Wendell Long v. Snoqualmie Gaming Commission

435 P.3d 339
Court of Appeals of Washington·Decided February 25, 2019·No. 77007-1·Published·Cited by 7 cases

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

WENDELL LONG, an individual, ) No. 77007-1 -I )

Appellant, ) DIVISION ONE )

v. )

) PUBLISHED OPINION

SNOQUALMIE GAMING ) COMMISSION, a political subdivision ) of the Snoqualmie Indian Tribe, )

)

Respondent. ) FILED: February 25, 2019 _________________________________________________________________________________ )

LEACH, J. — Wendell Long appeals the superior court’s dismissal of his

lawsuit against the Snoqualmie Gaming Commission (Commission) for lack of jurisdiction due to the Commission’s sovereign immunity and Long’s failure to state a claim. Because the Commission has sovereign immunity and did not waive it, we affirm.

FACTS

The Snoqualmie Indian Tribe (Tribe) is a federally recognized sovereign Indian tribe. The Indian Gaming Regulatory Act requires that tribes enter into gaming compacts with states to authorize class III (casino-style) gaming on tribal lands.1 The Tribe entered into a gaming compact with Washington State.2 It

25 U.S.C. § 2710(d)(1)(C).

1

Tribal-State Compact for Class III Gaming Between the Snoqualmie

2

Indian Tribe and the State of Washington (2002 & amend. 2008).

No.77007-1-1/2

obligated the Tribe to establish an independent “Tribal Gaming Agency” to regulate the gaming activities on tribal land.3 To satisfy this obligation the Tribe adopted the Snoqualmie Tribe Tribal Gaming Act, which established the Commission.4 The STTGA declares the Commission “independent of the Tribal Council in all matters within the Commission’s purview.”5 It also provides the Commission with “sovereign immunity from suit absent express consent from the Tribal Council.”6 The compact gives the Commission the “primary responsibility for the on-

site regulation, control and security of the Gaming Operation authorized by [the] Compact” and for its enforcement on Snoqualmie tribal lands.7 The Commission must report “incident and investigation reports and final dispositions to the State Gaming Agency.”8 The Commission has concurrent jurisdiction with the State Gaming Agency to investigate compact violations and to bring administrative charges against individuals or business entities licensed under the compact for violation of tribal and state law.9

~ Tribal-State Compact § Vl(B).

~ Snoqualmie Tribe Tribal Gaming Act § 7.01, (2015) (STTGA), http://www.snoqualmietribe. us/sites/default/files/gaming_act. pdf.

~ STTGA § 7.04.

6 STTGA § 7.02.

~ Tribal-State Compact § Vl(B).

8 Tribal-State Compact § Vl(F).

~ Tribal-State Compact § Vl(F).

No. 77007-1 -I I 3

The Commission has the exclusive authority to issue, suspend, and revoke gaming licenses for the Snoqualmie Casino’s employees, vendors, and contractors.1° On March 27, 2015, the Tribe hired Long as the chief executive officer of the Snoqualmie Casino.11 The Tribe and Long signed a written agreement stating the terms of Long’s employment. In this contract, Long warranted ‘that there [were] no impediments to his . . . being licensed by the Snoqualmie Gaming Commission for gaming purposes” and “to maintain [his] gaming license in good standing.” Long applied to the Commission for this license and received it in May 2015.

The contract addressed the Tribe’s sovereign immunity:

Except as expressly provided herein, nothing in this Agreement shall be deemed or construed as a waiver or limitation of the Tribe’s inherent sovereign immunity from unconsented suit. The Tribe hereby grants a limited waiver of sovereign immunity to Employee for the express and limited purpose of adjudicating a dispute arising out of the terms of this Agreement in the Snoqualmie Tribal Court.

Any such claim must be filed with the Tribal Court within one hundred-twenty (120) days of the act or omission giving rise to the claim. This waiver does not extend to nor allow for any award of punitive or exemplary damages, or attorneys’ fees against the Tribe.

10STTGA~ 7.03, §~ 9-11.

11 The Tribe is a federally recognized “Indian Entity.” Indian Entities Recognized and Eligible To Receive Services from the United States Bureau of Indian Affairs, 82 Fed. Reg. 4915, 4918 (Jan. 17, 2017).

No.77007-1-1/4

In October 2015, the Tribe fired Long. In December 2015, the Tribe sued Long in King County Superior Court for breach of fiduciary duty, conversion, and unjust enrichment. Long answered and counterclaimed.

On January 22, 2016, before the expiration of Long’s gaming license, the Commission voted to suspend it pending a revocation hearing. Long sued the Commission in tribal court to enjoin the revocation of his license. The Commission asked the tribal court to dismiss this lawsuit for lack of subject matter jurisdiction. It did.

After an administrative hearing, the Commission revoked Long’s license.

Long appealed this revocation to the Snoqualmie Tribal Court. In August 2016, the tribal court found that the Commission’s decision was arbitrary and capricious and remanded the case for further proceedings.12 In September 2016, the Commission, on remand, affirmed its earlier decision and issued a final decision revoking Long’s license. In response, Long filed a new complaint against the Commission in tribal court.13 In January 2017, a settlement agreement ended the litigation in superior court between Long and the Tribe started by the Tribe. The only parties to the

12 The court indicated that the Commission’s written decision revoking Long’s license failed to sufficiently link the findings to the dishonesty and lack of integrity the Commission claimed violated the gaming act.

13 The Commission states in its brief that on November 13, 2017, the tribal

court denied Long’s motion for summary judgment, granted the Commission’s motion for summary judgment, and affirmed the Commission’s final decision to revoke Long’s license. Our record does not contain this tribal court decision.

No. 77007-1-I I 5

settlement agreement are Long and the Tribe. The agreement does not mention the Commission. The agreement describes a single lawsuit, the one started by the Tribe. The agreement makes no reference to either the proceedings between Long and the Commission or Long’s gaming license. The Commission and its counsel did not know about the settlement until January 11, 2017.

The settlement agreement states that Long and the Tribe waive all claims against each other incurred before the agreement, including but not limited to those upon which the suit was based.14 The agreement includes a limited waiver of sovereign immunity: “The Tribe hereby expressly and unequivocally waives any and all claim(s) of sovereign immunity for purposes of either Party seeking relief in Washington State Superior Court, King County, as outlined in this paragraph, for purposes of resolving any dispute arising under this Agreement.”

After the settlement, Long asked the Commission to rescind the revocation of his gaming license. It refused. In January 2017, he sued the

14 Paragraph 5 states, The Parties agree that the agreements herein are made entirely for the purpose of a compromise and settlement of a litigated dispute. Neither the consideration set forth herein, nor the compromise and settlement of said dispute, nor anything contained herein shall be construed to be an admission by any Party of liability to any other Party or to any other person or entity, nor shall it be construed to create any rights or interests in third persons or entities. The Parties agree and acknowledge that the fact of this settlement may not be used by any Party to prove or establish liability in any other action or proceeding of any kind whatsoever.

No. 77007-1-1/6

Commission in superior court, contending that the Commission violated the terms of the settlement agreement by refusing to rescind the revocation of his gaming license. Long submitted a number of discovery requests to the Commission.

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Wendell Long v. Snoqualmie Gaming Commission, 435 P.3d 339 (Wash. Ct. App. 2019).

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