Kiowa Indian Tribe v. Hoover

150 F.3d 1163, 1998 Colo. J. C.A.R. 3813, 1998 U.S. App. LEXIS 15769, 1998 WL 387451
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 13, 1998
Docket96-6278, 96-6401
StatusPublished
Cited by167 cases

This text of 150 F.3d 1163 (Kiowa Indian Tribe v. Hoover) 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
Kiowa Indian Tribe v. Hoover, 150 F.3d 1163, 1998 Colo. J. C.A.R. 3813, 1998 U.S. App. LEXIS 15769, 1998 WL 387451 (10th Cir. 1998).

Opinion

BRORBY, Circuit Judge.

This is a consolidated appeal of the dismissal of a 42 U.S.C. § 1983 suit brought by the Kiowa Tribe of Oklahoma (Kiowa or the Tribe) and the earlier denial of the Tribe’s request for a preliminary injunction related to that action. The § 1983 action alleged multiple violations of the Tribe’s rights, privileges and immunities, including the right and privilege to have its commerce regulated pursuant to federal law, the right and privilege to immunity from damage suits, and the right and privilege to exercise its powers of sovereignty and self-government. Concluding consideration of the § 1983 action was barred by the Rooker-Feldman doctrine, which generally prohibits lower federal courts from hearing federal claims requiring direct review of final state court judgments, the district court dismissed the Tribe’s suit, in effect a dismissal for lack of subject matter jurisdiction. We review dismissals for lack of subject matter jurisdiction de novo. Quintana v. United States, 997 F.2d 711, 712 (10th Cir.1993). Accordingly, this court independently reviews the district court’s conclusions on legal issues and need not defer to the district court’s decisions on the law. Key v. Liquid Energy Corp., 906 F.2d 500, 505 (10th Cir.1990).

In conjunction with its § 1983 action, the Tribe sought a preliminary injunction barring further prosecution of state contract claims against the Tribe and use of certain post-judgment remedies directed against the Tribe, including seizure of a variety of tribal assets, on the basis that these procedures violated the Tribe’s sovereign immunity and, hence, exceeded state jurisdiction. After a hearing, the district court denied the Tribe’s motion. This court reviews a district court order, denying a preliminary injunction for abuse of discretion. Chemical Weapons Working Group, Inc. v. United States Dep’t of the Army, 111 F.3d 1485, 1489 (10th Cir.1997). An abuse of discretion occurs when the district court bases its ruling on an erroneous conclusion of law or relies on clearly erroneous fact findings. Id. We must carefully scrutinize the district court’s exercise of its discretion, but “we may not ... substitute our own judgment for that of the trial court.” Tri-State Generation & Transmission Ass’n, Inc. v. Shosone River Power, Inc., 805 F.2d 351, 354-55 (10th Cir.1986). The merits of the underlying action may be considered on appeal “only insofar as they bear on the issue of judicial discretion.” Otero Savings & Loan Ass’n v. Federal Reserve Bank, 665 F.2d 275, 276-77 (10th Cir.1981).

*1166 These consolidated appeals raise an unsettled question of subject matter jurisdiction. We exercise jurisdiction under 28 U.S.C. § 1291 and 28 U.S.C. § 1292 and reverse the district court’s dismissal of the Tribe’s § 1983 suit, reverse the district court’s denial of a preliminary injunction, and remand for further proceedings.

I

State Proceedings

The Kiowa Tribe of Oklahoma is a federally recognized Indian tribe. 1 61 Fed.Reg. 58,211, 58,213 (1996). This consolidated appeal stems from a series of related suits 2 against the Kiowa Tribe and certain named tribal representatives arising from promissory notes the Tribe gave to purchase all stock in ClintonSherman Aviation, Inc. 3 Neither Congress nor the Tribe' consented to these suits or otherwise waived the Tribe’s sovereign immunity. To the contrary, the Tribe specifically reserved its sovereign rights in the notes upon which it was sued. See, e.g., Hoover, 909 P.2d 59, 61 (Okla. 1995) (noting state district court’s finding of express reservation of sovereign immunity in promissory note and security agreement). 4

Creditor Robert M. Hoover, Jr., a non-Indian, sued the Tribe and six named individuals in state court alleging the Tribe breached a contract by failing to make any of the agreed payments on a promissory note for $142,500. 5 Hoover, 909 P.2d at 60. Asserting sovereign immunity, the Tribe moved to dismiss for lack of jurisdiction. Id. at 60-61. The trial court agreed , and dismissed Mr. Hoover’s complaint. Id. at 61. Mr. Hoover appealed. Id. A divided Oklahoma Supreme Court held “a contract between an Indian tribe and a non-Indian is enforceable in state court when the contract is executed outside of Indian Country.” Id. at 62 (5-3 decision). On remand, Oklahoma District Court Judge James B. Blevins entered a money judgment against the Tribe.

Meanwhile, Aircraft Equipment Company (Aircraft Equipment) sued Kiowa for breach of an assumption agreement in which the Tribe agreed to assume the indebtedness of Aircraft Equipment on a note, and failed to make the required payments on the outstanding debt of $180,000. 6 Aircraft Equip. Co. v. Kiowa Tribe, 921 P.2d 359, 360 (Okla. 1996) (Aircraft Equip. I). The Tribe filed a motion to dismiss, again asserting tribal sov *1167 ereign immunity, which was denied by the state district court. Id. Aircraft Equipment’s motion for summary judgment, was granted, and Oklahoma District Court Judge Carolyn R. Ricks entered a money judgment against the Tribe. Id. On appeal, the Oklahoma Court of Appeals affirmed the district court. Id. Subsequently, a majority of the Oklahoma Supreme Court, in reliance on its decision in Hoover, again held the Tribe was subject to a money damage suit for claims arising from commercial activity outside Indian Country, openly departing from this Court’s opinion to the contrary in Sac & Fox Nation v. Hanson, 47 F.3d 1061, 1065 (10th Cir.) (holding extra-territorial nature of commercial activity does not strip tribe of its right to assert sovereign immunity), cert. denied, 516 U.S. 810, 116 S.Ct. 57, 133 L.Ed.2d 21 (1995). Id. at 360-61. See also First Nat’l Bank v. Kiowa, Comanche & Apache Intertribal Land Use Comm., 913 P.2d 299, 301-02 (Okla.1996) (Kauger, J., dissenting) (arguing Hoover “directly contradicts” the Tenth Circuit ruling in Sac & Fox Nation and, therefore, should be overruled). The judgment of the trial court was affirmed. Aircraft Equip., 921 P.2d at 360.

While the decision of the state district court in Aircraft Equip. I

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150 F.3d 1163, 1998 Colo. J. C.A.R. 3813, 1998 U.S. App. LEXIS 15769, 1998 WL 387451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kiowa-indian-tribe-v-hoover-ca10-1998.