Rio’s $3 million jury award against Stewart overturned

SAN FRANCISCO -- A federal appeals court overturned the $3 million jury award a Las Vegas casino won from Rod Stewart over a canceled show.

The 9th Circuit U.S. Court of Appeals ruled that the singer was entitled to a new trial to sort out the details of his contract with the Rio hotel, where he was to perform.

The British rocker canceled the Dec. 30, 2000, show after undergoing throat surgery for thyroid cancer a month earlier. A jury found that Stewart wrongly kept a $2 million advance and a trial judge tacked on another $1.06 million in interest and attorney fees.

But the appeals court ruled Wednesday that another jury needs to evaluate the terms and validity of the contract between Stewart and the Rio.

Stewart maintains the contract allowed him to keep the advance and perform a makeup concert.

Stewart attorney Skip Miller said his client is still willing to perform at the Rio.

An attorney for the Rio didn't return a telephone call.