Navajo Nation v. MacDonald

885 P.2d 1104, 180 Ariz. 539
CourtCourt of Appeals of Arizona
DecidedJune 23, 1994
Docket1 CA-CV 92-0113
StatusPublished
Cited by11 cases

This text of 885 P.2d 1104 (Navajo Nation v. MacDonald) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Navajo Nation v. MacDonald, 885 P.2d 1104, 180 Ariz. 539 (Ark. Ct. App. 1994).

Opinion

*541 OPINION

TOCI, Judge.

I. INTRODUCTION

Byron T. Brown and Kurion T. Tracy conspired with Peter D. MacDonald, Sr., Chairman of the Navajo Nation Tribal Council, and his son, Peter D. MacDonald, Jr. to defraud the Navajo Nation (“the Tribe”) of several million dollars through a double-escrow real estate transaction. When the Tribe discovered the existence of the illegal conspiracy, it filed a civil action against the conspirators in Maricopa County Superior Court. The trial court entered judgment in favor of the Tribe and against Brown, MacDonald, Jr., and MacDonald, Sr. 1 Peter D. “Rocky” MacDonald, Jr., Byron Terrell “Bud” Brown, Carol E. Brown, Peter D. MacDonald, Sr., and Wanda MacDonald all appealed. For the reasons discussed below, we affirm.

A. MacDonald, Jr.’s Appeal

After filing a notice of appeal, MacDonald, Jr. filed a motion in superior court for relief from the Tribe’s judgment, pursuant to Rule 60, Arizona Rules of Civil Procedure. He argued that because the Navajo Nation Supreme Court had vacated his criminal conviction for activities related to the ranch transaction, he was entitled to relief under Rules 60(c)(5) and (d). The trial court denied the motion, finding no basis under Rule 60 for exercising its discretion to set aside the Tribe’s judgment.

On appeal, MacDonald, Jr. argues that the trial court lacked subject matter jurisdiction over the Tribe’s claims and that the trial court erred by denying his Rule 60 motion for relief from the Tribe’s judgment. He also raises eleven other alleged errors that he claims warrant reversal.

We conclude that the trial court properly exercised subject matter jurisdiction over the Tribe’s claims against MacDonald, Jr. We also conclude that because MacDonald, Jr. did not appeal the trial court’s order denying his Rule 60 motion, we do not have jurisdiction to consider his arguments on this issue. Finally, we conclude that by not raising his remaining arguments in the trial court, MacDonald, Jr. has waived review of those arguments on appeal.

B. Brown’s Appeal

Brown argues first that the portion of the judgment against him for fraud and tortious interference with contract is unsupported by the evidence. Second, he argues that the trial court erred by awarding the Tribe damages, costs, and attorneys’ fees under Ariz. Rev.Stat.Ann. (“A.R.S.”) section 13-2310(0 (1989) (amended Supp.1993) because it was not in effect at the time the wrongful acts allegedly occurred.

We conclude that the trial court’s findings on the Tribe’s alternative theories of liability, which Brown does not challenge on appeal, are sufficient to support the judgment against him. We also conclude that because Brown did not raise his second argument in the trial court, he has waived review of the argument on appeal. We therefore affirm.

II. FACTUAL AND PROCEDURAL HISTORY

On appeal, we review the facts in the light most favorable to sustaining the judgment. Rogus v. Lords, 166 Ariz. 600, 601, 804 P.2d 133, 134 (App.1991).

In December 1986, after MacDonald, Sr. 2 was re-elected chairman of the Navajo Nation Tribal Council, Tracy 3 and Brown 4 ap *542 proached him with their plan to defraud the Tribe. Their plan was to purchase the Big Boquillas Ranch (“the ranch”) from the Boquillas Cattle Company, a subsidiary of Tenneco West, and simultaneously resell the ranch to the Tribe for a substantial profit. Tracy and Brown, however, needed MacDonald, Sr. to use his authority over the Tribe’s legislative and executive branches of government to ensure that the Tribe would purchase the ranch. MacDonald, Sr. agreed to participate in the scheme and said, “I assume I’ll be taken care of.” The three co-conspirators agreed that Tracy and Brown would split the profits generated by the transaction and that MacDonald, Sr. would receive his share from Brown. The conspirators also agreed that MacDonald, Sr.’s interest in the transaction and the payments made to him would be kept secret.

After he was inaugurated as Chairman, MacDonald, Sr. immediately began using his position, authority, and influence to induce the Tribe to purchase the ranch. He frequently met with the Tribal officials whose approval was needed for the transaction and expressed his support for the deal. He never disclosed, however, that he had a personal financial interest in the transaction. Moreover, he never disclosed that the conspirators intended for Tracy to purchase the ranch from the Boquillas Cattle Company to resell to the Tribe or that Brown was a principal in the transaction rather than an agent.

In exchange for MacDonald, Sr.’s participation, Brown and Tracy paid him secret bribes and kickbacks. Brown arranged for Tracy to wire $25,000.00 to the United New Mexico Bank in Gallup, New Mexico as partial payment on a note which MacDonald, Sr. owed to the bank. Tracy also leased a new BMW 735i automobile for MacDonald, Sr.’s personal use. In addition, Tracy gave Brown a check for $10,000.00, which was used to pay the tuition at a private boarding school that MacDonald, Sr.’s daughters were attending.

In February 1987, Tracy entered into a contract with the Boquillas Cattle Company to purchase the ranch for $26,250,000.00. Although Tracy and Brown both knew that the Boquillas Cattle Company had previously offered to sell the ranch to other potential buyers for as little as $18,000,000.00, the two of them made no effort to negotiate a purchase price lower than the one offered. They also settled for only one-half of the mineral rights in the ranch land even though they knew that the previous buyers had negotiated sales agreements transferring all of the mineral rights to the buyer. Under the contract, Tracy would not become the legal owner of the ranch until the transaction closed and all required payments were made.

After the purchase agreement with the Boquillas Cattle Company was executed, the conspirators presented an offer to sell the ranch to the Tribe without revealing that the sale would involve a double-escrow. The conspirators falsely represented to the tribe that the Boquillas Cattle Company was the legal owner of the ranch. To conceal his interest in the purchase contract with Boquillas Cattle Company, Tracy changed the name of one of his companies to “Big Boquillas Cattle Company.” He purposely chose this name so that the tribal officials would think that they were purchasing the ranch from the Boquillas Cattle Company. Tracy then sent a letter to the Tribe on Big Boquillas Cattle Company stationery, offering to sell the ranch to the Tribe for $33,417,367.00.

Brown and Tracy also retained an attorney to prepare a misleading title opinion about the ownership of the ranch. The opinion falsely represented that the ranch was owned at the time by Big Boquillas Cattle Company.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Edgar G. v. Dcs
Court of Appeals of Arizona, 2022
Hung v. Genting Berhad
513 P.3d 1285 (Court of Appeals of Nevada, 2022)
HUNG v. BERHAD
2022 NV 50 (Nevada Supreme Court, 2022)
Michelle D. v. Dcs
Court of Appeals of Arizona, 2020
Thompson v. Thompson
Court of Appeals of Arizona, 2017
Simon v. Simon
Court of Appeals of Arizona, 2016
ASARCO LLC v. Americas Mining Corp.
404 B.R. 150 (S.D. Texas, 2009)
Bailiff v. Woolman
906 A.2d 409 (Court of Special Appeals of Maryland, 2006)
Johnson v. Commonwealth
609 S.E.2d 58 (Court of Appeals of Virginia, 2005)
Cimarron Foothills Community Ass'n v. Kippen
79 P.3d 1214 (Court of Appeals of Arizona, 2003)
State v. Zaman (Tahirkhaili)
927 P.2d 347 (Court of Appeals of Arizona, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
885 P.2d 1104, 180 Ariz. 539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navajo-nation-v-macdonald-arizctapp-1994.