A piece of good news is finally coming Starnet's way. An ex parte order and Mareva injunction filed by former licensee Las Vegas Casino Inc. was set aside Friday, stopping LVC's hold against Starnet's use of its Vancouver bank accounts. LVC tried to stay the judgement later the same day, but was refused.
You may remember that Starnet has had a few troubles this year with Las Vegas Casino. Unhappy with being dropped as a licensee, LVC filed suit seeking $1 billion in damages for loss of revenues and claimed Starnet's software was defective. LVC's Claude Levy also claimed that Starnet should have paid him $15 million, instead of the $3 million he had already received. Starnet says it dropped LVC after falling $203,416.98 US in arrears.
Meldon Ellis, general counsel for Starnet, said, "This should bring to a definitive close the order and injunction granted Las Vegas Casino Inc. and puts in serious question Las Vegas Casino's additional allegations and overall credibility. While Las Vegas Casino Inc. may continue to pursue the Writ and Statement of Claim it has filed, Judge Williamson referred to Las Vegas Casino's claim as 'fanciful', tearing at the heart of the alleged one billion dollar lawsuit of Las Vegas Casino Inc. against Starnet."
In his judgement, Justice Williamson of the Supreme Court of British Columbia wrote, "It is unlikely that a sophisticated businessman, in receipt of monthly statements, would suddenly believe that he was entitled to some $15 million American dollars rather than $3 million American dollars."
"While there is some evidence of difficulties, there is nothing that would suggest damages in an amount approaching one billion dollars, " he added. "Indeed, while I make no comment on what might be offered at trial, on the evidence before me, despite the extravagant profits apparently available to those who offer internet gambling, there is nothing that would indicate a quantum of damages approaching that figure. It appears to be fanciful."
Looking ahead, Ellis commented, "We fully intend to continue pursuing our defamation suit against Las Vegas Casino Inc. and our appeal of the decision freezing two of our bank accounts in Vancouver. We have every confidence that our positions will be upheld in these matters." When the Canadian authorities raided Starnet offices earlier this year, they froze two accounts. According to Ellis, LVC attempted to piggyback their claims against the Starnet accounts.
Not everything is looking rosy for Starnet yet, as a class action suit was filed against the company in Delaware (see related story). Additionally, there is no word on whether any charges will be forthcoming following Canadian authorities' investigation of Starnet.
Click here to view a copy of the Supreme Court Judgement.