For the full back-story on this one, see QoD 10/1/12 in the Archives, but to quote that answer, the main gist goes like this:
"The trouble began back in November 2008, when the Hualapai Tribe cut off operating funds to the Skywalk. It filed litigation in federal court in February 2011, seeking to terminate a 25-year management contract for the $28 million attraction, severing ties from developer David Jin. The tribe faulted Jin for failing to complete the Grand Canyon Skywalk, which lacked toilets and electrical insulation, and he countersued, accusing the Hualapai of embezzlement. Revenue sharing from the Skywalk – which should have grossed $42 million by that point – was also a bone of contention. Arbitration subsequently found that that volume of incoming cash was so great that it swamped the Hualapai’s money-handling systems, resulting in thousands of dollars going missing."
Now, here's the latest development in this ongoing saga.
After an arbitration panel ruled in favor of Skywalk creator David Jin, the Hualapai Tribe took the matter to federal court. On Feb. 11, Judge David Campbell upheld the arbitration board’s ruling. That means Jin gets a $28.6 million slice of admissions for Skywalk, having been cut out of its revenue stream in 2008. A Hualapai corporate trust account bulging with $10 million will be Jin’s first target. He’ll also attempt to recoup the balance out of ongoing Skywalk ticket receipts, aiming to seize 100%: "We’re entitled to take every dime out of there until the judgment is paid," said Jin’s attorney, Mark Tratos.
Jin lost control of Skywalk through a 2012 eminent-domain procedure, so he and Tratos may also pursue $277 million in damages -- $7.9 million for every year of the breached, 25-year contract between Jin and the Hualapai. (Seizures like that which occurred to Skywalk could have a chilling effect on the private sector’s willingness to invest on tribal lands; when Foxwoods Resorts Casino threatened to default on unsustainable debt, Wall Street found itself with no collateral to seize, since tribally owned property is off-limits.) Having agreed to binding arbitration in its contract with Jin, the Hualapai attempted to have it both ways, citing tribal sovereignty as a sort of 'get out of jail free' card.
Judge Campbell was not amused, castigating the tribe’s case as "nonsensical … wholly unconvincing … odd." Since the Hualapai annual budget is $20 million, Jin’s victory could pretty well clean out the tribe’s coffers. Tribal chairwoman Terry Counts continues to maintain that any breach of contract was committed by Jin and that – under Hualapai stewardship – Skywalk has been setting record visitation numbers. Jin and Tratos will be glad to hear that as they start dunning the tribe for their cut of Skywalk money.
