The Houston County Commission has deposited just more than $1 million into an account controlled by a local court until a judge decides if Country Crossing can recover more than $1.5 million in bingo stamp money.
Attorney Will Matthews wrote a letter to the Houston County Commission Feb. 22, requesting the return of $1.55 million to the Houston Economic Development Association as reimbursement for bingo stamp revenue HEDA paid to the commission for the operation of electronic bingo.
HEDA asserts that it is due the prorated refund because Country Crossing has been closed since Jan. 29 after a raid attempt by the Governor’s Task Force in Illegal Gambling.
HEDA paid the Houston County Commission about $1.7 million -- $1,000 for every operational bingo machine – to conduct bingo in Houston County. HEDA is basing its request for a refund on the notion that HEDA and the commission entered into the agreement based on a “mutual mistake of fact” and that the commission was “unjustly enriched” as a result of the mistake.
HEDA claims that itself and the commission were mistaken to believe Gov. Bob Riley and the task force would accept the commission’s “due diligence” in assuring the legality of the games to be played at Country Crossing. Instead, HEDA claims the development was forced to close due to task force threats of a raid if the facility remained open.
Alabama law’s unjust enrichment statute states: “To prevail on a claim of unjust enrichment, the plaintiff must show that the defendant holds money which, in equity and good conscience, belongs to the plaintiff or holds money which was improperly paid to defendant because of mistake or fraud..”
Houston County Commission Chairman Mark Culver has said the commission doesn’t believe it can return the money.
“We’re going to ask a court to make that determination,” Culver said.
The amount of $1,001,916 has been deposited into an interest-bearing account controlled by the clerk of the court. According to court documents, the amount is $550,000 less than the amount requested by HEDA because that money has been “encumbered by other obligations.”
It is believed the Alabama Supreme Court will have to appoint a special judge to hear the case. All Houston County judges have recused themselves from all Country Crossing matters.
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