Okla Supreme Ct Holds that 18 USC 1161 Waives Tribal Immunity from Suit

The question is whether Congress abrogated tribal immunity from suits for “dram shop” liability when it enacted 18 USC 1161. Plaintiffs in several states have argued that it did, relying on the statute and the Supreme Court’s opinion in Rice v. Rehner. Until yesterday, no appellate court had agreed with that argument. The appeals courts of Arizona, Texas, and Washington have all found that 1161 does not amount to Congressional abrogation of tribal immunity, and that a tribe does not waive its immunity by getting a state issued liquor license. The plaintiff in the Washington case has petitioned the State Supreme Court for review–that petition is still pending.

I think the argument fails regardless of what the state’s laws say, but what makes this even more disturbing is that Oklahoma’s “dram shop” laws don’t even provide for a 3rd party suit as a method of regulation. In some states the liquor laws specifically provide for 3rd party suits as a means of enforcement, others, including Oklahoma, do not. What the Oklahoma court found was that 1161 abrogated tribal immunity from private tort suits based on a negligence theory simply because a violation of a liquor regulation was alleged.

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Kansas v. Kempthorne & Wyandotte Nation — Revised CA10 Opinion

The Tenth Circuit granted the government’s motion for rehearing and issued a revised opinion.

CA10 Panel Decision (pre-rehearing)

Kempthorne Petition for Rehearing

State and Tribal Response to Petition

Complaint in Nebraska v. National Indian Gaming Commission (S.D. Iowa)

Complaint — State of Nebraska v. National Indian Gaming Commission

Indianz.com reported this morning that:

Nebraska attorney general Jon Bruning on Wednesday sued the National Indian Gaming Commission for allowing the Ponca Tribe to open a casino in Iowa. Bruning is upset that the tribe, whose headquarters are in Nebraska, might open a casino across the border in Carter Lake, Iowa. He filed suit in the federal district court for the Southern District of Iowa.. The state of Iowa is also considering a lawsuit.

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U.S. v. Hunter et al. — IGRA Criminal Case — Coyote Valley

United States v. Hunter, No. 06-565 (N.D. Cal.), is an unusual case. In 2001, it appears that the National Indian Gaming Commission investigated the improper expenditure of Indian gaming revenues by tribal council members at Coyote Valley Band of Pomo Indians. They reached a settlement and consent decree (attached as Exh. A to Deft. Crabtree’s Motion to Dismiss below).

In short, tribal council members allegedly continued their bad behavior — using gaming revenues to buy first class plane tickets, donate to political causes, and other uses. The US then brought a criminal case, alleging violation of IGRA (as a criminal matter) when these council members (Hunter et al.) spent gaming revenues on political causes and first class tickets.

What?!?!

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Granholm Cuts New Deal on Port Huron Casino

I read this just after I assign my students a project to assess the Port Huron deal….

From the Port Huron Times Herald:

Gambling on Port Huron
Granholm’s support improves the odds for a riverfront casino

The long-stalled effort to open an Indian-owned casino in Port Huron has received a major boost from Michigan’s governor, who has thrown her support behind the project.

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Michigan Economic Development Corporation & Indian Gaming Revenue Sharing

From Crain’s Detroit Business:

Fight over casino funds limits kitty for MEDC

LANSING — A southwest Michigan American Indian tribe is withholding casino revenue destined for state economic-development operations, posing the latest twist in funding uncertainty for the Michigan Economic Development Corp.

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Future Per Cap Income as Restitution in Criminal Case

In United States v. Roach et al., the Western District of North Carolina used future, expected tribal per cap to calculate restitution in a murder case.

DCT Order – US v. Roach et al.

Navajo Gaming Loan Threatened

We blogged previously about the lawsuit filed in Navajo tribal court over the proposed Navajo gaming loan. It turns out the lawsuit was successful in apparently causing the lender to change the terms of the deal (H/T Indianz). This is an interesting development and probably not a welcome one from the perspective of gaming tribes. If tribal court lawsuits challenging the terms of a gaming-related loan, or in this case the authority of the Navajo legislature to approve the loan, are successful in any area, my guess is the price for loans will go up everywhere.

Update: No suit has been filed in the Navajo Nation courts.  The 30 day waiting period required by the Navajo Sovereign Immunity Act (the title doesn’t use “Nation”) just expired and we were preparing to file suit.  There has been no public announcement, but there are rumors to the effect that the notice of suit stopped the loan.  They are now looking at other sources of funding for the casino, such as a trust fund set aside for acquiring land.

From Indianz:

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CA7 Remands Wisconsin & Ho-Chunk Nation Gaming Revenue Sharing Dispute

The Seventh Circuit remanded (again) the dispute over the revenue sharing provisions of the Class III gaming compact between the State of Wisconsin and the Ho-Chunk Nation.

CA7 Opinion

The briefs are here:

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NYTs on Decline of Gaming in the Catskills

From the NYTs:

In the Catskills, Wondering if Casinos’ Time Has Passed

The slot-machine casino in Monticello was nearly empty on Wednesday afternoon.

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