Kerr-McGee Corp. v. Farley

115 F.3d 1498, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21522, 1997 Colo. J. C.A.R. 1375, 1997 U.S. App. LEXIS 15250, 1997 WL 348096
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 25, 1997
Docket95-2121, 95-2127
StatusPublished
Cited by68 cases

This text of 115 F.3d 1498 (Kerr-McGee Corp. v. Farley) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerr-McGee Corp. v. Farley, 115 F.3d 1498, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21522, 1997 Colo. J. C.A.R. 1375, 1997 U.S. App. LEXIS 15250, 1997 WL 348096 (10th Cir. 1997).

Opinion

LUCERO, Circuit Judge.

This case involves the scope of the tribal exhaustion rule in the context of the Price-Anderson Act. Appellants Kerr-McGee and Cyprus Foote Minerals (collectively “Kerr-McGee”) filed a claim in the District of New Mexico for a declaratory judgment and preliminary injunction, arguing that the Navajo Tribal Court is without jurisdiction to adjudicate nuclear tort claims against Kerr-McGee. Applying the tribal exhaustion rule, the district court denied the injunction and stayed further action in federal court until the tribal court ruled on jurisdiction. Our jurisdiction to hear Kerr-McGee’s interlocutory appeal arises under 28 U.S.C. § 1292(a)(1). We affirm.

I. BACKGROUND

Kerr-McGee milled uranium on the Navajo Reservation between 1952 and 1973, leasing land for the mill site from the tribe. Kerr-McGee sold the mill’s entire production to the federal government. In 1995, defendants (the “Tribal Claimants”), who are members of the Navajo Tribe and residents of the reservation, filed a complaint in Navajo Tribal Court, .alleging that the Kerr-McGee mill released vast quantities of radioactive and toxic materials, causing them injuries. Before the tribal court had proceeded with the case, Kerr-McGee filed the instant suit.

In the district court, Kerr-McGee argued that the tribal court had np jurisdiction to consider nuclear tort claims and should be enjoined in its proceedings, basing its conclusion on the Price-Anderson Act, 42 U.S.C. § 2011 et seq. Kerr-McGee contends that the Price Anderson Act grants exclusive federal jurisdiction over nuclear torts if a defendant so wishes. The district court disagreed, *1501 finding that the Price-Anderson Act does not specifically divest tribal courts of jurisdiction over such claims. Because there is no explicit mention of exclusive federal court jurisdiction over Price-Anderson claims, the district court reasoned that the tribal court should ordinarily be given the first opportunity to determine its own jurisdiction. Moreover, because the Tribal Claimants alleged a cause of action based on torts committed on the reservation, the district court felt no need to engage in any extended comity analysis regarding the decision to defer to the Navajo Tribal Court. It concluded that the proper practice was to stay the federal court' proceedings until the tribal court had determined its jurisdiction.

Thereafter, the District Court of the Navajo Nation issued an order finding tribal court jurisdiction over the tort claims asserted by the Tribal Claimants. Farley v. Kerr-McGee, No. 103-95 (Navajo D. Ct. Aug. 1, 1996). Specifically, the Navajo court held that the Price-Anderson Act does not preempt the Tribal Claimants’ Navajo law right to tribal court adjudication of the alleged torts. In fact, the Navajo court concluded that the Price-Anderson Act does not apply at all to the Tribal Claimants’ suit and, therefore, tribal court jurisdiction could not interfere with Congressional intent in federal regulation of nuclear activity. We are unaware of any appeal by Kerr-McGee of the Navajo District Court order.

II. DISCUSSION

The scope of a tribal court’s jurisdiction is a federal question over which federal district courts have jurisdiction. National Farmers Union Ins. Cos. v. Crow Tribe, 471 U.S. 845, 853, 105 S.Ct. 2447, 2452, 85 L.Ed.2d 818 (1985). The district court’s determination of the proper scope of the tribal exhaustion rule is reviewed de novo. Texaco v. Zah, 5 F.3d 1374, 1376 (10th Cir.1993).

A

The tribal exhaustion rule was created in National Farmers, a ease involving a tort suit by a tribal member against a-school district and its insurer. The tribal member brought suit in tribal court, and the defendants promptly sued in federal court for a declaration that the tribal court had no jurisdiction to entertain a civil suit against a non-Indian, even where the alleged tort took place on the reservation. Rather than further extending the rule in Oliphant 1 to tribal jurisdiction over civil matters, the Supreme Court concluded:

[T]he existence and extent of a tribal court’s jurisdiction will require a careful examination of tribal sovereignty, the extent to which that sovereignty has been altered, divested, or diminished, as well as a detailed study of relevant statutes, Executive Branch policy as embodied in treaties and elsewhere, and administrative or judicial decisions.

National Farmers, 471 U.S. at at 855-56, 105 S.Ct. at 2453-54. Moreover, “that examination should be conducted in the first instance in the Tribal Court itself.” Id. This rule of tribal court exhaustion is subject to á narrow set of exceptions, including: (1) “where an assertion of tribal jurisdiction is motivated by a desire to harass or is conducted in bad faith”; (2) “where the action in tribal courts is patently violative of express jurisdictional prohibitions”; or (3) “where exhaustion would be futile because of the lack of an adequate opportunity to challenge the tribal court’s jurisdiction.” Id. at 857 n. 21, 105 S.Ct. at 2454 n. 21 (internal quotation and citation omitted).

The tribal exhaustion rule was extended and explained in Iowa Mutual Insurance Co. v. LaPlante, 480 U.S. 9, 107 S.Ct. 971, 94 L.Ed.2d 10 (1987). There, the Court held that the statute granting federal courts jurisdiction over diversity actions, 28 U.S.C. § 1332, does not divest tribal courts of jurisdiction over acts involving non-Indians taking place on tribal land. With respect-to the exhaustion requirement, the Court held that “proper respect for tribal legal institutions requires that they be given a ‘full opportuni *1502 ty’ to consider the issues before them and ‘to rectify any errors.’ ” Id. at 16, 107 S.Ct. at 977 (quoting National Farmers, 471 U.S. at 857, 105 S.Ct. at 2454). Because “the federal policy of promoting tribal self-government encompasses the development of the entire tribal court system ... exhaustion of tribal remedies means that tribal appellate courts must have the opportunity to review the determinations of the lower tribal courts.” Id. at 16-17, 107 S.Ct. at 977. Consequently, federal courts should not intervene until the tribal courts have had a full opportunity to evaluate jurisdiction. Id. at 17, 107 S.Ct. at 977.

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115 F.3d 1498, 27 Envtl. L. Rep. (Envtl. Law Inst.) 21522, 1997 Colo. J. C.A.R. 1375, 1997 U.S. App. LEXIS 15250, 1997 WL 348096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerr-mcgee-corp-v-farley-ca10-1997.