News Coverage of Sault Tribe v. Bouschor

From the Sault Evening News:

After six years of legal wrangling, political posturing and a one-week trial, a six-person jury in the 50th Circuit Court ruled that four employees were entitled to severance packages in the wake of former Tribal Chairman Bernard Bouschor’s  defeat in the 2004 Sault Tribal election.

General Legal Counselor Daniel Green, Chief Financial Officer Dan Weaver, Deputy Legal Counsel James Jannetta and Human Resources Director David Scott were all fired by their employer, according to the jury’s verdict Wednesday evening.

In layman’s terms, the severance agreements are the equivalent of a football coach with a four-year contract being fired after going 3-13 in his first season; he would no longer be employed by the team, but would still receive payments for the life of the contract.

Had the jury ruled the four men — Green, Jannetta, Weaver and Scott — had quit, the employees could have been forced to pay back at least a portion of the money claimed in their severance package. Green walked away with a little over $500,000 while Weaver and Jannetta both cashed checks well over $400,000, while David Scott received approximately $350,000.

The jury also ruled that Bouschor had acted in the Sault Tribe’s benefit in entering into the severance agreements with the key employees and not his own, essentially exonerating the former tribal chairman.

While all four of them were considered to have fiduciary duties, the jury unanimously agreed that they did not knowingly participate in an enterprise or conspiracy by which Bouschor breached his fiduciary duty.

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Bouschor Wins State Court Trial [Aaron Payment “Press Release” Removed]

The jury in the Sault Ste. Marie Tribe v. Bouschor Trial found for the defendants.  We’ve covered other parts of this trial here and here and here.

Here is a press release we received (MF: the least helpful press release we’ve ever received). So unhelpful, we received a demand letter to take it down. MF@ 7:12 PM.

Retraction: Earlier this evening I received an email from an attorney for several of the defendants named at one time or another demanding a retraction in accordance with Mich. Comp. Laws 600.2911(2)(b), which we gladly and apologetically do. We often receive unsolicited material for posting on Turtle Talk, and post some material. In this case, we received a document from Aaron Payment, the former chairman of the Sault Tribe, in addition to other unsolicited emails from other individuals asserting that the Sault Tribe had lost a jury verdict in the underlying matter of Sault Tribe v. Bouschor. As the local news had not yet published anything on the matter, we chose to publish the news, with an attachment to the Payment document, which we noted was “not very helpful.” We did so not to publish facts about the case, but to note the reaction — a highly opinionated and politicized reaction — from the former chair of the Sault Tribe that had initiated the lawsuit years ago. [references to Paul Shagen removed]

In terms of the retraction, we are instructed to note three facts. First, “There has been no federal crime, nor any charges of any crime.” Second, “Native Americans were not … excluded [from the jury on the basis of race], and one of the jurors selected to serve at the outset of the trial was in fact Native American.” And third, “the jury found that none of the defendants … wrongfully took anything from the Tribe.”

We note the timelines here as well. I received the email at approximately 7:15 PM. I took down the offending document immediately, and began composing this detailed retraction, published in full at 8:52 PM, which should be construed as a “reasonable” time within the statute.

I note lastly that we at Turtle Talk certainly had no intent to defame anyone. I’m not sure how the racial composition of the jury serves to defame the defendants. I’m not sure how the former chairman’s opinion that a “federal crime” occurred defamed them, either. I myself have “taken” money from the Sault Tribe — in 1992 or so when I worked there for a brief period as a summer intern. All three men are gainfully employed in Indian country, as far as I know, and have stellar reputations in the field. The allegations made by the Sault Tribe have been public for much longer than the existence of Turtle Talk. Frankly, it is not Payment’s recent “press release” that could possibly be injurious to these men — it is the allegation of large sums of money changing hands between a tribal leader and his (largely political) employees, as many tribal lawyers are, after losing a hotly-contested election. This is obviously a highly emotional and political case, and we at Turtle Talk have no dog in this fight.

Yet another update: It would appear that the Communication Decency Act affords Turtle Talk immunity from defamation liability (47 USC 230) since we did not author the offending statements.

Sault Tribe v. Bouschor Trial Starts This Week

From the Soo Evening News:

SAULT STE. MARIE — For six years, the Sault Tribe of Chippewa Indians has sought to recover approximately $2.66 million disbursed to former tribal employees — Daniel Green, David Scott, James Jannetta, Daniel Weaver, Paul Shagen, Joseph Paczkowski and Jolene Nertoli — in the wake of former Tribal Chairman Bernard Bouschour’s defeat to Aaron Payment in the 2004 election.

On Wednesday, the tribe will finally get to make it’s case before Judge Charles Johnson in the 50th Circuit Court.

Jury selection is scheduled to begin at 8:30 a.m. with a court official saying the docket is blocked off through Oct. 22 in anticipation of a lengthy civil trial. In one of the rulings leading up to this case, Judge Johnson determined on a motion from the defense that members of the Sault Tribe of Chippewa Indians and those employed by the tribe cannot serve on the jury.

Certain facts regarding this case have never been in dispute. Both sides agree that Bouschor cut large severance checks to high-level employees which allowed them to walk away from their jobs after the chairman was defeated in his re-election bid.

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News Coverage of Sault Tribe v. Bouschor Jury Pool Debacle

From ICT:

By John Hatch

SAULT STE. MARIE, Mich. – A former Michigan tribal chairman has convinced a state circuit court judge to ban all members of his tribe from the jury pool in a civil suit filed to recover $2.66 million in severance pay the chairman paid to his top aides after losing a bid for a fifth term as the leader of the Sault Ste. Marie Tribe of Chippewa Indians.

Court records show that Chairman Bernard Bouschor’s motion to disqualify tribal members and employees said that “virtually every tribe member is related to one of the participants.” That he had already been convicted by the tribe in what he stated to be a “kangaroo court completely controlled and orchestrated by tribal management. Such persons should not sit in judgment of the case.” And, that all tribal members and tribal employees have a financial interest in the outcome of the trial.

Visiting 50th Circuit Court Judge Charles Johnson confined his order to Bouschor’s last point, finding that because membership in an Indian tribe is a voluntary act. Just like stockholders in a corporate law suit, state law mandates such closely-connected people cannot sit as jurists.

His June 15 order states “that members of the plaintiff tribe have a financial interest” in the outcome of the case and they were “disqualified from serving on the jury.” The trial is set for Oct. 13, at the Chippewa County Court House in the City of Sault Ste. Marie.

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Sault Tribe Members Excluded by State Court Judge from Serving on Jury in Suit against Former Sault Chairman

We’ve been following Sault Ste. Marie Tribe v. Bouschor for many years, and now the claim against Bernard Bouschor may go before a jury next week. But in a very interesting pre-trial order, Judge Johnson (from Emmet County, since the local judge recused himself) ordered that no Sault Tribe members may sit on the jury due to their “financial interest in the litigation.” Order here: Judge Johnson Order Excluding SSM Members from Jury.

Anyone aware of this happening elsewhere in Indian country? I’d imagine it wouldn’t happen often, since there aren’t many of these kinds of claims against former tribal officials in state courts. What I want to know is why the tribe brought suit in state court, when it had a perfectly good tribal court at its disposal. [Now I’m told it was contractual. Now I understand.]

Here is the amended complaint: Amd-Complaint-Fifth[1].

Lower court materials here and here and here.

Sault Tribe Settles with Miller Canfield in Bouschor Case

From the Soo Evening News via Pechanga (and here, too):

A mediation agreement has netted the Sault Tribe of Chippewa Indians $1 million from the law firm of Miller, Canfield, Paddock and Stone, P.L.C. as the firm opted to settle following a hard-bargained session lasting more than 12 hours Tuesday.

“This was a contested case,” said law firm CEO Michael Hartmann on Wednesday afternoon. “No one admitted liability.”
In extricating itself from the pending lawsuit in exchange for $1 million, Hartmann indicated both sides were satisfied with the resolution.

“Everyone thought it was in the best interest of the firm,” he explained.

“On behalf of the board of directors and myself, I’m confident to say this is the best possible outcome for our tribe and the status of the case,” said Tribal Chairman Darwin “Joe” McCoy in a press release issued shortly before 10 a.m. today. “I’m pleased we were able to hold one party responsible for its role in the litigation and that we are free to continue on with the other defendants, soon we can put this behind us as a tribe and move forward.”

The lengthy mediation saw the Sault Ste. Marie Tribal Board of Directors go in and out of open session throughout the day before the final deal was reached.

John Hatch, one of the few tribal members who monitored the day of mediation, said the board was unanimous in its decision.

“I think it was an excellent deal,” said Hatch. “The board did an excellent job.”

Hatch said not only did the Sault Tribe get some of its money back, but it also preserved the abuse of government civil suit against the former chairman, Bernard Bouschor.

His analysis coincides with this morning’s press release which states: “The settlement allows the Sault Tribe to recover a substantial amount of money without the uncertainty of a trial. It also preserves the tribe’s ability to continue its lawsuit against those most responsible for the unauthorized transfer of tribal funds to key employees”

The Sault Tribe has been looking to recover approximately $2.6 million which was distributed to upper-echelon employees in the wake of Bouschor’s 2004 failed re-election bid. Tribal representatives have contended that the payments were illegal and Bouschor did not have the authority to release those individuals with hefty severance packages.

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Michigan Supreme Court Denies Leave for Sault Tribe to Appeal Bouschor Case

The appeal focused on the Michigan court of appeal’s decision to drop Miller Canfield from the suit. It sounds like the suit against Bouschor and some of the other co-defendants will go to trial next.

The materials are here:

Sault Tribe Motion for Leave to Appeal

Leave Denied

Lower court materials are here.

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Soo Tribe v. Bouschor et al. — Michigan Court of Appeals

The Michigan Court of Appeals affirmed, for the most part, the trial court’s decisions not to grant summary disposition of the various claims against former Sault Tribe chairman Bernard Bouschor and several others (Dan Green, Paul Shagen, Jim Jannetta, etc.) involving their severance packages in 2004. The claims against Miller Canfield appear to have been dismissed.

So I suppose the case will go to trial, unless settled. Interesting reading, to say the least….

Here is the opinion.

Soo Tribe v. Bouchor et al. Materials

From the Soo Tribe website:

The trial court’s grant of partial summary judgment in favor of the Tribe is here: Opinion — Feb. 9, 2007

The docket sheet in the Michigan Court of Appeals is here. One appellant brief was filed in September. Meter, Owens, and Borrello are the assigned judges.