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From the Orillia Packet and Times

Court ruling a blow to Rama - First Nation asked for its 35 per cent casino cut to be maintained

By Courtney Whalen - September 19, 2008 

A Superior Court ruling dismissing a Chippewas of Rama bid to retain 35 per cent of net revenue from Casino Rama has left the chief, council and community “surprised and disappointed” says Chief Sharon Stinson Henry.

Stinson Henry said the band was informed of the Sept. 15 decision by Justice Arthur Gans through legal counsel.

“We still believe that we have a solid and well-prepared case,” she said. “Our main concern has always been to ensure a fair decision for our community in view of all of the hard work, responsibility and sacrifice hosting Casino Rama has been for us.”

The case revolved around net revenue sharing between Rama and the 133 other First Nations in Ontario. That agreement sees 35 per cent going to the Chippewas of Rama and 65 per cent being distributed among the other Ontario bands.

Rama maintains the 35 per cent portion of net revenue was established to go to the band in perpetuity, while the other First Nations, represented by the Chiefs of Ontario (COO) and Ontario First Nations Limited Partnership, say the 35/65 split was only agreed to for a five-year term. After that, they say, all the monies were to be distributed between the bands.

“For the 133 communities that we represent, (the court ruling is) actually a great step to what we’re doing because it’s been seven years,” said OFNLP vice president Steve Williams.

Williams said there’s around $130 million that’s been sitting in an Ontario Lottery and Gaming Commission trust over the course of the case that he hopes can now be distributed.

During the case, held on dates between February and May of this year, Rama argued that the proposal it made as part of the selection process guaranteed them the 35 per cent share of net revenue. The band also submitted that the independent panel that oversaw the selection process was mandated to negotiate the revenue-sharing component, which resulted in a firm agreement.

The defendants in the case (COO and OFNLP) maintained that the submitted proposals were never intended to create a revenue-sharing contract and that revenue sharing was to be a collective First Nations decision after site selection was complete.

At the conclusion of his 57-page decision, Gans determined that Rama (formerly known as Mnjikaning First Nation) didn’t establish that a binding agreement had been reached either during the proposal stage or once the band was chosen to host the casino.

“Having found that the events reviewed in this judgement, viewed objectively, did not lead MFN (Mnjikaning First Nation) to reasonably conclude that the selection process resulted in a firm revenue-sharing agreement, that the panel had a mandate to negotiate such a formula, or alternatively having concluded that the parties had achieved consensus ad idem on these matters...”

“I’ve talked to a number of the chiefs and they’re very happy with the decision. They’re just waiting to see if Mnjikaning is going to appeal it or not,” said Williams.

OFNLP has always maintained the 35 per cent allocation to Rama was to be for the first five years only, to go toward casino enhancements. After that, OFNLP maintains the net revenues were to be shared according to the 50-40-10 formula established in 1998. (50 per cent distributed according to the population of the community; 40 per cent distributed equally among all communities; and 10 per cent set aside for distribution to listed remote communities.)

Rama issued a statement of claim against the province of Ontario to retain the 35 per cent permanently in October of 2001. In November of 2001, COO and OFNLP filed a motion to be added as defendants in the case.

Williams said the OFNLP anticipates that around $100 million per year could flow to the First Nations until 2011, when a new agreement signed between the province and OFNLP takes effect that will see OFNLP receive 1.6 per cent of the total gross revenue of all provincial gaming.

Stinson Henry declined to make any further comments.

“We’re just considering our options at this time so we’ll continue to view it as a court matter and reserve further comment,” she said.

Simcoe North MPP Garfield Dunlop was aware of the decision but hadn’t had a chance to read it as of Friday.

“I’d like to discuss it further with Chief Sharon Stinson Henry and the band if there’s any way I can work with them to assist,” he said. “I hope we can do whatever’s in the best interest of their First Nations.”