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Madison House of Atlantic City may reopen following settled lawsuit

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An ongoing lawsuit between the owners of the Madison House Group and its tenants has ended and now plans for a reopening are being considered for its hotel in Atlantic City, New Jersey, The Associated Press reports.

After buying the Sands Casino Hotel in 2006, Pinnacle acquired a lease with Madison House in which the contract involved paying $2 million per year to the hotel through 2012. However, the casino closed down the same year, as well as the Madison House hotel, the news source explains.

In 2008, Madison House Group filed a lawsuit against Pinnacle Entertainment for allegedly purposefully allowing its hotel to wither in value in order to acquire it cheaply while it was on its path to ultimately fail, according to the news source

Pinnacle's management consultants may have relied on errors and omissions insurance to cover legal fees through the process, but the dollar figure of the settlement wasn't revealed. The recent redevelopment of the hotel may suggest that Pinnacle's settlement involved covering the costs for the hotel's reopening. Officials made little comment, AP says.

"We are still operating under a lease agreement there at the Madison House. Really that is all we have to say on the matter at this time," Kerry Andersen, spokesperson for Pinnacle, said in a statement, according to AP.  

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