Palmer casino developer's suit against Springfield businessman Peter Picknelly tossed out by judge

By Jeanette DeForge, The RepublicanThe Republican
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on June 03, 2013

SPRINGFIELD – A Hampden Superior Court judge dismissed a suit filed against city businessman Peter Picknelly which alleged he improperly walked away from a partnership in a proposed Palmer casino to join with a competing gaming group working in Springfield.

Judge Bertha D. Josephson ruled that there was little evidence filed that showed there was a formal partnership, joint venture or contract between Picknelly and Northeast Gaming Group Inc. and dismissed the suit in late May.

“I can say she was a very good and thorough judge and she made the exact right decision and wrote it out in a clear fashion,” said Jeffrey E. Poindexter, one of the lawyers with Bulkley, Richardson and Gelinas who represented Picknelly.

The case, filed by Northeast Gaming Group Inc., which owns the land in Palmer where Mohegan Sun hopes to build a casino, alleged Picknelly had invested $500,000 in the Palmer venture in January 2008 and signed an agreement that would give him a return of that investment of 3 percent of the group’s net ventures from the development of the gaming, entertainment and retail complex. The agreement gave him a right to request a refund of his initial investment two years after the agreement.

In November 2011 he also began discussions to open a transportation center on an adjacent piece of the property if the casino opened.

But later Picknelly walked away from the deal and joined Penn National in a partnership and proposed building a casino in the North End of Springfield.

“Northeast is disappointed. We thought we had a good case,” said Stephen E. Spelman, the Springfield lawyer who represented Northeast Gaming Group.

He said there have been no immediate discussions on appealing the decision yet.

“The issue is moot given that Penn was not selected,” Spelman said.

He could not comment on whether that could change if the company proposed opening a casino in another location in the state, saying he only represented the company in the suit.

In April, Mayor Domenic J. Sarno selected MGM Resorts as the preferred casino developer in Springfield over the Penn National project. MGM wants to build a resort in the South End.

He could not comment on whether that could change if the company proposed opening a casino in another location, saying he only represented the company in the suit. Penn National completed an application and submitted a $400,000 fee to the state Gaming Commission to become an accepted developer and, under that, is eligible to propose opening a casino anywhere in the state.

In her decision, Josephson ruled there was no real partnership between Picknelly and Northeast Gaming therefore there was no breech of contract or breech of fiduciary duty as claimed in the suit.

“The agreement imposed no other obligations on Picknelly who invested the $500,000 and made an official request for a refund in 2012,” Josephson ruled.

http://www.masslive.com/news/index.ssf/2013/06/springfield_judge_dismisses_su.html

Picknelly lawsuit dismiss

Picknelly lawsuit dismissed

 

 

Updated: Monday, 03 Jun 2013, 5:11 PM EDT
Published : Monday, 03 Jun 2013, 3:18 PM EDT

• Ryan Walsh, 22News Investigative Reporter

SPRINGFIELD, Mass. (WWLP) - First on WWLP.com , Judge Bertha Josephson dismissed two lawsuits filed against Peter Picknelly and Penn National Gaming.

Northeast Gaming in Palmer believed Picknelly was still legally obligated to a $500,000 investment he made with their group in 2007. Northeast Gaming also claimed that Penn National Gaming played a role in Picknelly walking away from his investment in Palmer. Northeast Gaming owns the land Mohegan Sun wants to build on in Palmer.

Picknelly was a 50/50 partner with Penn National Gaming's proposed casino in Springfield. Springfield mayor Domenic Sarno has since selected MGM as the city's partner. In May, Picknelly told 22News that he would not work on another casino project outside of Springfield.

Judge Josephson heard the motion to dismiss the case in Hampden Superior Court on April 17th. She made her decision on Monday.

http://www.wwlp.com/dpp/news/i_team/picknelly-lawsuit-dismissed

 

Jilted Lover Pursues Picknelly

Picknelly jumped ship when he got a better offer.

Who can blame him?

Peter Picknelly Focal Point of Casino Lawsuit

April 17th, 2013

SPRINGFIELD, Mass. (WGGB) — Springfield businessman Peter Picknelly is the focal point of a lawsuit involving two casino developers.

Northeast Gaming which has ties to land in Palmer where Mohegan Sun wants to build a casino says Peter Picknelly has a deal with them.

In 2008, Picknelly invested $500,000 in the Palmer group’s venture.

Picknelly has since partnered up with Penn National to build a casino in Springfield’s North End.
Picknelly says he broke off all ties with the Palmer group, but they say no, that Picknelly is still bound legally to Palmer.

“Mr. Picknelly had a deal, a written deal, that he entered into with Northeast Gaming that he completely fulfilled all his obligations under that deal when he asked for his money back and was not given back, Mr. Picknelly completely divested himself of anything to do with the Palmer project in moving forward in Springfield,” says Attorney Michael Callan who represents Picknelly.

Attorney Stephen Spelman representing the Northeast Group painted a different picture in court.

“Mr. Picknelly was involved in Palmer from late 2007 all up to 2011 when he betrayed his partners in Palmer. He was involved in real estate development, he was involved with building an intermodal bus terminal and then what he did was attempt to transfer his interest to one of his employees, a Malcolm Getz,” says Spelman.

Judge Bertha Josephson took the arguments under advisement and says she’ll have a decision as soon as possible.

http://www.wggb.com/2013/04/17/peter-picknelly-focal-point-of-casino-lawsuit/

Court date set for Picknelly, Palmer dispute

Updated: Friday, 29 Mar 2013, 5:18 PM EDT
Published : Friday, 29 Mar 2013, 1:22 PM EDT

• Ryan Walsh, 22News Investigative Reporter

SPRINGFIELD, Mass. (WWLP) - The $500,000 dispute between Peter Picknelly and Northeast Gaming will be heard in court.

A judge will hear two motions to dismiss this case in Hampden County Superior Court on April 17th.

Northeast Gaming owns the land Mohegan Sun wants to build on in Palmer.
Peter Picknelly, owner of Peter Pan Bus Lines, had a $500,000 investment with that group, which his lawyers say he transferred to a longtime business partner, Malcolm Getz. Picknelly believes he is free and clear from that initial investment.

Northeast Gaming believes Picknelly is still legally obligated to that investment with their group.
Peter Picknelly is currently a 50/50 partner with Penn National Gaming, who is trying to bring a casino to Springfield's North End.

http://www.wwlp.com/dpp/news/i_team/court-date-set-for-picknelly-palmer-case

 

Picknelly Food Fight Heads to Court

Northeast Gaming of Palmer sues Peter Picknelly, Penn National Gaming over Springfield casino deal

Penn National Gaming introduces their plans for a Springfield casino during a gala event at the Paramount Theater in downtown Springfield on Dec. 20, 2012. Shown here at the event are from left, Peter A. Picknelly, chief executive officer of Springfield-based Peter Pan Bus Lines; Peter M. Carlino, CEO of Penn National; and football celebrity Doug Flutie. (Republican Staff photo by Don Treeger)

                    

By Robert Rizzuto, The Republicanmasslive.com
on February 07, 2013

 

A local real estate group hoping to see its land become the site of the sole Western Massachusetts casino has filed a lawsuit against Penn National Gaming and Springfield businessman Peter Picknelly, alleging that he breached a contract with them by partnering to push another casino site.
Northeast Gaming Group Inc., an associate of Northeast Realty which owns the land in Palmer where Mohegan Sun hopes to build, is claiming its business plan was hurt when Picknelly walked away from a deal to partner with Penn National Gaming to develop a casino in the northern edge of downtown Springfield.

The lawsuit reiterates what Northeast Gaming's lawyer, Stephen Spelman said last month when he called on Picknelly to honor his original contract with the Palmer developers.

"Mr. Picknelly betrayed the Palmer venture by actively working against it with Penn National Gaming, even though at the same time he continued to keep his interest in the Palmer project," Spelman wrote in an email.

In 2008, Picknelly invested $500,000 in the Palmer group's venture and signed an agreement to give him a return on that investment of three percent of the group's net revenues from the development of the gaming, entertainment and retail complex, the lawsuit states.

A key point of contention to be settled by the courts is whether the revenue-sharing agreement constitutes a partnership, like Northeast Gaming alleges, or not.

The lawsuit also claims that Picknelly pushed Northeast Realty's manager Leon Dragone of Longmeadow to grant him a significant role in the venture, particularly a larger stake than his brother Paul held, prior to Paul Picknelly's move to team with MGM Resorts International to develop a casino in Springfield's South End.

The lawsuit contends that on Oct. 11, when Penn National announced its partnership with the CEO of Peter Pan Bus Lines, to develop a casino on land including the site of The Republican newspaper, he violated his original agreement by helping a direct competitor for the sole casino license.
Penn National Gaming is also listed as a defendant in the lawsuit for its alleged role as a partner with Peter Picknelly and the purported affect it had on the Palmer group's business proposition to build a rural casino.

One of Picknelly's lawyers, Michael Callan, said the lawsuit was "frivolous" and that they plan to file a counter-suit.

"This is extortionate and some of the most egregious charges in their lawsuit are based on a third-party's statements," Callan said. "It is outrageous, the slanderous things they are saying about Peter Picknelly. And for them to try to re-frame the revenue-sharing agreement as a partnership agreement is a cheap shot bordering on the unprofessional. We are not concerned about the claims made in this lawsuit at all."

Eric Schippers, senior vice president for public affairs at Penn National Gaming, added "To continue to press forward with such a frivolous case is unfortunate, and is a clear sign that this group has zero confidence in their ability to compete fairly for the Western Massachusetts casino license. As we've said before, we have thoroughly reviewed the matter and the underlying agreement, and find the claims to be without any legal merit whatsoever."

A copy of the lawsuit, as filed Thursday in Hampden Superior Court, can be seen below.
NE Gaming Group v Peter Picknelly and Penn Nat'l Gaming Complaint


http://www.masslive.com/politics/index.ssf/2013/02/peter_picknelly_sued_by_palmer.html

Northeast Gaming, Picknelly feud continues

Palmer, Picknelly casino feud continues
Published : Monday, 21 Jan 2013, 9:40 AM EST

• Ryan Walsh, 22News Investigative Reporter

Regular Photo Size

PALMER, Mass. (WWLP) - The 22News I-Team discovered that the controversy surrounding Peter Picknelly's interest in two casinos is still hotly contested. A lawyer for Northeast Realty, which owns the land in Palmer where Mohegan Sun wants to build a casino says Picknelly and/or Penn National Gaming are not telling the whole truth regarding Picknelly's stake with the Northeast Gaming Group. They dispute the timeline of when Picknelly attempted to get his money out of the Northeast Gaming Group.

The Northeast Gaming Group saw something Penn National's Senior Vice President of Public Relations Eric Schippers said in a live chat on Masslive (Penn National Gaming and Masslive's parent company have a deal in place worth millions of dollars if Penn National is awarded the casino license) and are saying it is not accurate and they are providing the 22News I-Team with the documents to prove it.

In the live chat Schippers, responding to a question about Peter Picknelly's role in Palmer said, "We have thoroughly reviewed the claim and we view it as completely without merit. Our partner Peter Picknelly is 100% committed to Springfield, and cut any ties to Palmer long before we even arrived in Springfield. In my opinion, this amounts to a PR ploy to try to get the Palmer applicants back in the spotlight since so much attention has been paid to Springfield. We're confident this frivolous claim will have zero effect on our exciting plans for Hollywood Casino Springfield."

The portion in bold and that timeline is what Northeast Realty is disputing: In a statement sent to the 22News I-Team it reads:

According to Stephen Spelman, of Egan, Flanagan and Cohen P.C., attorney for Northeast Realty, owners of the property that would host the Mohegan Sun resort in Palmer, “The notion that Mr. Picknelly has cut ties to Palmer defies belief when in fact he has simply attempted to transfer his interest to a close business associate, Mr. Malcolm C. Getz, Jr. Mr. Picknelly has close ties to Mr. Getz through his longtime business relationship with him.” Mr. Getz has served as a senior executive at the Picknelly-owned gun distribution company Camfour, located in Westfield.

Spelman noted that Penn announced in a press release on October 11, 2012, “Penn National is working in partnership with Peter Picknelly.”

Spelman said, however, “Northeast was provided with a document dated November 1, 2012 that was a purported assignment of Mr. Picknelly’s shares in the Palmer project to Mr. Getz.

“Mr. Picknelly would like the public to believe that he has cut all ties with the Palmer project by attempting to assign his shares to a close associate. Mr. Schippers would like the public to believe that Mr. Picknelly cut those ties in advance of his partnership with Penn. Their own documents show these assertions are not true.

Spelman adds that legal action may be necessary. Earlier this month, Picknelly sent 22News this statement:

Statement from Peter Picknelly:

“Long before the legislature passed legislation, I did explore an opportunity with Northeast Gaming Group, as did many others. However, when the situation changed, I exercised my right to leave the project. I understand the transformational impact a casino could have on the city that I call home, and where my family has located our business for the past 80 years, and so I wanted to focus my efforts on Springfield.

The facts in this matter are simple. I was only an investor in the Palmer deal. I was never any type of partner or principal in the project nor did I take part in any of their planning. The contract I signed doesn’t contain a single word that limits my participation in other business ventures, gaming or otherwise. In any case, and to further ease any concerns, I have since formally terminated my relationship with Northeast Gaming Group and, have transferred any financial interest arising from my investment to a third party.

The legal assertions being made by Northeast Gaming Group are completely frivolous and smack of desperation. These claims are being made by an operator that is on the outside looking in, and whose primary objective is to protect their declining operations in Connecticut by preventing Springfield from hosting a successful casino. Their allegations should be viewed in that context."

http://www.wwlp.com/dpp/news/local/hampden/palmer-picknelly-casino-feud-continues 

Casino controversy lingers in Palmer

Picknelly, Palmer group dispute ongoing

Published : Monday, 21 Jan 2013, 6:02 PM EST

• Ryan Walsh, 22News Investigative Reporter

PALMER, Mass. (WWLP) - The casino controversy continues between Penn National Gaming's partner in Springfield and his former partners in Palmer.

The 22News I-Team has obtained new information.

Peter Picknelly is a partner with Penn National in Springfield's North End. They partnered this summer.

In 2008, Picknelly invested $500,000 with Northeast Realty, the group that owns the land in Palmer where Mohegan Sun wants to build a casino. This past July (2012), Picknelly asked for his money back; that request was denied. The lawyer for the group in Palmer told 22News when Picknelly partnered with Penn National he was still invested in Palmer and is still tied to that money today.

"His own documents show he was under revenue sharing as he was being promoted by penn national
as their 50-50 joint venture partner", says Attorney Stephen Spelman of Egan, Flanagan and Cohen, P.C.

Picknelly's lawyer is Paul Maleck of Doherty, Wallace, Pillsbury & Murphy, P.C.
"In 2011 he (Peter Picknelly) verbally told Leon Dragone that he is no longer interested in staying in Palmer and he was going to pursue his own casino", says Maleck.

Dragone is a partner with Northeast Realty. In November 2012, documents show Picknelly transferred that $500,000 to a longtime business associate, Malcolm Getz, to try and free himself from the Palmer casino deal.

"We've gotten a document from Palmer that shows that the attempted transfer to Mr. Getz didn't even happen until November 1st, after Mr. Picknelly has been announced as a joint venture partner with Penn National", says Spelman.

(What does Peter get out of signing over his money to Malcolm?)

"Like I said before Its an extra step that he took to show Northeast Gaming that he has absolutely no rights in Palmer", says Maleck.

22News then asked Maleck if Picknelly could profit off of the transfer of his $500,000 to Getz.

 http://www.wwlp.com/dpp/news/local/hampden/picknelly-palmer-group-dispute-ongoing

This from WSHM --

Controversy over Peter Picknelly's Palmer casino dealings
Posted: Jan 21, 2013 10:02 PM EST

By Cherise Leclerc - email

SPRINGFIELD, MA (WSHM) - Springfield businessman Peter Picknelly may be in the middle of a controversy surrounding two casino developers.

Northeast Realty, the owners of the Mohegan Sun Palmer property, say that in 2008, Picknelly became an investor in their project.

Picknelly's attorneys say that he transferred his involvement to a business associate. Now it is stirring controversy on both sides.

"Peter has nothing to do with Palmer," said Picknelly's attorney, Paul Maleck.

Maleck says that a 2008 agreement made with Northeast Realty as an investor is no longer valid after Picknelly reportedly "cut ties" with the group and pulled out of the project not long after joining forces with Penn National Gaming in Springfield.

"Peter had every right to exit, terminate all of his interests, he had signed a revenue sharing agreement where he was going to possibly partake in the revenues," Maleck said.

According to CBS 3 media partner Masslive and The Republican, Picknelly invested $500,000 into the Palmer project nearly five years ago.

On Nov. 1, 2012, Picknelly signed documents transferring his interests to close business associate Malcolm Getz.

But it's the timeline of events that's bothering Northeast Realty.

Reps for the group say that claims made by Picknelly that he cut ties well before his Penn National partnership are false.

"From their own documents that they provided to us, it shows that it was Nov. 1 after they had announced them as their joint venture partner on Oct.11," said Steve Spelman, attorney for Northeast Realty.

Spelman says that the document is useless and that Picknelly is still on board in Palmer as an investor.

"It is Northeast's position that Mr. Picknelly is a full joint venture partner with Palmer, he has been so under his revenue sharing agreement since Jan. 11, 2008, and his attempt to transfer it to Mr. Malcolm Getz has no force in effect," Spelman said.

Lawyers for Northeast Realty say that they are prepared to take Picknelly to court if he does not acknowledge his partnership in the project.

http://www.cbs3springfield.com/story/20643203/controversy-over-peter-picknellys-palmer-casino-dealings