From the Sault Evening News...Story by Scott Brand
SAULT STE. MARIE — A 25-page ruling from the State of Michigan Court
of Appeals appears to clear the way for a civil trial pitting former
Chairman Bernard Bouschor and five co-defendants against the Sault
Tribe of Chippewa Indians in a $2.6 million lawsuit that has simmered
for more than four years.
Bouschor, who currently sits on the Sault Ste. Marie Tribe of
Chippewa Indians Board of Directors, was ousted from the chairman
position by challenger Aaron Payment on June 24, 2004. On the
morning of June, 25, 2004, ouschor terminated the contracts of
seven top employees — Executive Director Jolene Nertoli, Chief
Financial Officer Dan Weaver, Chief Counsel and Legal Department
Director Dan Green, Human Resources Director Dave Scott, Deputy
Director of the Legal Department Jim Jannetta, Senior Staff
Attorney Paul Shagen and Special Projects Manager Joe Paczkowski
— providing severance packages totaling approximately $2.6
million.
Payment, with the backing of the Sault Tribe's Board
of Directors, almost immediately took action to recover those
funds — claiming the pay-offs should not have been issued
without board approval, setting the stage for the legal wrangling.
The wheels of justice were so slow, in this particular case,
that by the time it even came to the Court of Appeals, Payment
was no longer in power and Bouschor had been banned from tribal
politics, reinstated and won a seat on the Tribal Board.
While Bouschor was initially named with seven other co-defendants,
the civil claims were eventually dropped against three of the
parties. Jolene Nertoli, Joseph Paczkowski and Paul Shagen
reached settlements with the Sault Tribe in June of 2007.
In making the settlement announcement, the board issued this
statement: “We have resolved the litigation with three of their
defendants because, after reviewing the evidence, we believe it is
in the best interests of the Tribe. While certainly involved in
this plot, the three defendants were not central to either its
planning or execution. We believe we will be able to pursue the
remaining defendants, for the entire unpaid balance, which was
unjustly taken from the Tribe.”Terms of the settlement were
not released.
According to legal experts, Bouschor's motion of summary dismissal
on grounds of governmental immunity, among others, were rejected.
The court appears to have left the door open for civil action on
grounds of breach of fiduciary duty, conspiracy and constructive
fraud, but that will have to be proven when and if the case ever
is argued in open court.
The Sault Tribe, according to informed estimates, has already sunk
more than $700,000 into legal fees associated with this case.
The Tribal Board now will have the option of continuing to pursue
the recovery of funds by committing more money in legal fees for
this effort, or it could opt to take no action — essentially dropping
the case before it heads to court.
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