Findleton v. Coyote Valley Band of Pomo Indians

1 Cal. App. 5th 1194, 205 Cal. Rptr. 3d 699, 2016 Cal. App. LEXIS 627
CourtCalifornia Court of Appeal
DecidedJuly 29, 2016
DocketA142560
StatusPublished
Cited by5 cases

This text of 1 Cal. App. 5th 1194 (Findleton v. Coyote Valley Band of Pomo Indians) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Findleton v. Coyote Valley Band of Pomo Indians, 1 Cal. App. 5th 1194, 205 Cal. Rptr. 3d 699, 2016 Cal. App. LEXIS 627 (Cal. Ct. App. 2016).

Opinion

Opinion

STEWART, J.

This appeal requires us to determine whether a Native American tribe known as the Coyote Valley Band of Porno Indians (the Tribe) validly waived its sovereign immunity for purposes of the enforcement by construction contractor Robert Findleton (Findleton) of arbitration provisions in contracts between them. Findleton claims the Tribe waived its sovereign *1197 immunity when its Tribal Council entered into, and then amended, contracts with Findleton containing arbitration clauses and also adopted a resolution expressly waiving sovereign immunity to allow arbitration of disputes under the contracts. The Tribe disagrees, arguing the Tribal Council lacked authority to waive the Tribe’s immunity and therefore any such waivers were invalid, because the power to waive the Tribe’s immunity had not been properly delegated to the Tribal Council in accordance with the procedures specified by the Tribe’s Constitution. The superior court agreed with the Tribe and held that it lacked jurisdiction over Findleton’s claims because there had been no valid waiver of the Tribe’s sovereign immunity. Findleton appealed.

The issue is one of law, which we review de novo. We disagree with the trial court and conclude that the Tribal Council was authorized to, and did, waive the Tribe’s sovereign immunity for purposes of arbitrating disputes arising under the Tribe’s contracts with Findleton. We therefore reverse.

I.

FACTUAL BACKGROUND 1

The Tribe’s governance is carried out by two bodies: the General Council of the Tribe (General Council), which its Constitution establishes as ‘“[t]he governing body of the Band” and consists of all tribal members 18 years of age or older, and the Tribal Council, an elective body consisting of seven members of the General Council whose powers are more narrowly circumscribed than those of the General Council. The Tribe’s Constitution does not permit the Tribal Council to waive the Tribe’s sovereign immunity without the General Council’s ‘“consent” and “prior approval.” This appeal requires us to decide whether the General Council validly delegated its authority to waive the Tribe’s immunity to the Tribal Council.

A. Resolution 07-01

The first of the delegations of authority in question was adopted on June 2, 2007, at a special meeting of the General Council of the Tribe, when the Council adopted a resolution entitled, General Council Delegation of Authority to the Tribal Council to Waive on a Limited Basis the Sovereign Immunity of the Tribe. The resolution, known as resolution 07-01 (Resolution 07-01), had been placed on the agenda and raised to the floor for a vote by the tribal chief (Tribal Chief). It contained a series of prefatory recitals, *1198 which identified the Tribe’s Constitution and stated that the Constitution provided that the General Council was the Tribe’s governing body, and conferred on the Tribal Council various powers, including the power to negotiate contracts and conclude agreements on behalf of the Tribe, to borrow money and secure debt with tribal assets, to engage in business activities and projects to promote the economic well-being of the Tribe and its members, and to take actions necessary to carry out those powers. The resolution further acknowledged that the Constitution reserved to the General Council the power to waive the tribe’s sovereign immunity from suit but that it also authorized the General Council to delegate that power to the Tribal Council.

With regard to the specific circumstances, the resolution recited that the Tribal Council had authorized development of a new gaming and resort facility and related infrastructure to support the gaming facility and the tribal community (the Project), that the Project consisted of a casino and hotel complex within the Tribe’s reservation, that the Project would require financing and hiring of architects, consultants and contractors to construct the Project, and that “[cjontractual transactions favorable to the Tribe generally require that the Tribe waive on a limited basis its sovereign immunity in order to attract other individuals and entities to do business with the Tribe.” Because it was “impractical for the General Council to meet and approve individual waivers of the sovereign immunity of the Tribe as each contract related to financing and development of the Project is entered into,” the General Council had “determined . . . that it is necessary and in the best interests of the Tribe for the General Council to delegate to the Tribal Council its authority to waive the sovereign immunity of the Tribe in connection with contracts related to the financing and development of the Project.”

As relevant here, the General Council therefore resolved in Resolution 07-01 that it “hereby delegates to the Tribal Council authority to waive on a limited basis the sovereign immunity of the Tribe in contracts of the Tribe approved by the Tribal Council ... as determined necessary by the Tribal Council for the financing and development of the Project.” 2

B. The Construction and On-site Rental Agreements

In October 2007, the Tribe entered into an agreement with Terre Construction, a “doing business as” name of Findleton’s, to construct improvements on the Tribe’s reservation in Mendocino County, California, in preparation for construction of a new gaming facility (the Construction Agreement). The *1199 Construction Agreement, which was prepared by the Tribe, was a form agreement for construction projects issued by the American Institute of Architects (AIA) with various modifications. It was signed by Findleton as contractor and by the Tribe’s chairman, John Feliz, Jr., on behalf of the Tribe.

The Construction Agreement contained provisions regarding “Claims and Disputes,” which provided among other things that “[ajrbitration shall be held in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association currently in effect unless the parties mutually agree otherwise.” It provided that “[t]he foregoing agreement to arbitrate . . . shall be specifically enforceable in accordance with applicable law in any court having jurisdiction thereof,” and that “[t]he award rendered by the arbitrator or arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof.” Immediately following the arbitration provisions was a section stating: “No term or provision in this Agreement shall be construed as a waiver of the sovereign immunity of the Coyote Valley Band of Porno Indians. The Parties specifically agree that the sovereign immunity of Coyote Valley Band of Porno Indians shall not be waived for disputes or other matters related to this Agreement.” Under the heading “Miscellaneous Provisions,” the Construction Agreement contained a choice-of-law provision stating that it “shall be governed by the law of the Coyote Valley Band of Porno Indians,” that “[i]f a particular issue is not covered by such law, federal law shall govern” and that “[t]he Contractor agrees to the jurisdiction of the Coyote Valley Band of Porno Indians.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Findleton v. Coyote Valley Band of Pomo Indians
California Court of Appeal, 2018
Findleton v. Coyote Valley Band of Pomo Indians
238 Cal. Rptr. 3d 346 (California Court of Appeals, 5th District, 2018)
People Ex Rel. Owen v. Miami Nation Enters.
386 P.3d 357 (California Supreme Court, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
1 Cal. App. 5th 1194, 205 Cal. Rptr. 3d 699, 2016 Cal. App. LEXIS 627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/findleton-v-coyote-valley-band-of-pomo-indians-calctapp-2016.