Chicken Ranch Rancheria of Me-Wuk Indians v. State of California

CourtDistrict Court, E.D. California
DecidedMarch 31, 2021
Docket1:19-cv-00024
StatusUnknown

This text of Chicken Ranch Rancheria of Me-Wuk Indians v. State of California (Chicken Ranch Rancheria of Me-Wuk Indians v. State of California) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicken Ranch Rancheria of Me-Wuk Indians v. State of California, (E.D. Cal. 2021).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT 6 EASTERN DISTRICT OF CALIFORNIA 7 8 CHICKEN RANCH RANCHERIA OF CASE NO. 1:19-CV-0024 AWI SKO ME-WUK INDIANS, BLUE LAKE 9 RANCHERIA, CHEMEHUEVI INDIAN ORDER RE: CROSS MOTIONS FOR TRIBE, HOPLAND BAND OF POMO SUMMARY JUDGMENT 10 INDIANS, and ROBINSON RANCHERIA 11 Plaintiffs, 12 v. 13 (Docs. 35 and 38) GAVIN NEWSOM, Governor of 14 California, and STATE OF CALIFORNIA, 15 Defendants. 16 17 I. Background 18 The Indian Gaming Regulatory Act (“IGRA”) set up a statutory basis for the operation and 19 regulation of gaming by Indian tribes. Three classes of gaming were defined. Class I and II 20 consist of social games, bingo, and non-banking card games. Class III is the residual category and 21 consists of what is common thought of as Nevada style gambling. In order for an Indian tribe to 22 conduct class III gaming it must, among other things, enter into a compact with the state in which 23 they are located. 24 The State of California entered into class III gaming compacts with a number of Indian 25 tribes in 1999 (“1999 Compacts”). The 1999 Compacts are set to end on December 31, 2020 with 26 an automatic extension to June 30, 2022. Plaintiffs Chicken Ranch Rancheria of Me-Wuk Indians, 27 Blue Lake Rancheria, Chemehuevi Indian Tribe, Hopland Band of Pomo Indians, and Robinson 28 Rancheria (“Tribal Plaintiffs”) have 1999 Compacts with California. In 2014, the Tribal Plaintiffs 1 joined several other Indian tribes who have 1999 Compacts to form the Compact Tribes Steering 2 Committee (“CTSC”). In 2015, the CTSC and California started to negotiate the terms of a new 3 agreement on class III gaming to replace the 1999 Compacts which were coming to the end of 4 their terms. Negotiations took place over the next few years. Dissatisfied with the negotiations, 5 Tribal Plaintiffs filed suit against The State of California and Governor Gavin Newsom (“State 6 Defendants”) on January 4, 2019. The Tribal Defendants withdrew from the CTSC on September 7 26, 2019. 8 The Tribal Plaintiffs and State Defendants have filed cross motions for summary judgment 9 which cover the same subject matter. The parties agree on the nature of the dispute. The State 10 Defendants summarize it as: “The Plaintiff Tribes allege in their Second Amended Complaint for 11 Declaratory and Injunctive Relief (SAC) that the State Defendants violated the Indian Gaming 12 Regulatory Act (IGRA), 25 U.S.C. §§ 2710-2712, 18 U.S.C. §§ 1166-1167. Specifically, the 13 Plaintiff Tribes allege that during class III gaming compact negotiations the State Defendants 14 insisted that they agree to include subjects in their new compacts that violate IGRA.” Doc. 38-1, 15 1:6-8. The Tribal Plaintiffs agree that their claim is that “the State’s take it or leave it offer, which 16 included improper subjects of negotiation and an illegal tax” constituted a failure on the part of the 17 State Defendants to “negotiate[e] in good faith” under IGRA. Doc. 35-1, 1:24-26. For evidence, 18 the parties have provided a record of negotiations (“RON”). Docs. 34-1 through 34-24. 19 20 II. Legal Standard 21 Summary judgment is appropriate when it is demonstrated that there exists no genuine 22 issue as to any material fact, and that the moving party is entitled to judgment as a matter of law. 23 Fed. R. Civ. P. 56(c); Adickes v. S.H. Kress & Co., 398 U.S. 144, 157 (1970); Fortyune v. 24 American Multi-Cinema, Inc., 364 F.3d 1075, 1080 (9th Cir. 2004). 25 26 III. Discussion 27 A. IGRA 28 IGRA states that “Any Indian tribe having jurisdiction over the Indian lands upon which a 1 class III gaming activity is being conducted, or is to be conducted, shall request the State in which 2 such lands are located to enter into negotiations for the purpose of entering into a Tribal-State 3 compact governing the conduct of gaming activities. Upon receiving such a request, the State shall 4 negotiate with the Indian tribe in good faith to enter into such a compact.” 25 U.S.C. § 5 2710(d)(3)(A). The good faith negotiation requirement of IGRA is not without teeth. Sections 6 2710(d)(7)(B)(i)-(vii) provide a detailed remedial scheme designed to prevent a State from seeking 7 to wrongfully inhibit an Indian tribe from engaging in class III gaming activity. Under that 8 procedure, 180 days after an Indian tribe requests the opening of negotiations with the state, that 9 Indian tribe may bring suit to (1) compel a state to enter into negotiations with the tribe for the 10 purpose of entering into a compact, or (2) to compel a state to negotiate in good faith. 25 U.S.C. § 11 2710(d)(7)(B)(i); 25 U.S.C. § 2710(d)(7)(A)(i). In such an action, an Indian tribe must first 12 introduce evidence that (1) a compact has not been entered, and (2) the state (a) did not respond to 13 the request to negotiate, or (b) did not respond to the request in good faith. 25 U.S.C. § 14 2710(d)(7)(B)(ii). Thereafter, the burden shifts to the State to prove that it negotiated in good faith 15 to conclude a compact. 25 U.S.C. § 2710(d)(7)(B)(ii). 16 Importantly for the case at hand, IGRA sets out the provisions that may be contained in a 17 compact governing class III gaming (25 U.S.C. § 2710(d)(3)(C)(i-vii)) and what courts may 18 consider in determining whether the a state negotiated in good faith (25 U.S.C. § 19 2710(d)(7)(B)(iii)(I) and (II)). A compact may contain provisions relating to: 20 (i) the application of the criminal and civil laws and regulations of the Indian tribe or the State that are directly related to, and necessary for, the licensing and 21 regulation of such activity;

22 (ii) the allocation of criminal and civil jurisdiction between the State and the Indian tribe necessary for the enforcement of such laws and regulations; 23 (iii) the assessment by the State of such activities in such amounts as are necessary 24 to defray the costs of regulating such activity;

25 (iv) taxation by the Indian tribe of such activity in amounts comparable to amounts assessed by the State for comparable activities; 26 (v) remedies for breach of contract; 27 (vi) standards for the operation of such activity and maintenance of the gaming 28 facility, including licensing; and 1 (vii) any other subjects that are directly related to the operation of gaming activities. 2 3 25 U.S.C. § 2710(d)(3)(C).

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Bluebook (online)
Chicken Ranch Rancheria of Me-Wuk Indians v. State of California, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicken-ranch-rancheria-of-me-wuk-indians-v-state-of-california-caed-2021.