A Shawnee County District Court Judge ruled the lawsuit against the centrally-located casino endorsements by the Sumner County Commissioners had no standing in his courtroom Tuesday, June 17.
Shawnee County District Court Judge Franklin Theis ruled in favor of a motion to dismiss the case filed by attorney David Cooper, representing the Sumner County Commissioners, and supported by attorney Dan Biles with the Kansas Lottery Commission.
Theis also agreed with arguments by Biles that their party had no place in the litigation filed by the City of Mulvane.
Biles argued the Kansas Lottery Commission was only made a party to the suit to strengthen Mulvane's case on venue, which was challenged in court Tuesday.
"It is a contridence to try to get venue into Shawnee County because the Plaintiff doesn't want to take this intra-county dispute into the county," Biles said.
Theis further ruled on jurisdiction, deciding the case had no standing in his courtroom. Shawnee County District Court has jurisdiction involving disputes over Senate Bill 66, but Theis determined this case was "purely a local matter."
Theis heard arguments on several bullet points from the litigation, including an alleged breech of contract between the Commissioners and the City of Mulvane when the Commissioners endorsed only centrally-located casino proposals, and the authority of local governing bodies in the endorsement process as intended by Senate Bill 66.
The ruling was made in agreement with attorneys for the Sumner County Commissioners and the Kansas Lottery Commission in all regards.
Theis dismissed the arguments by Mulvane in his ruling, saying, “the Plaintiff fails to state a claim based on the fact there’s no contract existing.”
The Judge also ruled the Sumner County Commissioners did have the authority to endorse only centrally-located casino proposals if they determined that was the wishes of Sumner County.
“Local people, if they are going to have a casino, have some impact through their local officials who will make that final decision,” Theis said.
The suit asked Judge Theis to nullify the endorsements by the Commissioners for the centrally-located casino proposals by Penn National Gaming and Marvel Gaming, which were selected by the Commissioners to be passed to the Kansas Lottery Commission in December.
The endorsement of Harrah's Entertainment by the City of Mulvane is still under legal scrutiny in Sumner County District Court, where the Sumner County Commissioners allege the City followed illegal annexation procedures leading to the endorsement process. Litigation there also involves annexations to the proposed site for the MGM Mirage casino group, although they pulled out of the process during contract negotiations with the state.
“The last 10 days have been legally very meaningful for Sumner County,” said county counselor Jack Potucek.
On Friday, June 6, Sumner County District Judge Scott McQuin ruled against a motion to dismiss the annexation case filed by the Commissioners. That case will continue with discovery in Sumner County, although no future court date has been set.
Under Senate Bill 66, endorsement by a local governing body is required prior to the casino proposal's consideration by the Kansas Lottery Commission for contract negotiations.
Biles said regardless of the outcome of any litigation their state agency is proceeding as though each casino proposal has a valid endorsement.
Biles said this was true for litigation filed in county courts as well as at the Supreme Court level, where all parties involved have known a challenge to the constitutionality of Senate Bill 66 exists and has yet to be decided.
"The challenge doesn't stop the statutory actions, and the same applies to these endorsements, which are valid until a court overturns them," Biles said.
Attorney Jim Walker, representing the City of Mulvane, argued the Sumner County Commissioners sent an agent representing the County to the Mulvane City Council who stated there would be a level playing field between all proposals and no preference given to proposals based on geography. Walker said this is not what happened in Sumner County.
“They gave geographical preference to the Wellington exit of the Kansas Turnpike when they said that’s exactly what they would not do,” Walker argued.
However, Cooper later countered the Commissioners were making their decision based on the support for a centrally-located casino site in the county and the added economic benefits across the county with a central-location.
Walker argued he did not believe Senate Bill 66 intended for local governing bodies to have veto power “over and above the Kansas Lottery Commission to select the best possible contract” by not endorsing proposals which met the minimum requirements for contracts with the state.
“As the City of Mulvane we are trying to preserve the choice so the review board and the state of Kansas ultimately have the best proposals from which to choose, not just a limited few, insider favorites down in Wellington,” Walker argued.
However, Judge Theis ruled the state review board making the final decision has the power to reject the proposal sent to them and begin the entire process again, which he said is an “existing remedy” if the state should choose to follow that path.
Theis further stated the endorsement has meaning under Senate Bill 66, and said he believed the Commissioners were under no obligation to send all proposals forward and could endorse any number of proposals.
Attorney Biles also supported the authority of local governing bodies to select from the proposals submitted.
“Local endorsement is not meant to be simply a check-off of zoning, utilities and other things. Clearly it is intended to be something of greater weight,” Biles said.
Judge Theis agreed with the reading of Senate Bill 66 as argued by Cooper and Biles, which places authority in local governing bodies to discern the support of the community on the casino issue.
“Local people, if they are going to have a casino, have some impact through their local officials who will make that final decision,” Theis stated.
Walker also asked the Court to stay the case for up to 90 days until the decision on a gaming facility manager for Sumner County has been made by the state.
Theis ruled this would be “an unsatisfactory remedy.”
“As the Lottery Commission has said, the machinery is in motion and it ought to move forward,” Theis stated.
A decision on the gaming facility manager in Sumner County should be decided by the state on Aug. 21 and 22.


