Injunction issued against gaming commission of Apache Tribe

Tuesday, September 6, 2011  

A federal judge has barred the gaming commission of the Apache Tribe of Oklahoma from taking regulatory action involving Wells Fargo Bank.

The Apache Gaming Commission planned to conduct a hearing into Wells Fargo's dealings with the tribe. Among other issues, Wells Fargo failed to seek a tribal gaming license though the bank claimed it wasn't required to do so.

But Judge Timothy D. DeGiusti said any dispute with Wells Fargo must go through arbitration. He pointed to a $4.365 million loan agreement that the tribe signed in June 2008.

"The loan agreement contains a broad arbitration provision requiring, upon demand of a party, any dispute under the loan agreement and related documents to be submitted to binding arbitration," DeGiusti wrote in a 28-page decision on Friday.

"The loan agreement also contains an express waiver of sovereign immunity by the tribe to allow for arbitration or other legal action brought against the tribe," he continued.

DeGiusti acknowledged "there is no question" about the Apache Gaming Commission's authority to regulate gaming matters for the tribe. But he said the planned hearing involving Wells Fargo addresses issues beyond the commission's jurisdiction.

"In short, the court finds that without an injunction plaintiff stands to suffer both tangible and intangible losses that likely cannot be compensated in money damages," DeGiusti wrote.

Turtle Talk has posted documents from the case, Wells Fargo v. Maynahonah.