The U.S. Supreme Court in one of its final acts of this year’s session overruled earlier decisions that the Shingle Springs Band of Miwok Indians of California pay $30 million to an erstwhile partner that loaned it money under a management agreement to build its first casino.
That first casino did not last long, and the old partner, Sharp Image Gaming sued to get its money back when the tribe’s second casino, the Red Hawk Casino proved to be successful.
However, the management contract was never approved by the National Indian Gaming
Commission, which ultimately meant that it was null and void. That is what the Supreme Court ruled, and now not only will the tribe not have to pay the $30 million judgment, Sharp Image must pay its legal costs over ten years, which is an estimated $7 million.
Tribal Chairman Regina Cuellar hailed the victory and said the tribe “feels completely vindicated,” and told the Sacramento Business Journal that the case, “never should have gone to trial, based on defenses we raised at the outset.” She added, “But justice has finally prevailed, and we are happy to move forward.”
