Knighton v. Cedarville Rancheria of Northern Paiute Indians

234 F. Supp. 3d 1042, 2017 WL 616465, 2017 U.S. Dist. LEXIS 21604
CourtDistrict Court, E.D. California
DecidedFebruary 15, 2017
DocketCase No. 16-cv-02438-WHO
StatusPublished

This text of 234 F. Supp. 3d 1042 (Knighton v. Cedarville Rancheria of Northern Paiute Indians) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knighton v. Cedarville Rancheria of Northern Paiute Indians, 234 F. Supp. 3d 1042, 2017 WL 616465, 2017 U.S. Dist. LEXIS 21604 (E.D. Cal. 2017).

Opinion

ORDER GRANTING MOTION TO DISMISS

William H. Orrick, United States District Judge

INTRODUCTION

Plaintiff Duanna Knighton, the former Tribal Administrator for defendant Cedar-ville Ranchería of. Northern Paiute Indians (“the Tribe”), seeks declaratory and in-junctive relief against the Tribe, Cedarville [1045]*1045Ranchería Tribal Court (“Tribal Court”), and Tribal Court Judge Patricia R. Lenzi (“Tribal Judge Lenzi”) (collectively “defendants”) to avoid Tribal Court jurisdiction over claims that she defrauded the Tribe and breached her fiduciary duties to it. Defendants move to dismiss Knighton’s complaint because the Tribal Court has jurisdiction. I agree that it has both regulatory and adjudicative authority over its former employee under the facts alleged; accordingly, it has subject matter jurisdiction. Defendants’ motion is GRANTED WITH PREJUDICE.

BACKGROUND

I. FACTUAL BACKGROUND1

A. The Cedarville Ranchería Tribe

Cedarville Ranchería of Northern Paiute Indians (“the Tribe”) is a federally recognized Indian tribe located in Medoc County, California. Id. ¶2; Duran Decl. ¶3 (Dkt. No. 10-2). It has approximately 12 voting members2 and operates a 17-acre Ranchería in Cedarville, California. Compl. ¶ 2; Tribal Court Compl. ¶ 1 (Dkt. No. 1-3 at 2). The Ranchería land is held in trust for the Tribe by the United States government; it contains tribal housing, a recreation center, travel center, convenience store, and gas station. Duran Decl. ¶3. The Tribe’s headquarters building is located approximately 30 miles west of the Ranchería in Alturas, California, on land owned in fee by the Tribe.3 Compl. ¶2; Duran Decl. ¶ 4.

In February 2011, the Tribe’s voting membership adopted by election the Constitution and Bylaws of the Cedarville Ranchería, which was approved in March 2011 by the Regional Director of the United States Department of the Interior, Bureau of Indian Affairs. Compl. ¶ 24; see Cedarville Ranchería Constitution and Bylaws (Dkt. No. 1-2 at 43). Article II of the Tribe’s constitution provides that the “jurisdiction of [the Tribe] shall extend to the [1046]*1046land now within the confines of the Cedar-ville Ranchería and to such other lands as may hereafter be added thereto.” Cedar-ville Ranchería Constitution and Bylaws (Dkt, No. 1-2 at 45).

The Tribe’s governing body is the Community Council composed of all qualified voters of the Ranchería who are 18 years of age or older. Id. (Dkt. No. 1-2 at 46). Every three years the Community Council elects three of its members to serve on the Executive Committee—the Tribal Chairperson, Vice Chairperson, and Secretary. Id. (Dkt. No. 1-2 at 46-47). The Executive Committee is empowered to enforce the Community Council’s ordinances, resolutions, and other enactments, and represents the Tribe in all negotiations with tribal, federal, state, and local governments. Id. The Tribal Chairperson functions as the “chief executive officer” of the Tribe, oversees all Ranchería matters including signing checks on behalf of the Tribe for tribal expenses, and is the “authorized point-of-contact, along with the Tribal Secretary or Tribal Administrator, to sign Tribal documentation, including grant applications, MOUs [memoranda of understanding], supply orders, trip requests, etc.” Id. (Dkt. No. 1-2 at 50).

B. Plaintiff Duanna Knighton’s Employment with the Tribe

Duanna Knighton is a non-Indian California resident who was employed by the Tribe from July 1996 until she resigned in March 2013. Compl. ¶¶ 1, 9. She is not a member of the Tribe and has never resided on nor owned tribal land. Id. ¶¶ 10-11. The Tribe hired her in 1996 as a part-time office assistant. Tribal Compl. ¶10 (Dkt. No. 1-3 at 4). In 1999, she became a salaried tribal employee eligible for employment benefits, and she was later promoted to Tribal Administrator— the position she held at the time of her resignation. Compl. ¶ 9; Tribal Compl. ¶¶ 13-15 (Dkt. No. 1-3 at 4). As Tribal Administrator, Knighton was “responsible for over-all supervision and management of the Cedarville Ranchería,” and oversaw the Tribe’s “payroll, taxes, and expenses, financial statements/reports for audit, expenditures, and ledgers under direct supervision of the Chairperson.” Compl. ¶ 18; Cedarville Ranchería Constitution and Bylaws (Dkt. No. 1-2 at 26).

From 2009 until at least October 2016, Knighton was also employed by Resources for Indian Student Education (“RISE”), a California nonprofit that provides education services and programs to Indian children.4 Compl. ¶ 14; Tribal Court Order Granting RISE Mot. to Dismiss (Dkt. No. 1-3 at 43). RISE is not a tribally-created or licensed business entity; it receives the majority of its funding from state and federal grants and private donations. Tribal Court Compl. ¶ 3 (Dkt. No. 1-3 at 3), Tribal Court Order Granting RISE Mot. to Dismiss (Dkt. No. 1-3 at 43).

During Knighton’s employment, the Tribe regulated its employees pursuant to the Cedarville Ranchería Personnel Policies and Procedures Manual (“Personnel Manual”). It set forth disciplinaiy and grievance procedures for tribal employees prior to the creation of the Tribal Court, which will be discussed later. Compl. ¶¶ 18-23. Under the Personnel Manual— which Knighton helped develop when she was Tribal Administrator—all tribal employees subjected to disciplinary action were entitled to file a grievance with the Tribal Administrator and could appeal certain disciplinary actions after exhausting available administrative remedies. Id. [1047]*1047¶¶ 20-23; Personnel Manual (Dkt. Nos. 1-2 at 26, 39). Where the Tribal Administrator was the subject of disciplinary action, the Tribal Council, composed of the Tribe’.s adult voting membership, directly oversaw the disciplinary and grievance procedures. Personnel Manual (Dkt. No. 1-2 at 40). Appeal hearings were subject to the control of the Tribal Council, and were “presided over as other council meetings and the general format [would] be followed unless the council decide[d] [t]o vary the procedure.” Id. (Dkt. No. 1-2 at 40-41). The Tribal Council’s decision following an appeal hearing was final. Id.

C. The Tribe’s Purchase of the RISE Property

In mid-2009,5 Knighton recommended that the Tribe purchase from RISE an administrative building located in Alturas, California, for a “below market rate” of $350,000. Id. ¶¶ 29-30; Tribal Court Compl. ¶ 18 (Dkt. No. 1-3 at 5-6). Acting in her capacity as Tribal Administrator, Knighton negotiated the purchase on behalf of the Tribe. Tribal Court Compl. ¶ 49 (Dkt. No. 1-3 at 12). She represented that the loan could be paid off within 5 years, that RISE would remain a tenant in the building and that the Tribe could use that rental income to pay off the mortgage. Id. ¶¶ 49-50 (Dkt. No. 1-3 at 12). In June 2009, the Tribe—relying on Knighton’s representations—submitted a counter-offer of $300,000, which RISE accepted.6/d The property currently serves as the tribal headquarters, and the title to the building and land is owned in fee by the Tribe.7 Tribal Court Order Granting RISE Mot. to Dismiss (Dkt. No. 1-3 at 44).

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Bluebook (online)
234 F. Supp. 3d 1042, 2017 WL 616465, 2017 U.S. Dist. LEXIS 21604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knighton-v-cedarville-rancheria-of-northern-paiute-indians-caed-2017.