Barden Detroit Casino, L.L.C., a Michigan Limited Liability Company v. The City of Detroit

230 F.3d 848, 48 Fed. R. Serv. 3d 521, 2000 U.S. App. LEXIS 26411
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 23, 2000
Docket99-1969
StatusPublished
Cited by14 cases

This text of 230 F.3d 848 (Barden Detroit Casino, L.L.C., a Michigan Limited Liability Company v. The City of Detroit) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barden Detroit Casino, L.L.C., a Michigan Limited Liability Company v. The City of Detroit, 230 F.3d 848, 48 Fed. R. Serv. 3d 521, 2000 U.S. App. LEXIS 26411 (6th Cir. 2000).

Opinion

OPINION

DAVID A. NELSON, Circuit Judge.

This is an appeal from a district court decision rebuffing a challenge to the constitutionality of a legalized casino gambling scheme adopted by the City of Detroit. A city ordinance allowed the mayor to give preference in the casino licensing process to applicants that had campaigned on behalf of a voter initiative legalizing casinos. Contending that this preference (as well as a similar preference in the Michigan state code) represented an unconstitutional condition, Barden Detroit Casino, L.L.C., sued the city, the mayor and city council, and the individual members of the council, as well as the State of Michigan Gaming Control Board and its individual members, seeking injunctive, declaratory, and monetary relief. In a decision published as Éwrden Detroit Casino, L.L.C. v. City of Detroit, 59 F.Supp.2d 641 (E.D.Mich.1999), the district court denied relief and dismissed the case. The court held that there was no case or controversy as far as the state defendants were concerned, the state law preference having become inoperative, and it held that Barden was barred from suing the Detroit defendants by reason of the fact that Barden had signed a release of all claims against them.

We agree that Barden has no standing to sue the state defendants. Without reaching the question of the enforceability of the release, we conclude that Barden likewise has no standing to sue the Detroit defendants, the plaintiff having suffered no injury-in-fact at their hands. The dismissal of Barden’s suit will be affirmed on that basis.

I

A. The Ballot Initiative and the Act

Late in 1996 the voters of Michigan approved “Proposal E,” a state ballot initiative for the legalization of casino gam *850 bling. To codify this initiative the legislature passed the Michigan Gaming Control and Revenue Act. (M.C.L. §§ 432.201 et seq.) The Act established the Michigan Gaming Control Board as the body authorized to license the operation of casinos in Michigan. The Act had the effect of limiting casino development to the City of Detroit, because it provided that casinos could operate only in cities: 1) with a population of over 800,000, 2) located within .100 miles of another state or country in which gaming was permitted as of Dec. 5, 1996, and 3) where a majority of voters had already approved gaming in the city. (Id. § 432.202(1)). Detroit was the only city in Michigan that met these qualifications.

B. The State Preference

The Act set out licensing procedures which, in their original form, exempted certain preferred developers from the competitive bidding process and allowed a tie-breaking preference for applicants that had provided political support for an initiative legalizing casino gaming:

“(a) The board shall issue a license to operate a casino to an applicant upon a determination by the board that the applicant is eligible for a casino license. The board shall find that an applicant is eligible for a casino license if all of the following criteria are met:
(1) prior to the date of application: (i) the applicant or its affiliates or affiliated companies was the initiator of any casino gaming proposal submitted for voter approval in the city in which the casino will be located and the voters approved the proposal; or (ii) the applicant was selected by the city pursuant to a competitive bidding process.
“(b) No more than three (3) licenses shall be issued by the board in any city. In the event that more than three (3) applicants meet the criteria provided for in Section 6(a) of this Act, licenses shall first be issued to applicants which submitted any casino gaming proposal for voter approval prior to January 1, 1995, in the city in which the casino will be located and the voters approved the proposal.” (M.C.L.A. § 432.206 (1996) (subsequently amended in 1997)).

As of July 17, 1997, however, § 432.206(a) was amended to eliminate the exemption from the competitive bidding process. Moreover, the tie-breaking preference was effectively neutered by the addition of a new subsection, § 432.206(2). As amended, § 432.206 now reads:

(1) The board shall issue a casino license to a person who applies for a license ... who the board determines is eligible and suitable to receive a casino license under this act and the rules promulgated by the board.... A person is eligible to apply for a casino license if all of the following criteria are met:
(a) The applicant proposes to locate the casino in a city where the local legislative body enacted an ordinance approving casino gaming that may include local ordinances governing casino operations, occupational licensees and suppliers which are consistent with this act and rules promulgated by the board.
(b) The applicant entered into a certified development agreement with the city where the local legislative body enacted an ordinance approving casino gaming.
(c) The applicant or its affiliates or affiliated companies has a history of, or a bona fide plan for, either investment or community involvement in the city where the casino will be located.
“(2) A city shall not certify or submit and have pending before the board more than 3 certified development agreements. If an applicant is denied a casino license by the board, the city may then certify a development agreement with another applicant and submit the certified development agreement to the *851 board. Nothing in this act shall be construed to prevent the city from entering into more than 3 development agreements.
“(3) No more than three (3) licenses shall be issued by the board in any city.... In evaluating the eligibility and suitability of all applicants under the standards provided in this act, the board shall establish and apply the standards to all applicants in a consistent and uniform manner. In the event that more than three (S) applicants meet the standards for eligibility and suitability provided for in subsection (I) and (5), licenses shall first be issued to those eligible and suitable applicants which submitted any casino gaming proposal for approval prior to January 1, 1995, in the city in which the casino will be located and the voters approved the proposal.” M.C.L.A. § 432.206 (emphasis added).

The state law preference is thus to be used only when there are more than three eligible applicants at once — and there can never be more than three eligible applicants at once, given the prohibition against more than three certified development agreements. We have heretofore construed this section as effectively eliminating the preference. See Lac Vieux Desert Band of Lake Superior Chippewa Indians v. Michigan Gaming Control Bd., 172 F.3d 397, 406 (6th Cir.1999). In holding that the plaintiffs in that case lacked standing to challenge the state law, the Lac Vieux panel observed that “[i]f the preference is ineffective, then there can be no injury and no ‘case or controversy.’ ” Id.

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Bluebook (online)
230 F.3d 848, 48 Fed. R. Serv. 3d 521, 2000 U.S. App. LEXIS 26411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barden-detroit-casino-llc-a-michigan-limited-liability-company-v-the-ca6-2000.