Outsource Services Management v. Nooksack Business Corporation

Washington COA Decides Section 81 Matter Involving Nooksack Business Corp.

April 4, 2017Matthew L.M. Fletcher

Here is the opinion in Outsource Services Management v. Nooksack Business Corp.:

An excerpt:

The Nooksack Business Corporation (NBC) borrowed more than $15 million to finance construction of and improvements to a casino on Nooksack Indian Tribe land. 25 U.S.C. § 81(b) (Section 81) requires preapproval by the Secretary of the Interior for any agreement or contract that “encumbers” tribal land. NBC’s limited recourse loan is secured by a pledge of revenue to the lender. But because the lender’s right to collect pledged revenues does not deprive the tribe of its exclusive proprietary control of its land, the loan agreements do not encumber tribal land for purposes of Section 81.

Under the broad language of the loan agreements, the lender may execute upon future revenues and rents whether or not the facilities are used as a casino. Additionally, merger does not preclude the lender from executing upon assets pledged as security for the loan. And, consistent with our Supreme Court’s decision in a prior appeal between the lender and NBC, the state court has subject matter jurisdiction to adjudicate the lender’s right to enforce its judgment.

The loan agreement provides for attorney fees to the prevailing party. Because the lender is the prevailing party, it is entitled, to attorney fees on appeal.

Briefs:

Wash. SCT Decides Outsource Servs. Mgmt. v. Nooksack Bus. Corp.

August 21, 2014Matthew L.M. Fletcher

Here is the opinion.

An excerpt:

Washington State courts have jurisdiction over civil cases arising on Indian reservations as long as it does not infringe on the sovereignty of the tribe. At issue in this case is whether Washington State courts have jurisdiction over a civil case arising out of a contract in which the tribal corporation waived its sovereign immunity and consented to jurisdiction in Washington State courts. We hold that it does not infringe on the sovereignty of the tribe to honor its own corporation’s decision to enter into a contract providing for jurisdiction in Washington State courts.

Briefs and other materials here.