Sault Tribe seeks relief from $88.8m ruling for casino damages

The Sault Ste. Marie Tribe of Chippewa Indians will apply for relief from a recent circuit court decision against its gaming entity, for approximately $89m in damages for two failed casino projects.

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The tribal authorities revealed that the move was sought after Ingham County Circuit Judge Joyce Draganchuk ordered the Kewadin Casinos Gaming Authority to pay $88.9m; in breach of contract and false misrepresentation penalties to the firms responsible for the casino plans in Lansing and New Boston.

Based on their claims that the off-reservation land would be put into the trust and assist the construction of temporary and permanent casinos at both sites, investors and developers in the projects initially financed the gaming authority $8.8m.

However, court documents show that the tribe never followed through on its promise to provide the US Bureau of Indian Affairs with additional documentation to have the off-reservation land held in trust.

Although the BIA originally found that the tribe's proposal lacked sufficient proof to put the property into a trust, it left the application open "so the Tribe may offer more proof that the purchases will benefit tribal properties. But that did not happen," Draganchuk said in her 28-page order.

Sault Tribe Chairman Austin Lowes said in a statement: “The Sault Tribe is deeply concerned with what it has discovered in reading the Court’s opinion.

“Our board has met with our legal counsel and is hopeful a new direction will lead to a better outcome.”

The tribe has severed ties with its previous legal advisor Patterson Law Firm and has chosen to work with Grewal Law.

The nearly $88.9m award also accounts for $11.4m in principal and interest from the initial loans, as well as more than $75m in lost income from the temporary and permanent casinos that never opened.

In March 2021, the development partners originally sued the gaming authority to recover the funds. Since that time, tribal lawyers have claimed that they have sovereign immunity in the lawsuit, but each of the tribes' challenges has been rejected.

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