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Lauth distress over French Lick casino not over

From The
January 1, 2007
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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."
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  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

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