California Indian tribe not liable in multi-million dollar dispute

The Federated Indians of Graton Rancheria in California have a million reasons to celebrate. 43 million, to be exact. An arbitration panel has shot down a lawsuit by Kenwood Investments, a real estate development firm out of Sonoma, California, that had sought to receive $43 million from the tribe.

The ordeal began simply enough about five years ago when the tribe and Kenwood founder Darius Anderson signed an agreement. That agreement specified that Kenwood would help the tribe buy land and develop a casino and, in return, receive 4% of the casino’s revenue for the first seven years of operation.

The contract began in 2003, but Kenwood backed out in 2005. It would be another eight years before the casino, the Graton Resort & Casino, would open. Anderson filed his lawsuit the following year in San Francisco Superior Court.

While the contract initially stipulated a 4% payment, this was later reduced to 2.5%. Anderson was suing for loss of income and a breach of contract on the part of the tribe. However, the tribe countered that Kenwood did not fulfill its obligations as stipulated in the contract and was, therefore, not entitled to anything.