada for approximately $1.9 billion.

A legal battle followed, where Okada, represented by Bartlit Beck, appealed against the unilateral redemption of shares of several billion dollars by Wynn Resorts. The case was settled in 2018 when Wynn had agreed to pay Okada $2.4 billion as a settlement. However, upon settlement, Okada denied Bartlit Beck its agreed fee.

The dispute over attorney fees had been presented before a panel in 2018. Okada participated in the process but stopped just before a crucial hearing. The panel awarded Bartlit Beck their compensation by default. The firm then appealed to the federal court to confirm the award by the arbitration panel. The recent judgement favoured Bartlit Beck again and overruled Okada’s objection to the 2019 judgement on the grounds of unfairness because it did not consider his absence due to a medical emergency.

The court stated that Okada had no intention to participate in the arbitration after analysing pertinent email correspondence. The panel did not entertain Okada’s claims of being sick and his inability to attend the proceedings in Chicago, Illinois. Bartlit Beck now claims that, upon adding interest, Okada owes it around $63 million.

Wynn Paid $2.4 Billion as Settlement to End Aruze Dispute

Wynn had paid $1.94 billion principal amount of the redemption note issued to Okada and $463.6 million as an interest to end the legal dispute. Okada owned Universal Entertainment had claimed that it was entitled to $4.5 billion as reparations. Wynn’s statement did not only silence any further commotion over the settlement amount but also stated that Aruze would not assert any claims under the revised stockholders’ agreement.

Carolyn Dutton

Carolyn is our legislation expert, with a background in law she is able to cover the current state of gambling around the world

Share
Published by
Carolyn Dutton

Recent Posts

Architects Discuss the Latest Casino Design Trends at the IGA Tradeshow

Summary: Architects have discussed the latest technologies and trends in casino design at the IGA…

3 weeks ago

The 2024 IGA Tradeshow in Anaheim Was a Success

Summary: The Indian Gaming Association Tradeshow & Convention has come to an end on Thursday.…

3 weeks ago

Fontainebleau Las Vegas Appoints Four New Critical Execs

Summary: Fontainebleau Las Vegas has announced the appointment of four new executives. The new execs…

4 weeks ago

Boyd Gaming Presents Renovation Plans for Suncoast Hotel & Casino

Summary: Boyd Gaming has offered details of the major renovation plan aimed at Suncoast Hotel…

2 months ago

North Carolina Casinos Enjoy Support from Over 1 in 2 Residents

According to a poll contracted by NBC affiliate WRAL News in Raleigh, the people of…

2 months ago

Missouri Rep Introduces Measure Covering Gaming Machines

Summary: House Bill 2835 will legalize and regulate the machines. Businesses would be limited to…

2 months ago