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Las Vegas Newspaper Headed to Arbitration

Monday, June, 6, 2016


Recently the Nevada Supreme Court ruled that arbitration is necessary to settle the dispute between the Las Vegas Sun and the Las Vegas Review-Journal concerning the newspaper’s joint operating agreement. The court settled their ruling 5 – 0 and reversed a ruling by a lower court that sided with the Review-Journal.

 

According to the court, the Sun is disputing the amounts owed to it under the agreement, so the court believes the dispute falls under the scope of JOA’s arbitration provision. The dispute is considered relatively simple and related to accounting issues, so it is understandable why the court would believe arbitration is the best path to an agreement.

 

According to the attorneys for the Review-Journal, the group is appreciative and pleased the court confirmed the arbitration agreement will be enforced. They believe it was the right choice, given the fact that both parties involved are sophisticated and represented by competent counsel. An attorney for the Sun stated they would rather have the court’s guidance on legal issues in advance, but that overall it is there believe the result will be the same and the Review-Journal will be forced to properly account for all its obligations.


The original agreement was reached in 1989. In it, both papers agreed to produce and distribute both newspapers. At the time, the Review-Journal was owned by a different company.

 

The original agreement was amended in 2005 to require each entity to bears its own editorial costs and to establish a formula for calculating the amount the Review-Journal would need to pay the Sun.