Nisqually Indian Tribe v. Gregoire

623 F.3d 923, 2010 U.S. App. LEXIS 20429, 2010 WL 3835226
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 4, 2010
Docket09-35725
StatusPublished
Cited by22 cases

This text of 623 F.3d 923 (Nisqually Indian Tribe v. Gregoire) 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
Nisqually Indian Tribe v. Gregoire, 623 F.3d 923, 2010 U.S. App. LEXIS 20429, 2010 WL 3835226 (9th Cir. 2010).

Opinion

OPINION

SMITH, Circuit Judge:

The Nisqually Indian Tribe (“Nisqually”) challenges an agreement between the Frank’s Landing Indian Community (the “Community”), the Squaxin Island Indian Tribe 1 (“Squaxin”), and the State of Washington 2 (‘Washington” or the “State”) governing taxation of cigarettes at Frank’s Landing. Nisqually brought suit claiming that Washington breached a contract with Nisqually by entering into the agreement with Squaxin and the Community, and further argues that the agreement violates various state and federal laws. With respect to Nisquall/s attempts to enforce federal and state law, we affirm the grant of summary judgment against Nisqually because the laws under which it sues provide no private right of action. We also affirm the district court’s judgment denying Nisqually’s breach of contract claim.

FACTS AND PROCEDURAL HISTORY

A. Background

Washington law applies state sales and use taxes to the sale of tobacco by Indian retailers to non-Indians, even when the sale takes place in Indian country. 3 Wash. Admin. Code 458-20-192(9)(a), (e). In practice, assessment and collection of these taxes has proven to be logistically difficult and has become a source of contention between the Indian tribes and the State. To address this issue, the State enacted a law allowing the governor to enter into contracts regarding tobacco taxation (“tobacco tax contracts”) with certain enumerated, federally-recognized Indian tribes. Wash. Rev.Code § 43.06.455. Under these contracts, an Indian tribe can collect tribal taxes, in lieu of state and local sales and use taxes, when a tribal member retailer sells tobacco in Indian country. Wash. Rev.Code §§ 43.06.450-460. To retain this tax revenue, then, tribes must use the funds for “essential” government services. Id. § 43.06.455(8).

B. Description of the Parties

Nisqually is a federally-recognized Indian tribe with reservation lands in Washington State. Nisqually has entered into a tobacco tax contract with the State government (the “Nisqually contract”).

Squaxin is also a federally-recognized Indian tribe with reservation lands in the State of Washington. Squaxin entered into a tax contract with the State (the “Squaxin contract”) that allowed Squaxin to tax tobacco sales by tribal retailers in “Indian country.” The contract defined *927 “Indian country” to include the Squaxin reservation and “allotments held in trust for a Squaxin Island tribal member.” 4 In 2008, Washington and Squaxin executed an addendum to their contract (the “Addendum”).

Frank’s Landing is a geographic location consisting of three parcels of land, none of which is located on the Nisqually or Squaxin Reservations. The parcels are instead held in trust by the United States for the benefit of individually named Indians. 5 The three parcels were set aside for these individuals in 1918. The people, society, and government located at and associated with Frank’s Landing are referred to as the “Community.” The Community is not a federally-recognized Indian tribe; rather, it is a “self-governing dependent Indian Community.”

Two federal statutes define the powers of the Community. First, in 1987, Congress passed Public Law Number 100-153 (the “1987 Act”), which states that the Community is “eligible to contract, and to receive grants, under the Indian Self-Determination and Education Assistance Act.” Indian Law Technical Amendments of 1987, Pub.L. No. 100-153, § 10, 101 Stat. 886 (1987). Later, in 1994, Congress passed Public Law Number 103-435 (the “1994 Act”), which amended the 1987 Act, and states, in relevant part:

RECOGNITION OF INDIAN COMMUNITY
(a) Subject to subsection (b), the Frank’s [Landing Indian Community in the State of Washington is hereby recognized;] ...
(1) as eligible [for the special programs and services provided by the United States to Indians because of their status as Indians and is recognized as eligible to contract, and to receive grants, under the Indian Self-Determination and Education Assistance Act for such services ... ]; and ...
(2) as a self-governing dependent Indian community that is not subject to the jurisdiction of any federally recognized tribe.
(b)(1) Nothing in this section may be construed to alter or affect the jurisdiction of the State of Washington [over criminal matters in Indian country]....
(2) Nothing in this section may be construed to constitute the recognition by the United States that the Frank’s Landing Indian Community is a federally recognized Indian tribe.
(3) Notwithstanding any other provision of law, the Frank’s Landing Indian Community shall not engage in any class III gaming activity....

Indians: Technical Corrections, Pub.L. No. 103-435, § 8, 108 Stat. 4566, 4569-70 (1994).

C. Tobacco Sales by Squaxin at Frank’s Landing

Cigarette sales at Frank’s Landing have strained the Community’s relationship *928 with the State and nearby Indian tribes, such as Nisqually. In particular, Nisqually claims tobacco sales at Frank’s Landing directly reduce cigarette sales on the Nisqually Reservation, resulting in a loss of sales revenue to Nisqually. The different parties to this appeal have considered and attempted a number of solutions to this problem. At one time, the Community tried to contract directly with the State. However, because the Community was not a federally-recognized tribe, Washington declined to enter into a contract with the Community, citing the lack of authority to do so under state law. Nisqually proposed to the State that it could sell cigarettes at Frank’s Landing under the Nisqually contract. The Community resisted this attempt by Nisqually.

This appeal centers on a solution to the problem of cigarette sales and taxes at Frank’s Landing negotiated by Washington, the Community, and Squaxin (the “Agreement”). The parties entered into an agreement wherein Bridges leased part of her property, held in trust, to the Community. The Community, in turn, subleased the property to Squaxin for a retail store operated by Island Enterprises, a business wholly-owned by Squaxin. The Community, Squaxin, and Washington agreed that Island Enterprises could sell cigarettes under the Squaxin contract at Frank’s Landing. The Agreement further provided that the Community would share in the revenue, and its share would be used (consistent with Washington law) for community purposes, including funding the Wa-He-Lut Indian School, which the Community established in 1974.

Squaxin and Washington subsequently executed the Addendum to further clarify that the Squaxin contract covered sales at Frank’s Landing.

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Bluebook (online)
623 F.3d 923, 2010 U.S. App. LEXIS 20429, 2010 WL 3835226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nisqually-indian-tribe-v-gregoire-ca9-2010.