ILNews

COA sides with Lauth in casino suit

Michael W. Hoskins
January 1, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
Indianapolis commercial developer Lauth didn't breach a joint venture contract or any of its duties with other parties by partnering with the Bloomington-based Cook Group on an Orange County riverboat casino project, the Indiana Court of Appeals ruled today.

In a unanimous holding in Lauth Indiana Resort & Casino LLC v. Lost River Development LLC, et al., 29A02-0710-CV-839, the court ruled on an issue of first impression about when a joint venture terminates in situations where the agreements contain no specific termination date, creating a bright-line rule as it reversed a ruling from Hamilton Superior Judge Steven Nation that determined there was an issue of fact about whether Lauth had violated the agreement and that a jury should decide that issue.

This case stems from the construction of an Orange County riverboat casino project starting in 2004. Three companies submitted original proposals - Trump Indiana Casino Management, Orange County Development affiliated with Larry Bird, and Lost River that was formed by Merit Gaming Group. After Lost River submitted its proposal, Lauth contacted the developer and they formalized an agreement that provided Lauth would have 50 percent ownership to create a joint venture.

The Indiana Gaming Commission debated between the Trump Indiana and the Lost River/Lauth proposal, ultimately deciding on Trump Indiana. Lauth started contacting other gaming companies and developers to see if anyone would partner with them in case Trump didn't come through; Lauth eventually partnered with the Cook Group to submit another proposal under the name Blue Sky Casino LLC. They won the bid, and the casino opened in Nov. 1, 2006.

As the project was ongoing, Lost River and Merit filed a complaint in late 2005 against Lauth and the Cook Group and alleged they'd entered into an enforceable contract for a joint venture and that, by teaming with Cook Group to form Blue Sky, the Indianapolis developer breached the contract.

Lauth filed a motion for summary judgment in June 2006 claiming that the agreement formed a joint venture at most and that it was terminated when the Gaming Commission chose Trump over Lost River's proposal. At the trial level, Judge Nation dismissed that motion, finding that it didn't contemplate a second bid proposal and that federal caselaw says that a formed joint venture agreement generally "remains in force until its purpose is accomplished or that purpose becomes impracticable."

The Court of Appeals disagreed, and its ruling gives guidance as to when a joint venture agreement ends if nothing is written or specifically detailed about how it ends.

"In conclusion, we hold that if a joint venture is formed for the purpose of submitting a proposal or similar bid, and the joint venture agreement is silent as to when or under what circumstances that venture will end, then the joint venture ends when the proposal or bid is rejected," the court wrote.

In this case, the Lost River joint venture ended as a matter of law when the IGC chose Trump Indiana. As a result, Lauth didn't breach the agreement and the trial judge erred in denying Lauth's motion for summary judgment, the appellate court said.

The case is remanded.
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

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  2. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

  3. This outbreak illustrates the absurdity of the extreme positions taken by today's liberalism, specifically individualism and the modern cult of endless personal "freedom." Ebola reminds us that at some point the person's own "freedom" to do this and that comes into contact with the needs of the common good and "freedom" must be curtailed. This is not rocket science, except, today there is nonstop propaganda elevating individual preferences over the common good, so some pundits have a hard time fathoming the obvious necessity of quarantine in some situations....or even NATIONAL BORDERS...propagandists have also amazingly used this as another chance to accuse Western nations of "racism" which is preposterous and offensive. So one the one hand the idolatry of individualism has to stop and on the other hand facts people don't like that intersect with race-- remain facts nonetheless. People who respond to facts over propaganda do better in the long run. We call it Truth. Sometimes it seems hard to find.

  4. It would be hard not to feel the Kramers' anguish. But Catholic Charities, by definition, performed due diligence and held to the statutory standard of care. No good can come from punishing them for doing their duty. Should Indiana wish to change its laws regarding adoption agreements and or putative fathers, the place for that is the legislature and can only apply to future cases. We do not apply new laws to past actions, as the Kramers seem intent on doing, to no helpful end.

  5. I am saddened to hear about the loss of Zeff Weiss. He was an outstanding member of the Indianapolis legal community. My thoughts are with his family.

ADVERTISEMENT