Sault Ste. Marie Tribe of Chippewa Indians v. Engler
Docket: No. 00-1277
Court: Court of Appeals for the Sixth Circuit; November 6, 2001; Federal Appellate Court
Seven Indian tribes operating casinos on Michigan reservations are involved in a legal dispute over their obligation to pay the state of Michigan for revenue losses prior to the establishment of other casinos. The key issue is determining when these tribes ceased to have exclusive rights to operate casinos. A previous case, Sault Ste. Marie v. Engler, established that exclusive rights continued until the state issued a casino license to another entity, which happened on July 28, 1999, when MGM Grand received its license. The tribes argue that the effective date of new gaming compacts with other tribes on February 18, 1999, ended their payment obligations.
Governor Engler contends these new compacts do not affect the tribes' obligations, emphasizing that exclusive rights remain until another group receives a casino license. The district court sided with the tribes, stating that the licensing of tribal gaming does not equate to state licensing in terms of affecting payment obligations. It clarified that tribal gaming licenses serve different purposes and are issued by the tribes rather than the state. The court emphasized that consent judgments, like the one in this case, are binding contracts interpreted under Michigan law, with the primary goal being to honor the intent of the parties involved.
The intent of the parties is assessed through the phrase "exclusive right to operate." The enforcement of a consent judgment is seen as an extension of the original lawsuit, aligning with previous rulings. The key inquiries regarding "exclusive right to operate" are: defining what constitutes the right to operate and determining when other entities can share that right. The exclusivity of the Seven Tribes ceases when another group possesses, controls, or uses that right, which occurred when Michigan issued a license.
Definitions of "right" from legal and dictionary sources emphasize that both the Seven Tribes and the winning bidder are on equal footing. Specifically, the Little River Band of Ottawa Indians and the Little Traverse Bay Band of Odawa Indians attained this equal position on February 18, when their tribal-state compacts became valid and their gaming regulatory ordinances were approved as required by the Indian Gaming Regulatory Act. This date marked the end of the Seven Tribes' exclusivity, as the compacts allowed the New Tribes to lawfully operate electronic games of chance.
The only remaining barrier for these two tribes to initiate gaming was their own action, as they had satisfied all necessary contractual and legal prerequisites. Consequently, from February 18 onward, the Seven Tribes were no longer liable for disputed payments to Michigan, leading to the affirmation of the district court's judgment and the denial of Governor Engler's motion.
