Turtle Talk

From the Las Cruces Sun-News (h/t Indianz):

 

Group to legally challenge Navajo Nation’s plan for first casino

The Associated Press

ALBUQUERQUE – Months before the Navajo Nation’s first casino is scheduled to open, a group is planning to sue over the validity of legislation that provides for financing the development of that casino and others.

Albuquerque lawyer James Zion told The Associated Press that he plans to file a notice of intent to sue Tuesday on behalf of plaintiffs ranging from a former Navajo interim leader, environmental activists, former tribal presidential candidates and a man pushing for a tribal constitution.

The group contends that the executive branch wields too much power in negotiating the terms and conditions of a $100 million line of credit the tribe secured earlier this year from JP Morgan Chase. The plaintiffs also claim that general funds, federal grant money and trust assets could be at risk should the tribe default on the loan.

Named as defendants are tribal controller Mark Grant, the Navajo Nation and unnamed defendants who implemented the legislation passed by the Tribal Council in October.

Under the tribe’s Sovereign Immunity Act, Zion must give 30 days notice before he can move forward with a lawsuit. That would give the defendants time to settle the matter, if they choose, but Zion said he doubts that will happen.

“The ittle crystal ball on my desk has a lot of static in it, but I really doubt that everyone is going to say, ‘Oh my, we did a boo boo, we’re going to withdraw the resolution,”‘ Zion said. “I don’t see that.”

Talk of a possible lawsuit had been spreading around the

tribal capital of Window Rock, Ariz., even before Zion announced the group’s intentions.

Legislative counsel Ray Etcitty, said the only thing a lawsuit would do is make it harder for the Navajo Nation to borrow money in the future.

“It’s all based on politics,” he said. “I think the cover is, ‘we’re concerned about liquid assets.”‘

Under terms of the loan agreement, the tribe would provide security for the amount borrowed with liquid assets, which Etcitty said could include general funds. The lender could not take land or restricted funds, such as trust funds or employee benefits, he said.

“For a bank just to go into an account is not how things operate,” Etcitty said.

The Navajo Nation has given its word to comply with the loan agreement, Etcitty said.

“To default on a bank loan basically means no bank would want to give us a loan after that,” he said. “So why would we want to default?”

Zion said the plaintiffs each have different motives in questioning the legislation. Some are coming from a religious perspective, while others have concerns over the way the tribal government has handled other lease agreements and compacts.

Etcitty said the plaintiffs have a right to be concerned, but he says they don’t understand the law that gives certain powers to the controller, attorney general and president in executing and delivering documents needed for such a loan.

“If they question how these people have this power, what do you derive from their questions?” he said. “That they have not read the law.”

Zion said the legislation violates Navajo law because it doesn’t allow the Tribal Council to supervise the powers it delegated to the executive branch or establish any oversight or checks and balances.

The group is seeking attorneys fees and an injunction that would prevent Grant from implementing the resolution.

“We’re saying, judge, declare that the resolution is illegal. Declare that all these laws have been violated,” Zion said. “And if any contract gets signed in the meantime, declare that it’s invalid.”