ILNews

Lauth distress over French Lick casino not over

From The
January 1, 2007
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
Lauth Property Group may have ended its contentious battle with Bloomington billionaire Bill Cook this week to develop the $382 million French Lick casino and hotel project, but its real battle involving the Orange County resort may have just begun.

The Indianapolis-based developer still faces a breach-of-contract claim seeking $100 million by Chicago-based Merit Management, a hotel and casino developer. Merit and Lauth initially teamed up to develop the French Lick project but failed to obtain a gaming license. Lauth later paired with Cook.

Last month, Hamilton County Superior Judge Stephen Nation ruled that a contract existed between Lauth and Merit, clearing the way for a trial in Merit's pursuit of $100 million in damages against Lauth.

On Wednesday, Cook's team bought out Lauth's share in Orange County Holdings LLC, ending their contentious relationship that included accusations from Lauth that Cook's project managers were incompetent and drove up costs of the casino and hotel project. Last year, Lauth offered to buy out Cook's share in the project for nearly $200 million. Cook countered with a mere $5 million.

Whatever the amount, Merit may well have its eyes on claiming it under its litigation, said Ed Feigenbaum, publisher of Indiana Gaming Insight and Indiana Legislative Insight. "Lauth has added problems in that it's not resolved the Merit [litigation]," he said.

Some observers say Lauth likely walked away with a share of Orange County Holdings closer to the figure for which Cook offered to buy out Lauth. If so, that could be useful in limiting damages that could be collected by Merit if it were to prevail-so long as Lauth cut a deal with Cook that could provide the developer with future revenues, said one source who asked to not be identified.

Lauth officials aren't talking, other than to say the developer's goal "to develop and construct the Midwest's premier resort destination" was achieved, said spokesman Marc Lotter.

Edwin Broecker, a Sommer & Barnard attorney who represents Cook's Orange County group, said the Lauth settlement is a plus for the project.

"This was a great opportunity to have a single focus and vision for the project and how to build on the early momentum that's been there," Broecker said.

Remaining to be completed, Broecker said, is the resort's Pete Dye-designed golf course, which should be ready for play as early as next spring.

The Lauth-Cook partnership appeared problematic from the start, said Feigenbaum, noting the good will Cook has in Southern Indiana.

"It seems like Lauth essentially wanted out since Day One, when they realized they really weren't being treated as a 50-percent partner."
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. "associates are becoming more mercenary. The path to partnership has become longer and more difficult so they are chasing short-term gains like high compensation." GOOD FOR THEM! HELL THERE OUGHT TO BE A UNION!

  2. Let's be honest. A glut of lawyers out there, because law schools have overproduced them. Law schools dont care, and big law loves it. So the firms can afford to underpay them. Typical capitalist situation. Wages have grown slowly for entry level lawyers the past 25 years it seems. Just like the rest of our economy. Might as well become a welder. Oh and the big money is mostly reserved for those who can log huge hours and will cut corners to get things handled. More capitalist joy. So the answer coming from the experts is to "capitalize" more competition from nonlawyers, and robots. ie "expert systems." One even hears talk of "offshoring" some legal work. thus undercutting the workers even more. And they wonder why people have been pulling for Bernie and Trump. Hello fools, it's not just the "working class" it's the overly educated suffering too.

  3. And with a whimpering hissy fit the charade came to an end ... http://baltimore.cbslocal.com/2016/07/27/all-charges-dropped-against-all-remaining-officers-in-freddie-gray-case/ WHISTLEBLOWERS are needed more than ever in a time such as this ... when politics trump justice and emotions trump reason. Blue Lives Matter.

  4. "pedigree"? I never knew that in order to become a successful or, for that matter, a talented attorney, one needs to have come from good stock. What should raise eyebrows even more than the starting associates' pay at this firm (and ones like it) is the belief systems they subscribe to re who is and isn't "fit" to practice law with them. Incredible the arrogance that exists throughout the practice of law in this country, especially at firms like this one.

  5. Finally, an official that realizes that reducing the risks involved in the indulgence in illicit drug use is a great way to INCREASE the problem. What's next for these idiot 'proponents' of needle exchange programs? Give drunk drivers booze? Give grossly obese people coupons for free junk food?

ADVERTISEMENT