Smith v. Parker

996 F. Supp. 2d 815, 2014 U.S. Dist. LEXIS 18605, 2014 WL 558965
CourtDistrict Court, D. Nebraska
DecidedFebruary 13, 2014
DocketNo. 4:07CV3101
StatusPublished
Cited by3 cases

This text of 996 F. Supp. 2d 815 (Smith v. Parker) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Parker, 996 F. Supp. 2d 815, 2014 U.S. Dist. LEXIS 18605, 2014 WL 558965 (D. Neb. 2014).

Opinion

MEMORANDUM AND ORDER

RICHARD G. KOPF, Senior District Judge.

The plaintiffs are owners or agents of businesses and clubs in Pender, Nebraska, that sell alcoholic beverages. They have sued Omaha Tribal Council members in their official capacities for prospective injunctive and declaratory relief from the Omaha Tribe’s attempt to enforce its liquor-license and tax scheme on the plaintiffs. The plaintiffs claim that because they are not located on a federally recognized Indian reservation or in “Indian country,”1 they are not subject to the Omaha Tribe’s jurisdiction, and the defendants have therefore exceeded their [818]*818authority under 18 U.S.C. § 11612 and under federal common law by trying to exercise tribal jurisdiction over the plaintiffs. The plaintiff-intervenor, the State of Nebraska, alleges that the Omaha Tribe has exceeded its tribal authority under federal common law by attempting to enforce its liquor-license and tax scheme against the retailers in Pender, but also requests a permanent injunction prohibiting the Omaha Indian Tribe from asserting any tribal jurisdiction whatsoever within all 50,157 acres of Thurston County, Nebraska, lying west of the now-abandoned right-of-way of the Sioux City and Nebraska Railroad — in other words, the State’s challenge is not limited to Pender, Nebraska. (Filing 107, Com-plainb-in-Intervention of Intervenor State of Nebraska.)3

This matter is before the co'urt on cross-motions for summary judgment (Filings 113 & 116) after a lengthy stay4 to allow the plaintiffs to exhaust their remedies in the Omaha Tribal Court. The pivotal issue in this case is whether Congress intended to “dimmish”5 the boundaries of the Omaha Indian Reservation in Nebraska when it enacted an 1882 Act that ratified an agreement for the sale of Omaha tribal lands to non-Indian settlers. If Congress intended to diminish the Omaha Reservation, the area involved would no longer constitute Indian country, and the Omaha Tribe could not regulate and tax alcohol sales in Pender, Nebraska. Atkinson Trading Co., Inc. v. Shirley, 532 U.S. 645, 653, 121 S.Ct. 1825, 149 L.Ed.2d 889 (2001) (“An Indian tribe’s sovereign power to tax — whatever its derivation — reaches no further than tribal land.”).

I. STANDARD OF REVIEW

After litigants have exhausted their remedies in tribal court, the federal district court “should review the Tribal Court’s findings of fact under a deferential, clearly erroneous standard. The Tribal Court’s determinations of federal law should be reviewed de novo while determinations of Tribal law should be accorded more deference.” Duncan Energy Co. v. [819]*819Three Affiliated Tribes of Fort Berthold Reservation, 27 F.3d 1294, 1300 (8th Cir.1994) (citations omitted) (discussing district court’s review of tribal court’s determination of its own jurisdiction).

The parties agree that the ultimate issue in this case — whether the Omaha Indian Reservation was diminished by an 1882 act of Congress — is a question of federal law and, therefore, is subject to this court’s de novo consideration. (Filing 118, Pis.’ Br. Supp. Mot. Summ. J. at CM/ECF pp. 31-37 (arguing that tribal court’s decision has no legal effect, but “[e]ven if the Court engages in traditional judicial review, a de novo standard applies”); Filing 138, Defs.’ Br. Opp’n Pis.’ Mot. Summ. J. at CM/ECF pp. 15-17 (“the ultimate question of whether the Omaha Indian Reservation was diminished is subject to this Court’s de novo review”).)

II. UNDISPUTED MATERIAL FACTS6

A. Parties7

1. The Village of Pender, Nebraska, (“Pender”) is a village as defined by Neb. Rev.Stat. § 17-201 with a population of approximately 1,300 residents in northeastern Nebraska, and is a plaintiff in this litigation. Pender is a political subdivision of the State of Nebraska, the county seat of Thurston County, and is governed by a Village Board of Trustees.

2. The remaining plaintiffs are and were at all relevant times residents of Thurston County and owners of or agents for establishments engaged in the sale of alcoholic beverages in or near Pender, Nebraska. Each of the plaintiffs holds a valid liquor license from the State of Nebraska and has fully complied with all of Nebraska’s requirements to engage in the retail sale of alcohol.

3. The Omaha Tribe of Nebraska is a federally recognized Indian Tribe organized and chartered under the Indian Reorganization Act of 1934. Indian Entities Recognized and Eligible to Receive Services from U.S. Bureau of Indian Fairs Notice, 75 Fed.Reg. 60810 (Oct. 1, 2010). Defendants are or were at all relevant times members or officials of the Omaha Tribal Council.

4. The plaintiffs’ primary customers are not members of the Omaha Tribe, but rather nonmember residents of Pender and the surrounding areas. None of the-plaintiffs are members of the Omaha Tribe, parties to any contracts with the Omaha Tribe, or involved in any other formal business relationship with the Tribe. Finally, none of the plaintiffs have applied for a license or remitted any taxes to the Omaha Tribe under the “Beverage Control Ordinance,” discussed below.

B. The Beverage Control Ordinance License and Tax Structure

5. On February 28, 2006, the Secretary of the Interior approved amendments to [820]*820Title 8 of the Omaha Tribal Code. (Amendment (Title 8 of the Tribal Code) to Omaha Tribe’s Beverage Control Ordinance, 71 Fed.Reg. 10056 (Feb. 28, 2006) (the ordinance, as amended, is hereinafter referred to as the “Beverage Control Ordinance”).

6. The purpose of the Beverage Control Ordinance “is to govern the sale, possession and distribution of alcohol within the Omaha Tribe’s Indian Reservation.” The Beverage Control Ordinance requires establishments that sell alcohol to obtain a license for a fee that varies by license class and imposes a 10-percent sales tax on the purchase of alcohol from any licensee.

7. The licensing scheme contained within the Beverage Control Ordinance in: troduces three classes of liquor licenses— A, B, and C. Class A licenses are issued to “Package Dealers” and require a $1,000.00 application fee; Class B licenses are issued to “On-Sale Dealers” and require a $1,500.00 application fee; and Class C licenses are issued to “Wholesalers” and require a $500.00 application fee. Each license is valid for one year, but may be extended for an additional 80 days, provided that a new license application is pending at the time of expiration. The Beverage Control Ordinance also institutes a 10-percent sales tax to be levied on the retail price of all sales of alcoholic beverages. The 10-percent sales tax must be remitted to the Omaha Tribe.

8. Any entity applying for a license under the Beverage Control Ordinance must also grant unlimited access to its books and premises to the Omaha Tribe.

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Related

Oneida Nation v. Village of Hobart, Wisconsin
968 F.3d 664 (Seventh Circuit, 2020)
Nebraska v. Parker
577 U.S. 481 (Supreme Court, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
996 F. Supp. 2d 815, 2014 U.S. Dist. LEXIS 18605, 2014 WL 558965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-parker-ned-2014.