Osceola Blackwood Ivory Gaming Group LLC v. Picayune Rancheria of Chukchansi Indians

2020 WL 1919583 (2020)

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Osceola Blackwood Ivory Gaming Group LLC v. Picayune Rancheria of Chukchansi Indians

California Court of Appeal
2020 WL 1919583 (2020)

Facts

Osceola Blackwood Ivory Gaming Group LLC (Osceola) (plaintiff) provided management and consulting services for Native American gaming projects. The Picayune Rancheria of Chukchansi Indians and its economic arm, Chukchansi Economic Development Authority (collectively, Chukchansi) (defendant), operated the Chukchansi Gold Resort and Casino (the casino) in California. The National Indian Gaming Commission (NIGC) shut down the casino, and Chukchansi began working with Osceola to get the casino reopened. Osceola and Chukchansi entered an immediately effective consulting contract stating that Osceola would provide consulting services regarding the reopening for a set period in exchange for $100,000 per month. The contract contained a waiver of Chukchansi’s sovereign immunity with respect to any action arising from the contract. Osceola and Chukchansi also entered into a separate management agreement for Osceola to manage the casino for a five-year period. The management agreement stated that the agreement would become effective once certain conditions were met, including receipt of written approval of the agreement from the NIGC. The management agreement contained a limited waiver of Chukchansi’s sovereign immunity, which provided that Chukchansi waived its immunity with respect to any suit by Osceola to enforce the agreement. The waiver provision stated that the waiver was effective for the term of the agreement and one year thereafter. According to Osceola, the parties agreed that Chukchansi would submit the management agreement to the NIGC for approval once the casino reopened. However, although the casino reopened successfully, Chukchansi did not submit the agreement to the NIGC. Osceola sued Chukchansi for claims including breach of contract and breach of the implied covenant of good faith and fair dealing. Chukchansi moved to quash, asserting tribal sovereign immunity. The trial court found that Osceola’s action was barred by sovereign immunity because, although the management agreement contained waiver language, the agreement was never approved by the NIGC and thus was void. Osceola appealed.

Rule of Law

Issue

Holding and Reasoning (Hill, J.)

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