Judge orders sheriff to tap Chukchansi casino profits to pay lawsuit
Published: June 22, 2013
— The Fresno Bee
A Madera County judge has ordered Sheriff John Anderson to go to Chukchansi Gold Resort & Casino and remove money from the casino till to recover money in a settlement for a former casino manager who sued the tribe.
The payout stems from a lawsuit by ex-casino and hotel manager Matt Olin, who is owed $725,000 after he was fired last year. He was in the middle of a five-year contract and the tribe waived its sovereign immunity to employ him.
That allowed Olin to file a lawsuit against the Chukchansi Economic Development Authority, an unincorporated arm of the tribe, if the tribe failed to live up to the contract.
Olin reached a $725,000 settlement but originally wanted far more, said Richard Verri, who represents a tribal faction led by Reggie Lewis.
But the other Chukchansi tribal council faction, led by Nancy Ayala, will fight the "till tap" ruling by Judge Michael Jurkovich.
His ruling, which must be carried out by the end of November, said that if the tribe fails to pay Olin from casino proceeds, he can go after other tribal assets to enforce the judgment.
The "till tap" is proposed because the tribe's bank accounts are frozen as a result of a February dispute between Ayala's group, which runs the day-to-day operations from the tribe's business complex, and Lewis' group.
A tribal gaming consultant said a "till tap" at a California casino is highly unusual.
"We haven't seen this for years on an Indian reservation," said Michael Lombardi, a Riverside-based consultant and former casino manager. "We are in uncharted territory here."
The last one he recalled occurred at Table Mountain Rancheria's bingo hall in Fresno County more than 20 years ago. It was at a time when two tribal councils were fighting for control and a judge ruled the sheriff could go into the bingo hall to get money for a $15,000 legal bill, Lombardi said.
But that was years before the state's compacts were created, which spelled out rules for casinos in these types of disputes.
Lombardi said he expects a federal court will intervene and rule that the Madera County Superior Court is not the proper venue for ordering a till tap.
If the sheriff does go into the casino, it could potentially set off even more conflict in an increasingly tense situation, said David Leibowitz, a spokesman for the Ayala group.
"The part of this I found so startling is that this has been a very contentious situation for a long time and to suggest that the sheriff ought to go in with a show of force only invites more conflict," Leibowitz said.
He said the tribe will appeal the judge's decision.
Cliff Palefsky, a San Francisco lawyer who represents Olin, said that sovereign immunity issues are complicated but don't come into play in Olin's case.
But if either faction fights the settlement, Olin will want more money.
"Neither faction should have an interest in fighting us because it will cost them more," he said. "It's in their best interest to pay off Mr. Olin."
But Sheriff Anderson said he doesn't want to move too quickly. Last week, he asked the Madera County Board of Supervisors to hire lawyers with expertise in Indian matters to represent him because he is concerned about violating the tribe's sovereignty.
But he also worries that Olin's lawyer will sue Madera County if he doesn't get the money.
Anderson said all plans are on hold until he gets legal advice.
"This way someone can step in and mediate for me," Anderson said.
For now, he said, a deputy is stationed near the Coarsegold rancheria.
"However it works out doesn't really matter to me," the sheriff said. "But I have a deputy sitting up there trying to keep the parties apart and almost daily we get calls about allegations from one side against the other."
The best course of action, said Michigan State University law professor Matthew Fletcher, who monitors legal issues in Indian country, is to wait until the federal government settles the tribe's leadership dispute.
"It just seems to me there is no rush on this judgment," Fletcher said. "Just wait until this is all over — that would be my advice if I was the sheriff's attorney."
http://www.fresnobee.com/2013/06/22/3356452/chukchansi-till-tap-ordered-judge.html
A Madera County judge has ordered Sheriff John Anderson to go to Chukchansi Gold Resort & Casino and remove money from the casino till to recover money in a settlement for a former casino manager who sued the tribe.
The payout stems from a lawsuit by ex-casino and hotel manager Matt Olin, who is owed $725,000 after he was fired last year. He was in the middle of a five-year contract and the tribe waived its sovereign immunity to employ him.
That allowed Olin to file a lawsuit against the Chukchansi Economic Development Authority, an unincorporated arm of the tribe, if the tribe failed to live up to the contract.
Olin reached a $725,000 settlement but originally wanted far more, said Richard Verri, who represents a tribal faction led by Reggie Lewis.
But the other Chukchansi tribal council faction, led by Nancy Ayala, will fight the "till tap" ruling by Judge Michael Jurkovich.
His ruling, which must be carried out by the end of November, said that if the tribe fails to pay Olin from casino proceeds, he can go after other tribal assets to enforce the judgment.
The "till tap" is proposed because the tribe's bank accounts are frozen as a result of a February dispute between Ayala's group, which runs the day-to-day operations from the tribe's business complex, and Lewis' group.
A tribal gaming consultant said a "till tap" at a California casino is highly unusual.
"We haven't seen this for years on an Indian reservation," said Michael Lombardi, a Riverside-based consultant and former casino manager. "We are in uncharted territory here."
The last one he recalled occurred at Table Mountain Rancheria's bingo hall in Fresno County more than 20 years ago. It was at a time when two tribal councils were fighting for control and a judge ruled the sheriff could go into the bingo hall to get money for a $15,000 legal bill, Lombardi said.
But that was years before the state's compacts were created, which spelled out rules for casinos in these types of disputes.
Lombardi said he expects a federal court will intervene and rule that the Madera County Superior Court is not the proper venue for ordering a till tap.
If the sheriff does go into the casino, it could potentially set off even more conflict in an increasingly tense situation, said David Leibowitz, a spokesman for the Ayala group.
"The part of this I found so startling is that this has been a very contentious situation for a long time and to suggest that the sheriff ought to go in with a show of force only invites more conflict," Leibowitz said.
He said the tribe will appeal the judge's decision.
Cliff Palefsky, a San Francisco lawyer who represents Olin, said that sovereign immunity issues are complicated but don't come into play in Olin's case.
But if either faction fights the settlement, Olin will want more money.
"Neither faction should have an interest in fighting us because it will cost them more," he said. "It's in their best interest to pay off Mr. Olin."
But Sheriff Anderson said he doesn't want to move too quickly. Last week, he asked the Madera County Board of Supervisors to hire lawyers with expertise in Indian matters to represent him because he is concerned about violating the tribe's sovereignty.
But he also worries that Olin's lawyer will sue Madera County if he doesn't get the money.
Anderson said all plans are on hold until he gets legal advice.
"This way someone can step in and mediate for me," Anderson said.
For now, he said, a deputy is stationed near the Coarsegold rancheria.
"However it works out doesn't really matter to me," the sheriff said. "But I have a deputy sitting up there trying to keep the parties apart and almost daily we get calls about allegations from one side against the other."
The best course of action, said Michigan State University law professor Matthew Fletcher, who monitors legal issues in Indian country, is to wait until the federal government settles the tribe's leadership dispute.
"It just seems to me there is no rush on this judgment," Fletcher said. "Just wait until this is all over — that would be my advice if I was the sheriff's attorney."
http://www.fresnobee.com/2013/06/22/3356452/chukchansi-till-tap-ordered-judge.html
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