Shirley Arrow Yankton Sioux Tribe v. Gambler's Supply, Inc. Louis M. Nix, of the Estate of William M. Nix, Sr. John T. Parker, Jr. John E. Nix

55 F.3d 407, 32 Fed. R. Serv. 3d 501, 1995 U.S. App. LEXIS 12146, 1995 WL 309809
Court of Appeals for the Eighth Circuit·Decided May 23, 1995·No. 94-3306·Published·Cited by 42 cases

Opinions

MORRIS SHEPPARD ARNOLD, Circuit Judge.

The Yankton Sioux Tribe appeals the district court’s1 denial of its motions for joinder and for dismissal of a motion to approve the proposed settlement in an action brought by a tribe member, Shirley Arrow, against Gambler’s Supply, Inc., pursuant to 25 U.S.C. § 81. We affirm.

I.

The Yankton Sioux Tribe and Gambler’s Supply signed a management agreement in 1990 for the operation of a casino on tribal lands. As the screening process required by 25 U.S.C. § 81 resulted in disapproval of the contract by the Bureau of Indian Affairs, the parties revised the management agreement and executed an interim agreement under which to conduct business pending BIA approval. The casino began operation on June 22, 1991. Four months later, the BIA sent a letter informing the Tribe that the amended [409] management agreement could be approved once the requisite background investigation was finished. Before the approval process was complete, howéver, the Tribe resolved to terminate its relationship with Gambler’s Supply and withdrew the management agreement from consideration by the BIA. The Tribe subsequ ently agreed to pay Gambler’s Supply a settlement of $1,420,000.

On October 26, 1992, Arrow brought a qui 'tam action against Gambler’s Supply under 25 U.S.C. § 81, claiming that both the management agreement and the settlement were void for lack of BIA approval. She sought return of $1,912,455.08 that the gaming company had received from the casino operations and of the $1,420,000 settlement. One month prior to trial, the parties agreed to settle the case for $100,000, to be divided equally between Arrow and the Tribe as required by the statute, and an additional $26,500 in attorney fees. After learning of the proposed settlement, the Tribe filed a motion for join-der under Fed.R.Civ.P. 19 as well as a motion to dismiss the motion to' approve the settlement. The district court denied the motion for joinder on the basis of laches and approved the settlement between Arrow and Gambler’s Supply.

II.

A.

The Yankton Sioux Tribe claims that the district court erred in its dismissal of the Rule 19 motion for joinder in Arrow’s action against Gambler’s Supply. We note at the outset that only a party may make a Rule 19 motion, although, of course, a court may sua sponte join a party for good cause. See,, e.g., Fed.R.Civ.P. 21 (describing the procedure for joinder or dismissal of parties); Thompson v. Boggs, 33 F.3d 847, 858 n. 10 (7th Cir.1994) (noting the lack of any precedent granting a non-party’s motion for joinder). We think it proper, however, to treat the Tribe’s motion as a request to intervene pursuant to Fed.R.Civ.P. 24.

The issue of whether a movant is entitled to intervene as of right is a question of law that is ordinarily reviewed de novo. Mille Lacs Band of Chippewa Indians v. Minnesota, 989 F.2d 994, 998 (8th Cir.1993). In this case, the district court based its decision on the Tribe’s failure to act in a timely fashion, for which the appropriate standard of review is abuse of discretion. Id.; NAACP v. New York, 413 U.S. 345, 366, 93 S.Ct. 2591, 2603, 37 L.Ed.2d 648 (1973). Among the considerations that bear on the question of timeliness are how far the litigation had progressed at the time of the motion for intervention, the prospective intervenor’s prior knowledge of the pending action, the reason for the delay in seeking intervention, and the likelihood of prejudice to the parties in the action. Id. The Yankton Sioux Tribe monitored Arrow’s suit against Gambler’s Supply for nearly two years and then moved to join the litigation when the parties reached a settlement agreement one month before the trial date. Even if the Tribe’s proposed intervention would not have subjected the existing parties to the added expense of reopening settlement negotiations and preparing for trial, we cannot say that the district court improperly weighed the relevant considerations, and thus abused its discretion, in denying the motion.

B.

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Shirley Arrow Yankton Sioux Tribe v. Gambler's Supply, Inc. Louis M. Nix, of the Estate of William M. Nix, Sr. John T. Parker, Jr. John E. Nix, 55 F.3d 407, 32 Fed. R. Serv. 3d 501, 1995 U.S. App. LEXIS 12146, 1995 WL 309809 (8th Cir. 1995).

55 F.3d 407 (Shirley Arrow Yankton Sioux Tribe v. Gambler's Supply, Inc. Louis M. Nix, of the Estate of William M. Nix, Sr. John T. Parker, Jr. John E. Nix) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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