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The Hard Rock and Morgans Hotel Group Are Named in Wrongful Death Lawsuit

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September 2, 2009 at 8:49 AM | by | Comments (0)

The Las Vegas Sun reported yesterday that the family of Michelle Hatchel, who died of a drug overdose in 2007 in the Vegas condo of Ed Scheetz, the former CEO of Morgans Hotel Group, have not only filed a lawsuit against Scheetz but have also named The Hard Rock Hotel and Morgans as defendants.

Hatchel had been living and partying with him at his Vegas residence in the weeks before her death--an overdose of oxycontin and cocaine--and Scheetz referred to her as his "girlfriend" in the 911 call. Scheetz has never been criminally charged for any wrongdoing in Hatchel's death. However, he has already settled a wrongful death suit with Hatchel's father for a "substantial sum."

This latest lawsuit has been filed on behalf of Hatchel's mother grandmother, brother and aunt. The new allegations they make against Scheetz are very shocking and they reveal the world of hard-core partying, drugs and sex that he was into during his time in Vegas. And that's where the Hard Rock comes in.

The Hard Rock is co-owned and operated by Morgans Hotel Group and the lawsuit claims that Scheetz was the living example of the Hard Rock's hedonistic brand image:

A part of the Hard Rock marketing’s strategy its target demographic patrons included hedonistic sexually permissive and promiscuous lifestyle which also included use of illegal and/or illegally obtained ... controlled substances including but not limited to cocaine and oxycodone and as CEO of said named corporate defendants, defendant Scheetz's own lifestyle ... was a living example of said Hard Rock image and all of his actions, inactions, and/or omissions herein were within the course and scope of his employment.

The suit also claims that since Morgans Hotel Group subsidized Scheetz's partying by paying for his Vegas condo and a private jet--examples of excess that contributed to Hatchel's death--they should be held liable for her death. The suit is asking for $645 million in general and punitive damages.

Morgans Hotel Group told the LV Sun it does not comment on pending litigation but Scheetz has already taken action to prevent having to pay up in a wrongful death lawsuit. Lawyers for Hatchel's family claim Scheetz dropped divorce proceedings against his wife and transferred their $8 million Connecticut estate in her name. Additionally, by staying married Scheetz's wife would not have to testify against him in a trial. (But apparently, he still had to pay out to Hatchel's father.)

The strong allegations made against Scheetz in the new lawsuit are embarrassing for Morgans Hotel Group, especially since they were funding Scheetz's large living. Including the Hard Rock as a co-defendant may be a stretch for this lawsuit, but we are guessing Morgans may do whatever it takes to make this go away fast.

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