ILNews

COA: No preliminary injunction against casinos

Back to TopCommentsE-mailPrintBookmark and Share

A panel of Indiana Court of Appeals judges agreed a city isn't entitled to a preliminary injunction to order riverboat casinos to make payments to the city, but the judges disagreed as to why the city didn't meet its burden to prove an injunction was necessary.

In City of Gary, Ind. v. The Majestic Star Casino, et al., No. 49A02-0807-CV-625, Gary appealed an order denying its motion to transfer venue and an order denying the city's motion for a preliminary injunction to compel Majestic Star I and II casinos to make payments from adjusted gross receipts to the city.

In addition to the city's agreement with the casinos, the city entered into an agreement with Gary New Century to redevelop property; several years later, GNC's rights to a portion of the redevelopment property were assigned to Majestic Star I.

In 2005, the city, GNC, and the casinos amended their original agreements. A dispute arose about the validity and meaning of the 2005 amendment, and the casinos stopped paying a portion of their adjusted gross receipts to the city as in the original agreement and deposited it into a separate bank account to be distributed in accordance with an arbitration award.

The casinos and GNC filed a complaint in Marion County against the city and the Indiana Gaming Commission alleging the city failed to fulfill its obligations under the GNC agreement and the 2005 amendment. Gary filed a motion to transfer venue to Lake County and for a preliminary injunction to make the casinos resume payments to the city, arguing the lack of money hurt the general public because it affects the city's ability to pay overtime for public workers and repair infrastructure. The trial court denied both motions.

The Court of Appeals unanimously agreed it didn't have jurisdiction over Gary's appeal of its motion to transfer venue because the city filed its appeal after the 30-day deadline had passed under Ind. App. R. 14(A).

The judges also affirmed the trial court's denial of Gary's motion for a preliminary injunction, although their reasons for doing so differed. Judge Elaine Brown wrote there are other options for Gary to continue with its city services, such as issuing bonds, instead of cutting essential services. Because the casinos are depositing payments into a segregated bank account and Gary has the capacity to issue general obligation bonds, Judge Brown wrote the city failed to show an inadequate remedy at law, thus causing irreparable harm pending resolution of the substantive action.

Judge Terry Crone, in a separate concurring-in-result opinion, believed the appellate court shouldn't consider the city's ability to issue bonds in assessing the nature and extent of its alleged damages and the availability of alternative remedies.

"Only rarely should the judiciary intervene in such matters, and I believe that we should refrain from serving as the City's de facto budget director in this case," he wrote.

Although the judge believes the casinos' withholding of payments to the city to be clearly against the public interest, the city has an alternate remedy through an arbitration clause in the agreement, so a preliminary injunction isn't necessary. Judge Cale Bradford, concurring in result in a separate opinion, agreed with Judge Crone to the extent the arbitration clause provides Gary an alternate remedy at law.

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. Indianapolis Bar Association President John Trimble and I are on the same page, but it is a very large page with plenty of room for others to join us. As my final Res Gestae article will express in more detail in a few days, the Great Recession hastened a fundamental and permanent sea change for the global legal service profession. Every state bar is facing the same existential questions that thrust the medical profession into national healthcare reform debates. The bench, bar, and law schools must comprehensively reconsider how we define the practice of law and what it means to access justice. If the three principals of the legal service profession do not recast the vision of their roles and responsibilities soon, the marketplace will dictate those roles and responsibilities without regard for the public interests that the legal profession professes to serve.

  2. I have met some highly placed bureaucrats who vehemently disagree, Mr. Smith. This is not your father's time in America. Some ideas are just too politically incorrect too allow spoken, says those who watch over us for the good of their concept of order.

  3. Lets talk about this without forgetting that Lawyers, too, have FREEDOM OF SPEECH AND ASSOCIATION

  4. Baer filed with the U.S. Court of Appeals Seventh Circuit on April 30 2015. When will this be decided? How many more appeals does this guy have? Unbelievable this is dragging on like this.

  5. They ruled there is no absolute right to keep a license, whether it be for a lifetime or a short period of time. So with that being said, this state taught me at the age of 15 how to obtain that license. I am actually doing something that I was taught to do, I'm not breaking the law breaking the rules and according to the Interstate Compact the National Interstate Compact...driving while suspended is a minor offense. So, do with that what you will..Indiana sucks when it comes to the driving laws, they really and truly need to reevaluate their priorities and honestly put the good of the community first... I mean, what's more important the pedophile drug dealer or wasting time and money to keep us off the streets?

ADVERTISEMENT