State high court will consider E.C. case

The Indiana Supreme Court agreed Friday afternoon to hear an appeal of East Chicago's casino case.

Justices will review briefings from the Court of Appeals and the petition to transfer, and could set a date for oral arguments if they do not come to a decision based on the briefs alone.

About two months ago, the Indiana Supreme Court denied the city of East Chicago's bid for a court order to route millions of casino dollars back to the city. The justices also ruled the Indiana Gaming Commission had regulatory authority over the contracts and could alter the agreement that funnels riverboat gambling money to two private groups.

The dispute between the city of East Chicago and Second Century and the Foundations of East Chicago centers on a deal made by former East Chicago Mayor Robert Pastrick to direct casino money to the nonprofit Foundations and Second Century, a for-profit company run by Pastrick allies. Current Mayor George Pabey wants the casino money back under city control.

The Indiana Supreme Court now will decide whether a clause in the state's 2007 budget allowing the city to change contracts is constitutional, said attorney Peter Rusthoven, of Barnes & Thornburg LLP. Rusthoven is representing Foundations in the case against East Chicago.

"I think it's appropriate (the state Supreme Court) decide this final case as well and basically wrap this up," he said.

Attorney Bill Bock, of Kroger, Gardis & Regas, who is representing the city of East Chicago, said it could be several months before a decision is made.

"We did expect the Supreme Court to grant transfer. This is much like the city's appeal of the trial court's decision," Bock said. "The trial judge and court of appeals have found it constitutional, and we expect the Supreme Court to find it constitutional as well."