Mohegan Sun Sues Palmer Landowner For $22 Million Over Failed Casino Referendum

The fallout between partners in a failed casino project in Palmer, Massachusetts continues. Mohegan Sun has filed suit against Northeast Realty, owners of land it had hoped to build a casino on before town voters rejected the proposal last November.

Mohegan Sun is not commenting on the complaint filed this week in Hampden Superior Court. But it follows a similar action in February by Northeast Realty, which accused Mohegan Sun of violating an exclusivity agreement. That’s because shortly after the Palmer vote, Mohegan Sun announced a deal to lease land at the Suffolk Downs racetrack and compete for greater Boston’s sole casino license.

Mohegan’s counter-suit claims it was Northeast Realty that violated the exclusivity agreement, and blames its manager for undermining the pro-casino campaign. The suit seeks $22 million for what Mohegan says it invested in Palmer.

In a statement, Northeast Realty says blaming others for its failures is Mohegan Sun’s typical response.