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Settlement resolves casino money cases

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Indiana Lawyer Rehearing

The six-year casino revenue litigation that sparked multiple lawsuits statewide, went to Indiana’s appellate courts multiple times, and led to legislative initiatives is coming to a close.

Under an executed settlement agreement, most of the litigation involving how East Chicago and various entities used the casino money will be resolved. East Chicago will receive $11.7 million originally designated for the for-profit East Chicago Second Century Inc. – which is now being dissolved. Payments to Second Century were halted by the Indiana Gaming Commission in 2006 after an investigation found the corporation was spending its small percentage of casino revenue on non-economic development, which went against the local development agreement enacted in the 1990s and was at the heart of this litigation.

Now, the 31 city properties that Second City owns will be transferred to the nonprofit Foundations of East Chicago, according to the settlement. The Foundations will receive $20 million, which is its share of the 2 percent of casino revenues under the 1994 Local Development Agreement. Those payments had been put on hold in 2007 after Foundations filed a lawsuit challenging the legitimacy of that deal.

A new local development agreement enacted in June following a settlement in that suit gives both the city and Foundations a percentage of the casino revenues to be spent on economic development, infrastructure, or public safety.

Second Century attorney J. Lee McNeely will receive $1.2 million for his years of work representing the entity, the agreement states.

According to the settlement, a total of five pending lawsuits will be resolved – Foundations v. East Chicago, No. 9D13-0705-PL-019348; Second Century v. Resorts, No. 49D01-0504-PL-014394; Second Century v. Indiana Gaming Commission, et al, No. 49D01-0606-CC-025440; Second Century v. Resorts, No. 49D01-0706-PL-022673; and City of East Chicago v. Indiana Gaming Commission, No. 49D05-1106-PL-022283.

In the past two years, the lines of litigation have gone up to the Court of Appeals several times – including two pending appeals – and the Indiana Supreme Court has issued three decisions delving into these local development agreement and casino-revenue related issues - Zoeller v. Second Century in April 13, 2009, City of East Chicago v. Second Century in June 2009, and Foundations of East Chicago v. East Chicago and State in May 2010.

With this settlement, the only outstanding claim will be one brought by the Indiana attorney general. The AG praised the agreement and said all the blame for the years of court battles fall onto former East Chicago Mayor Robert Pastrick and his administration for allowing economic development money to be paid to the for-profit Second Century. This litigation is not directly connected to the federal civil racketeering suit against Pastrick that last year resulted in a $108 million judgment against the former mayor and his top allies, but how the casino revenue agreements and how that money was spent became a part of those court arguments and led the AG to push for legislation seeking more transparency in how local development agreements are reached.

Rehearing "Second Century suit can proceed" IL Nov. 10-23, 2010

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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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