Tribe, LV firm trade accusations

Thursday, Aug. 5, 1999 | 12:04 p.m.

A Las Vegas financing company sued an Indian tribe in Washington state, claiming the tribe reneged on a $5.2 million financing package to lease gaming machines for its Harrah's casino.

FlexLease Inc. is asking for $104,000 in damages, reflecting the closing fees for the financing package it submitted to the Upper Skagit Tribe of Indians. The suit was filed last week in federal court in Las Vegas.

The lawsuit said the tribe submitted a loan application with FlexLease April 12. The lease was to be used for the lease of 425 gaming machines.

FlexLease said it was constantly pressed by the tribe to complete the loan processing, as the tribe was attempting to close on a lease deal. The company said it reduced its closing fee by two points to compensate for the delay.

On June 3, FlexLease said it submitted a term sheet to the tribe. This term sheet was rejected, and FlexLease said it was later informed that the tribe had accepted a package from another company. FlexLease accuses the tribe of using its term sheet as leverage in getting a better financing deal from a second company.

Doreen Maloney, acting general manager of the tribe's casino, said the charges were without merit, and that the tribe planned to file a countersuit alleging that the FlexLease lawsuit was frivolous.

"There was no contractual relationship," Maloney said.

The tribe operates a Harrah's casino, located more than 100 miles north of Seattle.