The Chukchansi Indians say they are a sovereign nation and exempt from the legal action brought against them by one of several unpaid subcontractors who built the tribe's $150 million gaming complex near Coarsegold. 

Glen Miskel, an attorney representing ACCO Engineered Systems, said the tribe made its position clear during a Dec. 11 meeting. ACCO is owed more than $4 million for its work on the Chukchansi Gold Resort and Casino. 

"For the first time, they showed us they plan to use sovereign immunity to escape from these construction debts," Miskel said. 

The tribe's position has not stopped ACCO from asking the courts for the right to foreclose on the casino if that is what it takes to get paid. 

The Chukchansi Economic Development Authority (CEDA) issued a statement Tuesday saying it remains firm in its demand that the subcontractors be paid by Cascade Entertainment and Walton Construction. Cascade was the project's development manager and is currently the casino/resort's manager. Walton was the project's general contractor. 

"While both the tribe and CEDA sympathize with the subcontractors, neither the tribe nor CEDA ever entered into contracts with any of the subcontractors," the statement said. "It was Walton Construction that entered into these contracts."
About $17 million in mechanic's liens have been filed in Madera County by several subcontractors who worked on the Chukchansi Gold Resort and Casino. 

ACCO was the first to sue for nonpayment, but Hopkins and Son, owed more than $600,000. and Olson and Company Steel, owed more than $280,000, also have filed. 

Sovereign immunity refers to a status given to federally recognized Indian tribes, making them exempt from most legal action. 

ACCO rejects the tribe's use of that argument. 

Miskel said he has filed a request for an arbitration hearing with the American Arbitration Association. He also has filed lawsuits in local, state and federal courts, all in an effort to get ACCO its money. 

It was necessary to file numerous actions in several courts, Miskel said, because of the complexity of Indian law. 

But in the end, he added, issues involving Indian land and gaming generally wind up in federal court. 

"That's really where we believe the case will end up," Miskel said.
Named as defendants in the ACCO lawsuits are the tribe's economic development authority; the Picayune Rancheria of the Chukchansi Indians; Cascade; Walton; Credit Provider Group, an affiliate of Cascade; and U.S. Bank.
Among its demands, ACCO wants its mechanic's lien enforced and a right to foreclose on the casino/resort for payment despite the tribe's claim of sovereign immunity. 

If the courts eventually side with the tribe, Miskel said, ACCO will continue to try to get its money through its lawsuit alleging breach of contract against Walton.
In October, a Walton executive said his company was owed more than $2 million for work on the project. The executive said Walton was "stuck" between Cascade and the tribe. 

ACCO expected payment during the Dec. 11 meeting with the tribe, Miskel said, especially since about $2.3 million of ACCO's audited invoices were undisputed.
"We were always promised that it was just a matter of getting a number," he said. "We anticipated at a minimum that $2.3 million would be addressed or paid. The issue here is not defective construction. It boils down to a refusal to pay a legitimate debt." 

The tribe's economic development authority disagrees. It said it holds Walton and Cascade "contractually, ethically and morally responsible for payment of these invoices and will "pursue all legal means of defending what we have fought so hard to try and build." 

Meanwhile, Miskel said ACCO will move forward as well. He said his client is aware that its claim could set a precedent for subsequent claims: "We're going to do the best we can. We feel what happened is unfair." 

The reporter can be reached at lapadilla@fresnobee.com or 675-6805.