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PLAZA VERSUS PLAZA

Which hotel is which? Lawyer says style will help consumers tell

There's no telling yet whether developers will ever complete a $6 billion replica of the Plaza Hotel in New York on the Strip.

But closing arguments in a trial over rights to the Plaza name established if they do they won't offer prime rib dinners for $7.95 there.


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A lack of big signs pushing cheap steak was just one example attorney Steve Morris used to differentiate his clients' vision for their luxury resort from the existing Plaza hotel-casino next to a downtown bus station.

"Those people will have no difficulty discriminating between the downtown Plaza and the Plaza on the Strip we intend to build," Morris said. "We don't intend to advertise our property with banners on the side of the building."

According to Morris, the proposed Plaza Hotel on the Strip will have a spa, condominiums, $800 per-night hotel rooms and a facade in the style of a French chateau.

It's unlikely to be confused with the Plaza downtown, which in addition to the steak deal advertises rooms for $59 per night and is attached to a Greyhound bus station, he said.

"Is there any reasonable chance of confusing these two properties?" Morris asked the jury.

Morris' statements were part of closing arguments on behalf of Elad Group, owners of the New York Plaza and backers of the proposed Strip hotel.

Elad is defending itself from a lawsuit by Tamares Las Vegas Properties, owners of the Plaza hotel-casino at the intersection of Main and Fremont streets.

After about three weeks of witnesses, testimony and arguments in the Clark County District Court of Judge Elizabeth Gonzalez, the case is now in a jury's hands.

They'll need to decide whether the proposal by Elad infringes on the rights of Tamares, which says the Plaza name has a distinguished history in Las Vegas dating back to 1971.

Tamares also wants the jury to award the company $29 million in lost profits because, according to attorney Dennis Kennedy, the name fight set back its efforts to renovate the downtown property by at least a year.

"That net is $29.41 million for that lost year," Kennedy said. "It is gone, you will never get it back."

Kennedy tried to establish that the Plaza name has been tied to the downtown Las Vegas property since before 1986 when the New York Plaza sought a trademark on the name, even though the Las Vegas Plaza had also been called Union Plaza and Jackie Gaughan's Plaza during that time.

The New York Plaza owners announced plans for a Las Vegas resort in 2007, after they bought the New Frontier site for $1.2 billion. Their project, however, is on hold due to the dried up credit markets.

Kennedy showed pictures from the downtown Plaza shot in 1971 to illustrate that the name has been in use in Las Vegas for decades.

One shot was of Las Vegas gambling mogul Sam Boyd dealing cards at the hotel at a blackjack table with the name Plaza on the felt. Another was a shot of the marquee in front of the property, also bearing the name Plaza.

"The evidence that is most important might be the signs on the sides of the building," Kennedy said. "It has been that way since Day One."

Kennedy also said the potential for confusion was real. As evidence, he pointed to a Web site with a picture of the proposed Plaza on the Strip that included a link where people could book rooms at the Plaza downtown.

He also paraphrased statements from Tamares executive Ken Landfield stating a new, more elaborate Plaza would overwhelm the downtown Plaza in the public consciousness.

"I can't be the old Plaza, I can't be the cheap Plaza, I can't be the bad Plaza," Kennedy said. "It is rather obvious that is going to happen."

When it was Morris' turn to speak, he tried to debunk the notion that Tamares is wedded to the Plaza name.

He referred to failed efforts by Tamares to form joint venture projects with Foxwoods Casino in Connecticut or a company called Coastal Development.

He said Tamares was willing to cede branding rights to the property as part of a joint venture agreement, suggesting the company wasn't enthusiastic about keeping the Plaza name.

Morris also tried to rebut claims by Tamares that it delayed renovations of the downtown Plaza because it was paralyzed by the prospect of a hotel by the same name on the Strip.

He said the economy, not the alleged trademark infringement, caused any renovation delays.

"It fell apart because the financial markets were upside down," Morris said. "They couldn't get the money."

The case is significant locally because it will either affirm or undermine the identity of one of the largest hotels downtown.

There is also a global interest because both the owners of Tamares and Elad are prominent international businessmen.

Tamares was founded by the late Shlomo Zabludowicz and is now controlled by his son, Poju Zabludowicz. The elder Zabludowicz was an Auschwitz survivor who moved to Finland and built an arms company called Soltam, according to a Times of London account.

The son, 55, now controls Tamares and is a prominent contributor to conservative causes in England and Israel, the Times reports. Although a Zabludowicz spokesman told the paper it was his company, not he, who was making donations.

Elad, the company behind plans for a new Plaza on the Strip is controlled by another billionaire, investor Yitzhak Tshuva of Israel.

Tschuva bought the New Frontier in May 2007 from Phil Ruffin for $1.2 billion, a deal that set a record for real estate prices on the Strip.

At the time, officials from Elad, which owns the Plaza Hotel in New York, brushed off concerns about a potential conflict with the downtown Plaza.

The downtown Plaza is 37 years old and was formerly owned by downtown gambling kingpin Jackie Gaughan, who sold it to a group that included Tamares in 2004.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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casinocon wrote on October 03, 2008 11:51 PM: Okay . . . I show my ignorance, ARAB money or ISRAELI money . . . I can't keep it straight with all the sand monkeys, towel heads, and Jews buying up the casino shares, stocks, and partnering with MGM/Mirage and what not.
I'm not racist, just against foreign concerns taking over our local businesses. It's a shame, and a travesty -- I appreciate the other comments, Tavares may have turned the original Plaza into a hopeless dump, but still the name can't be HIJACKED at will. Jeez, if only Michael Gaughan would step up and buy back his father's properties. Ole Jackie deserves a retirement, but the son should have a sense of preservation --- oops, I forgot, this is Vegas . . . we don't preserve anything.


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casinocon wrote on October 03, 2008 11:42 PM: ABSOLUTELY -- the stalled Plaza (NY/Elad) would be confused with the Plaza downtown . . . that is if it is ever built. This is an open and shut Trademark infringement case if I ever saw one. I personally have been devastated by a trademark infringement I have to say . . . HISTORY is what should rule -- not MONEY (dirty filthy ARAB money at that) It doesn't matter that the REAL Plaza downtown advertises discount meals, and that the FAKE Plaza (based on the New York design that is SO out of touch with current trends) is more upscale (?) --- let's wrap up --- a tourist gets into a cab at McCarren and asks to go the "the Plaza" --- if the driver even needs to question the location (downtown or the Strip) TRADEMARK INFRINGEMENT has occurred. It really is as simple as that.


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tratos mark wrote on October 03, 2008 11:14 PM: Good Artical


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House wrote on October 03, 2008 03:22 PM: Good point Leric. Maybe some tourists will be dumb enough to make mistakes on the internet and book the downtown Plaza by mistake. Their room vacancy rates will shoot up just due to that!


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Come On wrote on October 03, 2008 11:07 AM: Come on--fair is fair! The downtown Plaza was here first! The developers who want to open another Plaza on the Strip are not entitiled to use a trademarked name. What if a billionaire decided he wanted to open a new hotel named Riveria or Tropicana? That would create outrage, just as this should. I am tired of Vegas tradition be trampled upon. I hope the downtown Plaza wins!


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Leric Goodman wrote on October 03, 2008 09:48 AM: These trademark fights are often a stupid waste of money and make the law look like the Northbound end of a Southbound mule.

Is someone other than a drunk or a lawyer going to mistake the Union Plaza for the New York Plaza (or a replica thereof)? Is someone going to mistake Downtown Las Vegas for the Strip? Not likely. Nor is it likely that a potential customer would be confused. Each property caters to -- or would serve -- a different world.

Trademarks in retail service flit through legal casebooks like fruit flies -- hey have brief lives then vanish.

The opinions of Courts are printed. They outlast retail Trademarks. Reading these opinions about the imperishable value of some now long dead Trademark is an excellent reminder of the utter folly which the well-trained legal mind can perpetuate.


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Oscar Goodman wrote on October 03, 2008 09:34 AM: Plaza is a joke. They should implode the downtown Plaza to make way for Union Park-Fremont Street access. A new 1000 room hotel is going up nearby as well which will replace it anyway.


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Gambler wrote on October 03, 2008 09:19 AM: A couple of Yids are trying to bust out a local landmark because they think they are smart and savvy operators! Well Boychicks, you are going to lose this one, american jurors are not going to let a bunch of Zionist sob's take down another American owned business!


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Vegas Vic wrote on October 03, 2008 09:10 AM: The current Plaza is a total dump and doesn't deserve to keep the name. I put the Plaza on the bottom 5 list of all casinos in Las Vegas. HOWEVER, they were here first and I really believe the other Plaza people have no rights to the name.


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KooKoo wrote on October 03, 2008 08:33 AM: If Tamares was smart, they would be trying to sell the name and property to Elad so that the Plaza could be bulldozed to the ground. As a former employee, I can assure you that this place is a DUMP. It is constantly falling apart, all the work that has been done over the years to keep that place together is beyond shoddy.

Employee morale over there is the worse I've ever seen. This is because Tamares hired a bunch of corporate whack jobs that are trying to run the place like a strip casino, and are failing to do so.

The Plaza needs to go, they should just sell the name if the jury rules in their favor.


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