Foxwoods Casino

Samantha Moppett on Incorporating Tribal Justice Systems into the Legal Research and Writing Curriculum

Matthew L.M. Fletcher2 Comments

Samantha Moppett has posted “Acknowledging America’s First Sovereign: Incorporating Tribal Justice Systems into the Legal Research and Writing Curriculum” on SSRN. Haven’t read this yet, but it is a very important subject!

The abstract:

Marie Setian (“Marie”) drove to Foxwoods Resort Casino in Ledyard, Connecticut, with her husband and another couple for a day of gambling, dining, and entertainment. After gambling for a little while, the couples went to the Festival Buffet. At the buffet’s seafood station, Mary placed some shrimp on her plate. As she walked to the international station, her left foot slipped on something and she fell to the floor. As a result of the fall, Marie experienced soreness, swelling, and discomfort in her knee. Eventually, she underwent surgery and participated in extensive physical therapy. Her knee will never be the same again.

Marie contacted an attorney because she wanted to sue Foxwoods for the actual damages and pain and suffering that she sustained as a result of the slip and fall. Accordingly, the attorney filed a claim in the Connecticut trial court on behalf of Marie. Although it would appear the attorney acted competently and professionally, the state trial court dismissed Marie’s claim.

In law schools across the country, law students are introduced to federalism and the organization of the United States government. This invariably includes, among other things, a discussion of the dual systems operated by the state and federal courts, an introduction to the jurisdiction of these courts, and the sources of authority that these courts can consider. Yet, this nearly universal introduction to the American judicial system is incomplete. Continue reading →

Holy Cow! Foxwoods about to Default on $1B in Debt

Matthew L.M. Fletcher

From the New London Day via Pechanga:

On the brink of default, the Mashantucket Pequots are seeking to restructure $2.3 billion worth of debt, a senior adviser to the tribe said in interviews this week.

The debt is $1 billion more than the tribe’s Foxwoods Resort Casino – North America’s largest casino and once the world’s most profitable – can sustain, the adviser said.

”We’ll be asking creditors to take a big haircut,” he said.

While restructuring the debt with Malaysian investors, bondholders and banks, the Mashantuckets would continue to operate Foxwoods and MGM Grand at Foxwoods “as usual,” according to a plan drafted by Miller Buckfire, an independent New York investment bank.

”Restructuring will have no impact on operations,” reads the plan, a copy of which the senior adviser provided to The Day. The adviser discussed the tribe’s fiscal crisis on the condition of anonymity, offering a rare look at the Mashantuckets’ finances.

The tribe is at risk of defaulting Monday on the terms of a $700 million line of credit with a syndicate of banks, the adviser said.

”Our goal is to reduce debt,” he said. “My feeling is that further reductions (in the casinos’ work force) would be counterproductive to the quality of the business.”

The tribe, grappling with the recession’s devastating effect on the gaming industry, laid off hundreds of casino employees in 2008, and also trimmed the size of its government and cut benefits for tribal members, including their monthly “incentive” payments.

Continue reading →

A Hidden Cost of Tribal Per Capita Payments?

Matthew L.M. Fletcher

Standards and Poor’s lowered the credit rating of the Mashantucket Pequot Nation (H/T Indianz), making this statement:

The ‘BB-‘ rating reflects the Tribe’s high debt leverage, limited geographic diversity, and significant historical and expected distributions to Tribal members. These factors are partially tempered by the favorable demographics of the Connecticut market and limited new competition expected over the next two to three years.

Here are the factors that contribute to the higher cost of tribal credit: (1) high debt; (2) limited geographic diversity; and (3) high per caps. The first two can’t really be helped, but the per caps can be limited. Indian tribes should seriously consider limited or eliminating per caps. At least until the economy comes back.