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"Case Studies" > Business - Breach of Contract > Forensic Accounting > Indian Casino Development Agreement Derailed by Nevada Casino Merger

Indian Casino Development Agreement Derailed by Nevada Casino Merger

Summary:


The determination of construction delay-related costs was a very technical
exercise that was greatly assisted by easily understood graphics.

Plaintiff Tribe entered into a $300 million deal with a well-known Nevada entertainment company to develop a resort hotel and casino on Tribe’s Southern California reservation. After the Tribe signed the contract the entertainment company announced a multibillion dollar merger with another Nevada casino operation.

Because the other company already had a deal with a neighboring tribe, operation of both properties would result in a conflict of interest and expose the merged entity to a lawsuit. As a result, the entertainment company pulled out of the deal with Tribe. Tribe sued both companies for intentional business interference and lost profits related to the delay in building out its property with a different partner.


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