tribal gaming per capita payments

Federal Bankruptcy Court Holds Prairie Band Potawatomi Per Cap is Property of Individual Debtors

Matthew L.M. Fletcher

Here are the materials in In re McDonald (D. Kan. Bkrcy.):

41 Trustee Brief

42 Debtors Brief

44 Trustee Reply Brief

45 Debtors Reply

47 Order Sustaining Objections

An excerpt:

Debtors, William and Bonnie McDonald and Kliffton and Jeanette Scott, have filed chapter 13 plans that do not propose to pay any amount to satisfy the best interest of the creditors test of 11 U.S.C. § 1325(a)(4) with regard to per capita payments they receive from the Prairie Band Potawatomi Nation Indian Tribe (hereinafter “Prairie Band” or the “Tribe”). Building on governing precedent, the Court concludes that despite changes to the Prairie Band Per Capita Ordinance and Tribal Code since it last ruled on these issues, the per capita payments remain property of the respective chapter 13 estates, and the Debtors’ plans have thus failed to satisfy the best interest of the creditors test with respect to this contingent, unliquidated property.

Debtors William and Bonnie McDonald also seek to exempt the per capita payments from the bankruptcy estate by arguing they are exempt under 11 U.S.C. § 522(b)(3)(A) as “local law that is applicable . . . at the place in which the debtor’s domicile has been located for the 730 days immediately preceding the date of the filing of the petition.” The McDonalds have stipulated that their domicile is in Topeka, Kansas, however, and they are not domiciled on Prairie Band land. As a result, § 522(b)(3)(A)’s exemption based on “local law” is not applicable. The McDonalds’ other exemption arguments likewise fail.

As a result of the conclusions discussed more fully herein, the Court sustains the Chapter 13 Trustee’s objections to confirmation and objections to exemption in each case.

 

Federal Court Orders Garnishment of Gila River Member’s Per Caps

Matthew L.M. Fletcher

Here are the materials in United States v. Webb (D. Ariz.):

153 US Writ for Garnishment

162 Webb Response

175 MJ R&R

177 DCT Order

 

NYTs on the Shakopee Mdewakanton and the Growing Threat to Indian Gaming

Matthew L.M. Fletcher

Here.

Pala Band Disenrolls 15 Percent of Its Membership

Matthew L.M. Fletcher1 Comment

Here.

Ho-Chunk Nation Trial Court Grants One and Denies One Petition to Access Gaming Per Cap Trust Fund

Matthew L.M. Fletcher

Here is the opinion granting a petition, In the Interest of Adult CTF Beneficiary: Joan M. Frank, DOB 03/27/1990 v. HCN Office of Tribal Enrollment, and here is the one denying a petition, In the Interest of Adult CTF Beneficiary: Tasha Hand, DOB 08/07/1988 v. HCN Office of Tribal Enrollment.

Mashantucket Pequot (Apparently) Will End Per Capita Payments to Members under Age 55

Matthew L.M. Fletcher

News article here. An excerpt:

Anticipating the end of monthly distributions of gaming profits to tribal members, the Mashantucket Pequot Tribal Council late last year enacted a law to protect the tribe’s older, needy members.

The law provides for up to $50,000 a year in financial assistance for “elders,” who are defined for the purposes of the law as those 60 and older as well as those who were at least 55 as of Dec. 31, 2010. The assistance was to begin Jan. 1, the law states.

It’s estimated that about 80 members of the 850-member tribe are at least 55 years old.

Under the new law, elders are eligible to receive annual assistance equal to a “standard of need,” with the amount of the assistance reduced by “offset income” the elder receives in excess of $25,000.

 

Federal Bankruptcy Court Decides Tribal Gaming Per Cap Issue against Indian Debtor

Matthew L.M. Fletcher1 Comment

Here are the materials in In re Howley (D. Kan. Bkrtcy.):

Order Sustaining Trustee’s Objection

Trustee’s Brief

Debtor’s Brief

Eastern Band Cherokee Member Challenges Federal Garnishment of Gaming Per Caps

Matthew L.M. Fletcher

This is an interesting case to watch, United States v. Lambert, in the Fourth Circuit. Here is the opening brief:

Lambert Appellant Brief

UPDATE: CA4 Opinion

Here is a similar case involving the Eastern Band’s efforts to raise sovereign immunity (materials here). The Lambert case is the direct challenge to the garnishment by a convict.