Governing Board of Education of Hotevilla Bacavi Community School v. Shingoitewa

1 Am. Tribal Law 322
CourtHopi Appellate Court
DecidedMarch 20, 1998
DocketNos. 97AP00000I, 96-CV-00029
StatusPublished

This text of 1 Am. Tribal Law 322 (Governing Board of Education of Hotevilla Bacavi Community School v. Shingoitewa) is published on Counsel Stack Legal Research, covering Hopi Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Governing Board of Education of Hotevilla Bacavi Community School v. Shingoitewa, 1 Am. Tribal Law 322 (hopiappct 1998).

Opinion

OPINION AND ORDER

FACTUAL AND PROCEDURAL BACKGROUND

Leroy Shingoitewa became employed with the Hotevilla Bacavi Community

School as Chief School Administrator on a contractual basis.1 However, the Tribal Court was unable to determine any specific contractual duty owed by Shingoitewa to the School. In his position, Shingoitewa was generally responsible for managing the school’s finances. He had the authority to authorize expenditures in accordance with policies and procedures if funds were available in an existing budget line item. Only the School Board had authority to create budget line items, and only the School Board was authorized to approve off-reservation travel by Shingoitewa. Shingoitewa was authorized to approve on- and off-reservation travel by other school staff.

During his employment with the School, Shingoitewa applied for and received an American Express credit card in the School’s name and used the card for school and personal purposes. Based on an audit performed at the request of the Governing Board, it was determined that Shingoitewa incurred $980.69 in expenditures which were unauthorized or unsupported by documentation.

The Governing Board brought suit against Shingoitewa for breach of contract or, in the alternative, unjust enrichment. At the conclusion of a bench trial, the lower court held that there was no action for breach of contract because the exact contractual duties could not be determined.2 The Governing Board did not introduce into evidence Shingoitewa’s job description which would presumably form [325]*325the basis of a contract, and there did not appear to be any other evidence from which the court could construe the contract.

With respect to the unjust enrichment claim, the Tribal Court held Shingoitewa liable for $980.69. The Tribal Court rested its decision on the presumption that expenditures not supported by documentation necessarily enrich the appellant unjustly.3

Shingoitewa brought a counterclaim. He alleged that the Governing Board’s actions interfered with Shingoitewa’s ability to obtain employment. The Tribal Court held in favor of the Governing Board on the counterclaim because Shingoitewa was already employed with the Tuba City Public School at the time of the filing of the lawsuit.

Shingoitewa appeals the judgment of the Tribal Court finding him liable for unjust enrichment and appeals the judgment on the counterclaim that the Governing Board was not liable for interference with a contractual relationship.

DISCUSSION

On appeal, the parties differ as to whether the Appellate Court’s task is to review findings of fact or to decide a question of law. The School Board maintains that the lower court’s application of unjust enrichment was proper and that the only way to reverse the judgment would be upon factual error by the lower court which would require this court to impose a higher standard of review. Shingoitewa, however, contends that he is not asking this court to review the lower court’s findings of fact. Shingoitewa argues that the lower court erred in its definition of the cause of unjust enrichment requiring a less deferential standard of review.4 Because this court agrees with Shingoitewa that the issue is not to review findings of fact but to review the lower court’s definition of unjust enrichment and application of the cause of action, the standard of review is de novo.

A. Unjust Enrichment

The cause of action for unjust enrichment has not come before the Hopi Tribal Courts in the past. It is therefore the job of this Court to determine if unjust enrichment is recognizable by the Hopi courts and to define its contours. Unjust enrichment is a cause of action which finds its roots in the law of equity. It is often [326]*326described as a quasi-contractual claim because it is asserted when liability cannot be imposed in contract. It is an equitable action for the reason that, although liability cannot be found on a contractual theory, it would be unfair to deprive a person who has suffered a loss resulting in an enrichment of another person. In contract, a defaulted party can seek relief under the contract when there is an enforceable agreement between the two parties and the contract speaks to the alleged wrongful enrichment by one at the sake of the other. Even if the contract does not expressly address the enrichment, implied covenants of good faith and fair dealing often impose actionable duties upon the parties to the contract. In this case, the lower court found that although there was a contract between the Governing Board and Shingoi-tewa, it was impossible to construe the contract,.5 The Governing Board therefore relied upon its alternative claim of unjust enrichment to obtain relief. The basic purposes for which unjust enrichment has been brought in other jurisdictions are consistent with the basic notions of Hopi fairness and justice. It makes sense that if one cannot bring suit in contract, because a contract does not exist or the contract does not adequately address wrongful conduct which forms the basis for complaint, then the alternative cause of action based on fairness and equity is proper and actionable.

The Tribal Court defined unjust enrichment as follows: “In order for the Court to find that Leroy Shingoitewa was unjustly enriched the Plaintiff must have shown that there were funds expended without authorization and these funds were expended by Leroy Shingoitewa and that he benefited.” Shingoitewa at 9, supra note I. At bottom, the lower court’s definition of unjust enrichment comes down to the following elements: (1) conferral of actual benefit, (2) receipt of the benefit, and (3) lack of authorization. Pursuant to Hopi Tribe v. Mahkewa, 1289/90 (1995), we can look to federal law, Arizona law, and the common law for persuasive authority provided they are not inconsistent with Hopi law in identifying and defining the cause of action of unjust enrichment to be applied in the Hopi courts. Because the elements of unjust enrichment as described by the lower court are not entirely consistent with other jurisdictions’ conception of unjust enrichment and are not consistent with Hopi notions of fairness, we find error with the lower court’s definition and application of the cause of action of unjust enrichment.

Shingoitewa cites Berrett v. Stevens, 690 P.2d 553, 557 (Utah 1984), which defines unjust enrichment as applied in the State of Utah. In that case, unjust enrichment is (1) a benefit conferred on one person by another, (2) an appreciation or knowledge by the conferee of the benefit; and (3) the acceptance or retention by the conferee of the benefit under such circumstances as to make it inequitable for the conferee to retain the benefit without payment of its value. In Arizona, unjust enrichment requires (1) an enrichment, (2) an impoverishment, (3) a connection between the enrichment and the impoverishment, (4) absence of justification for the enrich[327]*327ment and impoverishment, and (5) an absence of a remedy provided by law. Comm. Guardian Bank v. Hamlin, 182 Ariz. 627, 630, 898 P.2d 1005, 1008 (Ariz. App. 1995); Stapley v. Amer. Bathtub Liners, Inc., 162 Ariz.

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Bluebook (online)
1 Am. Tribal Law 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/governing-board-of-education-of-hotevilla-bacavi-community-school-v-hopiappct-1998.