`================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB
(Mark one)

    /X/  Quarterly  Report under Section 13 or 15(d) of the Securities  Exchange
         Act of 1934

         For the quarterly period ended September 30, 2004

    /_/  Transition Report under Section 13 or 15(d) of the Exchange Act

         For the transition period from __________ to __________

                        Commission file number 333-112603

                            CATSKILL LITIGATION TRUST
                            -------------------------
 (Exact Name of Small Business Issuer as Specified in Its Declaration of Trust)

         DELAWARE                                   16-6547621
------------------------------------    ----------------------------------------
  (State or Other Jurisdiction of        (I.R.S. Employer Identification No.)
  Incorporation or Organization)

                       C/O CHRISTIANA BANK & TRUST COMPANY
                                1314 King Street
                           Wilmington, Delaware 19801
--------------------------------------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (302) 888-7400
--------------------------------------------------------------------------------
                (Issuer's Telephone Number, Including Area Code)

--------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter  period  that  Catskill  Litigation  Trust  was  required  to file  such
reports),  and (2) has been subject to such filing  requirements for the past 90
days. Yes /X/   No  /_/

As of November 12, 2004, 22,702,896 Units of beneficial interest were outstanding.

    Transitional Small Business Disclosure Format (check one): Yes /_/ No /X/

================================================================================






                            CATSKILL LITIGATION TRUST


                                   FORM 10-QSB


                                      INDEX

PART I - FINANCIAL INFORMATION                                                     Page

     ITEM 1. CONDENSED FINANCIAL STATEMENTS

     Condensed Balance Sheet as of September 30, 2004 (unaudited)                  3

     Condensed Statements of Operations for the three months ended September 30,
     2004 and for the period  January 12, 2004 (Date of  Inception) to September
     30, 2004 (unaudited)                                                          4

     Condensed Statement of Cash Flows for the period January 12, 2004
     (Date of Inception) to September 30, 2004 (unaudited)                         5

     Notes to Condensed Financial Statements                                       6-8

     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS
     OR PLAN OF OPERATION                                                          9-11

     ITEM 3.  CONTROLS AND PROCEDURES                                              11

PART II - OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS                                                    12

     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                     12-13

SIGNATURES                                                                         14




                                       2



                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

                               CATSKILL LITIGATION TRUST
                                CONDENSED BALANCE SHEET
                                   September 30, 2004
                                      (Unaudited)

ASSETS
   Current Assets
         Cash                                                       $68,948
                                                                 ----------
   Total Current Assets                                              68,948
                                                                 ----------
TOTAL ASSETS                                                        $68,948
                                                                 ==========
LIABILITIES AND TRUST DEFICIENCY
      Current Liabilities
           Accrued legal and administrative expenses                $75,000
           Accounts payable                                          41,375
           Line of credit-related party                             250,000
                                                                 ----------
      Total Current Liabilities                                     366,375
Trust Deficiency
            Units of Beneficial Interest: authorized
            22,702,896; issued and outstanding 22,702,896             6,866
            Accumulated deficit                                   (304,293)
                                                                 ----------
      Total Trust Deficiency                                      (297,427)
                                                                 ----------
TOTAL LIABILITIES AND TRUST DEFICIENCY                              $68,948
                                                                 ==========

   The accompanying notes are an integral part of these financial statements.

                                       3

                                           CATSKILL LITIGATION TRUST
                                      CONDENSED STATEMENTS OF OPERATIONS
                                                  (Unaudited)

                                                    Three months ended        January 12, 2004 (Date of Inception) to
                                                    September 30, 2004                 September 30, 2004
                                                    -----------------------------------------------------------------

General and Administrative Expenses:
Litigation Trustee Fees                             $     30,000                                        $     86,130
Administrative Trustee Fees                                1,500                                               9,000
Consulting Fees                                            6,090                                              14,233
Legal Fees                                                75,336                                             168,333
Accounting Fees                                            7,870                                              17,140
Interest Expense                                           3,438                                               6,866
Other                                                      1,167                                               3,083
                                                    -----------------------------------------------------------------
Total General and Administrative Expenses                125,401                                             304,785
Other Income                                                 217                                                 492
                                                    -----------------------------------------------------------------
Net Loss                                            ($   125,184)                                       ($   304,293)
                                                    =================================================================
Loss per unit outstanding                                  (0.01)                                              (0.01)
                                                    =================================================================
Weighted average units outstanding                    22,702,896                                          22,702,896
                                                    =================================================================

   The accompanying notes are an integral part of these financial statements.

                                       4

                                       CATSKILL LITIGATION TRUST
                                   CONDENSED STATEMENT OF CASH FLOWS
                        For the period January 12, 2004 (Date of Inception) to
                                          September 30, 2004
                                              (Unaudited)

OPERATING ACTIVITIES
Net Loss                                                                               ($304,293)
   Adjustments to reconcile net loss to net cash used in operations:
      Imputed interest expense                                                              6,866
      Increase in accounts payable                                                         41,375
      Increase in accrued legal and administrative expenses                                75,000
                                                                                       ----------
Net cash used in operating activities                                                   (181,052)

Cash flow from financing activities
      Increase in line of credit-related party                                            250,000
                                                                                       -----------

Net increase in cash                                                                       68,948
                                                                                       -----------
Cash-beginning of period                                                                      ---
                                                                                       -----------
Cash-end of period                                                                        $68,948
                                                                                       -----------

   The accompanying notes are an integral part of these financial statements.



                                       5

                            CATSKILL LITIGATION TRUST

     Notes to Condensed Financial Statements--September 30, 2004 (Unaudited)

NOTE 1 - THE TRUST

         The  Catskill  Litigation  Trust is a  Delaware  statutory  trust  (the
         "Litigation Trust") formed by Empire Resorts,  Inc. ("Empire Resorts"),
         Monticello  Raceway  Management,  Inc.,  ("MRMI"),   Monticello  Casino
         Management,  L.L.C.,  Monticello Raceway  Development  Company,  L.L.C.
         ("MRDC") and Mohawk Management, L.L.C. ("Mohawk"). On January 12, 2004,
         22,702,896 units of beneficial  interest were issued to the members and
         stockholders of those entities. At that time, Empire Resorts,  Catskill
         Development,  L.L.C.  ("Catskill"),  MRMI, Mohawk, Joseph E. Bernstein,
         Paul A. deBary (Messrs.  Bernstein and deBary are hereinafter  referred
         to as the "Litigation  Trustees") and Christiana Bank and Trust Company
         (the "Administrative Trustee") entered into the Declaration of Trust of
         Catskill Litigation Trust (the "Declaration of Trust").

         In the Declaration of Trust, Catskill,  MRDC and Mohawk assigned to the
         Litigation Trust all of their claims under or related to the alienation
         and frustration of their agreements and business relations with the St.
         Regis Mohawk Tribe and their rights to any judgment or settlement  that
         may arise from any  litigation  relating  to two  litigations  entitled
         Catskill  Development,  L.L.C., Mohawk Management L.L.C. and Monticello
         Raceway   Development   Company   L.L.C.,   Plaintiffs  v.  Park  Place
         Entertainment Corporation,  Defendant and Catskill Development, L.L.C.,
         Mohawk  Management,  L.L.C.,  Monticello Raceway  Development  Company,
         L.L.C., Plaintiffs v. Gary Melius, Ivan Kaufman, Walter Horn, President
         R.C. - St. Regis Management  Company,  et al,  Defendants  (hereinafter
         referred  to as  the  "Litigation").  If at  any  time  the  Litigation
         Trustees determine,  in their absolute  discretion,  that the assets of
         the Litigation Trust are not sufficient to justify its continuance, the
         Litigation  Trustees are authorized to terminate the Litigation  Trust.
         In addition,  the Litigation Trust is to terminate on the date that all
         litigation  has been fully  prosecuted to final  judgment or dismissal,
         including  all  appeals,  and all  Litigation  Trust  assets  have been
         distributed to the Litigation Trust's beneficiaries.

NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Basis of Presentation
         ---------------------

         These condensed  financial  statements have been prepared in accordance
         with accounting  principles for interim financial  statements generally
         accepted in the United States of America, and with Form 10-QSB and Item
         310  of  Regulation  SB of  the  Securities  and  Exchange  Commission.
         Accordingly,  they do not contain  all the  information  and  footnotes
         required  by  accounting  principles  generally  accepted in the United
         States of America for annual  financial  statements.  In the opinion of
         the  Litigation   Trustees,   the  accompanying   condensed   financial
         statements  contain all the adjustments  necessary  (consisting only of
         normal  recurring  accruals) to make the  financial  statements  of the
         Litigation Trust not misleading.

         Operating  results for the period  January 12, 2004 (date of inception)
         to September  30, 2004 are not  necessarily  indicative  of the results
         that  would be  expected  for the  period  January  12,  2004  (date of
         inception) to December 31, 2004. For further information,  refer to the


                                       6


         financial  statement as of January 12, 2004 and the  footnotes  related
         thereto contained in the Litigation Trust's Form S-1 filed on April 22,
         2004 with the Securities and Exchange Commission.

         Use of Estimates in the Financial Statements
         --------------------------------------------

         The  preparation of financial  statements in conformity with accounting
         principles  generally accepted in the United States of America requires
         the Litigation  Trustees to make estimates and assumptions  that affect
         the  reported  amounts  of assets and  liabilities  and  disclosure  of
         contingent  assets  and  liabilities  at  the  date  of  the  financial
         statements and the reported amounts of revenues and expenses during the
         reporting period. Actual results could differ from those estimates.

         Income Taxes
         ------------

         For federal income tax purposes,  the Litigation  Trust is treated as a
         grantor trust.  Under the grantor trust rules, each holder of a unit of
         beneficial  interest is treated as the owner of his or her share of the
         Litigation  Trust's  assets.  The treatment of income and expense items
         under accounting  principles generally accepted in the United States of
         America  may differ  from the tax  treatment  of such  items.  Expenses
         incurred by the Litigation Trust will be capitalized for tax purposes.

NOTE 3 - LINE OF CREDIT-RELATED PARTY

         Empire Resorts, a related party, has provided the Litigation Trust with
         a line of credit of up to $2,500,000. The line of credit can be used to
         pay  all  expenses  of  the  Litigation   Trust   permitted  under  the
         Declaration of Trust,  including but not limited to  professional  fees
         and  the  fees  and  expenses  of  the  Litigation  and  Administrative
         Trustees.  The line of  credit  is  non-interest  bearing  and is to be
         repaid from any amounts received from litigation settlements or awards.
         The line of  credit  expires  upon the  termination  of the  Litigation
         Trust.

         On April 1, 2004, $250,000 was drawn against the line of credit.

         The  Litigation  Trust  imputed  interest on the  borrowings  at Empire
         Resorts'  borrowing  rate  (5.50%  per annum at  September  30,  2004).
         Interest  expense for the three months ended September 30, 2004 and for
         the period  January 12, 2004 (date of  inception) to September 30, 2004
         amounted to $3,438 and $6,866, respectively, and was deemed contributed
         capital to the Litigation Trust.

NOTE 4 - DISTRIBUTIONS

         The  distribution  of any net proceeds from  litigation  settlements or
         awards,  after  amounts  are  applied to cover all  current or expected
         expenses of the Litigation  Trust, is to be made at the sole discretion
         of the Litigation Trustees and will be distributed as follows:

         First:  To  pay  the  Litigation   Trustees  their  fees  arising  from
         litigation settlements or awards. (See Note 5)

         Second: To reimburse $7,500,000 to Empire Resorts for expenses incurred
         in  connection  with  the  Litigation  prior  to the  formation  of the
         Litigation Trust and, in addition,  to repay Empire Resorts any amounts
         outstanding under the line of credit.

                                       7


         Third: If any amount remains after the above requirements are met, such
         amount  remaining  is to be  divided  among  the  beneficiaries  of the
         Litigation  Trust in proportion  to their  ownership of Units as of the
         date the distribution is made.

NOTE 5 - COMMITMENTS AND CONTINGENCIES

         Compensation of Litigation Trustees
         -----------------------------------

         Each of the two Litigation  Trustees is entitled to annual compensation
         of $60,000 plus  reimbursement  of expenses  incurred  carrying out the
         purpose of the Litigation Trust. In addition, one litigation trustee is
         entitled  to 4%,  and the other 1%, of any  litigation  settlements  or
         awards.

         Compensation of the Administrative Trustee
         ------------------------------------------

         The  Administrative  Trustee is  entitled  to a $5,000  acceptance  fee
         (which  includes  the  first  month  administrative  fee) and a monthly
         administrative fee of $500. In addition,  the Administrative Trustee is
         entitled  to a custody  fee on certain  cash  balances  and  marketable
         securities of .5% per annum on the first  $10,000,000 of fair value and
         3% on the excess and reimbursement for certain fees and expenses.

         Expenses Paid Prior to the Formation of the Litigation Trust
         ------------------------------------------------------------

         As  discussed  in Note 4, the  Litigation  Trust is obligated to pay to
         Empire  Resorts  up to  $7,500,000.  This  amount  represents  expenses
         incurred prior to the formation of the Litigation  Trust. The amount is
         payable solely from the proceeds of litigation settlements or awards.

         Repayments of Amounts Drawn Under the Line of Credit-Related Party
         ------------------------------------------------------------------

         As  discussed  in Note 3, the  expenses  of the  Litigation  Trust  are
         expected to be paid from draws under the line of credit.  Amounts drawn
         under the line of credit  are to be repaid  from any  amounts  received
         from litigation settlements or awards.

NOTE 6 - CERTAIN RELATIONSHIPS

         The Litigation  Trustees are both currently  members of Empire Resorts'
         Board of Directors.


                                       8





ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

Forward-Looking Statements

         This Report on Form 10-QSB contains "forward-looking statements" within
the  meaning  of  Section  27A of the  Securities  Act  and  Section  21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements
other than  statements of historical  facts  included in this Report,  including
without  limitation,  the statements under "General," and "Liquidity and Capital
Resources,"  are  forward-looking  statements.  All subsequent  written and oral
forward-looking  statements  attributable  to the  Litigation  Trust or  persons
acting on its behalf are expressly qualified in their entirety by the cautionary
statements.

         The  following  discussions  should  be read in  conjunction  with  our
financial   statements  and  the  related  notes  thereto  and  other  financial
information  appearing  elsewhere  in  this  report.  The  following  discussion
contains  forward-looking  statements that involve risks and uncertainties.  Our
actual  results  could  differ   materially   from  those   anticipated  in  the
forward-looking  statements  as a result of  various  factors,  including  those
discussed elsewhere in this report.

General

         We are a statutory  trust created under Delaware law. Our formation was
a condition to the  consolidation of Empire Resorts,  Inc.  ("Empire  Resorts"),
Monticello Raceway  Management,  Inc.,  ("MRMI"),  Monticello Casino Management,
L.L.C.  ("MCM"),  Monticello Raceway Development  Company,  L.L.C.  ("MRDC") and
Mohawk Management, L.L.C. ("Mohawk"). Also as a condition to that consolidation,
each of Catskill Development,  L.L.C. ("Catskill"),  MRDC, and Mohawk, agreed to
assign  to us all of  their  claims  under  or  related  to the  alienation  and
frustration of their agreements and business relations with the St. Regis Mohawk
Tribe.  That  assignment  included rights to any proceeds from any settlement or
award that may arise from any litigation  relating to that claim. Our litigation
claims arise from the efforts of each of Catskill,  MRDC,  and Mohawk to develop
with the St. Regis Mohawk Tribe a gaming  casino in  Monticello,  New York.  The
plaintiffs  spent  several  years and  substantial  funds to develop  and obtain
required  approvals  for the  casino.  Subsequently,  Park  Place  Entertainment
Corporation,  the world's largest gaming corporation and Atlantic City's largest
casino  operator,  entered into an agreement  providing for the St. Regis Mohawk
Tribe to commit their future  casino  development  efforts  exclusively  to Park
Place  Entertainment  Corporation.  That  agreement  conflicted  with the Mohawk
Tribe's agreements with Catskill, MRDC and Mohawk.

         There is one lawsuit  presently  pending and one lawsuit  that has been
discontinued.  The  first  lawsuit  is  Catskill  Development,   L.L.C.,  Mohawk
Management,   L.L.C.,  and  Monticello  Raceway  Development  Company,   L.L.C.,
Plaintiffs. v. Park Place Entertainment  Corporation,  Defendant.  (Civil Action
No. 00CIV8660 (CM) (GAY)) (United States District Court Southern District of New
York)  referred to herein as the "PPE case".  This  lawsuit had  initially  been
dismissed on a motion for summary  judgment.  However,  those  rulings have been
appealed.  In addition,  the trial court vacated the earlier  decision  granting
summary  judgment  to Park  Place  Entertainment,  in order to allow  additional
discovery  proceedings.  The second  lawsuit is  Catskill  Development,  L.L.C.,
Mohawk Management,  L.L.C., and Monticello Raceway Development Company,  L.L.C.,
Plaintiffs. against Gary Melius, Ivan Kaufman, Walter Horn, President R.C. - St.
Regis Management Company,  et al, Defendants.  (Index No. 891/03) (Supreme Court
of the State of New York County of Sullivan). This lawsuit has been discontinued
under an agreement  that permits it to be refiled at a future date without being
barred by the statute of  limitations.  Our purposes are the  prosecution of our
litigation  claims through the recovery of any settlement or final judgments and
the distribution of the net amount of any such recoveries to our beneficiaries.

                                       9


         The   administration   of  our   Litigation   Trust  will  involve  the
authentication  and payment of fees and expenses for legal and related  services
in connection with our litigation  claims,  reporting and regulatory  compliance
and  the   maintenance   of  litigation,   financial  and  unitholder   records.
Administrative expenses are currently estimated to be approximately $200,000 per
year, including the fees of the litigation and administrative trustees, auditors
and  accountants  and other  support  services.  Legal  fees and other  expenses
involved in our  litigation  claims are impossible to predict with any degree of
accuracy.  No  assurance  can be given that the amounts  available to us for the
payment of such  expenses  under our line of credit will be  sufficient to carry
our  litigation  claims through to a successful  conclusion or that  alternative
funds will be available for such purpose.

         Our unit  holders  will only be entitled to the net  proceeds  from any
settlement or award,  if any, of our litigation  claims after the payment of our
expenses, the fees of our litigation trustees, any amounts outstanding under our
line of credit and  $7,500,000  to Empire  Resorts  for  reimbursement  of prior
expenses incurred in connection with our litigation claims.



RESULTS OF OPERATIONS

For the period January 12, 2004 (date of inception)  through September 30, 2004,
we reported a net loss of $304,293.  Included in this net loss are legal fees of
$168,333  (of  which  legal  fees  related  to  litigation  were  $93,333),  and
administrative  expenses of $136,452  offset by dividend  income of $492, but no
proceeds from any litigation.  For the three months ended September 30, 2004, we
reported a net loss of $125,184  compared to a net loss of $64,372 for the three
months  ended  June 30,  2004.  Included  in these net  losses are legal fees of
$75,336 and $12,109,  respectively  (of which legal fees  related to  litigation
were $336 and $12,109, respectively), and administrative expenses of $50,065 and
$52,539 respectively,  offset by dividend income of $217 and $276, respectively,
but no proceeds from any litigation.

The third quarter results reflect accrued legal expenses of $75,000  relating to
registration of trust units and other  administrative  items,  but reduced legal
fees related to litigation due to lack of activity in our lawsuits. The District
Judge in the PPE case  advised the parties  that,  despite our  arguments to the
contrary,  it was  appropriate  to wait for a decision  by the New York Court of
Appeals in another  case before  ruling on the pending  motions in the PPE case.
The Court of Appeals  decision  was received in October and briefs were filed by
both parties  concerning  the  relevance of that decision to the case. We cannot
estimate  with any certainty how long it may be before any ruling on the pending
motions in the PPE case is issued or whether any such ruling will  expedite  the
process of reaching a final resolution of the case or not. However,  as a result
of this activity in the case, we do expect expenses  related to trial counsel to
increase  in the fourth  quarter of 2004 and would also expect  increased  legal
fees related to trial or appeal matters in 2005 as compared to 2004.

On June 1, 2004, we filed a Voluntary  Discontinuance and Tolling Agreement with
respect to the second  lawsuit.  Since  there are many issues of fact and law in
the PPE case  which  relate  to  matters  that  are also at issue in the  second
lawsuit,  we believe that,  as long as the right to recommence  the suit without
regard to the Statute of Limitations was preserved,  the  discontinuance of this
suit was  appropriate  in order to avoid the cost of  maintaining  two  separate
lawsuits.


                                       10

LIQUIDITY AND CAPITAL RESOURCES

Empire  Resorts  has  provided  us with an  irrevocable  line of credit of up to
$2,500,000 to provide funds to pay any and all of our expenses  permitted  under
the Declaration of Trust.  No interest is payable on amounts  advanced under our
line of credit. Amounts outstanding under our line of credit are to be repaid by
us from proceeds  received from any  settlement or award in connection  with our
litigation  claims after  payment of an amount  necessary to pay our  Litigation
Trustees the fees for their  services as set forth in the  Declaration of Trust.
Repayments  of  amounts  outstanding  under our line of credit  may be made as a
whole or in part from time to time at any time without  notice.  We may reborrow
any  amounts so repaid.  Our line of credit will remain in full force and effect
until our termination.

Empire Resorts is a holding company,  owning all the capital stock or membership
interests of certain other  entities.  Empire Resorts is therefore  dependent on
these other entities to pay dividends or make distributions in order to generate
internal cash flow and to satisfy its  obligations,  including  its  obligations
under our line of credit. There can be no assurance,  however,  that these other
entities  will  generate  enough  revenue  to pay cash  dividends  or make  cash
distributions.  In addition,  these entities may enter into contracts that limit
or prohibit their ability to pay dividends or make distributions.

Empire  Resorts  had no net  operating  revenue  during  the  fiscal  year ended
December  31, 2003 or for the six months ended June 30, 2004 and  sustained  net
operating losses of approximately  $8.0 and $8.2 million,  respectively,  during
such  periods.  Although  Empire  Resorts  significantly  increased its level of
operations during the third quarter of 2004, it has yet to demonstrate that such
operations can be profitable.  Therefore,  there can be no assurance that Empire
Resorts will have the ability to meet its obligations under our line of credit.

ITEM 3.  CONTROLS AND PROCEDURES

(a) The Litigation  Trust carried out an evaluation,  under the  supervision and
with the participation of the Trust's management,  including Joseph E. Bernstein
(acting Chief  Executive  Officer) and Paul A. deBary  (acting  Chief  Financial
Officer),  the Litigation Trust's Litigation  Trustees,  of the effectiveness of
the design and  operation of the  Litigation  Trust's  "disclosure  controls and
procedures", as such term is defined in Exchange Act Rule 15d-15e, as of the end
of the  period  covered by this  report.  Based  upon that  evaluation,  Messrs.
Bernstein  and deBary have  concluded  that the  Litigation  Trust's  disclosure
controls and  procedures  were  effective as of the end of the period covered by
this report to provide  reasonable  assurance  that  information  required to be
disclosed by the Litigation  Trust in reports that it files or submits under the
Exchange Act is recorded,  processed,  summarized  and reported  within the time
periods specified in SEC rules and forms.

(b) There have been no significant  changes in the Litigation  Trust's  internal
controls or in other  factors  that could  significantly  affect the  Litigation
Trust's  internal  controls  subsequent to the date the Litigation Trust carried
out this evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.

A control  system,  no matter how well conceived and operated,  can provide only
reasonable, not absolute assurance that the objectives of the control system are
met. Because of the inherent  limitations in all control systems,  no evaluation
of controls can provide absolute assurance that all control issues and instances
of fraud, if any, within a company have been detected.


                                       11


                                OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         We are a statutory  trust created under Delaware law. Our formation was
a condition to the  consolidation  of Empire  Resorts with MRMI,  MCM, MRDC, and
Mohawk.  Also as a condition to that consolidation,  each of Catskill,  MRDC and
Mohawk,  agreed to  assign to us all of their  claims  under or  related  to the
alienation and frustration of their  agreements and business  relations with the
St. Regis Mohawk Tribe. That assignment included rights to any proceeds from any
settlement or award that may arise from any  litigation  relating to that claim.
Our  litigation  claims  arise from the  efforts of each of  Catskill,  MRDC and
Mohawk to develop with the St. Regis Mohawk Tribe a gaming casino in Monticello,
New York.  We spent several  years and  substantial  funds to develop and obtain
required  approvals  for the  casino.  Subsequently,  Park  Place  Entertainment
Corporation,  the world's largest gaming corporation and Atlantic City's largest
casino  operator,  entered into an agreement  providing for the St. Regis Mohawk
Tribe to commit their future  casino  development  efforts  exclusively  to Park
Place  Entertainment  Corporation.  That  agreement  conflicted  with the Mohawk
Tribe's agreements with Catskill MRDC and Mohawk. There is one lawsuit presently
pending  and one  lawsuit  that has been  discontinued.  The  first  lawsuit  is
Catskill Development,  L.L.C., Mohawk Management, L.L.C., and Monticello Raceway
Development   Company,   L.L.C.,   Plaintiffs.   v.  Park  Place   Entertainment
Corporation,  Defendant.  (Civil Action No. 00CIV8660  (CM)(GAY)) (United States
District Court Southern  District of New York).  This lawsuit had initially been
dismissed on a motion for summary  judgment.  However,  those  rulings have been
appealed.  In addition,  the trial court vacated the earlier  decision  granting
summary  judgment  to Park  Place  Entertainment,  in order to allow  additional
discovery  proceedings.  The second  lawsuit is  Catskill  Development,  L.L.C.,
Mohawk Management,  L.L.C., and Monticello Raceway Development Company,  L.L.C.,
Plaintiffs. against Gary Melius, Ivan Kaufman, Walter Horn, President R.C. - St.
Regis Management Company,  et al, Defendants.  (Index No. 891/03) (Supreme Court
of the State of New York County of Sullivan). This lawsuit has been discontinued
under an agreement  that permits it to be refiled at a future date without being
barred by the statute of  limitations.  Our purposes are the  prosecution of our
claims now through the recovery of any  settlement  or final  judgments  and the
distribution of the net amount of any such recoveries to our beneficiaries.

ITEM 6.  EXHIBITS AND REPORTS ON 8-K

         a:  Exhibits

         *31.1  Certification  of Acting  Chief  Executive  Officer  pursuant to
                Section 302 of the Sarbanes-Oxley Act of 2002.

         *31.2  Certification  of Acting  Chief  Financial  Officer  pursuant to
                Section 302 of the Sarbanes-Oxley Act of 2002.

         *32.1  Certification of the Acting Chief Executive  Officer pursuant to
                18 U.S.C.  Section 1350  adopted  pursuant to Section 906 of the
                Sarbanes-Oxley Act of 2002.

         *32.2  Certification of the Acting Chief Financial  Officer pursuant to
                18 U.S.C.  Section 1350  adopted  pursuant to Section 906 of the
                Sarbanes-Oxley Act of 2002.

         *Filed herewith


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                                   SIGNATURES

     In  accordance  with  the  requirements  of  the  Exchange  Act,   Catskill
Litigation  Trust  caused  this  report  to be  signed  on  its  behalf  by  the
undersigned, thereunto duly authorized.

                                       CATSKILL LITIGATION TRUST
                                       (Registrant)



DATE:  November 12, 2004               By:  /s/ Joseph E. Bernstein
                                            -----------------------------
                                            Joseph E. Bernstein
                                            Litigation Trustee



DATE:  November 12, 2004               By: /s/ Paul A. deBary
                                            -----------------------------
                                             Paul A. deBary
                                             Litigation Trustee




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