Hilda Garcia v. Akwesasne Housing Authority and John Ransom

268 F.3d 76, 2001 U.S. App. LEXIS 21373, 81 Empl. Prac. Dec. (CCH) 40,801, 86 Fair Empl. Prac. Cas. (BNA) 1668
CourtCourt of Appeals for the Second Circuit
DecidedOctober 3, 2001
Docket2000
StatusPublished
Cited by68 cases

This text of 268 F.3d 76 (Hilda Garcia v. Akwesasne Housing Authority and John Ransom) 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
Hilda Garcia v. Akwesasne Housing Authority and John Ransom, 268 F.3d 76, 2001 U.S. App. LEXIS 21373, 81 Empl. Prac. Dec. (CCH) 40,801, 86 Fair Empl. Prac. Cas. (BNA) 1668 (2d Cir. 2001).

Opinions

JACOBS, Circuit Judge:

This suit arises from a decision by the Akwesasne Housing Authority, (“AHA”), an agency of the St: Regis Mohawk Indian Tribe, to terminate the employment of Hilda Garcia, the agency’s Executive Director. Garcia commenced suit in the United States District Court for the Northern District of New York (McAvoy, J.) against the AHA and John Ransom, the Chairman of the AHA’s Board of Commissioners, alleging discrimination, breach of contract and tort claims under (variously) federal and state law. The district court dismissed the action under Rule 12(b)(1) of the Federal Rules of Civil Procedure on the grounds that (i) Garcia’s claims against both the AHA and Ransom must first be litigated in the courts of the St. Regis Tribe under the tribal exhaustion rule, and (ii) the AHA, in any event, enjoys tribal sovereign immunity. On appeal, Garcia challenges both grounds of dismissal.

BACKGROUND

While the facts bearing upon the underlying merits will no doubt be disputed, the defendants do not contest — and we therefore accept as true — the procedural facts contained in the complaint that are relevant to the appeal. The AHA was created pursuant to a resolution of the St. Regis Tribal Council. It provides public housing on the Akwesasne Reservation using federal funds disbursed by the United States Department of Housing and Urban Development (“HUD”). At all relevant times, Ransom chaired the AHA’s Board of Commissioners.

The AHA hired Garcia as its Executive Director in 1985. She is not a member of the St. Regis Mohawk Tribe. For reasons that are hotly disputed by the parties, the AHA terminated her in June 1995.

Garcia challenged her termination by filing a five-count pleading in the district court. The complaint charges both the AHA and Ransom with violations of federal and state laws. Garcia is seeking compensatory and punitive damages, attor[79]*79ney’s fees and costs, and injunctive relief in the form of reinstatement.

Count one of the pleading alleges that Garcia was fired by reason of age in violation of the Age Discrimination in Employment Act, (“ADEA”), and was replaced by a “younger man who appears to be in his middle ‘40s.’ ” It is alleged (and undisputed for present purposes) that she received a “right to sue” letter from the Equal Employment Opportunity Commission (“EEOC”) for the ADEA claim, and that she filed suit within the statutorily-mandated 90-day period following her receipt of the letter. See 29 U.S.C. § 626.

Count two alleges that the termination was effected without due process and as retaliation for (inter alia) her exercise of First Amendment rights in reporting to HUD that Ransom had engaged in self-dealing in violation of federal regulations. Garcia invokes 42 U.S.C. § 1983 (which prohibits deprivations of constitutional rights by persons acting “under color of state law”) and Title I of the Indian Civil Rights Act (“ICRA”), 25 U.S.C. § 1301-03 (which provides inter alia that “[n]o Indian tribe” shall “make or enforce any law ... abridging the freedom of speech ... or the right of the people ... to petition for a redress of grievances,” or “deprive any person of liberty or property without due process of law”).

Counts three and four allege principally that the AHA breached an implied contract under state law by terminating Garcia in violation of the AHA’s formal, written policies.

Finally, count five alleges that Ransom intentionally interfered with Garcia’s employment contract with the AHA, acting “outside the scope of his authority” and “for personal, retaliatory, and unlawful reasons.”

Defendants moved to dismiss the complaint for lack of subject matter jurisdiction, on the grounds that (I) the claims could not be presented in federal court because Garcia had not presented them to a tribal court in accordance with the tribal exhaustion rule, and (2) the claims were barred in any event by the doctrine of tribal sovereign immunity.

The district court held that it “lackjed] [subject matter] jurisdiction” over the causes of action against both the AHA and Ransom because Garcia had not yet exhausted the claims in a tribal court. See Garcia v. Akwesasne Hous. Auth., 105 F.Supp.2d 12, 21 & n. 8 (N.D.N.Y.2000). The court also ruled that the claims against defendant AHA had to be dismissed on the alternative ground of tribal sovereign immunity. See id. at 15-17. Following the entry of final judgment dismissing the complaint, Garcia filed this appeal.

DISCUSSION

We consider tribal exhaustion first; sovereign immunity second.

I

The doctrine of federal court abstention now known as the “tribal exhaustion rale” was announced in National Farmers Union Insurance Cos. v. Crow Tribe, 471 U.S. 845, 105 S.Ct. 2447, 85 L.Ed.2d 818 (1985). In general terms, the doctrine requires that federal courts abstain from hearing certain claims relating to Indian tribes until the plaintiff has first exhausted those claims in a tribal court. The defendants in this case argue, and the district court agreed, that the tribal exhaustion rule mandates dismissal of Garcia’s claims against both the AHA and Ransom. We review the scope of the tribal exhaustion rule de novo. Bowen v. Doyle, 230 F.3d 525, 530 (2d Cir.2000).

[80]*80A. Subject Matter Jurisdiction

As a threshold matter, the district court erred by treating abstention on this ground as a matter of subject matter jurisdiction. See Garcia, 105 F.Supp.2d at 21. Exhaustion in appropriate circumstances “is required as a matter of comity, not as a jurisdictional prerequisite.” Iowa Mut. Ins. Co. v. LaPlante, 480 U.S. 9, 16 n. 8, 107 S.Ct. 971, 94 L.Ed.2d 10 (1987). Garcia alleged federal question jurisdiction over her federal law claims, see 28 U.S.C. § 1331, and supplemental jurisdiction over her state-law claims, see id. § 1367(a). (Garcia’s assertion of diversity jurisdiction is dubious.1) Because the tribal exhaustion rule does not impair jurisdiction, and instead is “analogous to principles of abstention articulated in Colorado River Water Conservation Dist. v. United, States, 424 U.S. 800, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976),” LaPlante, 480 U.S. at 16 n. 8, 107 S.Ct. 971, the doctrine must be interpreted narrowly in light of the “virtually unflagging obligation of federal courts to exercise the jurisdiction given them.” Colorado River, 424 U.S. at 817, 96 S.Ct. 1236.

B. The Reach of the Doctrine

This Court and the Supreme Court have required abstention under the tribal exhaustion rule on just three occasions: LaPlante, 480 U.S.

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268 F.3d 76, 2001 U.S. App. LEXIS 21373, 81 Empl. Prac. Dec. (CCH) 40,801, 86 Fair Empl. Prac. Cas. (BNA) 1668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hilda-garcia-v-akwesasne-housing-authority-and-john-ransom-ca2-2001.