Smith and Baum on Labor Laws and Indian Country

from ICT:

There’s an old adage that law professors like to use: Bad facts make bad law; in the area of tribal labor and employment law, watch out – if the facts set up the wrong way, irreparable damage will be done to tribal self-government in this field. This is a problem (or opportunity) for tribal sovereignty in the way that the test case ofBrown v. Board of Education was for the civil rights movement.

There’s been plenty of “bad press” about tribes “getting away with” practices in the workplace that may look wrong to outsiders. The assertion of sovereign immunity against individual employees may exacerbate tensions. In dismissing an action for unpaid wages brought by tribal employees, the Crow Court of Appeals recently warned, “If the tribe does not take steps to enact appropriate waivers of sovereign immunity, we believe it is only a question of when Congress will do it for us.” The Crow Tribe later enacted law to protect its workforce.

There’s an old adage that law professors like to use: Bad facts make bad law; in the area of tribal labor and employment law, watch out.

It’s probably more likely that the Supreme Court, not Congress, will decide whether tribes and their enterprises must succumb to federal authority over union rights, age and other discrimination laws, and a host of other federal laws governing employment relations. For now anyway, Congress is distracted by other issues. So what will a case look like that goes up to the high court?

With non-Indians taking up employment positions in Indian country in droves, federal agencies are looking for opportunities to enforce federal labor laws of general application against tribes. Tribes cannot assert the sovereign immunity defense against the United States; so these cases go forward. The question becomes whether Congress (when silent on the issue) intended such laws to apply to tribes.
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Michigan Bar Journal Special Indian Law Issue — UPDATED!

Here:

State Court Administrative Office – Court Improvement Program: Indian Child Welfare Act Forum Remarks, October 6, 2008
by Justice Michael F. Cavanagh

Indian Children and Termination of Parental Rights: Michigan Supreme Court Takes a Step in the Right Direction in In Re Lee
by Angel Sorrells, Cami Fraser, Thomas Myers, and Aaron Allen

Proceed with Prudence: Advising Clients Doing Business in Indian Country
by R. Lance Boldrey and Jason Hanselman

Indian Gaming and Tribal Self-Determination: Reconsidering the 1993 Tribal-State Gaming Compacts
by Zeke Fletcher

Indian Country Law Enforcement and Cooperative Public Safety Agreements
by Matthew L. M. Fletcher, Kathryn E. Fort, and Wenona T. Singel

And I completely missed this article in the same issue (many apologies to the authors!):

In the Law: Keeping Current with American Indian Legal Resources
by Jan Bissett and Margi Heinen

ICT Editorial by Kaighn Smith re: Tribal Work Laws

From ICT:

Imagine this scenario: “If you don’t sleep with me, you can kiss your job goodbye,” the male supervisor warns the female waitress at the tribe’s gaming facility. (We’ll call her Joyce.) She consistently says no. His threats continue and even escalate.

Although he threatens to make her life miserable if she tells anyone, Joyce seeks help from the Equal Employment Opportunity Commission; EEOC informs her that federal sexual harassment laws exclude tribes. She goes to tribal court. She finds she has no remedy under tribal law. Overwhelmed by her boss’ intimidation, Joyce quits her job. Unemployed and unable to afford her rent, she moves in with her brother, Bob.

A host of other laws that are silent about their application to tribes pose similar threats to tribal sovereignty.

Bob, a union organizer, is outraged. He starts talking to Joyce’s co-workers and learns that other women have experienced similar harassment. Other workers complain that management plays favorites with tribal members, giving them better jobs and shifts than non-members. Bob says that with union representation, management would be held accountable for workers’ rights.

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Cash Advance Oral Argument Audio File

Here.

Briefs and materials are here.

News Coverage Update of Lac du Flambeau/Wells Fargo Debacle

From the News of the North via Pechanga:

A Mississippi resort-casino venture has turned out to be a bad bet for the Lac du Flambeau Indian Tribe, which as a minority partner sunk an estimated $25 million on the Grand Soleil project in Natchez, only to see it headed for the auction block in three weeks.

According to a trustee’s notice of foreclosure and sale, parts of the Grand Soleil Casino Resort property, including three separate tracts, will be sold to the highest bidder on Feb. 12. at the Adams County (Miss.) courthouse. The notice was published this week in the Natchez Democrat newspaper. click here to read published notice

Two previous attempts to initiate the foreclosure process by United Mississippi Bank and other lenders and creditors were averted by deals struck last year. United Mississippi Bank designated Natchez lawyer Bruce M. Kuehnle, Jr. as its trustee in the latest foreclosure proceedings, according to the legal notice. Continue reading

Blue Lake Rancheria Loses FUTA Tax Challenge

Here are the materials in Blue Lake Rancheria v. United States (N.D. Cal.):

Blue Lake Motion for Summary Judgment

USA Motion for Summary Judgment

Blue Lake DCT Order

Wells Fargo Opinion Issued

Here: Decision and Order

Briefs are here, and the trust indenture is here.

LDF — Wells Fargo Trust Indenture

Some have asked, so we’re posting the 86 page trust indenture: Trust Indenture

News Coverage of Wells Fargo — Flambeau Case

From the Milwaukee Journal Sentinel via Pechanga:

In a ruling that could have a far-reaching impact in Indian country, a federal judge has refused to appoint a receiver for the Lac du Flambeau’s northern Wisconsin casino even though the tribe defaulted on a $50 million bond.

The action last week by U.S. District Court Judge Rudolph T. Randa throws into question whether the financially struggling tribe, which has lost millions on out-of-state casino projects, will pay the $46.6 million it still owes on bonds that were sold in 2008.

“The entire agreement is a void issue,” said tribal administrator William Beson of the 2008 bond offering, which included giving Saybrook Capital – the California company that bought the bonds – the ability to force the tribe’s casino into receivership if the tribe defaulted on the bonds.

Randa’s decision means the tribe is not on the hook for the money, said Monica Riederer, the tribe’s attorney. Riederer, however, said that does not mean the tribe will walk away from the debt.

“They will do whatever they’re legally required to do,” Riederer said. “They do feel a sense of financial responsibility.” Continue reading

Federal Court Dismisses Effort by Wells Fargo to Take Over LDF’s Lake of the Torches EDC

Pretty incredible case. Wells Fargo, alleging financial improprieties by the EDC relating to an indentured trust, sought an order from the court appointing a receiver for the EDC. The EDC defended on grounds of sovereign immunity and that the trust had not been approved by the NIGC, apparently prevailing on the latter theory.

Here are the materials (the court has promised a written opinion “in due course”):

Wells Fargo Motion to Appoint Receiver

LDF Opposition to Motion to Appoint Receiver

Wells Fargo Reply re Motion to Appoint Receiver

Wells Fargo Supplemental Brief re Motion to Appoint Receiver

LDF Supplemental Response

Washburn Affidavit

Order of Dismissal LDF