Lyon v. Gila River Indian Community

626 F.3d 1059, 2010 WL 4750257
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 24, 2010
Docket08-15570, 08-15712
StatusPublished
Cited by43 cases

This text of 626 F.3d 1059 (Lyon v. Gila River Indian Community) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyon v. Gila River Indian Community, 626 F.3d 1059, 2010 WL 4750257 (9th Cir. 2010).

Opinion

OPINION

WALLACE, Senior Circuit Judge:

This appeal involves a dispute between an Indian tribe and the trustee of a bankruptcy estate over the rights of access to and occupation of a parcel of land completely surrounded by Indian reservation land. The district court had jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1334. We have jurisdiction to hear this appeal pursuant to 28 U.S.C. § 1291, and we affirm in part and vacate in part.

I.

The center of the parties’ dispute is “Section 16,” a parcel of about 657 acres in Pinal County, Arizona. The land surrounding Section 16 is part of an Indian reservation (Reservation) belonging to the Gila River Indian Community (Community), a federally recognized Indian tribe. We start with the history of Section 16 and the Reservation.

The Community historically occupied the land that is now south-central Arizona. See Gila River Pima-Maricopa Indian Cmty. v. United Staten, 24 Ind. Cl. Comm’n 301, 303, 335 (1970). Through the 1853 Gadsden Purchase, the United States acquired title to land from Mexico, including what is now Section 16. The following year, Congress adopted a law providing that when a survey was completed of the *1066 lands within the purchased territory, “sections numbered sixteen and thirty-six in each township, in said Territory, shall be, and the same are hereby, reserved for the purpose of being applied to schools in said Territory, and in the States and Territories hereafter to be created out of the same.” Act of July 22, 1854, ch. 103, § 5, 10 Stat. 308, 809. The lands were not literally meant to be sites for school buildings. Instead, the state was able to sell and lease them to produce funds supporting its schools. Lassen v. Arizona ex rel. Ariz. Highway Dep’t, 385 U.S. 458, 463, 87 S.Ct. 584, 17 L.Ed.2d 515 (1967). In 1863, Congress partitioned the Territory of New Mexico to create the Territory of Arizona. Act of Feb. 24, 1863, ch. 56, § 1-2,12 Stat. 664, 664-65. Section 16 became property of Arizona when a survey of the land was filed in 1877. See United States v. S. Pac. Transp. Co., 601 F.2d 1059, 1067 (9th Cir. 1979).

In 1859, Congress created a reservation for the Community. Act of Feb. 28, 1859, ch. 66, § 3-4, 11 Stat. 388, 401; see also Gila River Pima-Maricopa Indian Cmty., 24 Ind. Cl. Comm’n at 303. The Reservation did not originally abut Section 16; the borders of the Reservation were later enlarged through a series of executive orders. Of relevance here, an executive order dated November 15, 1883 added to the Reservation a parcel of land immediately to the north of Section 16, and an executive order dated June 2, 1913 added to the Reservation the land immediately to the south, east and west of Section 16. The result is that since 1913, Section 16 has been completely surrounded by Reservation land. Section 16 can be accessed using Smith-Enke Road, an east-west road that runs adjacent to the southern boundary of Section 16 and crosses Reservation land before continuing west to the City of Maricopa and east to the City of Sacaton. Section 16 can also be accessed by Murphy Road, a north-south road that runs adjacent to the eastern boundary of Section 16 and crosses Reservation land before continuing south to the City of Maricopa, and north for two miles until intersecting with another road at a point within the Reservation.

The State of Arizona held Section 16 until 1929, when it sold the parcel to an individual named J.L. Hodges, pursuant to a patent conveying the land “together with all the rights, privileges, immunities and appurtenances of whatsoever nature” and “subject to any and all easements or rights of way heretofore legally obtained.” Section 16 has since been sold several times, each time conveyed by a deed containing similar language. In 2001, a company called S & T Dairy, L.L.C., owned by the children of Michael and Debra Schugg (the Schuggs), purchased Section 16 and constructed a dairy on the property. In 2003, S & T Dairy conveyed Section 16 to the Schuggs. In 2004, the Schuggs sought to have Section 16 rezoned, from “rural” to “transitional,” a change that would allow construction of a higher-density housing development. Pinal County rejected the Schuggs’ application to rezone Section 16.

Also in 2004, the Schuggs declared bankruptcy and listed Section 16 as their largest asset. G. Grant Lyon was appointed the Chapter 11 Trustee (Trustee) of the Schuggs’ bankruptcy estates. During the bankruptcy proceedings, the Community filed a proof of claim asserting, of relevance here, that it had (1) “an exclusive right to use and occupy” Section 16, (2) “authority to impose zoning and water use restrictions” on Section 16, and (3) “a right to injunctive and other relief for trespass on reservation lands and lands to which it holds aboriginal title.” In response, the Trustee initiated an adversary proceeding seeking a declaratory judgment that the Schuggs’ estate had legal title and access *1067 to Section 16. The district court granted the Community’s unopposed motion to withdraw the reference, thereby transferring the adversary proceeding to the district court.

In the district court, the Community moved to dismiss the case on the basis that the litigation should not proceed without the United States as a party. See Fed. R.Civ.P. 19. The district court denied the motion without prejudice to its renewal. The Community then filed an answer and counterclaims against the Trustee. The Community alleged, as it had in its proof of claim, that it held aboriginal title to Section 16; that nonmembers had no right to cross Reservation land to access Section 16 and had therefore committed trespass to reach the parcel; and that it had authority to establish zoning and water use restrictions for Section 16. The Community sought declaratory and injunctive relief prohibiting the Schuggs from further trespass and compensatory damages for past trespasses.

On cross-motions for summary judgment, the district court granted the Trustee’s motion in part, ruling that the Community did not hold aboriginal title to Section 16. It denied summary judgment on all other issues.

Following a bench trial, the district court issued findings of fact and conclusions of law. The district court held that the United States was not an indispensable party under Rule 19. The district court also determined that the Trustee had an implied easement over Smith-Enke Road to access Section 16. It further concluded that the Trustee had a right of access over Murphy Road, either because of an implied easement or because the relevant portion of the road was an Indian Reservation Road that must remain open for public use. The district court held, therefore, that the Schuggs had not trespassed on Reservation land.

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Cite This Page — Counsel Stack

Bluebook (online)
626 F.3d 1059, 2010 WL 4750257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyon-v-gila-river-indian-community-ca9-2010.