Mescalero Apache Tribe v. Martinez

519 F.2d 479
Court of Appeals for the Tenth Circuit·Decided July 9, 1975·No. No. 74-1516·Published·Cited by 25 cases

Opinion

McWILLIAMS, Circuit Judge.

The Mescalero Apache Tribe brought an action for breach of contract against Joe R. Martinez, doing business as Marco Construction Company, in the United States District Court for the District of New Mexico. By answer Martinez denied the existence of any contract, and challenged the subject matter jurisdiction of the court. The trial court ruled that it did not have jurisdiction of the subject matter, and dismissed the action. The Tribe now appeals. The single issue is whether under 28 U.S.C. § 1362 the trial court had jurisdiction of this action. In our view the trial court did not have jurisdiction of the subject matter, and we accordingly affirm.

In its complaint the Tribe alleged that it advertised for bids for the construction of trailer camper campsites and that in response to such advertisement Martinez submitted a bid proposal. It is further alleged that the Tribe accepted Martinez’ bid, but that the latter thereafter “failed and refused to enter and perform a contract” and that the Tribe was forced to an alternate and higher bidder, with resultant damage to the Tribe in the sum of $15,000. Although the Tribe in its complaint never did actually use the phrase “breach of contract” there is really no dispute but that the action is purely one for breach of contract, and nothing more.

In his answer Martinez alleged that the Tribe had failed to “abide by the conditions of its instructions to bidders” and that as a result there never was a contract between the parties. As indicated, Martinez also alleged that the trial court was without jurisdiction to hear the controversy.

The Tribe asserts that the trial court has jurisdiction of the subject matter of this controversy under the provisions of 28 U.S.C. § 1362 (1966). That statute reads as follows:

§ 1362. Indian tribes
The district courts shall have original jurisdiction of all civil actions, brought by any Indian tribe or band with a governing body duly recognized-by the Secretary of the Interior, wherein the matter in controversy arises under the Constitution, laws, or treaties of the United States. (Emphasis added).

To see the present dispute in context, reference should also be made to 28 U.S.C. § 1331(a), which reads as follows:

§ 1331. Federal question; amount in controversy; costs
(a) The district courts shall have original jurisdiction of all civil actions wherein the matter in controversy exceeds the sum or value of $10,000, exclusive of interest and costs, and arises under the Constitution, laws, or treaties of the United States. (Emphasis added).

It is noted that both § 1362 and § 1331 require that the matter in controversy be one arising under the Constitution, laws, or treaties of the United States. Though the Supreme Court has not as yet definitively considered the [481]*481“arising under” language in § 1362, this same language as it appears in § 1331(a) has been the subject of much legal writing. It has been suggested that the proper test under § 1331 for finding original federal jurisdiction is that there be a “substantial claim founded directly upon federal law.” 1 In deciding whether the matter in controversy involves such a claim, only the complaint should be examined, and, indeed, only those parts of the complaint directly and necessarily relating to the plaintiff’s cause of action should be considered. Any statements in the complaint which go beyond a statement of the plaintiff’s claim and anticipate or reply to a probable defense are to be disregarded. The repeated enunciation of the foregoing general principles has given rise to the “well-pleaded complaint” rule for determining federal question jurisdiction under § 1331. See, for example, Gully v. First National Bank in Meridian, 299 U.S. 109, 57 S.Ct. 96, 81 L.Ed. 70 (1936), and Taylor v. Anderson, 234 U.S. 74, 34 S.Ct. 724, 58 L.Ed. 1218 (1914).

Under the rationale of such cases as Gully and Taylor, as well as a host of others, federal jurisdiction in the instant case cannot be established under § 1331, even though the Tribe’s claim exceeds $10,000. Accordingly, the Tribe relies entirely on § 1362 for federal jurisdiction. It is the position of the Tribe that notwithstanding the fact that § 1362 contains the same “arising under” language as § 1331, § 1362 should be more broadly construed and should not be judged in the light of the “well-pleaded complaint” rule. Martinez argues, in turn, that the only effect of § 1362 is to lift the $10,000 jurisdictional amount when an Indian tribe brings an action involving a federal question. In other words, it is Martinez’ position that § 1362, like § 1331, requires that the matter in controversy present a federal question, and that in determining the existence of a federal question under § 1362 the “well-pleaded complaint” rule should be applied.

We do not believe that we need here decide whether an action brought under § 1362 is subject to the “well-pleaded complaint” rule, or whether the section should be given a different and broader application.2 It would appear that a good case could be made for construing the “arising under” language in § 1362 in the same manner the “arising under” language in § 1331 has heretofore been construed by the courts on repeated occasions. Be that as it may, whether § 1362 be subject to the “well-pleaded complaint” rule, or given a broader and less narrow application, under either approach we simply fail to find a federal question.

Just what the Tribe feels should be the limits of this broader approach to § 1362 is not entirely clear. Others have suggested that in determining whether there be a federal question under § 1362, courts should not be limited'to a consideration of the necessary elements of the complaint, but should consider all pleadings, depositions, and the like. Even if the broader approach be followed in the instant case, there would still be no federal question presented. Going beyond the limitations of the “well-pleaded complaint” rule, there is still nothing whatsoever in the instant case to suggest that we have anything here but a simple breach of contract case. A breach of contract claim has been held not to be a matter in controversy arising under the Constitution, laws or treaties of the United States, and hence not posing a [482]*482federal question. Adelt v. Richmond School District, 439 F.2d 718 (9th Cir. 1971). See also Enterprise Electric Co. v. Blackfeet Tribe of Indians, 353 F.Supp. 991 (D.C.Mont.1973), where a federal district court was held not to have jurisdiction to hear an action wherein an Indian tribe was sued for monies allegedly due under a contract for electrical work. Accordingly, we find no jurisdiction under § 1362, under either the “well-pleaded complaint” rule, or the broader approach.

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Mescalero Apache Tribe v. Martinez, 519 F.2d 479 (10th Cir. 1975).

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