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Bruce H. Lien Company v. Three Affiliated Tribes Russell D. Mason, Sr., as Member of the Three Affiliated Tribal Business Council Marty Fox Daylon Spotted Bear, as Member of the Three Affiliated Tribal Business Council Ivan Johnson, as Member of the Three Affiliated Tribal Business Council Austin Gillette, as Member of the Three Affiliated Tribal Business Council George Fast Dog, as Member of the Three Affiliated Tribal Business Council Ed Hall, as Member of the Three Affiliated Tribal Business Council P. Diane Avery, District Judge of the Tribal Court of the Three Affiliated Tribes, Bruce H. Lien Company v. Three Affiliated Tribes Russell D. Mason, Sr., as Member of the Three Affiliated Tribal Business Council Marty Fox Daylon Spotted Bear, as Member of the Three Affiliated Tribal Business Council Ivan Johnson, as Member of the Three Affiliated Tribal Business Council Austin Gillette, as Member of the Three Affiliated Tribal Business Council George Fast Dog, as Member of the Three Affiliated Tribal Business

Citation: 93 F.3d 1412Docket: 96-1013

Court: Court of Appeals for the Eighth Circuit; August 28, 1996; Federal Appellate Court

Narrative Opinion Summary

This case involves a dispute between a management company and a tribal entity regarding the operation of a casino under a management contract governed by the Indian Gaming Regulatory Act (IGRA). The management company sought to compel arbitration under the Federal Arbitration Act, while the Tribes filed a counter motion to dismiss the arbitration based on lack of jurisdiction and sovereign immunity. The dispute centers around the validity of a management contract for a casino on tribal land, which was initially approved by the Bureau of Indian Affairs but later questioned by the Tribes after leadership changes. The U.S. District Court for the District of North Dakota determined that the National Indian Gaming Commission (NIGC) holds exclusive jurisdiction to review the contract for IGRA compliance but not to rule on its legal validity. The court denied the motion to compel arbitration and the Tribes' motion to dismiss based on sovereign immunity but stayed proceedings to allow the Tribal Court to resolve issues of contract validity. The case underscores the complexities of jurisdictional authority, with federal and tribal courts intertwined in resolving the contractual disputes within the framework of IGRA, highlighting the need for exhaustion of tribal remedies before federal intervention.

Legal Issues Addressed

Arbitration under the Federal Arbitration Act

Application: The court considered Lien's motion to compel arbitration under the Federal Arbitration Act but denied it, acknowledging the procedural dispute over the management contract's validity.

Reasoning: Lien filed a lawsuit in the U.S. District Court for the District of North Dakota seeking a preliminary injunction to enforce arbitration proceedings from a management contract and to prevent the Tribes and their officials from interfering in the arbitration.

Exhaustion of Tribal Remedies

Application: The court emphasized that tribal courts should address jurisdictional and validity issues of the management contract first, thus staying federal proceedings pending tribal court resolution.

Reasoning: The District Court's proceedings should be stayed until the Tribal Court resolves the contract's validity, as this is essential for addressing any other related matters effectively.

Indian Gaming Regulatory Act (IGRA) Compliance

Application: The court acknowledged the NIGC's exclusive jurisdiction to ensure management contracts comply with IGRA, but emphasized that the NIGC cannot determine the contract's legal validity.

Reasoning: The court affirms that the National Indian Gaming Commission (NIGC) has exclusive authority to assess a contract's compliance with the Indian Gaming Regulatory Act (IGRA) but does not possess exclusive jurisdiction over the contract's legal validity.

Tribal Court Jurisdiction and Sovereign Immunity

Application: The court denied the Tribes' motion to dismiss based on sovereign immunity, asserting that the federal question jurisdiction was present given the IGRA's application.

Reasoning: The District Court ruled that exhaustion was unnecessary, citing that the management contract was governed by federal statutes, giving the National Indian Gaming Commission exclusive jurisdiction for initial determinations of compliance and validity.