SAULT STE. MARIE, MI— The Kewadin Casinos Gaming Authority will pay nearly 75 percent less in damages to its former development partners, under a settlement agreement reached Thursday.
Kewadin was ordered to pay JLLJ Development and Lansing Future Development $88 million when deals to build casinos in Lansing and Detroit fell through. The developers sued the Gaming Authority—the business arm of the Sault Ste. Marie Tribe of Chippewa Indians—claiming breach of contract.
Under the new agreement, Kewadin will pay the developers $25 million by April 12.
The Gaming Authority has also filed a malpractice claim against its former legal counsel, Patterson, Earnhart, Real Bird & Wilson, LLP. The tribe says it failed to properly defend Kewadin in the ligation, resulting in a default judgement.
If Kewadin is successful in the suit, it must pay the developers up to $10 million from the proceeds. If unsuccessful, Kewadin will pay them another $5 million.