Arbitrator Delivers Casino Construction Ruling

An arbitrator has ruled that Casino Nova Scotia does not have to pay $10,000 per day as a result of a delay in completing the permanent Halifax Casino.

At issue was whether or not the casino owed the Nova Scotia Gaming Corp. $10,000 for every day past Sept. 15, 1999, that the permanent casino was not complete. The differing interpretations of the contract, between casino operator Metropolitan Entertainment Group and the gaming corporation, went to arbitration in January.

The arbitrator ruled that the $10,000-per-day contract clause is an unenforceable penalty, not an estimate of damages as argued by the gaming corporation.

"We are surprised and disappointed with the arbitrator's ruling," said Marie Mullally, president and CEO of the gaming corporation. "We had a strong legal case and think we were right to hold our casino operator to the contract."

"While we were not successful this time, back in January we were successful in the $21-million arbitration on the harmonized sales tax," said Ms. Mullally. "And even though we are not pleased with the late completion fee decision, we certainly respect the dispute resolution process and can now continue to focus on ensuring a successful casino opening."

The Nova Scotia Gaming Corp. is a Crown corporation responsible for the conduct and management of gaming in the province to maximize net revenue to Nova Scotia in a responsible manner. Its operations include lotteries, casinos and harness racing.