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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. Indianapolis employers harassment among minorities AFRICAN Americans needs to be discussed the metro Indianapolis area is horrible when it comes to harassing African American employees especially in the local healthcare facilities. Racially profiling in the workplace is an major issue. Please make it better because I'm many civil rights leaders would come here and justify that Indiana is a state the WORKS only applies to Caucasian Americans especially in Hamilton county. Indiana targets African Americans in the workplace so when governor pence is trying to convince people to vote for him this would be awesome publicity for the Presidency Elections.

  2. Wishing Mary Willis only God's best, and superhuman strength, as she attempts to right a ship that too often strays far off course. May she never suffer this personal affect, as some do who attempt to change a broken system: https://www.youtube.com/watch?v=QojajMsd2nE

  3. Indiana's seatbelt law is not punishable as a crime. It is an infraction. Apparently some of our Circuit judges have deemed settled law inapplicable if it fails to fit their litmus test of political correctness. Extrapolating to redefine terms of behavior in a violation of immigration law to the entire body of criminal law leaves a smorgasbord of opportunity for judicial mischief.

  4. I wonder if $10 diversions for failure to wear seat belts are considered moral turpitude in federal immigration law like they are under Indiana law? Anyone know?

  5. What a fine article, thank you! I can testify firsthand and by detailed legal reports (at end of this note) as to the dire consequences of rejecting this truth from the fine article above: "The inclusion and expansion of this right [to jury] in Indiana’s Constitution is a clear reflection of our state’s intention to emphasize the importance of every Hoosier’s right to make their case in front of a jury of their peers." Over $20? Every Hoosier? Well then how about when your very vocation is on the line? How about instead of a jury of peers, one faces a bevy of political appointees, mini-czars, who care less about due process of the law than the real czars did? Instead of trial by jury, trial by ideological ordeal run by Orwellian agents? Well that is built into more than a few administrative law committees of the Ind S.Ct., and it is now being weaponized, as is revealed in articles posted at this ezine, to root out post moderns heresies like refusal to stand and pledge allegiance to all things politically correct. My career was burned at the stake for not so saluting, but I think I was just one of the early logs. Due, at least in part, to the removal of the jury from bar admission and bar discipline cases, many more fires will soon be lit. Perhaps one awaits you, dear heretic? Oh, at that Ind. article 12 plank about a remedy at law for every damage done ... ah, well, the founders evidently meant only for those damages done not by the government itself, rabid statists that they were. (Yes, that was sarcasm.) My written reports available here: Denied petition for cert (this time around): http://tinyurl.com/zdmawmw Denied petition for cert (from the 2009 denial and five year banishment): http://tinyurl.com/zcypybh Related, not written by me: Amicus brief: http://tinyurl.com/hvh7qgp

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