« Ind. Decisions - Court of Appeals issues four today | Main | Law - "Law-related blogging starting to see a coming of age" -- But can a law blogger ever be considered a "journalist"? »

Monday, July 31, 2006

Ind. Courts - Judge unseals records in French Lick casino dispute today [Updated at 2:19]

The AP is reporting this afternoon, in a story by Mike Smith:

PAOLI, Ind. (AP) -- Lawsuits unsealed Monday reveal a bitter dispute between partners developing an Orange County casino and related projects.

Indianapolis-based Lauth Property Group and Bloomington-based Cook Group are at odds over ownership and control of the $382 million development in southern Indiana. Both companies accuse one another of trying to force the other out.

Lauth says Bloomington billionaire William Cook has spent lavishly on renovations of two hotels, an 18-hole golf course and convention center.

Cook is accusing Lauth of preventing the project from being a lavish resort. He says because Lauth failed to have its financing in place in time, Cook is entitled to 75 percent of ownership instead of a 50-50 split.

Both lawsuits have been under seal in Orange Circuit Court in Paoli at the parties' request. But Orange County Circuit Judge Larry Blanton made them public on Monday.

The Courier-Journal of Louisville, Ky., The Herald-Times of Bloomington, The Times-Mail of Bedford and an investor group that lost out on a bid for the casino two years ago had filed briefs seeking to have the lawsuits unsealed. The office of Attorney General Steve Carter also wanted the lawsuits made public. * * *

The two companies formed Blue Sky Casino LLC in November and signed a long-term contract with the Indiana Gaming Commission to open a 1,200-slot riverboat casino in French Lick, 45 miles south of Bloomington, this November. The project includes renovations for the two century-old hotels in French Lick and adjacent West Baden, as well as construction of the golf course, parking garage and convention center.

[Updated at 2:19] Lesley Stedman Weidenbener of the Louisville Courier Journal reports:
In its lawsuit, Orange County Holdings — a company created by Cook — asked the judge to prevent Lauth officials from firing the project’s architect and hotel manager, both of which Cook officials say are essential to the project.

In subsequent court filings, Lauth accused Orange County Holdings and William Cook — head of the Cook Group — of making decisions without consulting Lauth; with lavish spending outside the project’s original plan; and with fraud, in part for giving no-bid contracts to friends or business associates of Cook’s.

Each side denies the allegations made by the other.

Posted by Marcia Oddi on July 31, 2006 01:33 PM
Posted to Indiana Courts