Wells Fargo Bank v. Lake of the Torches Economic Development Corp.

In action alleging that defendant-Indian tribe corporation operating certain gambling facilities breached bond indenture used to finance said facilities, Dist. Ct. did not err in finding that said bond indenture was void because said indenture, which required defendant to place casino profits into segregated fund that was controlled by plaintiff, was essentially gaming facility management contract that had not been approved by Native Indian Gaming Commission. However, Dist. Ct. erred in dismissing instant action without giving plaintiff leave to amend said complaint to add certain legal and equitable remedies associated with defendant's repudiation of its obligations under bonds and its refusal to pay $46.6 million remaining on principal or interest owed to bondholder. On remand, Dist. Ct. should determine whether plaintiff has standing to seek return of funds to bondholder, and whether instant bond transactional documents evinced intent by defendant to waive sovereign immunity with respect to claims made by plaintiff.