Tribe says Red Hawk Casino may Close if it must Pay Court Judgment
The tribe that owns Red Hawk Casino is warning that the facility might close because of a $30 million jury verdict in December.
Matt Jacobs, the lawyer for Sharp Image, called the warning of a shutdown "nonsense" because the casino's creditors would do everything possible to keep Red Hawk going.
A jury in December ordered the tribe to pay $30 million to the Miwok band's former casino partner, Sharp Image Gaming, over a breach of contract dispute.
NOTE: The El Dorado County Superior Court issued a tentative ruling this week that would prevent Sharp Image Gaming, Inc. from collecting on its $30 million judgment against the Shingle Springs Band of Miwok Indians (Tribe) while it appeals the judgment to a higher court.
In an effort to overturn the ruling in favor of the Tribe, Sharp's attorneys argued on a theory that Red Hawk Casino's revenues could be collected without consideration of the bondholders' prior rights, because the bond indenture had not been approved by the federal government and was, therefore, invalid.
"We are confident the Court will stand by its original ruling, and reject Sharp's effort to collect on a judgment while we appeal to a higher court," said Nicholas Fonseca, Chairman of the Tribe. "The fact is the federal agency that oversees gaming contracts confirmed that our bond indenture was, in fact, valid. So that's the end of it."
The Court has given the Tribe an opportunity to address Sharp's arguments in written briefing, and the Tribe will present the documentation demonstrating the agency's action. The matter should be resolved within weeks.