Mohegan Sun sues Picknelly
Date: 2/14/2013
By G. Michael Dobbs
news@thereminder.comSPRINGFIELD — One side said it would allow the court to decide whether or not Peter Picknelly is still legally part of the Mohegan Sun casino development in Palmer, while the other calls the lawsuit "meritless."
Stephen Spelman, the attorney representing Northeast Gaming, the firm in partnership with the casino company in Palmer, explained to
Reminder Publications that Picknelly and his attorney would have 20 days to respond to the suit.
Picknelly, who has identified himself as a "50-50" partner with Penn National Gaming in the casino developer's Springfield proposal, first was part of the effort to bring a casino to Palmer with his involvement beginning in 2008.
The owner of Peter Pan Bus Lines has since assigned his profit sharing in the Mohegan Sun project to his business associate Malcolm Getz, a move that Northeast Gaming has contested.
At stake are both projects as state law prohibits one person to be involved in more than one casino. Kevin Kennedy, the city of Springfield's chief development officer, has said in the past the city would allow the Massachusetts Gaming Commission to determine how this would affect the viability of the Penn casino application.
"We are very eager to get these facts in front of a jury," Spelman said.
Court documents filed by Spelman allege that Picknelly bought into the Palmer casino development with $500,000 and in return would receive 3 percent of the net revenues from "the development of gaming, retail and entertainment opportunities within Palmer."
Picknelly would get his investment back if the project does not receive the casino license.
Although the document states the Picknelly was enthusiastic about the Palmer location it reported that on Dec. 7, 2011 Picknelly met with Leon Dragone from Northeast Gaming and told him of his intentions to be part of the Penn project in Springfield. In exchange for being released from his obligation from Northeast, Picknelly allegedly offered Dragone "an interest in his Springfield joint venture, which [would] not be publically disclosed."
The suit continued, "Mr. Picknelly's offer of a silent or hidden interest sought to engage Mr. Dragone in conduct prohibited by the recently enacted Massachusetts gaming legislation. Mr. Dragone refused to accept Mr. Picknelly's offer of the undisclosed interest in the Springfield casino venture. Mr. Dragone refused to release Mr. Picknelly from his obligations to Northeast Gaming."
Spelman said the hope of the legal action, if successful, would be to set up a trust fund that would collect any funds Picknelly would receive from the Penn Springfield casino, if it is built, that would distribute the money to his partners in the Palmer casino.
In response, Picknelly's attorney, Paul Maleck said, "The judicial process will take care of itself."
