What’s Going on With Tribal Sovereign Immunity?

Since we started this blog in fall 2007, there have been a plethora of tribal sovereign immunity federal and state court decisions. Most of them are routine — slips and falls, internal tribal disputes — but a handful of these cases are worth watching because of the subject matter and the general uniqueness of the problem.

Oklahoma gaming compacts — the Oklahoma Supreme Court has been interpreting the Class III Oklahoma gaming compacts as virtual waivers of immunity, in almost comically formalistic ways. These compacts, passed by the state’s voters, are a take-it-or-leave-it prospect for tribes. They allow for suits against the tribes in a court of “competent jurisdiction,” which the Oklahoma court has interpreted to mean state courts. Opinions here and here.

Dram Shop Actions — Again, these would not be unusual except the Oklahoma Supreme Court has found a waiver of immunity in state courts for dram shop actions. That case, Bittle v. Bahe, conflicts with the decisions of several other courts (discussion here).

Bivens Actions against tribal cops — A federal common law cause of action against tribal officers gained ground in federal district court, but didn’t get so far in the circuits (here and here).

Section 1983 claims against tribal cops — Did gain ground (here).

Payday loan operations — Currently up for review in the Colorado Supreme Court are franchises owned by two tribes doing business as payday loan operators and attempting to avoid state process and investigation (here). A related California case is here.

Tribal fee lands — A Washington court held that it continues to have in rem jurisdiction over tribally-owned fee lands (here).

Cherokee Freedmen case — the D.C. Circuit allowed the Vann lawsuit to proceed against tribal officials under the Ex parte Young theory, but more or less vacated the district court’s theory that the 13th Amendment somehow abrogated tribal sovereign immunity.

Opening Brief Filed in Cash Advance Case before Colorado Supreme Court

Here is Cash Advance’s brief in Colorado ex rel. Suthers v. Cash Advance — Cash Advance Opening Brief

This case involves an effort by Cash Advance and other payday loan companies to avoid state investigation/process by licensing themselves with Indian tribes (the Miami Tribe and Santee Sioux Nation), and asserting tribal sovereign immunity. Our previous posting with links to related materials is here.

Tribal Business and Biofuel

From the NYTs:

IGNACIO, Colo. — An unusual experiment featuring equal parts science, environmental optimism and Native American capitalist ambition is unfolding here on the Southern Ute Indian Reservation in southwest Colorado.

With the twin goals of making fuel from algae and reducing emissions of heat-trapping gases, a start-up company co-founded by a Colorado State University professor recently introduced a strain of algae that loves carbon dioxide into a water tank next to a natural gas processing plant. The water is already green-tinged with life.

The Southern Utes, one of the nation’s wealthiest American Indian communities thanks to its energy and real-estate investments, is a major investor in the professor’s company. It hopes to gain a toehold in what tribal leaders believe could be the next billion-dollar energy boom.

But from the tribe’s perspective, the business model here is about more than business. “It’s a marriage of an older way of thinking into a modern time,” said the tribe’s chairman, Matthew J. Box, referring to the interplay of environmental consciousness and investment opportunity around algae.

Continue reading

GTB Plans for Winery

From Indianz:

The Grand Traverse Band of Ottawa and Chippewa Indians of Michigan might get into the wine business.

The tribe conducted a $104,000 feasibility study to determine whether to start a vineyard and winery. “We’re looking at different economic ventures in the area,” Chairman Derek Bailey told Crain’s Detroit. “I think that we need to, especially during these economic times, to explore new ventures.”

The winery would be located near the Grand Traverse Resort and the Turtle Creek Casino & Hotel.

Get the Story:

Grand Traverse tribe considers winery (Crain’s Detroit Business 8/12)

Ninth Circuit Affirms Dismissal of Contract Breach Claim against Pyramid Lake Paiute

Here is the Ninth Circuit’s unpublished opinion in High Desert Recreation v. Pyramid Lake Pauite Tribe of Indians. An excerpt:

In addition, both Supreme Court precedent and that of this court hold that Indian tribes enjoy sovereign immunity from suits on commercial contracts, whether made on or off a reservation, so long as the subject business activity functions as an arm of the tribe. See Kiowa Tribe v. Mfg. Techs., Inc., 523 U.S. 751, 760 (1998); Allen, 464 F.3d at 1046-47. Since (a) the Tribe is a party to the lease alleged in this case, (b) the lease contemplates the use of marina property owned by the Tribe and is located on the tribal reservation, (c) economic advantages of both the lease and the operation of HDR’s business inure to the Tribe’s benefit, and (d) immunity under the lease protects the Tribe’s treasury from HDR’s suit for over one million dollars in compensatory and punitive damages, the business transacted via the lease is properly deemed an activity of the Tribe for sovereign-immunity purposes.

Two Papers by Angelique EagleWoman on SSRN

The Eagle and the Condor of the Western Hemisphere: Application of International Indigenous Principles to Halt the United States Border Wall
Idaho Law Review, Vol. 45, No. 3, pp. 1-18, 2009
Angelique EagleWoman
University of Idaho – College of Law

Tribal Nation Economics: Rebuilding Commercial Prosperity in Spite of U.S. Trade Restraints – Recommendations for Economic Revitalization in Indian Country
Tulsa Law Review, Vol. 44, No. 1, pp. 383-426, 2009
Angelique EagleWoman

Alex Skibine Posts “Tribal Sovereign Interests Beyond the Reservation Borders”

Incl. Electronic Paper Tribal Sovereign Interests Beyond the Reservation Borders
Lewis & Clark Law Review, Utah University Legal Studies Research Paper Series, Research Paper No. 08-21
Alexander Tallchief Skibine
University of Utah – S.J. Quinney College of Law

Abstract here:

In this article, after exploring the evolution of ‘sovereignty’ from a territorially based concept to a more flexible and fluid principle, professor Skibine examines the sovereign interests Indian tribes may have beyond the borders of their reservations.

Tribal Tax Exempt Bonds Allocation Notice

notice-09-0051 (pdf)

This Notice solicits applications for allocations of the $2 billion national bond volume limitation authority (“volume cap”) to issue tribal economic development bonds (“Tribal Economic Development Bonds”) under new § 7871(f) of the Internal Revenue Code (the “Code”).  This Notice also provides related guidance on the following:  (1) eligibility requirements that a project must meet to be considered for a volume cap allocation, (2) application requirements, deadlines, and forms for requests for volume cap allocations, (3) the method that the Internal Revenue Service (“IRS”) and the Department of the Treasury (“Treasury”) will use to allocate the volume cap, and (4) certain interim guidance in this area.

Menominee Sues Interior over Off-Reservation Gaming

Here’s the news article, via Penchanga, with an excerpt:

The Menominee Nation has filed a lawsuit that seeks to overturn the U.S. Department of the Interior’s decision to block the tribe from building a casino at Dairyland Greyhound Park.

The tribe filed the suit in the U.S. District Court in Green Bay on Friday against the U.S. Department of the Interior and Kenneth Salazar, current secretary of that department. The lawsuit asks the court to declare a January 2009 denial of the Menominee’s land-into-trust application to create a casino at Dairyland as invalid and unlawful and to overturn that decision.

And the complaint — Menominee II Complaint

Meister, Rand and Light on Diversifying Tribal Economies

Alan Meister, Kathryn Rand, and Steve Light have published their paper “Indian Gaming and Beyond: Tribal Economic Development and Diversification” in the South Dakota Law Review as part of a symposium on tribal economic development.

Here is the paper — Meister et al. Article on Tribal Econ Development