Ninigret Development Corp. v. Narragansett Indian Wetuomuck Housing Authority

32 F. Supp. 2d 497, 1999 U.S. Dist. LEXIS 394, 1999 WL 14254
CourtDistrict Court, D. Rhode Island
DecidedJanuary 7, 1999
DocketC.A. 98-106L
StatusPublished
Cited by2 cases

This text of 32 F. Supp. 2d 497 (Ninigret Development Corp. v. Narragansett Indian Wetuomuck Housing Authority) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ninigret Development Corp. v. Narragansett Indian Wetuomuck Housing Authority, 32 F. Supp. 2d 497, 1999 U.S. Dist. LEXIS 394, 1999 WL 14254 (D.R.I. 1999).

Opinion

DECISION AND ORDER

LAGUEUX, Chief Judge.

Ninigret Development Corporation (“plaintiff’) is a Rhode Island corporation in the construction business. It has filed a nine-count Complaint against the Narragansett Indian Wetuomuck Housing Authority (“NIWHA”), an agency of the Narragansett Indian Tribe, and Building Development Teams, Inc. after a protracted dispute over the construction of three projects — the Narragansett Indian Wetuomuck Community Village, the Home Improvement Program and the Four Winds Community Center. In brief, plaintiff alleges that NIWHA hired it to build on Tribe-owned land outside the Tribe’s reservation. Then, it ordered plaintiff to stop construction, refused to make further payments, and used the Tribal Council, the governing body of the Tribe, to stonewall the resolution of plaintiffs claims.

NIWHA, an agency of the Narragansett Indian Tribe, a federally recognized sovereign nation, has moved to dismiss the Complaint. Building Development Teams, a Connecticut corporation hired as construction manager, never filed an answer, and it was defaulted on July 6,1998.

An Indian tribe is not a normal litigant. As a sovereign that predates the United States, the tribe must receive comity or respect similar to that enjoyed by a foreign nation. The Narragansett Tribe has the power to design its own system for resolving disputes, and it enjoys sovereign immunity except where that immunity is waived. NI-WHA moves to dismiss the Complaint based on several arguments, including lack of jurisdiction and the existence of an arbitration and forum selection clause. Those arguments defeat seven of plaintiffs claims, and the remaining two are suited for resolution in state, not federal, court. If the Tribe has been “arbitrary and self-serving” as plaintiff alleges, then this case may caution others against relying on NIWHA or the Tribal Council in the future. However, the Tribe’s sovereignty — whether used fairly or not— precludes this Court from intervening.

As discussed below, NIWHA’s motion to dismiss is granted as to all counts. Seven counts are within the exclusive jurisdiction of the Narragansett Tribal Council. Two should be heard, if at all, in state court.

*500 I. Facts

NIWHA was established in October 1985 by the Narragansett Tribal Council, and the federal government recognizes it as an “Indian Housing Authority.” By creating the authority, the Tribe made itself eligible for federal housing money in the same fashion as state or local governments. The Tribal Council’s ordinance creating NIWHA included a paragraph that gave the Authority the power to sue or be sued:

The Council hereby gives its irrevocable consent to allowing the Authority to sue or be sued in its corporate name, upon any contract, claim or ■ obligation arising gout (sic) of its activities under this ordinance and hereby authorities (sic) the Authority to decree by contract to waive any immunity from suit which it might otherwise have; but the Tribe shall not be liable for the debts or obligations of the Authority.

HA — 195, An Ordinance To Establish The Narragansett Indian Wetuomuck Housing Authority, at Article V, ¶ 2.

NIWHA undertook three projects that are at issue in this case: the Narragansett Indian Wetuomuck Community Village, the Home Improvement Program and the Four Winds Community Center.

A. The Narragansett Tribe’s Justice System

The Narragansett Indian Tribe does not have a standing court system patterned on the federal system such as those created by larger or wealthier tribes. The Mashantuck-et Pequot Tribe in Connecticut employs full-time judges, and tribes in the West are sophisticated enough to even have joint appellate courts such as the Northern Plains Intertribal Court of Appeals, see Strate v. A-1 Contractors, 520 U.S. 438, 444, 117 S.Ct. 1404, 1405, 137 L.Ed.2d 661 (1997). It is plaintiffs uncontested assertion that the Narragansett Tribe has no permanent Tribal Court; rather the Tribal Council sits as the Tribal Court when necessary. Therefore, for all intents and purposes, the membership of the Council and Court is identical.

B. The Narragansett Indian Wetuomuck Community Village

In March 1996, NIWHA requested bids from contractors to build modular homes on Tribe-owned property in Charlestown, Rhode Island. This land is privately held and is not part of the Narragansett settlement lands (reservation) or Indian Country. See Narragansett Indian Tribe v. Narragansett Electric Co., 89 F.3d 908, 921-22 (1st Cir.1996).

In May 1996, plaintiff, Building Team Development, and NIWHA entered into a contract for site work and the erection of 35 homes (the “Village Contract”). Building Team Development was to be the construction manager, and plaintiff was to be the main subcontractor. The Narragansett Indian Wetuomuck Community Village (the “Village project”) was to be funded by federal money, drawn from the United States Department of Housing and Urban Development, the Indian Health Service and the Bureau of Indian Affairs.

The Village Contract included an arbitration and forum selection clause in Article 14, which provided in relevant part:

§ 14.1 All claims, disputes and other matters in question between the parties to this Agreement arising out of or relating to this Agreement or the breach thereof, shall be first presented to the Tribal Council for resolution and in the event of non-resolution, then to the Tribal Court, which will appoint an Arbitration Board.
§ 14.3 The award rendered by the Council or Arbitration Board appointed by the Tribal Court shall be final. Upon exhaustion of final remedy in Tribal Court leading to non-resolution and as a civil option, the Parties may, with written agreement from both, institute a Civil Action in Federal District Court.

The parties signed that contract on May 22, 1996.

Plaintiff received $109,000 from NIWHA as a mobilization fee, and it worked on the site through the summer of 1996. About June 11, 1996, the parties began to disagree. The exact course of events is in dispute, but conflicts arose over pricing, the scope of the contract, and the technical requirements of *501 the construction specifications. Plaintiff received additional payments of $78,213.40 and $44,294.40, but the project ground to a halt by September 1996. Plaintiff submitted further claims to the Tribal Council but it has failed to resolve the matter. Frustrated by these events, plaintiff has sought relief in this Court.

Plaintiffs allegations in seven counts relate to the Village project. It alleges breach of contract against both defendants (Counts I and II); fraud against NIWHA (Counts III and IV); breach of the implied covenant of good faith and fair dealing against both defendants (Count V); conspiracy against both defendants (Count VI); and conversion against NIWHA (Count VII).

C.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
32 F. Supp. 2d 497, 1999 U.S. Dist. LEXIS 394, 1999 WL 14254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ninigret-development-corp-v-narragansett-indian-wetuomuck-housing-rid-1999.