United States ex rel. Hall v. Tribal Development Corp.

49 F.3d 1208, 1995 WL 100949
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 24, 1994
DocketNo. 93-3519
StatusPublished
Cited by30 cases

This text of 49 F.3d 1208 (United States ex rel. Hall v. Tribal Development Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Hall v. Tribal Development Corp., 49 F.3d 1208, 1995 WL 100949 (7th Cir. 1994).

Opinions

MANION, Circuit Judge.

The plaintiffs, Glenn A. Hall, Michael A. Mapes and Fred Tribble, appeal from the district court’s dismissal of their action seeking to void certain contracts entered into between the defendants, Tribal Development [1210]*1210Corporation, and the Menominee Indian Tribe. According to plaintiffs’ amended complaint, the defendants entered into lease contracts for goods and services to be used by the Tribe in the operation of gaming activities on their reservation. The plaintiffs, who do not claim to be Indians, alleged that the lease contracts violated 25 U.S:C. § 81 in that they had not been sent to nor approved by the Bureau of Indian Affairs in the Department of the Interior.1 That being the case, the plaintiffs, as private citizens on behalf of the United States, brought this action pursuant to the qui tam2 provisions of section 81 to void the lease contracts and to recover all monies given in consideration thereof, one-half going to the United States Treasury on behalf of the Tribe, the other half going to plaintiffs as their bounty for maintaining a successful action under the statute. Plaintiffs also alleged that the defendants were not licensed as traders to the Tribe as required by section 2643 of the Indian Traders Licensing Act (ITLA). Pursuant to the qui tam provision of 25 U.S.C. § 201,4 the plaintiffs sought to recover from defendants all civil penalties, resulting from their violations of the ITLA, as well as a forfeiture of all the gambling equipment leased to the Tribe. Plaintiffs’ final claim was that the lease contracts violated various provisions of the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. §§ 2701 to 2721 and, once again, relying upon the qui tam provision of 25 U.S.C. § 201, maintained that they were entitled to recover all civil penalties as provided for under § 2713 of the IGRA. The district court sua sponte determined that plaintiffs had no standing to maintain any of their claims and, on that basis, dismissed the plaintiffs’ complaint. Before evaluating that determination, we touch briefly on the history surrounding the present action.

I.

This action was originally part of a group of consolidated cases (forty-two to be exact) [1211]*1211filed by the plaintiffs in the United States District Court for the Third District of Minnesota against various merchants who provided goods and services to the Tribe for use in the gaming operations on Tribal reservations. Several of the defendants filed motions to dismiss; others responded with motions for summary judgment. Pursuant to a stipulation agreement entered into between the plaintiffs and certain defendants, the Minnesota District Court entered an order for change of venue and, on May 17, 1993, transferred the present action, No. 93-3519, to the United States District Court for the Eastern District of Wisconsin. On that same day, the plaintiffs filed their amended complaint in the Eastern District Court of Wisconsin.

On August 6, 1993, the Wisconsin District Court sua sponte entered an order stating that it had recently reviewed the Minnesota District Court’s disposition of the parallel suit in In Re United States ex rel. Hall Litigation, 825 F.Supp. 1422 (D.Minn.1993), aff'd, United States ex rel. Hall v. Creative Games Technology, Inc., 27 F.3d 572 (8th Cir.1994), handed down a month after the present action had been transferred, in which that court determined that plaintiffs, as third parties with no direct interest in the challenged contracts, could not allege an “injury-in-fact” as required under Article III, and therefore were without standing to maintain their qui tam actions under 25 U.S.C. §§ 81 and 201. See Hall, 825 F.Supp. at 1426-27. The Wisconsin District Court was persuaded by this reasoning (particularly that it was applied to the same plaintiffs) and therefore entered an order notifying the parties that they had twenty days in which to show good cause why the present action should not be dismissed for lack of subject matter jurisdiction.

On September 15,1993, the Wisconsin District Court notified the parties that it was dismissing the plaintiffs’ suit for lack of standing. In a short order, the court reiterated that it was persuaded by the reasoning of the Minnesota District Court. The court also observed that the statutes on which plaintiffs relied were enacted for the protection of Indians, whereas plaintiffs were non-Indians, thus placing them outside the “zone of interests” the statutes were intended to protect. See United States ex rel. Hall v. Tribal Development Corp., No. 93-C-494 (E.D.Wis. Sept. 15, 1993). The court concluded that because this ease was indistinguishable from the Minnesota suit in Hall, it was adopting the decision of that ease and accordingly dismissed the plaintiffs’ suit for lack of subject matter jurisdiction. Id.

II.

Article III, section 2 of the United States Constitution “limits the ‘judicial power’ to the resolution of ‘cases’ and ‘controversies.’” Valley Forge College v. Americans United For Separation of Church & State, Inc., 454 U.S. 464, 471, 102 S.Ct. 752, 757, 70 L.Ed.2d 700 (1982). One of the incidents of Article Ill’s case-or-controversy requirement “is that a litigant have ‘standing’ to challenge the action sought to be adjudicated in the lawsuit.” Id. Standing, in turn, is comprised of three elements: First, the plaintiff must have suffered' an “injury-in-fact” — an invasion of a legally-protected interest which is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical. Second-, there must be a causal connection between the injury and the conduct forming the basis of the lawsuit — that is, the injury has to be' traceable to the defendant and not the result of the conduct of a third person not a party to the action before the court. Third, it must be likely that the injury will- be redressed through a favorable decision by the court. See Lujan v. Defenders of Wildlife, 504 U.S. 555, 559-61, 112 S.Ct. 2130, 2136, 119 L.Ed.2d 351 (1992).

The issue before us concerns the first element, namely, whether the plaintiffs have suffered a cognizable “injury-in-faet.” The district court apparently was of the view that the plaintiffs, as non-Indians who were not parties to the contract entered into between the Tribe and the defendants, failed to allege an actual or concrete injury to themselves and were therefore unable to satisfy the injury-in-fact requirement of Article III. We say “apparently,” because the district court, in dismissing plaintiffs’ suit, refrained from making any analysis of its own, and instead [1212]*1212stated that it was adopting outright the opinion of the Minnesota , District Court in Hall. And that

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Cite This Page — Counsel Stack

Bluebook (online)
49 F.3d 1208, 1995 WL 100949, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-hall-v-tribal-development-corp-ca7-1994.