City tries to lower litigation costs in Fond du Lac Band casino case


Artist's rendering of the new exterior of the Fond-du-Luth Casino in Duluth, Minnesota. The tribe is spending $5.5 million to renovate the facility. Image from Fond du Lac Band

After losing every round of litigation, the city of Duluth, Minnesota, is no longer using outside counsel for a long-running gaming dispute with the Fond du Lac Band of Lake Superior Chippewa Indians.

City attorney Gunnar Johnson told NNCNOW.com that litigation is now being handled in-house. Costs haven't been reported but an outside law firm once held a $1 million contract to pursue the matter, The Duluth News Tribune reported in December 2010.

The city lost its most recent ruling before the federal court in Washington, D.C.. A notice of appeal has been filed with the D.C. Circuit Court of Appeals.


The existing exterior of the Fond-du-Luth Casino. Photo from Fond du Lac Band

At issue is an agreement that required the tribe to share 19 percent of revenues from the Fond-du-Luth Casino with the city. The tribe contributed $75 million between 1994 and 2009, when payments were stopped.

The National Indian Gaming Commission invalidated the agreement and issued a notice of violation to the tribe in 2011. The agency determined that the deal violated a provision in the Indian Gaming Regulatory Act that requires a tribe to retain "sole proprietary interest" in a casino.

The city first sued the tribe to reinstate the agreement but lost before the 8th Circuit Court of Appeals. The city did not ask the U.S. Supreme Court to review that decision.

The city named the NIGC as the defendant in its D.C. lawsuit.

Get the Story:
Duluth mayoral candidates chime in on Fond-du-Luth Casino dispute (NNCNOW.com 6/4)

D.C. Federal Court Decision:
Duluth v. National Indian Gaming Commission (March 31, 2015)

8th Circuit Decision:
Duluth v. Fond Du Lac Band of Lake Superior Chippewa (May 8, 2015)

Prior 8th Circuit Decision:
City of Duluth v. Fond Du Lac Band (January 14, 2013)

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