Thanks to the newly-formed Lumbee Sovereignty Coalition for sharing the following information about the Controversial Contract between the Lumbee Tribe and Lewin International as our exclusive recognition leader (sic). This contract also led to the dismissal of Arlinda Locklear as the Tribe’s Federal Recognition Attorney. We encourage our readers to examine this material carefully and react accordingly.
Timeline of the Contract *
September 2009: Chairman Jimmy Goins submits an ordinance to prevent “exterior parties” from communicating on behalf of the Lumbee Tribe in relation to federal recognition.
- December 28, 2009: Chairman Jimmy Goins and Council members Sharon Hunt, Pam Spaulding and Ricky Burnett sign the contract with Lewin International. None of the other Council members are informed about the contract.
- Mid-February: The full Tribal Council first learns about the existing contract with Lewin International.
- March 9, 2010: Arlinda Locklear submits her opinion of the contract, including her understanding that the contract replaces her.
- March 10, 2010: Attorney Ed Brooks, representative for the Tribe, submits a letter to the Tribal Council refuting Ms. Locklear’s concerns and expressing support for the contract with Lewin International.
- March 12, 2010: D.C. attorney Kevin Wadzinski submits his opinion to Ed Brooks, which states: this is a gaming management contract; the penalties far exceed the value of services provided; and the contract gives complete control over funding the recognition effort to Lewin International.
- March 13, 2010: The Tribal Council votes to ratify the contract at a previously unannounced, out of district meeting at the NC Indian Unity Conference in Raleigh.
- April 15, 2010: The decision of the Tribal Council to ratify the contract will become final if the Council codifies the actions of the March 13th meeting according to tribal ordinance CLLO-2006-0720-01: General Ordinance on Content and Form of Ordinances and Resolutions. The ordinance must be posted for 30 days and requires the tribal Chairman to sign or veto the ordinance.
Top Ten Things you Should Know About the Contract
Between Lewin International and the Lumbee Tribe
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Who Did It?
On December 28, 2009 Jimmy Goins, Sharon Hunt, Pam Spaulding and Ricky Burnett signed a contract with Larry Lewin. In this contract, Larry Lewin contracted on behalf of Lewin International (“Lewin”) and the four Lumbee representatives named above contracted on behalf of the Lumbee Tribe of North Carolina (“the Tribe”). The Tribal Council held a meeting on March 12, 2010 where the council voted to ratify the contract. If the minutes from that meeting are approved then the contract will become binding on the Tribe. Those minutes will be presented at the Tribal Council meeting on April 15, 2010.
What Happened?
The Tribe hired Lewin as the “exclusive” advisor and consultant in the Tribe’s federal recognition effort. No one else can speak on behalf of the Tribe about the Tribe’s federal recognition effort, including employees of the Tribe. The Tribe cannot enter into any other agreement with anyone regarding the Tribe’s federal recognition effort.
Comment: As elected officials of a sovereign government, the Tribe’s leaders should have the right to communicate directly with third parties with respect to the Tribe’s recognition. This is especially the case with respect to communications with members of the Congress and staff. It is common experience that such communications are necessary and ultimately far more effective than communications through advisors or consultants.
Another concern regarding the “exclusive” advisor and consultant restriction is that the contract does not establish an agreed upon budget for recognition costs, nor does it contain a mechanism to establish a budget for such costs. As such, the amount of funding for the Tribe’s recognition effort is entirely at the discretion of Lewin.
*As of March 31, 2010, Lewin International has not registered a lobbyist on behalf of the Lumbee Tribe. It is likely that the current recognition bill will die unless progress is made by the end of May.
Does This Ever End?
The contract will last until January 3, 2011. If the Tribe is not recognized by December 4, 2010, then the Tribe and Lewin must negotiate to extend the contract beyond January 3, 2011, but there is no obligation to agree on an extension. Thus, if the Tribe and Lewin do not agree to an extension, the contract ends on January 3, 2011.
Is This About Gaming?
The purpose of the contract is to obtain federal recognition for the Tribe through legislation (a bill in Congress), and the contract states that it is preferred that the bill include gaming authority for the Tribe. For this purpose, Lewin will select a lobbying law firm to assist Lewin in getting a federal recognition bill passed by Congress for the Tribe that includes gaming. The current bill has a restriction against gaming and this could be construed as the Tribe having a desire to have gaming.
What If The Tribe Isn’t Recognized After All?
If the Tribe is not recognized by January 3, 2011 then the Tribe has no obligation whatsoever to pay Lewin anything at all.
What If The Tribe Is Recognized?
- If the Lumbee Tribe is federally recognized by January 3, 2011 through current legislation, which prohibits gaming, Lewin will be compensated by:
- A Development Management Agreement – which will allow Lewin to develop and implement the master plan for the Lumbee Tribe’s property (described by the agreement). This means Lewin International will decide what goes on that property including all restaurants, hotels, gas stations, water parks, etc. Lewin will also be paid 3% of the Cost of Work for the Master Plan and $400,000 per year as an expense stipend.
- OR: Lewin will be paid $13 million within 25 months after the Lumbee Tribe is federally recognized.
- If the Lumbee Tribe is federally recognized by January 3, 2011, Lewin will also get:
- An agreement giving Lewin the exclusive right to manage all the Tribe’s non-gaming operations on the property.
- OR: The Tribe will pay an additional $7 million.
- If the Lumbee Tribe is federally recognized and obtains the right to conduct gaming by January 3, 2018, Lewin will also get:
- A management contract for any gaming activities conducted on the property.
- Lewin will get 30% of the net gaming revenue and all of its expenses in managing the operation(s).
- OR: The Tribe will pay Lewin an additional $35 million.
- If the Tribe is federally recognized with the ability to conduct gaming and members vote against a referendum to allow gaming, the Tribe will still owe Lewin at least $35 million.
Who’s Pays For It?
No member of the Lumbee Tribal Council or Chairman is liable for the contract because the contract has been authorized by a majority vote of the Tribal Council. As such, the Tribe itself is liable for the contract.
Does Our Sovereign Immunity Protect Us?
The Lumbee representatives named above waived the Tribe’s sovereign immunity entirely. As such, Lewin can take any assets of the tribal government and any money due to the tribal government in order to enforce the contract. Also, an arbitrator can require the Tribe to amend the Lumbee Constitution if necessary for Lewin to collect from the Tribe.
Is This A Secret Contract?
No one associated with the Tribe or Lewin can disclose any of the terms of the contract to anyone else. But if the terms of the contract become public knowledge then persons associated with the Tribe and Lewin may disclose the contract’s terms freely, so long as the terms of the contract did not become public knowledge as a result of breach of the agreement.
What if Lewin and the Lumbee Tribe have a Disagreement?
Any dispute about this contract must be determined by arbitration in Washington, DC by JAMS ADR which is headquartered in Irvine, CA. The party that wins in arbitration will get their attorneys’ fees covered by the losing party. The laws of Connecticut will apply. The Tribe agrees to abide by any judgment including a judgment that requires it to amend its Constitution. The agreement also binds the Lumbee Tribal Court by any such judgment.
TAKE ACTION
Contact your Tribal Council representative and request answers to all your questions about the contract.
- Discuss the contract with those in your community.
- Attend the LSC demonstration at the next Council meeting, Thursday, April 15, 2010 at 6pm at the new tribal complex.
- Continue to hold your tribal leadership accountable for their decisions.
- Support the Lumbee Tribe’s current legislation for full federal recognition.
* http://lumbeesovereigntycoalition.com/