A business deal among friends that fell apart could be headed to court.
The Corrigan family, which owns four Roadrunner Saloons, has filed a breach-of-contract lawsuit through their business interests in Clark County District Court against Blake Sartini’s Golden Tavern Group after an agreement to buy the four locations fell through.
According to the lawsuit, Sartini used his friendship to ask the Corrigans to not put the four properties on the market or entertain other offers, tried to reduce the agreed-upon price using self-created delays and then refused to close the deal.
Sartini’s actions crippled the business and performance of the Roadrunner locations, the lawsuit said.
Golden Tavern’s attorney described the lawsuit as being “without merit.”
“We have reviewed the complaint and find it factually inaccurate, and without merit,” Golden Tavern general counsel Amy Sances said. “We will defend the lawsuit and our reputation vigorously.”
Golden Tavern is a wholly owned subsidiary of Golden Gaming Inc. that operates and owns taverns in the Las Vegas under the PT’s and Sierra Gold brands.
The company entered agreements on April 22, 2008, which were amended the following month, to acquire the Roadrunners — West Flamingo Road west of the Las Vegas Beltway for $2.4 million, Centennial Center Boulevard and Azure Drive near the U.S. Highway 95 and Beltway interchange for
$3.2 million, Eastern Avenue and Pebble Road north of the Beltway in Henderson for
$2.5 million and on North Buffalo Drive north of the Summerlin Parkway $2.3 million.
Another subsidiary of Golden Gaming agreed to acquire the real estate and improvements associated with three of the locations.
The lawsuit is asking for damages to include the difference between the agreed-upon purchase price and the locations’ current value.
The lawsuit alleges Sartini used “self-created delays as a device to attempt to lower the assets’ purchase price,” but did not explain what the delays were.
The Roadrunners’ business and performance was crippled because suppliers restricted credit and terms because of the uncertainty of the Roadrunners’ future, key employees left taking regular customers with them, the lawsuit alleges.
At one point, Mike Corrigan Sr. called Sartini, according to the lawsuit, demanding to know whether Golden Tavern was going to close the purchase.
Sartini assured Corrigan the transaction would close, but shortly thereafter sent a termination of the agreements.
“In the end, it was clear that (Golden Tavern) had entered into the (sale) agreements,” the lawsuit said. “Did so in such a manner ... that (the Roadrunners’) performance would be impeded and prolonged in order that (Golden Tavern) could take advantage of the economic conditions affecting the market.”
Golden Gaming was approved for a restricted gaming license for the four Roadrunner locations in December.
Sartini is a former executive of Station Casinos, and is the brother-in-law of Station Chairman and Chief Executive Frank Fertitta III.
Contact reporter Arnold M. Knightly at email@example.com or 702-477-3893.