Facts

Claimant and respondent executed a contract under which claimant was to finance, construct and operate a Bingo
facility on respondentÆs property. The contract granted claimant the exclusive right to conduct gaming
operation on the respondentÆs property. The gaming was unsuccessful, and claimant ceased to operate the
facility. Respondent contracted with another gaming management contractor.
On Jan. 30, 1995, claimant filed its demand for arbitration. Following a series of procedural delays, the
arbitration hearing was scheduled for Feb. 6 and 7, 1996.
On Feb. 1, 1996, respondent filed its case in Tribal Court of the Omaha Tribe of Nebraska. In that case,
respondent sought to enjoin claimant from participating in the arbitration. Respondent further raised as claims
for relief each of the counterclaims it previously had asserted in arbitration. Concurrently with the caseÆs filing,
respondent moved for a temporary restraining order prohibiting claimant from participating in the upcoming
arbitration hearing.
On Feb. 1, 1996, the Tribal Court granted the motion. Upon being informed of the temporary restraining order,
the claimant elected to proceed with the arbitration hearing in the belief that the temporary restraining order
had been issued in violation of due process. The arbitration hearing was held in accordance with the pre-
established schedule. A further day of hearing was set for March 1, 1996 to wrap up matters.
On Feb. 14, 1996 and Feb. 29, 1996, the Tribal Court reviewed its temporary restraining order. The claimant
conceded that due process was observed with respect to this renewal. Accordingly, claimant was obligated to
ask that the arbitration hearing be stayed.
On March 20, 1996, claimed filed suit in the district court for Thurston County, Nebraska. In this suit,
claimant sought to enjoin the tribal court proceeding, enabling it to attend the arbitration. The respondent
subsequently removed this case to the United States District Court for the District of Nebraska. On March 29,
1996, the United States District Court for the District of Nebraska denied claimantÆs motion under the doctrine
of exhaustion of remedies.
On Oct. 30, 1996, the Tribal Court released its restraining order. The claimant, thereupon, moved to reinstate
the arbitration proceedings. The completion of the arbitration hearing ultimately was set for Sept. 17-19, 1997.
Respondent filed a motion before the Tribal Court seeking judgment after claimant defaulted in the tribal court.
A hearing on this motion was set for Sept. 23, 1999. Claimant then renewed its motion in the United States
District Court for the District of Nebraska, seeking an order to compel respondent to complete arbitration and
cease its actions in Tribal Court.
The parties stipulated to an order to proceed with arbitration. More hearing days were set in the arbitration
proceeding for September 1998. Following the submission of written and oral closing arguments, the arbitrator
issued a written award denying claimantÆs claim for lost profits and denying respondentÆs counterclaims for
damages. Claimant then moved for an order in the USDC for the District Court of Nebraska, confirming this
award.
On Nov. 17, 1999, the court confirmed the award. Respondent had appealed this order to the United States
Court of Appeals for the Eight Circuit.

Claimant contended that it was entitled to recover its capital investment in the gaming facility, plus interest, in
accordance with the terms of the agreement between the parties.
Claimant further contended that it was entitled to recover its lost profits in excess of $52 million.
RESPONDENT CONTENTIONS:
Respondent denied claimantÆs claims. Respondent further asserted a series of
counterclaims totalling $5,851,639; claim for damages for breaching the agreement by failing to pay
contractors and the Internal Revenue Service; claim for damages for breaching the agreement by failing to
commence operations on schedule; claim for damages for breaching the agreement by failing to adequately
supervise the design and construction of the facility; claim for damages for breaching the agreement by
abandoning the enterprise.
The arbitrator granted respondentÆs claim that claimant had abandoned the contract and
that respondent was required to mitigate its damages as a result, but awarded respondent no

Settlement Discussions

Claimant proposed settlement discussions, but made no concrete offer. The respondent declined to consider settlement.

Damages

$6,206,358 plus $178,077 in interest. Furthermore, 8 percent interest, compounded annually, beginning as of May 13, 1999, shall be added to the award until payment is made. Arbitration administrative fees and expenses to the American Arbitration Association totaling $18,490.32 were borne by claimant and respondent. Claimant was to pay $281.50 which represented its share of those fees. Respondent was responsible for the balance. Arbitrator compensation and expenses totaling $24,549.74 were also borne by both parties.