In a recent Bankruptcy Court decision, DeCotiis, FitzPatrick & Cole, LLP, achieved a $26 million settlement to help fund municipal programs in Atlantic City after four of the city's 12 casinos closed in a difficult economic climate. Traditionally, the casino industry accounted for roughly 60% of the city's total property tax revenue, and the recent closures put the resort city in a difficult financial situation.
The dispute, between the former owners of Revel Casino and Atlantic City, was over a $31 million dollar tax bill owed to Atlantic City. Revel's bankruptcy parent company argued that the $1.15 billion assessed value of the property should be retroactively slashed when accounting for taxes due. As part of the settlement, the DeCotiis litigation and bankruptcy teams had this dispute dropped - which would have offset the City's revenue projections considerably.
As part of the settlement, Chief U.S. Bankruptcy Judge Gloria Burns ordered the payment due immediately.
"Bankruptcy proceedings can be contentious, but the stakes are especially high when the dispute involves revenue needed to help keep the City running," said Russell Passamano, lead negotiator on the matter. "Atlantic City needed results and it took a team effort to deliver."
This past year, DeCotiis helped municipalities across the state fight back frivolous lawsuits saving taxpayers hundreds of thousands of dollars, and this recent settlement exemplifies why public entities turn to the full-service law firm, DeCotiis, FitzPatrick & Cole, LLP, to deliver results under the highest of stakes.