Connecticut ex rel. Blumenthal v. United States Department of the Interior

228 F.3d 82, 2000 WL 1375578
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 25, 2000
DocketDocket No. 99-6042
StatusPublished
Cited by49 cases

This text of 228 F.3d 82 (Connecticut ex rel. Blumenthal v. United States Department of the Interior) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connecticut ex rel. Blumenthal v. United States Department of the Interior, 228 F.3d 82, 2000 WL 1375578 (2d Cir. 2000).

Opinion

JOHN M. WALKER, JR. Circuit Judge:

Defendants-appellants, the United States Department of the Interior; Bruce Babbitt, Secretary of the Interior; Kevin Gover, Assistant Secretary of the Interior for Indian Affairs; and Franklin Keel, Eastern Area Director, Bureau of Indian Affairs (collectively, the “defendants” or the “federal defendants”) appeal from a December 16,1998 judgment of the United States District Court for the District of Connecticut (Robert N. Chatigny, District Judge) denying their motion for summary judgment and granting the summary judgment motion of plaintiffs-appellees State of Connecticut, Town of Ledyard, Town of North Stonington, and Town of Preston (collectively, the “plaintiffs” or the “Connecticut plaintiffs”). The district court permanently enjoined the Secretary of the Interior from taking land into trust on behalf of the Mashantucket Pequot Tribe of Indians on grounds that it would violate 25 U.S.C. § 1754(b)(8). The material facts are not in dispute.

BACKGROUND

In January 1993, the Mashantucket Pequot Tribe of Indians (the “Tribe” or the “Mashantucket Pequots”) applied to the Secretary of the Interior (the “Secretary”) to have 165 acres of land presently owned by the Tribe in fee taken into trust for their benefit, pursuant to the Indian Reorganization Act, 25 U.S.C. § 461 et seq. (“the IRA”). Exercising his discretion pursuant to 25 U.S.C. § 465, and after applying the criteria set forth in 25 C.F.R. § 151.10, the Secretary agreed to take the land into trust in May, 1995. The Connecticut plaintiffs brought this lawsuit to block the Secretary’s action and the Secretary deferred taking title to the land pending the outcome.

The plaintiffs’ suit, under the judicial review provisions of the Administrative Procedure Act, 5 U.S.C. § 702, seeks: (1) a declaration that the Secretary’s actions violate the Connecticut Indian Land Claims Settlement Act (the “Settlement Act”), 25 U.S.C. §§ 1751-60; and (2) an order permanently enjoining the Secretary from taking the contested land into trust. The federal defendants argue that the Secretary’s decision to take the land into trust was a valid exercise of his authority under § 465 of the IRA. On cross-motions for [85]*85summary judgment, the district court, upon a determination that the Settlement Act prohibited the Secretary’s action, permanently enjoined the Secretary from taking the contested 165 acres of land into trust for the Tribe’s benefit. This appeal followed.

Underlying the present dispute in part is the remarkable reversal of fortune that the Mashantucket Pequots have enjoyed in recent years. When the Settlement Act was enacted in 1983, the Tribe was impoverished, with no obvious future source of revenue in sight. All of that changed dramatically in 1990 when the Tribe applied to conduct Class III gaming activities on its reservation, pursuant to the newly-enacted Indian Gaming Regulatory Act, 25 U.S.C. § 2701 et seq. See Mashantucket Pequot Tribe v. Connecticut, 913 F.2d 1024, 1025-28 (2d Cir.1990) (describing the Tribe’s application process and requiring Connecticut to enter into good faith negotiations with the Tribe to create a tribal-state compact). In less than a decade the approximately 300-member Mashantucket Pequot Tribe developed one of the most profitable casinos in the United States, the Foxwoods Resort Casino in Ledyard, Connecticut, grossing nearly $1 billion annually. See Julian Schriebman, Developments in Policy: Federal Indian Law, 14 Yale L. & Pol’y Rev. 353, 361 nn. 62-63 (1996).

The stakes are considerable for both sides. The tax revenues that plaintiffs will forgo have been estimated at $50,000 annually if the Tribe adheres to its stated intention to leave the 165 acres of land at issue in this case undeveloped. But if the Tribe develops the property, as plaintiffs suspect it might, the tax revenues annually forgone by one or more of these Connecticut plaintiffs could be in the several hundreds of thousands of dollars. The Connecticut plaintiffs are also concerned that an adverse ruling in this case will affect other lands that the Tribe owns or may acquire in the future. Although not directly at issue in this proceeding, the Tribe has applied to the Secretary to have an additional 1,200 acres of non-settlement land taken into trust.

DISCUSSION

We must begin with a brief description of the relevant statutes in order to frame the present dispute. Enacted in 1934, the IRA fundamentally restructured the relationship between Indian tribes and the federal government, reversing the Nineteenth Century goal of assimilation and embodying “principles of tribal self-determination and self-governance.” See County of Yakima v. Confederated Tribes & Bands of Yakima Indian Nation, 502 U.S. 251, 255, 112 S.Ct. 683, 116 L.Ed.2d 687 (1992). Relevant to this appeal, the IRA authorizes the Secretary to take certain lands into trust for the benefit of an Indian tribe. See 25 U.S.C. § 465. The procedures governing the Secretary’s exercise of discretion in this regal’d are set forth in Department of Interior regulations. See 25 C.F.R. Part 151;1 see generally Mary Jane Sheppard, Taking Indian Land Into Trust, 44 S.D. L.Rev. 681 (1999) (describing the process by which Indian tribes may apply to have property taken into trust).

WTien the Secretary takes land into trust on behalf of a tribe pursuant to the IRA, several important consequences follow. Land held in trust is generally not subject to (1) state or-local taxation, see 25 U.S.C. § 465; (2) local zoning and regulatory requirements, see 25 C.F.R. § 1.4(a); [86]*86or, (3) state criminal and civil jurisdiction, unless the tribe consents to such jurisdiction, see 25 U.S.C. §§ 1321(a), 1322(a).

The Connecticut plaintiffs pin their hopes on the Settlement Act which, they argue, prevents the Secretary from taking into trust certain land, like the 165 acres here.

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Bluebook (online)
228 F.3d 82, 2000 WL 1375578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connecticut-ex-rel-blumenthal-v-united-states-department-of-the-interior-ca2-2000.