Arrow Midstream Holdings, LLC v. 3 Bears Construction, LLC

2015 ND 302, 873 N.W.2d 16, 2015 N.D. LEXIS 317, 2015 WL 9478056
CourtNorth Dakota Supreme Court
DecidedDecember 29, 2015
DocketNo. 20150057
StatusPublished
Cited by8 cases

This text of 2015 ND 302 (Arrow Midstream Holdings, LLC v. 3 Bears Construction, LLC) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arrow Midstream Holdings, LLC v. 3 Bears Construction, LLC, 2015 ND 302, 873 N.W.2d 16, 2015 N.D. LEXIS 317, 2015 WL 9478056 (N.D. 2015).

Opinions

VANDE WALLE, Chief Justice.

[¶ 1] Arrow Midstream Holdings, LLC and Arrow Pipeline, LLC (collectively “Arrow”) appealed, and Tesla Enterprises, LLC (“Tesla”) cross-appealed, from a judgment dismissing without prejudice for lack of jurisdiction. its action against 3 Bears Construction, LLC (“3 Bears”) and Tesla for breach of contract and a declara[18]*18tion that Tesla’s pipeline construction lien is invalid. We reverse and remand, concluding the district court has jurisdiction over this lawsuit.

I

[¶ 2] In 2013, Arrow, a Delaware limited liability company, hired 3 Bears,' a North Dakota limited liability company, to be the general contractor for the construction of a pipeline located on a right-of-way easement acquired by Arrow from the Bureau of Indian, Affairs over Indian trust land on the Fort Berthold Indian Reservation. See 25 TJ.S.C. §§ 821 and 323. The easement was “for the purpose of installing oil, gas and water lines” and described the right-of-way as “11,882.77 feet in length and 13.520 acres in , area. (34.206 acres during construction), more or less, ... and shall be buried a sufficient depth below the surface of the land so as not to interfere with cultivation.” 3 Bears, which has its principal place of business in New Town, entered into a subcontract with Tesla, an Alaska limited liability company, to supply materials and labor for the construction. 3 Bears is owned by two members of the Three Affiliated Tribes (“Tribe”) and is certified under the Tribal Employment Rights Ordinance (“TERO”). 3 Bears claims Arrow was a covered employer- who was required to comply with TERO rules.

■ [¶ 3] After the pipeline was completed, a dispute arose between 3 Bears and Tesla concerning amounts Tesla claimed it was owed by 3 Bears for work Tesla performed. In mid-2014,' Tesla sent Arrow a notice of right to file a pipeline lien under N.D.C.C. ch. 35-24. Tesla recorded the pipeline lien against Arrow in the Dunn County recorder’s office in -June 2014. In July 2014, Arrow commenced this action in state district, court challenging the validity of the pipeline lien, seeking indemnification, and claiming 3 Bears breached -the parties’ contract. In August 2014, 3 Bears 'moved to dismiss for lack of subject matter jurisdiction. In November 2014, 3 Bears filed a complaint against Tesla and Arrow in Fort Berthold Tribal Court. 3 Bears sought a declaration that the pipeline lien was invalid, alleged Arrow had breached the master service contract, and requested an award of damages.

[¶ 4] In December 2014, the state district court agreed with 3 Bears’ argument that it lacked subject matter jurisdiction over the lawsuit. The court concluded “exercising jurisdiction over this action under the circumstances presented here would infringe upon Tribal sovereignty;” The court further concluded, “at the very least, Arrow and 'Tesla, as a matter of comity, should be required to exhaust their tribal court remedies before‘this Court exercises' jurisdiction.” The court dismissed the action'-“without prejudice to allow any of the parties to re-open the case without payment of another filing fee should it become necessary for purposes of enforcing the Tribal Court action or for any other reason.”

II

[¶5] 3 Bears argues this Court lacks jurisdiction to hear the appeal because the district court dismissed the action without prejudice.

[¶ 6] “Before we consider the merits of an appeal, we must have jurisdiction.” Choice Fin. Grp. v. Schellpfeffer, 2005 ND 90, ¶ 6, 696 N.W.2d 504. The situation here is similar to the circumstances in Winer v. Penny Enters., Inc., 2004 ND 21, ¶¶ 1, 4-5, 674 N.W.2d 9, in which the district court dismissed without prejudice for lack of subject matter jurisdiction an action brought*by a non-Indian plaintiff against Indian defendants for damages resulting from a motor vehicle [19]*19accident occurring on a state highway on an Indian reservation. Concluding this Court had jurisdiction over the -appeal, we explained:

Ordinarily, an order dismissing a complaint without prejudice is not appeal-able because either side may commence another action after the dismissal. State v. Gwyther, 1999 ND 15, ¶ 10, 589 N.W.2d 575. However', a dismissal without prejudice may be final and appeal-able if it has the practical effect- of ter-' minating the litigation in the plaintiffs chosen forum. Rodenburg v. Fargo-Moorhead YMCA, 2001 ND 139, ¶ 12, 632 N.W.2d 407; Triple Quest, Inc. v. Cleveland Gear Co., 2001 ND 101, ¶ 8, 627 N.W.2d 379. In this case, the order and judgment effectively foreclose litigation of Winer’s action in the courts of this state. Consequently, we conclude the dismissal is appealable.

Id. at ¶ 6.

[¶ 7] We likewise conclude in this case that the judgment dismissing the action without prejudice is appealable.

Ill

[¶8] Arrow argues the district court erred in concluding it lacked jurisdiction, and the Fort Berthold Tribal Court had exclusive jurisdiction, to decide the validity Of the pipeline lien and the parties’ con-tractüal disputes.

[¶ 9] There is no dispute about the facts relevant to a determination of the jurisdictional issue in this ease* “‘When the jurisdictional facts are . not in dispute, the question of subject-matter jurisdiction, is a question of law, and we review the jurisdiction decision de novo.’ ” Gustafson v. Estate of Poitra, 2011 ND 150, ¶ 9, 800 N.W.2d 842 (quoting Rolette Cty. Soc. Serv. Bd. v. B.E., 2005 ND 101, ¶ 6, 697 N.W.2d 333).

[¶ 10] While tribal court jurisdiction is determined under the test set forth in Montana v. United States, 450 U.S. 544, 101 S.Ct. 1245, 67 L.Ed.2d 493 (1981), state court jurisdiction is determined under the test set forth in Williams v. Lee, 358 U.S. 217, 79 S.Ct. 269, 3 L.Ed.2d 251 (1959). See Winer, 2004 ND 21, ¶ 16, 674 N.W.2d 9. In Cohen’s Handbook of Federal Indian Law, § 6.03[2][c], at pp. 528-29 (Nell Jessup Newton ed., 2012) (footnotes omitted), the authors explain:

State jurisdiction and tribal jurisdiction in Indian country raise two separate legal questions. For example, if application of the Montana test results in a finding that a tribe lacks jurisdiction over a non-Indian on non-Indian land in Indian country, it does not - necessarily follow that the state can enter Indian country and impose its laws by prosecuting or controlling the non-Indian behavior.' Whether state law can -apply in Indian country remains subject to the Williams test, even as -the Montana analysis considers whether tribal authority is necessary to protect vital tribal interests. ' How that preemption/infringement test is applied, however, may take into account, as one factor, the absence of tribal jurisdiction. Thus, for example, in Three Affiliated Tribes of the Fort Berthold Reservation v. Wold Engineering, P.C., [467 U.S. 138, 104 S.Ct. 2267, 81 L.Ed.2d 113 (1984),] the Court considered the tribes’ decision not to assert jurisdiction over suits against non-Indians, together with the fact that .the tribes themselves sought to invoke the state court’s jurisdiction, as weighing in favor of state authority over those actions.

See also Winer,

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Cite This Page — Counsel Stack

Bluebook (online)
2015 ND 302, 873 N.W.2d 16, 2015 N.D. LEXIS 317, 2015 WL 9478056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arrow-midstream-holdings-llc-v-3-bears-construction-llc-nd-2015.