United States Ex Rel. Robinson Rancheria Citizens Council v. Borneo, Inc. Clear Lake Indian Bingo Ltd. American Arbitration Association Herman Schner

971 F.2d 244, 92 Cal. Daily Op. Serv. 5985, 92 Daily Journal DAR 9429, 1992 U.S. App. LEXIS 15213, 1992 WL 152115
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 7, 1992
Docket89-15930
StatusPublished
Cited by977 cases

This text of 971 F.2d 244 (United States Ex Rel. Robinson Rancheria Citizens Council v. Borneo, Inc. Clear Lake Indian Bingo Ltd. American Arbitration Association Herman Schner) 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.

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United States Ex Rel. Robinson Rancheria Citizens Council v. Borneo, Inc. Clear Lake Indian Bingo Ltd. American Arbitration Association Herman Schner, 971 F.2d 244, 92 Cal. Daily Op. Serv. 5985, 92 Daily Journal DAR 9429, 1992 U.S. App. LEXIS 15213, 1992 WL 152115 (9th Cir. 1992).

Opinions

FERNANDEZ, Circuit Judge:

Robinson Ranchería Citizens Council (Robinson) appeals from the district court’s dismissal of its claims for injunctive and declaratory relief under 25 U.S.C. § 81, which governs contracts between Indians and non-Indians relating to tribal lands. The district court dismissed Robinson’s complaint with prejudice, and when Robinson moved for reconsideration of the court’s order, the court imposed sanctions under Rule 11. Since a state court has now decided the claims Robins on placed before the district court, we affirm the district court’s dismissal of the action. We reverse the district court’s order imposing sanctions.

BACKGROUND

On August 30, 1986, Robinson, a federally recognized Indian tribe, and Borneo, Inc. entered into a written contract which obligated Borneo to finance, construct, and operate a bingo hall on Robinson’s tribal land. Legal title to tribal land is held in trust for Robinson by the United States. The agreement provided that Borneo was to receive eighty percent of net operating profits until its construction costs had been paid in full; after costs were recouped, Borneo’s draw was to fall to forty percent. Revenues not paid to Borneo were to be retained by Robinson. The contract also provided that Borneo’s rights and responsibilities would be assigned to Borneo, Inc. as general partner for Clear Lake Indian Bingo (CLIB), a limited partnership to be formed for the purpose of financing the [247]*247construction of the bingo hall. At the time the contract was executed, CLIB had not been organized. One term of the contract stipulated that disputes arising under the contract were to be settled by the American Arbitration Association (AAA). The agreement was signed by Michael W. McCoy on behalf of Borneo and by Bernadine Tripp, tribal chairperson, for Robinson. A duly executed resolution of the Robinson Ranchería Citizens Business Council authorized Tripp to sign the contract on Robinson’s behalf. That resolution recited the fact that Robinson had already approved the contract. The Business Council, in turn, was empowered by the federally approved “Constitution of the Robinson Ranchería” to enter into binding agreements affecting tribal lands on behalf of Robinson.

Since the Robinson-Borneo contract was an agreement between an Indian tribe and non-Indians “in consideration of services for said Indians relative to their lands,” it had to meet the formal requirements of 25 U.S.C. § 81 to be valid. Section 81 requires that agreements (1) be in writing, with a duplicate delivered to each party, (2) bear the approval of the Secretary of the Interior, or his representative, (3) contain the names, residential addresses and occupations of all “parties in interest,” i.e, the principals of the development companies, (4) state the time and place of execution, and (5) be of a specific, limited duration. Section 81 further states that “[a]ll contracts or agreements made in violation of this section shall be null and void....”

The Robinson-Borneo contract was approved by the Bureau of Indian Affairs on September 3,1986, as required by 25 U.S.C. § 81. However, the contract failed to meet the mandates of section 81 in a number of other respects. The names, address and occupations of the principals of Borneo and CLIB were not listed. Nor was the time and place of execution stated in the agreement. At oral argument before the district court, Robinson conceded that the other requirements of section 81 had been met.

Borneo and CLIB completed construction of the bingo hall in January, 1987. Borneo operated the hall from January 21, 1987 to April 13,1987. CLIB operated it from May 1, 1987 until December 16, 1987, at which time it closed the bingo hall for lack of operating capital. Robinson re-opened the hall April 16, 1988. Robinson claims that Borneo and CLIB breached the agreement by failing to pay state and federal employment taxes, county property tax, and certain construction debts. It also claims that CLIB unilaterally ceased bingo operations for a few months, causing Robinson to seek and secure new management. CLIB claims Robinson wrongfully seized control of and denied CLIB access to the bingo hall.

Pursuant to the terms of the agreement, CLIB submitted the dispute to an arbitrator for the AAA. However, the AAA arbitrated the dispute without substantial participation by Robinson. In a letter to the arbitration judge, Robinson appeared specially to argue that the AAA lacked authority to resolve the dispute because Robinson was immune from unconsented suits and Robinson’s governing body lacked authority to waive sovereign immunity on Robinson’s behalf. The arbitration judge scheduled the jurisdiction hearing for the day after the commencement of the hearing on the merits of CLIB’s claims. He instructed Robinson’s attorney to come prepared to raise the jurisdictional question and to argue Robinson’s case on the merits. Robinson failed to attend this hearing or the hearing on the merits.

After the hearing, the arbitration judge found in favor of CLIB. CLIB then filed an action in state court to confirm the arbitration judge’s findings and award. On April 10, 1989, Robinson appeared specially and contested the jurisdiction of the state court, but the state court decided CLIB’s claim was properly before it.

While the action was pending in state court, Robinson pursued two other lines of attack against the AAA award. It first filed this action in the District Court for the Northern District of California. On May 1, 1989, the Northern District issued its order denying Robinson’s application for a temporary restraining order and dis[248]*248missed this case with prejudice. Robinson then moved the court to reconsider the dismissal. On June 19, 1989, the court denied the motion and awarded Borneo monetary sanctions against Robinson for bringing a frivolous motion. Robinson filed this appeal on July 13, 1989.

In the meantime, Robinson had removed the state confirmation action to the District Court for the Central District of California. On July 24, 1989, the Central District remanded that case to the state court. The state court then confirmed the arbitration judge’s award and findings on December 27, 1990, and issued a judgment enforcing the award. That judgment was not appealed and is now final.

JURISDICTION AND STANDARD OF REVIEW

The district court had jurisdiction under 25 U.S.C. § 81 and 28 U.S.C. § 1331. We have jurisdiction to review final orders and judgments under 28 U.S.C. § 1291.

We review de novo the district court’s order dismissing Robinson’s complaint. See A.K. Management Co. v. San Manuel Band of Mission Indians, 789 F.2d 785, 787 (9th Cir.1986). However, our review is not limited to a consideration of the grounds upon which the district court decided the issues; we can affirm the district court on any grounds supported by the record. Jewel Cos., Inc. v. Pay Less Drug Stores Northwest, Inc., 741 F.2d 1555, 1564-65 (9th Cir.1984).

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971 F.2d 244, 92 Cal. Daily Op. Serv. 5985, 92 Daily Journal DAR 9429, 1992 U.S. App. LEXIS 15213, 1992 WL 152115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-robinson-rancheria-citizens-council-v-borneo-inc-ca9-1992.