Federal Case Dismissed Because Third-Party Tribe is not Citizen for Diversity Purposes

Interesting case, in that the parties were diverse citizens, but the other party to the relevant contract (not a party to the case, however) was a tribe (Confederated Tribes of the Chehalis Reservation), so that defeated diversity jurisdiction.

CTGW v GSBS

An excerpt:

This civil action for monetary relief brought by plaintiff CTGW, LLC against defendants GSBS, PC, Colvin Engineering Associates, Inc. and Spectrum Engineers, Inc. arises out of a dispute regarding the design and construction of Great Wolf Lodge resort and water park in Grand Mound, Washington. Plaintiff alleges that this court has subject matter jurisdiction under 28 U.S.C. § 1332(a)(1), which applies to actions in which the plaintiff and the defendants are “citizens of different States” and the amount in controversy is more than $ 75,000. Plaintiff alleges that the parties are completely diverse and the matter in controversy exceeds $ 75,000. However, I conclude that because one of the members of plaintiff CTGW, LLC is an Indian tribe, diversity is destroyed. Therefore, I am dismissing this case for lack of subject matter jurisdiction.

Second Circuit Summarily Dismisses Joe Frazier Suit against Oneida’s Turning Stone Casino

Here is the opinion in Frazier v. Brophy — Frazier v Brophy CA2 Order

An excerpt:

An Indian Tribe is not a citizen of any state for the purposes of diversity jurisdiction. Romanella v. Hayward, 114 F.3d 15, 16 (2d Cir. 1997); Frazier, 254 F. Supp. 2d at 304. (“[T]he Court cannot assert diversity jurisdiction over this action as long as the Oneida Indian Nation (“Oneida Nation”) and the Casino are Defendants.”). Because an Indian Tribe is not a citizen of any state, the Oneida Nation’s presence as a party bars a federal court from hearing the matter under its diversity jurisdiction. Romanella, 114 F.3d at 16 (“[T]he diversity statute’s provisions for suits between citizens of different states, 28 U.S.C. § 1332(a), strictly construed, cannot be said to embrace suits involving Indian tribes.”); see also Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 829 (1989) (holding that one stateless party destroys diversity jurisdiction). This accords with the treatment of other domestic sovereigns, such as states, which cannot sue or be sued in diversity. Romanella, 114 F.3d at 16. Given the continued presence of the Oneida Nation in this suit, the district court lacked subject matter jurisdiction to hear this case. We therefore remand with instructions to dismiss the matter.

And, importantly:

The dismissal of this suit from federal court does not foreclose all relief against the tribe, its casino, and its agents. The Oneida Nation has a trial and appellate court system staffed by former New York Court of Appeals Judges Stewart Hancock and Richard Simons. FACT SHEET: The Oneida Nation Court, http://www.oneidaindiannation.com/pressroom/factsheets/26965674.html (last visited October 2, 2009). To the extent Frazier has live claims against the tribe, its casino, or the casino’s employees, he could attempt to bring them there.

Ninth Circuit Affirms Immunity of Tribally Chartered Corporation

In Cook v. Avi Casino, a divided Ninth Circuit panel held that a dram shop action against Avi Casino Enterprises, a wholly owned corporation owned by the Fort Mohave Indian Tribe and chartered under the laws of the tribe, was barred by sovereign immunity. The panel split over the question of whether the federal court had jurisdiction over the claim on the basis of diversity.

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avi-casino-brief

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