Navajo Housing Authority v. Johns

11 Am. Tribal Law 31
CourtNavajo Nation Supreme Court
DecidedSeptember 10, 2012
DocketNo. SC-CV-18-10
StatusPublished
Cited by5 cases

This text of 11 Am. Tribal Law 31 (Navajo Housing Authority v. Johns) is published on Counsel Stack Legal Research, covering Navajo Nation Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Navajo Housing Authority v. Johns, 11 Am. Tribal Law 31 (navajo 2012).

Opinion

OPINION

This matter comes before the Court on Appellant’s appeal of the following four rulings issued by the Crownpoint District Court: a June 8, 2005 Order and June 22, 2005 Supplemental Order in which the dis[33]*33trict court denied Appellant Navajo Housing Authority’s (NHA) motion to dismiss on the basis of sovereign immunity; a January 20, 2006 Order in which the district court granted Bluffview Resident Management Corporation’s (BRMC) motion for partial summary judgment; and a March 26, 2010 Order on Two Motions and Final Judgment in which the district court denied NHA’s motion to dismiss on the basis that BRMC no longer exists as a corporate entity and motion for relief from judgment, and in which the district court awarded $680,703 in damages after substituting “BRMC et al.” in the caption with “Daniel Johns et al. as board members of the former BRMC and on behalf of the former Bluffview Village Resident Organization (BVRO).”

We vacate the orders and judgment for the reasons set forth below.

I

This matter has been before us once before when the district court dismissed contract-based counterclaims1 filed by BRMC against NHA on the basis of untimely filing and sovereign immunity. At that time, NHA based its immunity on its Plan of Operations, codified at 6 N.N.C. § 601 et seq. as it was not then included as the “Navajo Nation” in the Sovereign Immunity Act. Following BRMC’s appeal, we reinstated its counterclaims, stating inter alia that pursuant to 6 N.N.C. § 616(B)(1), “NHA is required to waive its immunity from suits in any agreement with another party [and] [e]ven when NHA fails to do so, it lacks immunity under the clear language of Section 616(B)(1).” Navajo Housing Authority v. Bluffview, 8 Nav. R. 402, 415, 4 Am. Tribal Law 700 (Nav.Sup.Ct.2003).

Following remand, on April 18, 2002, BRMC’s corporate status was revoked, whereupon NHA moved to dismiss BRMC et al. ⅛ counterclaims on the basis that the corporate entity no longer exists. The district court denied NHA’s motion, stating that 5 N.N.C. § 3151 permits an extension of corporate life for a definite time for purposes of prosecuting or defending suits.

On October 19, 2004, the Navajo Nation Council amended the Sovereign Immunity Act to expressly “affirm” that NHA is within the definition of “Navajo Nation” for purposes of sovereign immunity. Resolution CO-55-04 (codified at 1 N.N.C. § 552(F)). On July 25, 2005, Section 616(B)(1) of NHA’s plan of operations was amended to include the phrase, “[s]ubject to the Navajo Sovereign Immunity Act.” Resolution CJY-51-05 (codified at 6 N.N.C. § 601 et seq.). Following these developments, on March 16, 2005 NHA renewed its motion to dismiss on the basis of sovereign immunity. In a June 8, 2005 Order and June 22, 2005 Supplemental Order, the district court denied NHA’s motion, stating that pursuant to Blaze Construction v. Crownpoint Institute of Technology, 7 Nav. R. 296, 1 Am. Tribal Law 470 (Nav.Sup.Ct.1997), sovereign immunity must exist at the time the cause of action arises and not when the particular case was filed.

On January 10, 2005, NHA filed its Answer to the Counterclaims in which it asserted affirmative defenses including contributory negligence, failure to mitigate, laches, statute of limitations, superseding and intervening acts, assumption of risk, and failure to join an indispensable party. On November 18, 2005, BRMC et al. moved for partial summary judgment on its breach of contract counterclaim. BRMC et al. also served complex interrog-[34]*34atones on NHA, and when NHA failed to respond, on December 19, 2005 BRMC et al. moved for a default judgment. A hearing on the motions was set for January 18, 2006.

NHA failed to file a response to the motion for partial summary judgment within the deadline provided by court rules.2 On the eve of a scheduled motion hearing on January 18, 2006, NHA filed a late response with an affidavit. At the hearing, the district court refused to accept NHA’s written response due to untimeliness. The district court heard argument only on the default judgment. Transcript of January 18, 2006 Hearing, p. 2-6. The court then orally denied the motion for default judgment, but granted the motion for partial summary judgment, stating that it would not allow further argument due to NHA’s late response and the need for finality in a case that had been pending for six years. Id. at 6-7. Two days later on January 20, 2006, the district court issued a terse order reducing its oral ruling to writing but including no findings. On February 14, 2006, BRMC waived its remaining counterclaims. On July 18-19, 2007, the district court held a hearing on the amount of damages.

On August 24, 2007, NHA filed two motions—a motion to dismiss on the basis that BRMC no longer exists as a corporate entity, and a motion for relief from judgment. On March 26, 2010, the district court issued an Order on Two Motions and Final Judgment denying NHA’s motions to dismiss and for relief from judgment and awarding $680,703 in damages. In this final judgment, the district court sua sponte substituted BRMC et al. in the court caption with “Daniel Johns et al. as former board members of, and on behalf of, former BVRO” after finding that BRMC’s officers could not proceed in their individual capacities.”3 This appeal followed.

Because the district court parsed its dis-positive rulings on sovereign immunity and summary judgment into several orders and used its “final judgment” merely to award damages, we consider the combined rulings of the district court appealed from as final judgments.

II

These issues have been presented for review: (a) whether the district court correctly denied NHA’s motion to dismiss on the basis of sovereign immunity; (b) whether the district court correctly granted BRMC et al.’s motion for partial summary judgment and, if so (c) whether damages were properly calculated; and (d) whether the district court correctly denied NHA’s motion to dismiss on the basis of revocation of corporate status.

III

Sovereign immunity is a jurisdictional defense. Phillips v. Navajo Housing Authority, 8 Nav. R. 751, 756, fn. 3, 6 Am. Tribal Law 708 (Nav.Sup.Ct.2005) citing Johnson v. Navajo Nation, 5 Nav. R. 192, 195 (Nav.Sup.Ct. 1987); Navajo Housing Authority v. Howard Dana and Associates, 5 Nav. R. 157, 160 (Nav.Sup. Ct. 1987). Therefore it is not merely a [35]*35defense to an action but a jurisdictional bar. We have stated numerous times that before a court can hear a matter, it must have personal and subject matter jurisdiction. See Begay v. Navajo Engineering & Const Authority, 10 Am. Tribal Law 45, 47-48 (Nav.Sup.Ct.2011) (numerous cites omitted). It is self-evident that lacking jurisdiction as a court for any reason, the court may not proceed to the merits. Jurisdiction is a question of law. See Navajo Transport Services, Inc. v. Schroeder, 7 Am. Tribal Law 516, 519 (Nav.Sup.Ct.2007). “Whether summary judgment was properly granted is also a question of law.” Id. citing Benally v. Mobil Oil, 8 Nav. R. 387, 4 Am. Tribal Law 686 (Nav.Sup.Ct.2003). The Court reviews legal questions de novo, with no deference given to the District Court’s legal conclusions. Id. citing Navajo Nation v. Kelly, 6 Am.

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Cite This Page — Counsel Stack

Bluebook (online)
11 Am. Tribal Law 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navajo-housing-authority-v-johns-navajo-2012.