D.C. Circuit Briefs in Saginaw Chippewa Member Challenge to Adverse U.S. Tax Court Decision

Here are the briefs in Johnson v. CIR:

Johnson Appellant Brief

IRS Brief

Lower court decision here.

Update in Eastern Shawnee v. William Morris Financial

Judgment in favor of the Tribe for $2,012,800 and constructive trust placed on certain funds wire transferred. Orders denying Motion to vacate and Order compelling compliance with subpoenas.

Here are additional materials:

2012-05-04 Judgment

2012-05-2012 OrderGranting Pltf MTC – Bank of Am

2012-08-03 ORDERdenying Def Reinis Mtn to Vacate

The complaint is here.

Michigan Board of Canvassers Votes Insufficient to Put Casino Proposal on Ballot

Here. back to court.

Here’s a summary of the proposal from the Board staff.

MLive on the Bay Mills Vanderbilt Casino Case & Proposed Lansing Casino

Here.

An excerpt:

Bay Mills has a reservation located on tribal land in the Upper Peninsula’s Chippewa County on the eastern end of Lake Superior.

In 2010, the tribe used earnings from a land settlement trust to purchase 40 acres of land in Vanderbilt, a tiny town just north of Gaylord that’s located more than 100 miles south of the tribe’s main reservation.

The Michigan Indian Land Claims Settlement Act says that land acquired with funds from a land trust “shall be held as Indian lands are held.” So Bay Mills used that language as legal authority to open a small casino in November 2010 in Vanderbilt. Continue reading

Update in Santa Ysabel Bankruptcy Case

There are now two motions to dismiss:

San Diego County Motion to Dismiss

Yavapai-Apache Motion to Dismiss

The petition and attachments are here.

Fletcher on IPR re: Michigan v. Bay Mills Indian Community Decision

Here.

 

Wells Fargo v. Cabazon Band — Enforcement of Trust Indenture

Cabazon Band has removed the state court complaint to federal court (Wells Fargo Bank NA v. Cabazon Band of Mission Indians (C.D. Cal.)):

Cabazon Notice of Removal [notice only]

Cabazon Notice of Removal Part 1 [notice plus attachments, each are 100+ page docs]

Cabazon Notice of Removal Part 2

Cabazon Notice of Removal Part 3

Cabazon Notice of Removal Part 4

Cabazon Notice of Removal Part 5

An excerpt from the notice:

5. This action “seeks to specifically enforce certain covenants of the Tribe under the Trust Indenture[.]” Exh. “A” (Complaint) ¶ 1. This dispute potentially involves claims under Indian Gaming Regulatory Act (“IGRA”), 25 U.S.C. §§ 2701-2721, and, accordingly, invokes federal jurisdiction. For example, the U.S. District Court for the Eastern District of Wisconsin held last year that federal subject matter jurisdiction was established on the face of the complaint because a claim against a Tribe for breach of a Trust Indenture is not a routine contract dispute, and involved potential application of IGRA:
Wells Fargo’s claim for breach of the Indenture does not present a routine contract dispute, but rather a specific issue under a highly regulated area of federal law. See Gaming World, 317 F.3d at 848. (“since this case raises issues under the extensive regulatory framework of IGRA, it is not a routine contract dispute.”). Wells Fargo’s action on the Indenture and Bonds necessarily raise federal questions concerning whether the Indenture is a management contract within the meaning of the IGRA and, if so, whether the Tribe’s waiver of sovereign immunity is valid. Wells Fargo’s complaint therefore invokes federal jurisdiction[.]
Wells Fargo Bank, N.A. v. Sokagon Chippewa Community, 787 F. Supp. 2d 867, 875 (E.D. Wis. 2011).

Does Michigan v. Bay Mills Create a Circuit Split with Mescalero v. New Mexico over Whether IGRA Waives Tribal Immunity?

Well, maybe, but it probably doesn’t matter because of State of Michigan’s amended complaint below.

Yesterday the Sixth Circuit held the Indian tribal immunity survives the enactment of the Indian Gaming Regulatory Act for cases in which a non-federal party with standing sues the tribe for alleged violations of the Act. The court criticized the Tenth Circuit’s holding Mescalero Apache Tribe v. New Mexico (PDF) that IGRA does waive tribal immunity:

Mescalero offers virtually no analysis in support of its contrary reading of § 2710(d)(7)(A)(ii)—a point which the State, to its credit, concedes here; and to the extent the opinion does offer any analysis, it mistakenly cites waiver cases rather than abrogation ones. We agree with the Eleventh Circuit, therefore, that Mescalero’s reasoning is “muddled” rather than persuasive.

The CA6 cited the CA11, also critical of the Tenth Circuit’s holding. In Florida v. Seminole Tribe (PDF), the court also criticized the Mescalero holding:

As an initial matter, we find that Mescalero provides no support for the State’s argument. The Mescalero panel, in discussing section 2710(d)(7)(A)(ii), claimed that a majority of courts agree that “IGRA [abrogated] tribal sovereign immunity in the narrow category of cases where compliance with IGRA’s provisions is at issue and where only declaratory or injunctive relief is sought.” 131 F.3d at 1385. In actuality, however, the cases that the panel cited in support of its claim addressed an entirely different matter, to wit: whether a tribe voluntarily waives its own sovereign immunity by engaging in gaming under IGRA. See infra part II.A.2 (discussing tribal waiver of immunity). In light of this absence of supporting authority, we find the Mescalero panel’s claim difficult to credit.

So one circuit has held that IGRA waives tribal immunity, and two circuits expressly disagree with the first circuit. Circuit split, right? Get ready for Michigan v. Bay Mills Indian Community in the Supreme Court?

Well, probably not. If the Tenth Circuit’s decision is so patently wrong (and mind you, it didn’t have the benefit of any other cases upon which to rely), it probably doesn’t matter. If confronted with the same question again, one could predict the Tenth Circuit going the other way. This is why the Supreme Court doesn’t take questions of first impression very often. They like to let things percolate in the lower courts. Whether IGRA waives tribal immunity is still percolating. The Tenth Circuit is looking like an obvious outlier decision that won’t be repeated. I’d guess, if anyone made the effort, that a Supreme Court cert petition would be denied.

IPR on Vanderbilt Casino Ruling

Here.

An excerpt:

A written statement from Bay Mills Chair Kurt Perron says the tribe ultimately plans legal victory, and to move forward with its “planned developments.” The tribe did not immediate elaborate on the statement’s meaning.

If Bay Mills is ultimately victorious, the tribe would likely be allowed to build casinos anywhere it wants, without state approval, as long as it buys the land with a specific pool of funds.

“Probably the biggest implication (of today’s ruling) in the long run is just to highlight exactly how difficult it is to shut down a casino opened by an Indian tribe under these circumstances,” says Matthew Fletcher, of MSU’s Indigenous Law Center.

The Vanderbilt Casino is widely regarded as a test site for its Upper Peninsula owner. The tribe has expressed interest in building in Port Huron, and perhaps elsewhere.

It’s not clear what implications this case might have for another Upper Peninsula tribe’s plans to build a casino in downtown Lansing.

Sixth Circuit Vacates Injunction against Bay Mills’ Vanderbilt Casino

Here is today’s opinion (PDF).

Here are the briefs:

BMIC Opening Brief in CA6 Appeal

LTBB Appellee Brief

State of Michigan Appellee Brief

BMIC Reply

BMIC Motion to Strike Appellee Briefs

Lower court materials here.

Here is the casino:

Guess they can take this sign down now: