Nooksack Tribe must answer to casino loan lawsuit in state court

Friday, August 22, 2014

The Nooksack River Casino in Deming, Washington. Photo from IO Creative

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The Nooksack Tribe can't claim sovereign immunity in a dispute over a $15 million casino loan, the Washington Supreme Court ruled on Thursday.

Nooksack Business Corporation, a tribal entity, signed an agreement with Outsource Services Management, a loan servicing company. The agreement allowed for the tribe to be sued in state court, the decision noted.

"The tribe itself-acting through its tribal enterprise-consensually entered into a contract where it both waived its sovereign immunity and consented to jurisdiction in state court for claims related to that contract," the decision said.

" "Nooksack chose to enter into a contractual agreement waiving its sovereign immunity and consenting to state court jurisdiction; therefore, allowing such jurisdiction does not infringe on its tribe's right to make decisions for itself," it continued.

The tribe originally obtained the loan from BankFirst to renovate the Nooksack River Casino but failed to make payments, The Bellingham Herald reported. That's when Outsource Services Management stepped in.

Turtle Talk has posted documents from the case, Outsource Services Management v. Nooksack Business Corp.

Get the Story:
Supreme Court: Nooksack tribe can't claim sovereignty in casino loan case (The Bellingham Herald 8/22) $P Washington Supreme Court Decision:
Outsource Services Management v. Nooksack Business Corporation (August 21, 2014)