Washington COA Decides Section 81 Matter Involving Nooksack Business Corp.

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

Unpublished Opinion

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:

Supreme Court Declines to Review Old Section 81 Appeal

The Court declined to review Quantum Entertainment Ltd. v. Dept. of Interior. Order list here.

Lower court materials here.

Cert stage briefs:

Quantum Entertainment Cert Petition

USA Cert Opp

Quantum Reply

 

Moapa Band Complaint re: Alleged Gaming Management Contract

Here is the complaint in Moapa Band of Paiute Indians v. Herbst Moapa Development LLC (D. Nev.):

1 Complaint

United States Cert Opposition Brief in Quantum Entertainment v. DOI

Here:

USA Cert Opp

Petition is here.

Quantum Entertainment Ltd. v. Dept. of Interior Cert Petition — “Old” Section 81 Appeal

Here:

Quantum Entertainment Cert Petition

Question presented:

Whether the court of appeals erred in holding that Landgraf v. USI Film Products, 511 U.S. 244 (1994), implicitly overruled McNair v. Knott, 302 U.S. 369 (1937), and Ewell v. Daggs, 108 U.S. 143 (1883), by requiring the conclusion that a statute eliminating legal impediments to the enforcement of contracts has an impermissible “retroactive effect” when applied to a contract that was entered into before the statute’s enactment but performed without complaint until afterwards.

Lower court materials here.

D.C. Circuit Decides “Old Section 81” Case

Here is the opinion in Quantum Entertainment Limited v. Department of the Interior:

Quantum Entertainment v Dept of Interior

Briefs are here.

Lower court materials are here.

D.C. Circuit Briefs in “Old Section 81” Appeal

Here are the briefs in Quantum Entertainment Inc. v. Dept. of Interior:

Quantum Opening Brief

Interior Answering Brief

Quantum Reply Brief

Lower court materials here.

Federal Court Decides “Old Section 81” Case — Quantum Enter. v. Interior

Here are the materials in Quantum Entertainment Ltd. v. Dept. of Interior (D. D.C.):

Quantum Entertainment Complaint

Exhibits

Interior Motion for Summary Judgment

Quantum Motion for Summary Judgment

DCT Order Affirming IBIA Decision

Commentary on Harrah’s v. NGV Gaming Cert Petition

Here is the reply brief from Harrah’s, and so the certiorari briefing is concluded (the petition is here, and the opposition is here).

I was a little surprised that SCOTUSblog lists this case as a petition to watch. I don’t see any of the indicators that this would be the kind of case to make the discuss list (including either party employing a member of the Supreme Court “bar” suggested by Prof. Lazarus), except for the very superficial circuit split alleged by the petitioners. Maybe they know something I don’t. [I suppose that SCOTUSblog might think this case is similar to Carcieri and MichGO, but I doubt it.]

I say the circuit split is superficial, but in reality it is illusory. The claimed split is between the Ninth and Second Circuits over the definition of “Indian lands.” The CA2 looked at “Indian lands” as used in the Indian Gaming Regulatory Act (25 U.S.C. 2711), and the CA9 looked at “Indian lands” as used in Section 81 of Title 25. The CA2 said that IGRA’s “Indian lands” definition includes both lands already held in trust and lands that will go into trust. The CA9 says that Section 81’s “Indian lands” definition includes only lands already held in trust. Both courts seem to have spent some time reading the dictionary on these cases — 1 U.S.C. 1 et seq. Looks like a split, right?

NO.

Hopefully, the SCT and their clerks will realize that no split exists at all. There are two reasons. First, the purposes of each statute distinguish them, even though they use the same words. Second, the operation and implementation of the different statutes prevent them from conflicting. I really don’t think the Dictionary Act would trump either of these two arguments, or else someone better go back and reargue D.C. v. Heller.

OK, the first point. Section 2711 is about management contracts that tribes might sign to manage a gaming facility. Tribes will and do sign these contracts long before any land is taken into trust, and even before a tribe owns a single acre. So it is the National Indian Gaming Commission’s responsibility to review these contracts could kick in before any land is taken into trust, making the CA2’s outcome reasonable. Section 81, on the other hand, is about tribes collateralizing lands held in trust for the tribes by the Secretary of Interior. There’s no reason to review a contract that potentially encumbers tribal trust land unless that land is already in trust, making the CA9’s decision reasonable.

Which leads to the second point, closely related — the Secretary cannot take land into trust without first determining that there are no encumbrances on the land (25 U.S.C. 465). So under Section 81, the Secretary doesn’t need to review a contract that might encumber trust land. In other words, the Secretary will never review a contract that might encumber “Indian lands” under Section 81 unless the land is already in trust. So, the CA9’s decision is the only decision possible. Conversely, IGRA expressly allows for the NIGC to review a contract regarding lands that will go into trust, often because the contract itself will provide the tribe funds to buy lands and ask the Secretary to take the land into trust.

And so, no circuit split.

I hope the Court isn’t confused by this one.

Harrah’s v. NGV a Petition to Watch

This is for the January 23 conference (today, the Court will consider the MichGO v. Kempthorne petition).

From SCOTUSblog:

Docket: 08-655
Title: Harrah’s Operating Company, Inc. v. NGV Gaming, Ltd.
Issue: Whether the term “Indian lands” in 25 U.S.C. 81(a) applies only to land currently held in trust by the United States or also to land that will be held in trust.