Atlantic City nightclub owner suing Ocean Resort Casino for $10M

Ocean Resort Casino, which, along with the Hard Rock Hotel & Casino opened to much fanfare in June this year, is reportedly being sued for $10 million by a former partner at the property’s HQ2 club.

According to a Page Six report, in documents filed on December 6 with the New York State Supreme Court, Joe Morrisey claims that he never received his due from the beachclub and nightclub’s [HQ2] seven-figure profits and was forced out after confronting the property’s owner, Colorado-based developer Bruce Deifik, over allegations of sexual harassment made by HQ2 salon employees.

Alleged contract:

Morrisey, who is now reportedly working in New York City with Robert’s Steakhouse and Scores, claims that he helped Deifik raise $10 million to renovate the property.

The money raising effort was reportedly in exchange for 30 percent of the club’s profits and an annual salary of $200,000. Morrisey would also have received 49 percent of the proceeds if HQ2 was sold.

Sexual harassment claims:

In the court papers, Morrisey reportedly adds that his relationship with Deifik went south after being told by a female employee “that she was uncomfortable with [Deifik] routinely asking her and her friends . . . to come see the great view from his presidential suite at the casino.” And that unnamed “female employees stressed to Mr. Morrissey that they all felt obligated to drink and socialize with [Deifik] in order to be hired.”

According to Page Six’s report, Morrisey alleges in the court papers that when he confronted Deifik with the sexual harassment claims made by club employees he was “bullied and humiliated” and effectively pushed out.

Morrisey also claims that the casino is looking for a new buyer and attempting to eliminate him from any deal.

The city’s tallest building was acquired on January 4, 2018, when Florida real estate developer, Glenn Straub, who bought the $2.6 billion property in 2015 for a steal at $82 million, sold it to AC OCEAN WALK LLC, a group led by Deifik, for $200 million.

Property amenities:

The Boardwalk property includes a 1,399-room hotel which features six swimming pools, including a saltwater pool and an ocean-facing sun deck; 16 eateries, children’s play/eat spaces; a renovated 5,500 seat Ovation Hall, a 32,000-square-foot spa including full-service salon; 7,000-plus person parking garage, 70,000 square feet of retail space, a Topgolf Swing Suite and from the former Revel, the Ivan Kane-operated burlesque club, Royal Jelly.

The 138,000 square foot casino offers a 7,500 square foot sports book operated by William Hill US, along with 99 table games, an 8-table poker room, 1,945 gaming machines and an Ocean Premier players’ lounge that overlooks the ocean.