Cheyenne & Arapaho Tribes v. First Bank & Trust Co.

560 F. App'x 699
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 11, 2014
Docket13-6117
StatusUnpublished
Cited by4 cases

This text of 560 F. App'x 699 (Cheyenne & Arapaho Tribes v. First Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheyenne & Arapaho Tribes v. First Bank & Trust Co., 560 F. App'x 699 (10th Cir. 2014).

Opinion

ORDER AND JUDGMENT *

CARLOS F. LUCERO, Circuit Judge.

The Cheyenne and Arapaho Tribes (“Tribes”) and the Cheyenne and Arapaho Tribes’ Executive Branch (“Executive Branch”) (together with the Tribes, “Plaintiffs”), appeal from the district court’s orders and judgments dismissing their claims. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I

In February 2011, the Tribes opened accounts with defendant First Bank & Trust Company (“First Bank”). At the time, Janice Prairie Chief-Boswell (“Boswell”) was the Tribes’ governor. Boswell signed the contracts and signature cards, and she was the sole signatory on the accounts, which held some $7 million in funds that the federal government, the State of Oklahoma, and the Tribes had appropriated for the administration of various programs. After an intra-tribal controversy arose regarding whether the Tribes’ governor was Boswell or Leslie Wandrie-Harjo (“Harjo”), First Bank filed an action in the District Court of Custer County, Oklahoma. First Bank sought a declaration as to whether it should recognize Boswell or Harjo as the authorized signatory on the Tribes’ accounts, and a declaration absolving it from liability concerning signatory authority for the accounts. The case was assigned to the Honorable Doug Haught, also a defendant in this matter. In addition to the Tribes, First Bank named Boswell and Harjo as defendants in their representative capacities, if any.

In April 2012, an attempt to transfer the Tribes’ funds to another institution caused First Bank to place an administrative freeze on the accounts pending a decision from Judge Haught. In June 2012, Judge Haught denied First Bank’s request for declaratory relief. He ruled that the Tribes had waived their sovereign immunity from state-court jurisdiction by signing contracts with First Bank subjecting the accounts to Oklahoma law, but he concluded that the state court lacked jurisdiction to resolve the gubernatorial dispute because it was a matter exclusively for the tribal courts. Judge Haught converted the Tribes’ accounts to court-supervised accounts, directing First Bank not to dispense any of the funds except on the court’s order. That decision is presently on appeal. Judge Haught later denied *702 First Bank’s motion to close the accounts on the ground that he was prohibited from determining whether to release the funds to Boswell or Harjo.

Meanwhile, on May 4, 2012, Plaintiffs filed the action underlying this appeal against First Bank and Judge Haught in his official capacity (collectively, “Defendants”). Plaintiffs asserted eleven claims in the operative pleading. Claims 1-3 and 6 asserted that, through the administrative freeze and the state court action, Defendants violated various federal constitutional rights and Plaintiffs’ tribal sovereign immunity. Claim 4 alleged that Defendants violated Plaintiffs’ right to be free from state interference with their sovereignty as secured by treaties with the United States. Claim 5 asserted unspecified violations of the Oklahoma Enabling Act, 1 and Claim 7 asserted a state-law claim that First Bank had intentionally interfered with the Tribes’ contracts with the federal government and the State of Oklahoma. In Claims 1-7, Plaintiffs sought damages. Claim 1 specifically referenced 42 U.S.C. § 1983; Claims 2-6 did not reference § 1983 or any other cause of action. In Claim 11, Plaintiffs asked for attorneys’ fees under 42 U.S.C. § 1988.

In addition to their damages claims, Plaintiffs sought in Claim 8 an injunction against the administrative freeze, any charges related to it, First Bank’s continued prosecution of the state court action, and Judge Haught’s continued exercise of jurisdiction over the state court action. In Claim 9, they sought declarations that the administrative freeze violated the rights asserted in Claims 1-6, was in excess of First Bank’s authority, and interfered with the Tribes’ right to govern themselves. In Claim 10, they sought declarations that Judge Haught’s continued handling of the state court action exceeded his jurisdiction and that Defendants’ use of state court process violated Plaintiffs’ rights, privileges, and immunities secured by the United States Constitution and federal law, specifically their tribal sovereign immunity. The claims for declaratory relief referenced the Declaratory Judgment Act, 28 U.S.C. §§ 2201-02, but the claim for in-junctive relief did not specify any particular basis of authority.

After the federal district court denied Plaintiffs’ motion for preliminary relief, Defendants filed motions to dismiss, which the court granted. As to Judge Haught, the court first ruled that Plaintiffs’ federal claims for damages (Claims 1-4 and 6) were brought under 42 U.S.C. § 1983 and barred by the Eleventh Amendment’s grant of sovereign immunity to the states. The court determined that to the extent the claim for injunctive relief against Judge Haught (Claim 8) was brought under § 1983, Plaintiffs had not established either of the statutory conditions that permit such relief against a judicial officer— that “a declaratory decree was violated or declaratory relief was unavailable.” 42 U.S.C. § 1983. The court also relied on the Anti-Injunction Act, 28 U.S.C. § 2283 (“AIA”).

The district court next concluded that Plaintiffs were not “persons” authorized to bring an action under § 1983 because they sought to enforce a sovereign interest— tribal sovereign immunity. Therefore, they could not sue under § 1983 in parens patriae, which requires the assertion of a quasi-sovereign interest, and their claim for declaratory relief against Judge *703 Haught (Claim 10) failed to the extent it was based on § 1983 and brought under Ex Parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908). 2 The court further concluded that the Executive Branch had not demonstrated it was an entity separate from the Tribes and entitled to bring a § 1983 action. It dismissed Plaintiffs’ claim against Judge Haught for declaratory relief to the extent it was based on 28 U.S.C. §§ 2201 (declaratory relief), 1331 (federal question), and 1362 (tribal plaintiff/federal question), holding that a declaration would have the same effect as an injunction barred by the AIA.

Turning to the claims against First Bank, the district court ruled that any § 1983 claims must be dismissed because First Bank was not a state actor.

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560 F. App'x 699, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheyenne-arapaho-tribes-v-first-bank-trust-co-ca10-2014.