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FRIDAY, SEPTEMBER 14, 2001

A federal appeals court on Wednesday has set aside a $6.4 million judgment a casino company had been awarded against the Omaha Tribe of Nebraska.

The tribe had entered into a contract with Missouri River Services Inc. to operate a casino in Nebraska. But with Nebraska law limiting games to Class II, the casino failed and closed.

Choosing another casino company, the tribe then opened a casino on trust land in Iowa, where Class III games are allowed. MRS, however, believed it should have been the operator of the casino and sued the tribe.

The parties engaged in arbitration, with the company winning. The award was subsequently upheld by a federal court.

But the 8th Circuit Court of Appeals reversed, saying the award was out of bounds with federal policy and overstepped the tribe's sovereign immunity. Instead of taking away the tribe's profits from the Iowa casino, the company can only be awarded money from the failed Nebraska one.

The case returns to federal court to determine a limited award for MRS.

Get the Case:
MISSOURI RIVER SERV. INC. v. OMAHA TRIBE OF NEBRASKA, No 00-1094 (8th Cir. September 12, 2001)

Get the Story:
Court vacates judgment against Omaha tribe (AP 9/13)