Village of Hobart, Wisconsin v. United States Department of the Interior, et al.

CourtDistrict Court, E.D. Wisconsin
DecidedDecember 2, 2025
Docket1:23-cv-01511
StatusUnknown

This text of Village of Hobart, Wisconsin v. United States Department of the Interior, et al. (Village of Hobart, Wisconsin v. United States Department of the Interior, et al.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Village of Hobart, Wisconsin v. United States Department of the Interior, et al., (E.D. Wis. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

VILLAGE OF HOBART, WISCONSIN,

Plaintiff,

v. Case No. 23-C-1511

UNITED STATES DEPARTMENT OF THE INTERIOR, et al.,

Defendants,

and

ONEIDA NATION,

Intervenor Defendant.

DECISION AND ORDER DENYING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

The Village of Hobart filed this action challenging the Department of Interior’s decision to take land into trust for the Oneida Nation pursuant to Section 5 of the Indian Reorganization Act (IRA) of 1934, 25 U.S.C. § 5108. The Village asserts that the agency’s determination violates the Administrative Procedure Act (APA), 5 U.S.C. § 701, et seq., and the United States Constitution. The court has jurisdiction over this action under 28 U.S.C. § 1331. Although the Village’s action is one for judicial review of a decision by the Department of Interior, the Village seeks summary judgment pursuant to Fed. R. Civ. P. 56(a). Summary judgment, which asks whether there are factual disputes the court must resolve that prevent the entry of judgment as a matter of law, is not the proper vehicle for resolving an action seeking judicial review of agency action under the APA. In an action seeking judicial review of agency action, the court does not decide whether there are material facts in dispute. Instead, the court is limited to deciding whether the challenged action is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with the law.” 5 U.S.C. § 706(2)(a). The briefing and arguments presented by the parties on the Village’s motion nevertheless present their respective positions on the questions the court must decide, and, for the reasons that follow, the decision of the Department

of Interior will be affirmed. BACKGROUND This case represents another chapter in the ongoing dispute between the Village of Hobart and the Oneida Nation concerning their respective jurisdiction over land located within the Oneida Tribe’s original reservation. The underlying history and background of this dispute was recounted in Oneida Tribe of Indians of Wisconsin v. Village of Hobart, 542 F. Supp. 2d 908 (E.D. Wis. 2008), and Oneida Nation v. Village of Hobart, 968 F.3d 664 (7th Cir. 2020), and will not be repeated in detail here. The specific dispute in this case is over the decision of the Secretary of the Department of Interior to grant the Nation’s application to have eight properties totaling 21 parcels and 499 acres of land acquired into trust by the United States for the benefit of the Nation.

The IRA authorizes the Secretary of the Interior to acquire land and place it into trust for individual Indians and tribes “for the purpose of providing land for Indians.” 25 U.S.C. § 5108. Enacted in 1934, the IRA set tribes on a potential collision course with the municipalities that had been established within the original reservation boundaries during the allotment period, which began with the passage of the Dawes Act in 1887. The effect of granting fee-to-trust applications is that it removes the land placed in trust from state and local jurisdictions and exempts such land from state and local taxation. This results in shrinkage of the tax base of the local government in which the property is located and the elimination of state and local government authority to enforce zoning, public safety, or environmental regulations on the land. 25 C.F.R. § 1.4. Thus, a tribe’s interest in recovering its original reservation is in conflict with the interests of local governments established within the reservation boundaries in preserving their tax base and enforcing their local ordinances. State and local governments with jurisdiction over the lands that are subject to fee-to- trust applications therefore have a strong interest in the process.

The potential for conflict between tribes and the municipalities established within their original reservation boundaries lay dormant when the IRA was first enacted. Although the IRA halted the allotment of the remaining tribal land and allowed for the reacquisition of the tribal lands that had already been conveyed to individuals, the vast majority of land on some reservations had already been sold by the time the IRA was enacted, the tribes lacked the resources to repurchase land themselves, and Congress did not fund reacquisition of lands that had been previously sold. Oneida Tribe, 542 F. Supp. 2d at 912–13; see also COHEN’S HANDBOOK OF FEDERAL INDIAN LAW § 1.05 (Nell Jessup Newton ed., 2012). With the advent of Indian gaming, however, this changed. Fueled by the commercial revenue they were able to acquire through gaming beginning in the 1970s, many tribes, including the Oneida Nation, set as their goal “the repurchase and recovery of

all original reservation lands.” Id. at 913; see also COHEN’S HANDBOOK § 12.01. This is the context in which the current dispute arises. On April 12, 2006, the Business Committee of the Oneida Nation enacted several resolutions requesting that the Bureau of Indian Affairs (BIA) accept parcels of fee land owned by the Nation into trust. In 2007, the Nation submitted 56 fee-to-trust applications to the BIA for 133 parcels containing 2,673 acres of land. The parcels are all located within the Village, which is located within the outer boundaries of the original Oneida Reservation. See Oneida Nation, 968 F.3d at 671. The Village received notice of the applications and submitted its comments opposing the applications. The Midwest Regional Director of the BIA ruled in favor of the Nation and issued six Notices of Decision to accept certain parcels into trust for the benefit of the Nation. In 2010, the Village timely appealed the six Notices of Decision to the Interior Board of Indian Appeals (IBIA). On May 9, 2013, the IBIA concluded that while the Regional Director had authority to take the

land into trust, she failed to consider tax loss implications, potential land use conflicts, and jurisdictional problems. See Vill. of Hobart v. Acting Midwest Regional Director, 57 IBIA 4, 2013 WL 3054077 (2013) (Hobart I). The IBIA vacated the Regional Director’s Notices of Decision and remanded the matter for the Regional Director to consider these issues as well as the Village’s arguments with respect to environmental impacts and bias in decision making. The IBIA did not consider the Village’s arguments regarding the constitutionality of the IRA, finding that it lacked jurisdiction to do so. On January 19, 2017, the Regional Director issued a decision that accepted some of the fee land into trust. See Dkt. No. 32-4 at 28–59. The Village again appealed the Regional Director’s decision to the IBIA. As part of its appeal, the Village asserted that the Regional Director’s

decision was the product of bias due to the decision being processed and issued under a Memorandum of Understanding (MOU) entered into between the BIA and a number of tribes, including the Nation. The BIA and the Nation entered into the MOU to facilitate the expeditious processing of fee-to-trust applications. Dkt. No. 1-3 at 2.

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Village of Hobart, Wisconsin v. United States Department of the Interior, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-hobart-wisconsin-v-united-states-department-of-the-interior-wied-2025.