Appeals Court Rules In Favor Of Kialegees' Broken Arrow Casino

A federal appeals court ruled against the State of Oklahoma over the casino that was to be built by the Kialegee tribe in Broken Arrow.

Monday, November 10th 2014, 5:27 pm

By: Richard Clark

Appeals Court Rules In Favor Of Kialegees' Broken Arrow Casino

A federal appeals court ruled against the State of Oklahoma Monday over the casino that was to be built by the Kialegee tribe in Broken Arrow.

A 3-judge panel of the 10th Circuit Court of Appeals in Denver reversed a lower court's ruling, saying the state is clearly precluded "from suing the defendant tribal officials in federal court for purported violations of the Tribal-State Gaming Compact."

The State filed a lawsuit against the 350-member Kialegees in 2012, arguing that the tribal town didn't have the authority to build what it called the Red Clay Casino on land in Broken Arrow. The land is owned by two sisters who are members of the Muscogee Creek National.

U.S. District Judge Gregory Frizzell sided with the state on May 18, 2012, granting a preliminary junction that stopped the casino's construction.

5/18/2012: Related Story: Federal Judge Halts Broken Arrow Casino Construction

The tribal town and the developers filed an appeal and on Monday, November 10, 2014 the 10th Circuit Court of Appeals reversed Judge Frizzell's ruling on the preliminary injunction and ordered him to dismiss the State's lawsuit.

In its ruling the court cited a U.S. Supreme Court opinion on a Michigan case from earlier this year. The appeals court said the State of Oklahoma, as in the Michigan case, could have insisted on a gaming compact that allowed it to sue the tribe or tribal officials in federal court, but it failed to do so.

The court pointed out that the compact calls for disputes to be settled via arbitration, not lawsuits.