CARSON CITY, Nev. (AP) - Opponents of a Sparks casino project
backed by developer Harvey Whittemore urged the Nevada Supreme
Court on Wednesday to erase a controversial settlement that allowed
the project to move forward.

The case, described by Chief Justice Jim Hardesty as a legal
"quagmire," involves a lawsuit filed by John Ascuaga's Nugget and
17 citizens who say the settlement allowed the city of Sparks and
Whittemore's Red Hawk Land Co. to circumvent zoning regulations.

The Sparks City Council voted 3-2 against the Lazy 8 project in mid-2006, prompting developers to file a $100 million-plus lawsuit. The city quickly settled the lawsuit - first in a secret meeting and later during a public session.

While the resort still hasn't been built, the city's action effectively let Whittemore and Peppermill Casinos keep the project alive.

Stephen Peek, the attorney for the Nugget and the citizens opposing the project, argued that Sparks officials acted in an "arbitrary and capricious" manner in letting the project proceed, ignoring master plan requirements for land-use changes.

The settlement was endorsed by Washoe District Judge Brent Adams, but Peek argued that he wasn't attacking Adams' action and instead wanted a reinstatement of the council's original 3-2 vote against the project.

Dan Hayward, representing the Sparks City Council, said the city acted properly and the opponents didn't by trying to ignore Adams' decision and bring a challenge before another Washoe District judge, Jerome Polaha.

Whittemore attorney Leif Reid said the casino opponents were "forum-shopping" when they brought the case to Polaha's court, and didn't follow the correct legal process for intervening in the dispute.

Adams' approval of the settlement "is more than a piece of paper. It is the law of the case," Reid added.

Peek said the project proponents were trying "to hide behind the cloak of judicial authority" by focusing on Adams' action, and were wrong to insist he's trying to vacate that order - even though that would be the result if the Supreme Court ruled in his favor.

The high court took the case under advisement and will rule at a later date. It's one of two cases involving the Lazy 8 project now before the court. A third legal action involving the project is pending in Washoe County District Court.

The other Supreme Court case involves an appeal by the city of Sparks of a lower court ruling that Councilman Mike Carrigan should have abstained from voting on the casino project. In that case, the judge said there was an appearance of a conflict of interest.

Carrigan is a longtime friend of Carlos Vasquez, a Red Hawk Land Co. representative. Vasquez also served as Carrigan's campaign manager.

(Copyright 2009 by The Associated Press. All Rights Reserved.)