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COA: No preliminary injunction against casinos

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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.

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  1. Paul Ogden doing a fine job of remembering his peer Gary Welsh with the post below and a call for an Indy gettogether to celebrate Gary .... http://www.ogdenonpolitics.com/2016/05/indiana-loses-citizen-journalist-giant.html Castaways of Indiana, unite!

  2. It's unfortunate that someone has attempted to hijack the comments to promote his own business. This is not an article discussing the means of preserving the record; no matter how it's accomplished, ethics and impartiality are paramount concerns. When a party to litigation contracts directly with a reporting firm, it creates, at the very least, the appearance of a conflict of interest. Court reporters, attorneys and judges are officers of the court and must abide by court rules as well as state and federal laws. Parties to litigation have no such ethical responsibilities. Would we accept insurance companies contracting with judges? This practice effectively shifts costs to the party who can least afford it while reducing costs for the party with the most resources. The success of our justice system depends on equal access for all, not just for those who have the deepest pockets.

  3. As a licensed court reporter in California, I have to say that I'm sure that at some point we will be replaced by speech recognition. However, from what I've seen of it so far, it's a lot farther away than three years. It doesn't sound like Mr. Hubbard has ever sat in a courtroom or a deposition room where testimony is being given. Not all procedures are the same, and often they become quite heated with the ends of question and beginning of answers overlapping. The human mind can discern the words to a certain extent in those cases, but I doubt very much that a computer can yet. There is also the issue of very heavy accents and mumbling. People speak very fast nowadays, and in order to do that, they generally slur everything together, they drop or swallow words like "the" and "and." Voice recognition might be able to produce some form of a transcript, but I'd be very surprised if it produces an accurate or verbatim transcript, as is required in the legal world.

  4. Really enjoyed the profile. Congratulations to Craig on living the dream, and kudos to the pros who got involved to help him realize the vision.

  5. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

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