aha..Southwest awarded $500,000Oct 5, 2009
Pink OTC Markets News Service
Minneapolis, MN— SOUTHWEST IS AWARDED $500,000 AND ITS ATTORNEY FEES AND COSTS IN ARBITRATION CASE WITH THE CHEYENNE & ARAPAHO TRIBES OF OKLAHOMA
Southwest Casino Corporation (SWCC.PK) is pleased to announce that it has been successful in an arbitration case brought by Tribal Governor Darrel Flyingman on behalf of the Cheyenne & Arapaho Tribes against Southwest for its performance under the Third Amended Management Agreement. The arbitration panel reached the following conclusions of Law:
1. Southwest did not materially breach any of the terms of the Third Amended
Agreement, save and except certain fiduciary duty claims set forth below in paragraph 6.
2. Southwest's treatment of travel expenses, NSF checks, and payments to attorney
Richard Grellner, did not materially breach any of the terms of the Third Amended Agreement.
3. Southwest did not unduly interfere with, influence, or attempt to influence any
Tribal official or governmental process in violation of the Third Amended Agreement.
4. The Tribes breached the Third Amended Agreement with Southwest by failing
and refusing to negotiate in good faith with Southwest for an extension or new agreement after the advent of Class III gaming.
5. Southwest has been damaged in the amount of $500,000 in addition to its reasonable costs and legal fees incurred in pursuing its rights under §19.10 of The Third Amended Agreement.
6. The Tribes have not sustained their burden that Southwest materially breached the
Third Amended Agreement and the Tribes are not entitled to contract damages. Southwest did breach its fiduciary duty owed the Tribes in connection with its handling of free-play coupons totaling $2,920; its handling of Comfort Inn charges $2,132; its handling of non-payment of interest on management fee advances totaling $921 and interest on the accounts receivable totaling $3,845; for a total of $9,818.
7. Southwest is entitled to its costs and attorneys fees in this case and the Tribe's
request for costs and attorneys fee is denied. Southwest is directed to file its application for costs and attorneys fee within 20 days in the event the parties are not able to resolve this issue by agreement.
Southwest is extremely pleased to have this case completed and to be able to focus on future projects. James B. Druck, CEO of Southwest Casino Corporation said " the Arbitration Panel recognized the development and management by Southwest of a very profitable Tribal enterprise as well as the Company's many contributions to Tribal members over the years. The denial of the unfounded allegations and the award of substantial damages sets Southwest on a positive course for the future". Thomas E. Fox, President of Southwest Casino Corporation, said “Southwest and the Cheyenne & Arapaho Tribes of Oklahoma have had a long and profitable relationship and we are saddened that Governor Flyingman has caused it to come to such an end. We had reached agreement with both the Tribal Council and the Legislator to expand gaming for the Tribes, but this agreement was frustrated by Tribal Governor Flyingman’s refusal to work with the Tribal Council and the Legislature and refusal to enter into good faith negotiations with Southwest.”
