Southern Ute Indian Tribe v. Leavitt

564 F.3d 1198, 2009 U.S. App. LEXIS 9482, 2009 WL 1176832
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 4, 2009
Docket07-2274
StatusPublished
Cited by11 cases

This text of 564 F.3d 1198 (Southern Ute Indian Tribe v. Leavitt) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Ute Indian Tribe v. Leavitt, 564 F.3d 1198, 2009 U.S. App. LEXIS 9482, 2009 WL 1176832 (10th Cir. 2009).

Opinion

HENRY, Chief Judge.

In litigation arising from the Secretary of Health and Human Services’s (“HHS”) decision not to enter into a self-determination contract with the Southern Ute Indian Tribe, the district court issued two operative orders: the first order determined that the HHS decision was unlawful, granted summary judgment to the Tribe, and ordered the Tribe to prepare a form of an order for injunctive relief for HHS approval. The parties could not reach an agreement, which resulted in continued litigation and culminated in the district court’s second order, which found in favor of the HHS approach as to the start date of the contract and to specifics regarding funding of the self-determination contract’s ancillary costs. The Tribe appeals from this second order. HHS argues that the second order is not a final judgment on the merits, depriving this court of jurisdiction, and we agree.

I. Background

A. The Indian Self-Determination and Education Assistance Act Reflects Congress’s Commitment to Tribal Self-Determination.

In 1975, Congress enacted the Indian Self-Determination and Education Assistance Act, 25 U.S.C. § 450 et seq. (“ISDA”), in large part to strengthen “collaborative relationships” with Native American tribes. The ISDA, as amended, allows Native American tribes to enter into contracts with the Secretary of HHS, and under these contracts, the tribes themselves, rather than HHS, provide health service programs to their members. *1201 Should a tribe wish to control its programs, the ISDA essentially directs the Secretary of the Interior and the Secretary of HHS, upon the request of an Indian tribe, to turn over the direct operation of its federal Indian programs to that tribe. Once a tribe requests control of its programs, HHS and the tribe enter into a “self-determination contract,” which the statute specifies must incorporate the provisions of a mandatory model contract included in the text of the ISDA. In return, HHS agrees to reimburse the tribes for administrative expenses and overhead costs called “contract support costs” incurred in the provision of these services. See also 25 U.S.C. § 450j-l(a)(2)-(3).

Under Title I of the ISDA, tribes are entitled to enter into these contracts, defined as contracts “for the planning, conduct and administration of programs or services which are otherwise provided to Indian tribes and their members pursuant to Federal law.” 25 U.S.C. § 450b(j). The government must enter into self-determination contracts allowing tribal organizations to plan, conduct, and administer certain federal programs, including programs “for the benefit of Indians because of their status as Indians.” Id. § 450f(a)(l)(E).

HHS acted upon Congress’s express wish to transfer responsibility for the administration and management of these programs and services to the tribe:

The Congress declares its commitment to the maintenance of the federal secretary’s unique and continuing relationship with and responsibility to the Indian people through the establishment of a meaningful Indian self-determination policy which will permit an orderly transition from federal domination of programs for and services to Indians to effective and meaningful participation by the Indian people in the planning, conduct, and administration of those programs and services.

Pub.L. No. 93-638, § 3(b), 88 Stat. 2203.

The Indian Health Service (“IHS”) is the primary federal health care provider for tribes and is the major source of tribal self-determination contracts, the type at issue here. 1

B. Contract Support Costs Include a Variety of Indirect Administrative Costs.

Contract support costs generally encompass indirect administrative costs, such as special auditing or other financial management costs, 25 U.S.C. § 450j — 1 (a)(3)(A)(ii); direct costs, such as Workers’ Compensation Insurance, § 450j-l(a)(3)(A)(i); and certain startup costs, § 450j-l(a)(5). Pueblo of Zuni v. United States, 243 F.R.D. 436, 440 (D.N.M.2007). Most contract support costs are indirect costs “generally calculated by applying an ‘indirect cost rate’ to the amount of funds otherwise payable to the tribe.” Cherokee Nation of *1202 Okla. v. Leavitt, 543 U.S. 631, 635, 125 S.Ct. 1172, 161 L.Ed.2d 66 (2005). “Funding of indirect contract support costs is based on a variety of factors, including specific terms of each negotiated ISDA contract, each tribe’s annual indirect cost rate, the amount of funding made available by Congress in the annual IHS appropriation and IHS policies and procedures for the calculation and distribution of indirect contract support -costs.” Pueblo of Zuni, 243 F.R.D. at 440.

C. The HHS Procedure upon Receipt of a Contract Proposal

Upon receipt of a contract proposal, HHS must review and approve or decline the proposal within ninety-days; failure to act within the ninety-day period results in the award of a contract by operation of law. 25 U.S.C. § 45Qj — 1 (a)(2). HHS may decline a proposal for one of five specific reasons listed in 25 U.S.C. § 450f(a)(2): HHS may (1) consider the program’s service to be unsatisfactory; (2) determine that the proposal does not assure adequate protection of trust resources; (3) conclude that the proposed contract cannot properly complete or maintain the proposed project; (4) calculate that the contract’s proposed funding level exceeds the total amount of funds to be paid under the contract under 25 U.S.C. § 450j-l(a); or (5) conclude that the proposal’s services or functions are beyond the scope of programs that the contractor may lawfully engage in. If the HHS declines a proposal, a tribe may file an appeal through the administrative process or initiate an action in federal court. 25 U.S.C. § 450f(b).

The leading Supreme Court case involving the ISDA is Cherokee Nation v. Leavitt, 543 U.S. 631, 125 S.Ct. 1172, 161 L.Ed.2d 66 (2005), which provides much of the backdrop for the current litigation. In Cherokee Nation, the government entered into ISDA contracts with the Cherokee Nation and the Shoshone-Paiute Tribes of the - Duck Valley Reservation (collectively, “the Tribes”).

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Bluebook (online)
564 F.3d 1198, 2009 U.S. App. LEXIS 9482, 2009 WL 1176832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-ute-indian-tribe-v-leavitt-ca10-2009.