This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Hualapai Nation Ordered To Pay $28.6 Million To Grand Canyon Skywalk Developer For First Four Years Of Management Fees

PHOENIX, Feb. 12, 2013 /PRNewswire/ -- In a stunning blow to the Hualapai Nation, U.S. District Court Judge, David Campbell has confirmed the $28.6 million arbitration award entered against the Tribe's wholly-owned corporation 'Sa' Nyu Wa, Inc. (SNW) in favor of Grand Canyon Skywalk Development (GCSD), builders of the Grand Canyon Skywalk.  The judgment relates to unpaid management fees of the Skywalk from 2008-2011.

(Photo: http://photos.prnewswire.com/prnh/20130212/LA59253)

According to the court's Order, "SNW shall remit damages in the amount of $28,572,810.25 to Grand Canyon Skywalk Development, LLC, as set forth in the Aug. 16, 2012 Arbitration Order." GCSD now plans to go after more than $10 million sitting in a trust account held by SNW to partially satisfy the federal court judgment. GCSD will seek 100 percent of ongoing Skywalk ticket sales to satisfy the balance of the $28.6 million judgment.  

Calling SNW's arguments "nonsensical," Judge Campbell roundly rejected SNW's position that the Dec. 31, 2003 Agreement between the parties permits an award of money damages against SNW in arbitration yet prohibits enforcement of that award in any court at any time. "Such a reading does not comport with SNW's clear waiver of sovereign immunity with respect to money damages and cannot be squared with the provisions discussed above," explained Judge Campbell in his Order.

The U.S. District Court's decision comes as GCSD launches a website, grandcanyonskywalkfacts.com that is dedicated to accurate reporting of facts regarding the dispute between GCSD and the Tribe. The site presents the developer's perspective and includes links to court decisions, sworn testimony and statements from tribal leaders, key legal documents and links to recent news.

According to Mark Tratos, attorney for GCSD, a related action filed in Tribal Court will determine the legality of the Tribe's condemnation claim or taking back of the Skywalk and GCSD's contractual rights. If the Tribal court says that the Tribe's forcible taking of the Skywalk on Feb. 9, 2012 was appropriate, then it will assess a value to be paid GCSD for the rights it will lose over 35 years – estimated to be $277 million. GCSD believes the condemnation action was unlawful and, by virtue of the Tribe filing that action, it has itself become subject to ongoing damages suffered by GCSD along with responsibility to share profits with GCSD going forward.

Tratos explains that his client and SNW had a written agreement to operate the Skywalk together that extends for 20 years and requires that they split profits from the Skywalk. GCSD also receives a discount on tickets to the Skywalk and the right to purchase up to 50 percent of the available tickets during the 20 years. Thereafter, GCSD continues to receive its discounted ticket price and the right to purchase up to 50 percent of the tickets for another 15 years.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs