| Mille Lacs, Prairie Island
argue casino audits should be secret
by Clara
NiiSka
Press/ON
publisher Bill Lawrence went to court on Monday, January 28th,
representing himself and this newspaper in the legal cases Mille
Lacs Band
of Ojibwe Indians v. State, et al., and Prairie Island
Indian
Community v. Department of Public Safety, et al. The two cases were heard jointly by Judge
Louise Bjorkman in Ramsey County District Court. Also
appearing before Judge Bjorkman were John Garry, of the
Office of the Attorney General and representing the State of Minnesota,
Mille
Lacs Band lawyer Wallace G. Hilke of the Minneapolis law firm Lindquist
and
Vennum, and Prairie Island Indian Community lawyer Julie Ann Fishel, of
the St.
Paul law firm Winthrop and Weinstine. Attorney
Mark Anfinson, representing the Minneapolis Star
Tribune,
had previously sought to participate as an amicus curiae
(“friend of the
court”).
The
immediate issue before the court on Monday was Mille Lacs’ and Prairie
Island’s
motions for summary dismissal, which would make the temporary
restraining
orders they had previously obtained permanent. The
TROs temporarily restrain the state from
releasing Indian
casino
audits, which the Attorney General’s office has ruled are public
information
under Minnesota state law. The TROs
were requested by Hilke and Fishel and issued by the court pending the
outcome
of the lawsuits filed by the Indian gambling enterprise attorneys
against the
State of Minnesota.
The Mille Lacs and Prairie Island
attorneys sued to prevent the State from releasing Indian casino audits
filed
with the State Department of Public Safety (DPS) in accordance with the
requirements of the State-Tribal gambling compacts.
Press/ON requested the audits under the
provisions of the
Minnesota Data Practices Act nearly a year ago. According
to legal determinations by both the Department of
Administration and the Office of the Attorney General, the audits are
public
information.
Monday’s
courtroom hearing was scheduled to begin at 9:00 a.m.
At about nine o’clock the participants, along with
Mille Lacs
attorney Anita Fineday, met with the Judge in her chambers (office). Pretrial, the attorneys had filed thousands
of pages of documents, and shortly before the hearing was scheduled to
begin a
“Second Affidavit of Julie Ann Fishel in Support of Plaintiff’s Motion
for
Summary Judgment,” along with six attached exhibits, was added to the
stack of
paper. In addition to the publicly
available documents, Judge Bjorkman has reportedly been provided with
copies of
the disputed casino audits to study in her chambers.
After
apparently coming to agreement about “procedural matters” in pretrial
conference with the Judge, the participants returned to the courtroom. Judge Bjorkman formally entered the
courtroom, and the hearing began. Fishel
and Hilke had, along with other Indian
gambling
enterprise
attorneys involved in the casino audit dispute, made a broad-spectrum
series of
arguments in their efforts to prevent the release of the audits,
including that
the Attorney General’s office had a “conflict of interest” in
representing the
State of Minnesota.
Mille Lacs Band attorney Fishel’s
last-minute “Second Affidavit” reiterated some of the conflict of
interest
allegations. It included excerpts from
a late-December deposition of DPS Commissioner Charlie Weaver, which
was taken
as a part of the federal lawsuit in which the Shakopee and Lower Sioux
Indian
Communities and Grand Portage Band are suing the state.
That lawsuit was also filed in attempts to
bar the release of casino audits.
Solicitor General Alan I. Gilbert,
the Attorney General’s Chief Deputy, had emphatically rejected the
allegations
that there was a conflict of interest in his December 5th
letter to
Judge Bjorkman, writing, “Pursuant to the laws of the State, this
office will
continue to represent the State’s legal policy in this matter.”
Fishel
raised the ‘conflicts of interest’ allegations again, in her January 28th
courtroom appearance. Judge Bjorkman
responded, “We’re not going to fire the attorney general.”
Fishel also repeatedly pointed to
the State’s shifts in policy after the Department of Administration’s
April
2001 ruling that Red Lake casino audits were public information. Her courtroom presentation included a large
chart detailing the state’s policy changes over time, and a quote from
DPS
Commissioner Charlie Weaver emphasizing the cozy relationship between
Indian
gambling enterprises and the Minnesota agency charged with regulating
them.
Both Fishel
and Hilke’s courtroom arguments included the claim that the casino
audits –
most recently requested by DPS more than four years ago – included
“trade
secrets.” They also argued that legally
the Mille Lacs and Prairie Island tribal councils are “governmental
entities
outside of Minnesota.” Therefore, they
claimed, Minnesota Statute 299L.03, which they said provided for
“comity
between sovereigns,” would outweigh the Minnesota Data Practices Act.
Fishel also
said that release of the casino audits would conflict with the secrecy
provided
for by “Prairie Island’s custom and tradition,” and that state release
of the
audits under the Data Practices Act would be a “breach of contract.”
Judge
Bjorkman asked her, “can the state contract to do something that would
violate
the Data Practices Act?”
Fishel
responded that if the audits were made public, “Prairie Island would be
looking
at remedies of the breach.”
Mille Lacs
Band attorney Hilke’s also used the “trade secrets” argument, even
though much
Mille Lacs financial information was made public in documents filed by
Grand
Casinos with the Securities and Exchange Commission (SEC).
“The SEC numbers are different,” explained
Hilke.
The Judge
asked Hilke if the SEC information would make Mille Lacs casino
financial
information “more readily ascertainable.” Hilke
argued that the differences between the
financial
information
provided to the SEC, and that provided to the State of Minnesota were
great
enough that the state-held audits met the “trade secret test.” “If the folks who really know about this
business
– if they thought that there was no value” in the information provided
by the
casino audits, “why such extraordinary efforts to preserve” the
secrecy, Hilke
asked.
Mille Lacs
and Prairie Island sued the State in an effort to prevent the release
of the
casino audits. Press/ON
publisher Bill Lawrence, whose February 2001 request for the audits
launched
the circumstances giving rise to the lawsuits, appeared in court on
Monday as
an intervenor in the case. Lawrence
made his arguments largely in terms of policy issues: in terms of the
casinos’
effects on most Indians in Minnesota, as well as the overall impacts of
gambling in Minnesota, including “the effects of gambling in Minnesota
on
crime.” He said that the state-tribal
compacts in Minnesota were “poorly written,” and that most Indians in
Minnesota
do not receive any significant benefit from the so-called Indian
casinos.
Despite the
state-tribal audits being generally weighted in favor of the tribes,
Lawrence
said that Section 6.11 of those compacts – the clause under which he
requested
the video gaming audits – clearly provides for the release of the
audits as
public information. Lawrence emphasized
that the “plain meaning” of the Data Practices Act clearly makes the
audits
public information.
Lawrence
also pointed out that Public Law 280, through which Congress extended
state
jurisdiction over all Indian reservations in Minnesota except Red Lake,
was a
compelling counter to Fishel’s and Hilke’s arguments that Prairie
Island and
Mille Lacs are “outside Minnesota.”
John Garry,
representing the State, responded to Fishel’s arguments about the
state’s
policy shift by noting that prior to the Department of Administration’s
advisory opinion last April, “the DPS was accepting in good faith the
tribe’s arguments.” However, he said, “The
state can not violate
the Data Practices Act. … We have to follow the law.”
Both Fishel
and Hilke used courtroom tactics usually used to influence juries in
their
presentations to Judge Bjorkman. Hilke,
in particular, spoke with a studied joviality, beginning: “I love this
case,”
it involves “such interesting questions around state and tribal
sovereignty
…” Garry, on the other hand, addressed
the Court more academically, stressing the applicable law and
emphasizing legal
issues like the intent of the legislature, and proper determination of
the
parties upon whom the “burden of proof” properly rests.
After
hearing the arguments, rebuttals and summary statements, Judge Bjorkman
said
that she would decide “under advisement,” and that she would issue her
decision
within the time limits delineated by state law.
Editor’s note: Many
of the financial reports filed by Grand Casinos with the SEC can be
accessed on
the internet via http://www.sec.gov/edgar/searchedgar/webusers.htm). Information relating to the Mille Lacs
Band’s Woodlands National Bank—owned through its bank holding company
Mille
Lacs BankCorporation—is also accessible on the internet, via http://www.ffiec.gov. |