A Manitoba First Nation and its former lawyer are embroiled in a multi-million dollar legal battle that involves a major hotel development at Assiniboia Downs.
Peguis is suing Calgary-based lawyer Jeffrey Rath, claiming he owes the band more than $2 million that was being held in trust by his law firm.
The lawsuit alleges that money was part of an agreement to buy Assiniboia Downs and build a hotel and casino at the race track.
In a countersuit, Rath said the agreement called for him to find a hotel developer.
He is suing Peguis and others for at least $12 million, alleging the First Nation breached that agreement with him when it entered into negotiations with a third party to build the hotel.
But sources tell CTV the legal actions are simply a fee dispute between the two sides and that it won’t impact the development.
None of the allegations has been proven in court.
Rath also represented The Manitoba Jockey Club, the owners of the Downs, in a funding dispute with the Selinger Government.
