Navajo Nation SCT Issues Immunity Decision

Here is the decision in Navajo Housing Authority v. Johns.

From the court’s syllabus:

In this appeal of the Crownpoint District Court’s denial of NHA’s motion to dismiss on the basis of sovereign immunity, the Court vacates the denial.  Noting that the issue of NHA’s immunity has returned time and again to the Court, first on the basis of NHA’s codified plan of operations, subsequently on amendments to both NHA’s plan of operations and the Sovereign Immunity Act, the Court finds that NHA had immunity at all times relevant to this action. In reaching its decision, the Court overrules a quartet of cases concerning NHA’s immunity and reestablishes its 1987 opinion in NHA v. Dana as the controlling case.

Navajo Supreme Court Decides Navajo Sovereign Immunity Act Case

The caption is Begay v. Navajo Engineering & Construction Authority and the Navajo Nation. The opinion is here.

Here is the court’s summary:

In this appeal of a district court’s dismissal of a tort action for failure to state a claim upon which relief may be granted, the Court affirms the dismissal on jurisdictional grounds and emphasizes that trial courts must first find jurisdiction before making substantive rulings.

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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Suit in Navajo Tribal Courts Over Gaming

From the Las Cruces Sun-News (h/t Indianz):

 

Group to legally challenge Navajo Nation’s plan for first casino

The Associated Press

ALBUQUERQUE – Months before the Navajo Nation’s first casino is scheduled to open, a group is planning to sue over the validity of legislation that provides for financing the development of that casino and others.

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