A lawsuit filed by Borgata Hotel Casino & Spa last month in federal court against Ocean Casino Resort has become a case of he-said, she-said. At the heart of the issue are two former Borgata executives who left to work for Ocean.
Borgata claims William Callahan, its former vice president of relationship marketing, never returned a company-owned cell phone containing VIP customer information. Recent filings indicate Callahan returned the phone, but the case could still drag on, according to the Associated Press.
Borgata said “Callahan developed close personal relationships with highest-level guests and learned their preferences regarding credit, large loss discounts, gaming rule changes (and) hospitality that provided a competitive advantage.”
With respect to the other employee in the suit, Kelly Ashman Burke, the court said “emails between Burke and (Borgata President Melonie) Johnson show that Burke… highlighted her concerns about her new job duties in an attempt to renegotiate her non-compete agreement before concluding her employment term.
“The court finds that Burke is in breach of its employment agreement with plaintiff by violating the non-competition provision.”
Both Callahan and Burke are barred from contacting any former Borgata patrons and will be deposed by Borgata this month.
Ocean’s attorneys have cried foul. “Defendants agree and fully believe discovery is necessary…but cannot be one-way. Defendants firmly believe that Borgata’s declarations will not carry any evidentiary weight, including that Mr. Callahan did not solicit any of the seven customers Borgata has put at issue in the case.”
Ocean believes the seven customers will support that Callahan did not solicit their business. Ocean also said Johnson “told several people, including the Chief Operating Officer of Borgata, that Mr. Callahan could keep his phone.”
Johnson, however, disputes the claim.
“Borgata has taken a few strands of facts, added a pile of hearsay, and spun it together into very damaging allegations against Mr. Callahan, who has a completely understandable and legal defense, if he could have discovery and a fair hearing at which to present it,” said Ocean’s attorneys.
Ocean’s also claims Borgata has access to any employee phone and could have wiped it clean. So it’s on Borgata for failing to do so.
