American Greyhound Racing, Inc. v. Hull

305 F.3d 1015, 2002 WL 31085603
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 19, 2002
DocketNos. 01-16672, 01-17319 and 01-17321
StatusPublished
Cited by26 cases

This text of 305 F.3d 1015 (American Greyhound Racing, Inc. v. Hull) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Greyhound Racing, Inc. v. Hull, 305 F.3d 1015, 2002 WL 31085603 (9th Cir. 2002).

Opinions

Opinion by Judge CANBY; Dissent by Judge RYMER.

CANBY, Circuit Judge.

Racetrack owners and operators brought this action against the Governor of Arizona1 to challenge the legality of the Governor’s actions in negotiating new gaming compacts with Indian tribes, or in extending the tribes’ existing compacts. The district court denied the Governor’s motion to dismiss on the ground that the compacting tribes were indispensable parties. The court then granted the plaintiffs relief principally on two grounds: (1) the state statute authorizing the Governor to negotiate compacts, A.R.S. § 5-601, was an unlawful delegation of legislative power without sufficient standards for its exercise; and (2) in any event, A.R.S. § 5-601 did not authorize the Governor to negotiate compacts for most casino-type games because such games were prohibited by state law. Am. Greyhound Racing, Inc. v. Hull, 146 F.Supp.2d 1012 (D.Ariz.2001). The district court accordingly enjoined the Governor from executing new compacts pursuant to A.R.S. § 5-601 and ordered her to give notice of non-renewal of existing compacts entered pursuant to that statute. It further enjoined the Governor against modifying such existing contracts to increase the amount or kind of gaming permitted by the compacts.

We vacate the district court’s judgment and remand with instructions to dismiss the action because we conclude that the compacting tribes were indispensable parties with sovereign immunity from suit.

Background

Because the question whether a party is indispensable “can only be determined in the context of particular litigation,” Provident Tradesmens Bank & Trust Co. v. Patterson, 390 U.S. 102, 118, 88 S.Ct. 733, 19 L.Ed.2d 936 (1968), it is necessary to set forth in some detail the legal and factual context of the present controversy.

The Indian Gaming Regulatory Act (“IGRA”)

Congress enacted the Indian Gaming Regulatory Act (“IGRA”) in 1988, following the Supreme Court’s decision of California v. Cabazon Band of Mission Indians, 480 U.S. 202, 107 S.Ct. 1083, 94 L.Ed.2d 244 (1987). Congress declared that IGRA’s primary purpose was “to provide a statutory basis for the operation of gaming by Indian tribes as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.” 2

[1019]*1019IGRA estabbshes three classes of gaming. Class I includes social games for prizes of minimal value and traditional forms of Indian gaming. 25 U.S.C. § 2703(6). Class II includes bingo, similar games, and certain card games. Id. at § 2703(7)(A). Class III comprises all games not in classes I or II, Id. at § 2703(8). Slot machines, keno, and blackjack are Class III games. See id. § 2703(7)(B).

A tribe may engage in Class III gaming-only if: (1) the tribe has authorized the Class III gaming by a tribal ordinance or resolution; (2) the Class III gaming will be “located in a State that permits such gaming for any purpose by any person, organization, or entity”; and (3) the Class III gaming is conducted in conformity with a tribal-state compact that is in effect. See 25 U.S.C. § 2710(d)(1).

Indian Gaming in Arizona

Indian gaming in Arizona is now well-established, but it had rocky beginnings that were well described in detail by the district court. See Am. Greyhound, 146 F.Supp.2d at 1054-59. It is sufficient to note here that, shortly after IGRA was enacted, the Yavapai-Preseott Indian Tribe, after unsuccessful negotiations, sued the State to require it to enter a compact. See Yavapai-Preseott Indian Tribe v. Arizona, 796 F.Supp. 1292 (D.Ariz.1992). Several other tribes intervened. Then, in 1992, the state legislature passed and Governor Symington signed A.R.S. § 5-601. That statute provided, among other things:

A. Notwithstanding any other law, this state, through the governor, may enter into negotiations and execute tribal-state compacts with Indian tribes in this state pursuant to the Indian gaming regulatory act of 1988....

A.R.S. § 5-601(A).3

Under the authorization of this statute, Governor Symington entered pacts with the Yavapai-Preseott and three other tribes. Three tribes remaining in the Ya-vapai-Prescott litigation went to mediation and the mediator approved the tribes’ proposal. After a period of resistance,4 Governor Symington entered compacts with the three tribes in 1993, and shortly thereafter entered compacts with several more tribes. By 1994, Governor Symington had entered compacts with sixteen tribes pursuant to A.R.S. § 5-601. The later compacts were for initial terms of ten years.

[1020]*1020After sixteen compacts were executed, this court decided Rumsey Indian Rancheria of Wintun Indians v. Wilson, 41 F.3d 421, 427 (9th Cir.1994), as amended, 99 F.3d 321 (9th 14476 Cir.1996), which held that states were not required to negotiate for particular types of Class III games that were not otherwise permitted under state law. In light of Rumsey, Governor Symington refused to execute a compact with the Salt River Pima-Maricopa Indian Community on the ground that, although Arizona permitted some Class III gaming, it did not permit the slot machines and other casino-type gaming sought by the Salt River Community. The Salt River Community responded with a successful initiative campaign that resulted in A.R.S. § 5-601.01, which provided:

A. Notwithstanding any other law or the provisions of § 5-601, the state, through the governor, shall enter into the state’s standard form of gaming compact with any eligible Indian tribe that requests it.
B. For purposes of this section:
1. The state’s standard form of gaming compact is the form of compact that contains provisions ... that are common to the compacts entered into by this state with Indian tribes in this state on June 24,1993.
2.

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Bluebook (online)
305 F.3d 1015, 2002 WL 31085603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-greyhound-racing-inc-v-hull-ca9-2002.