GableGotwals Secures Unanimous Oklahoma Supreme Court Ruling in Multi-Million Dollar Case

On December 9, 2024, the Oklahoma Supreme Court, by unanimous vote of all justices participating, confirmed GableGotwals’ summary judgment victory obtained for its client David Qualls in a multi-million dollar lawsuit brought against him by the Peoria Tribe of Indians.

A company owned in part by Mr. Qualls managed the Tribe’s casino. When external forces caused a decline in casino cash flow, an external CPA and lawyer, according to the Tribe, devised and implemented a casino accounting change that resulted in five million in additional cash flow to the Tribe and increased the company’s management fee by a substantially lesser amount.

The Tribe sued Mr. Qualls in an Oklahoma State District Court in Shawnee, alleging that through the accounting change, Mr. Qualls embezzled, committed fraud, breached fiduciary duties, was liable for four other related claims, and owed the Tribe a $2 million fine previously imposed by the Tribe’s gaming commission. After all the discovery was completed and two oral arguments held, the District Court found that the fine was unconstitutional and that all of the Tribe’s claims failed as a matter of law. Summary judgment was awarded to Mr. Qualls.

The Tribe appealed. The Oklahoma Court of Civil Appeals rejected all of the Tribe’s arguments and unanimously affirmed the summary judgment against the Tribe. The Tribe then filed a petition for certiorari seeking discretionary review by the Oklahoma Supreme Court. The Supreme Court denied the petition, thereby making the judgment in favor of the Firm’s client final.