Club One Casino, Inc. v. U.S. Dep't of the Interior

328 F. Supp. 3d 1033
CourtDistrict Court, E.D. California
DecidedJuly 13, 2018
DocketCase No. 1:16-cv-01908-AWI-EPG
StatusPublished
Cited by3 cases

This text of 328 F. Supp. 3d 1033 (Club One Casino, Inc. v. U.S. Dep't of the Interior) 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
Club One Casino, Inc. v. U.S. Dep't of the Interior, 328 F. Supp. 3d 1033 (E.D. Cal. 2018).

Opinion

ORDER DENYING PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT

(Doc. 36)

ORDER GRANTING DEFENDANTS' MOTION FOR SUMMARY JUDGMENT

(Doc. 37)

ORDER CLOSING THE CASE

Anthony W. Ishii, SENIOR DISTRICT JUDGE

*1036I. Introduction

Plaintiffs Club One Casino and The Deuce Lounge (collectively "Plaintiffs" or "Club One") bring the instant Administrative Procedures Act ("APA") challenge to the issuance of Secretarial Procedures by the United States Department of the Interior, the Secretary of the Interior, and the Assistant Secretary for Indian Affairs (collectively "DOI" or "Federal Defendants") permitting the North Fork Rancheria of Mono Indians ("North Fork") to conduct tribal gaming on a 305.49 acre parcel of land in Madera County, California (the "Madera Site"). Complaint, Doc. 1 ("Compl.") at ¶ 1. The substance of the APA challenge is directed at whether the Federal Defendants adequately considered whether North Fork had jurisdiction over the Madera Site for purposes of the Indian Gaming Regulatory Act ("IGRA"), 29 U.S.C. § 2701, et seq.

The parties have filed cross motions for summary judgment. Plaintiffs' argument is twofold. First they contend that "the Secretarial Procedures [offend the APA] because defendants ... never considered ... whether the North Fork Tribe actually possesses territorial jurisdiction over the proposed casino site." Doc. 36-1 at 12. The Federal Defendants respond that North Fork necessarily has jurisdiction over the proposed gaming site as a result of the fee-to-trust determination conducted pursuant to the Indian Reorganization Act ("IRA"), taking that land into trust for the Tribe. Second, Plaintiffs argue, assuming that the fee-to-trust determination does shift some jurisdiction from the state to the Tribe, the IRA violates of the Tenth Amendment.

For the following reasons, Plaintiffs' motion will be denied and the Federal Defendants' motion will be granted.

II. Background

Although the background surrounding the proposed gaming facility at the Madera Site is extensive, the Court limits this section to the information relevant to, or addressed in, Plaintiffs' challenge to the Secretary's issuance of Secretarial Procedures.

A. Plaintiffs - Club One Casino and The Deuce Lounge

Club One Casino and The Deuce Lounge are both cardrooms licensed by the State of California. Declaration of Kyle Kirkland, Doc. 36-3 ("Kirkland Decl.") at ¶¶ 2, 6. Club One operates in Fresno, California and is licensed by the City of Fresno. Id at ¶ 2. The Deuce Lounge is located in Goshen, California and licensed by the County of Tulare. Id . at ¶ 6. Both Club One and The Deuce Lounge are limited in the kinds *1037of games that they may offer. For instance, both operate poker, baccarat, and blackjack games but neither is permitted to operate slot machines or banking card games where the player bets against the house. Id. at ¶¶ 2, 6.

The Madera Site is roughly 25 miles from Club One and 65 miles from The Deuce Lounge. Kirkland Decl. at ¶¶ 3, 7. The Secretarial Procedures permit North Fork to operate slot machines and banking card games that Plaintiffs cannot operate. See Administrative Record ("AR") at AR00002202 (North Fork is permitted under the Secretarial Procedures to operate "Gaming Devices," i.e., slot machines, and "banking or percentage card games," among other things.) Both Club One and The Deuce Lounge contend that their businesses will suffer if North Fork is permitted to conduct Class III gaming at the Madera Site. Kirkland Decl. at ¶¶ 5, 9.

B. The North Fork Rancheria of Mono Indians

The North Fork is a federally recognized Indian tribe. AR00000241; see generally Stand Up for California! v. United States Department of the Interior , 204 F.Supp.3d 212, 228-231 (D.D.C. Sept. 6, 2016)aff'd 879 F.3d 1177 (D.C. Cir. Jan. 12, 2018)rehrg. en bank denied (Apr. 10, 2018).1 "In 1916, pursuant to appropriations acts authorizing the Secretary to purchase land in California for Indians, see Act of May 18, 1916, ch. 125, § 3, 39 Stat. 62, ... the DOI purchased what became the North Fork Rancheria, comprised of 80 acres of land near the town of North Fork, for the use and benefit of approximately 200 landless Indians belonging to the North Fork band." Stand Up for California! , 204 F.Supp.3d at 229. That 80-acre plot of land is approximately 4 miles east of the town of North Fork in Madera County. AR 00000245. "The land, which was 'poorly located [,] ... absolutely worthless as a place to build homes on' and 'lack[ed] ... water for [both] domestic purposes and ... irrigation,' was essentially uninhabitable." Stand Up for California! , 204 F.Supp.3d at 229 (citing a 1920 survey of landless nonreservation Indians in California). Additionally, that reservation was " 'on environmentally sensitive lands within the Sierra National Forest, ... near Yosemite National Park....' " Id. at 231 (citing the Bureau of Indian Affairs, Record of Decision, finding that the Madera Site should be gaming-eligible pursuant to 25 U.S.C. § 2719(b)(1) (Sept. 1, 2011) ).

The United States also holds in trust for the Tribe a 61.5-acre tract of land " 'located on a steep hillside ... in ... North Fork.' " Stand Up for California! , 204 F.Supp.3d at 231. (citation omitted). "The tract contains a community center, basic infrastructure (i.e., roads, water, sewer), pads for nine single-family homes, and the North Fork Tribe's 'current government headquarters.' " Id. (citation omitted).

C. The Madera Site Acquisition

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Bluebook (online)
328 F. Supp. 3d 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/club-one-casino-inc-v-us-dept-of-the-interior-caed-2018.