Wynn Las Vegas denied injunction against Fontainebleau over alleged executive poaching

Clark County District Judge Mark Denton has denied Wynn Las Vegas' request for a temporary injunction against Strip rival Fontainebleau over allegations of poaching under-contract executive employees.

The denial came during a Thursday morning hearing, with Denton deeming the request overly broad and inappropriate for an injunction, Las Vegas Review-Journal reported.

Wynn had alleged that Fontainebleau was enticing its executive employees under contract, leading to violations of noncompete clauses. In response, Fontainebleau argued that the court lacked the authority to issue a blanket injunction preventing employees from pursuing better job opportunities with competing firms.

Wynn's attorney, Patrick Byrne, emphasized the company's aim to protect existing contracts between Wynn and its top executives, with around 750 executive employees subject to such agreements. Byrne clarified that the issue was not the validity of noncompete clauses, but rather preventing interference from Fontainebleau, the report said.

Fontainebleau's attorney, Todd Bice, countered that Wynn was using the court's power to intimidate its employees from seeking better opportunities elsewhere.

Central to the legal dispute was Fontainebleau's failed hiring of Wayne Crane, a senior executive director at Wynn Nightlife. Crane had initially agreed to join Fontainebleau but ultimately accepted a counteroffer from Wynn, leading to Wynn offering Crane a new contract with significantly higher pay.

Both sides acknowledged Crane's role in negotiating for better terms, leveraging offers from both resorts, according to the report.

“I think both sides got played by Mr. Crane in order to increase the salary,” Bice said. “It wasn’t the first time this happened in this town, and it no doubt will not be the last. But that doesn’t give rise to this broad sweeping injunction.”

With the injunction request denied, attention now turns to the possibility of a trial, where Wynn seeks to recover damages resulting from executives breaking contracts to join Fontainebleau. This preparation phase is expected to extend over several months.