931 N.W.2d 707
S.D.2019Background
- October 6, 2016: a duplex on the Pine Ridge Indian Reservation exploded after propane leaked from an uncapped line in a shared crawl space; four people died.
- Plaintiff (Jennifer Chase Alone, personal representative) sued propane suppliers Lakota Propane and Western Co-op in state court for negligence, strict liability, and breach of warranty.
- Lakota Propane filed a third-party complaint against Oglala Sioux Housing Authority (Housing Authority) and several individually named tribal members, alleging they failed to cap gas lines during 2013–2016 cleanup/renovation work.
- The Housing Authority moved to dismiss for lack of subject-matter jurisdiction under SDCL 15-6-12(b)(1), submitting affidavits, tribal enrollment certificates, a charter, land records, and aerial photos showing the tort occurred on the Reservation and that defendants are tribal members or a tribal entity.
- The circuit court held a limited evidentiary hearing, admitted the Housing Authority’s testimony and exhibits, found the tort and parties were exclusively tribal/Reservation, and dismissed the third-party complaint for lack of jurisdiction.
- Lakota Propane appealed, arguing it was denied discovery and that the motion should have been converted to summary judgment (allowing broader discovery) before dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether state court has subject-matter jurisdiction over third-party tort claims arising on Reservation against tribal entity and enrolled members | Lakota Propane: state court may hear claims; no showing federal law preempts; requested discovery might show jurisdictional facts | Housing Authority: all defendants are tribal (or tribal entity) and tort occurred entirely in Indian country, so state jurisdiction would infringe tribal self-government | Court: no subject-matter jurisdiction; dismissal affirmed under infringement test (claims against tribal members/entity arising in Reservation must be heard in tribal or federal forum) |
| Whether the court abused discretion by admitting evidence and denying additional discovery / converting to summary judgment | Lakota Propane: trial by ambush; SDCL 15-6-56(f) conversion would permit discovery and be fair | Housing Authority: factual 12(b)(1) attack permits weighing evidence; discovery unnecessary because jurisdictional facts were uncontroverted | Court: factual 12(b)(1) procedure appropriate; no duty to convert to summary judgment; denial of extra discovery was not error because record showed discovery would not produce facts to defeat motion |
| Whether summary-judgment procedures (SDCL 15-6-56) apply to SDCL 15-6-12(b)(1) jurisdictional motions | Lakota Propane: wanted conversion to allow discovery under rule 56 | Housing Authority: summary-judgment procedures inappropriate for jurisdictional inquiries | Court: SDCL 15-6-56(f) inapplicable; summary-judgment procedures are inappropriate where court lacks jurisdiction; 12(b)(1) factual resolution governs |
| Distinction between subject-matter jurisdiction and sovereign immunity for discovery purposes | Lakota Propane: sought discovery to contest sovereign immunity and jurisdiction | Housing Authority: even if immunity contested, jurisdictional inquiry is threshold and dispositive | Court: subject-matter jurisdiction is threshold; once absent, court must dismiss without reaching sovereign-immunity discovery; the two concepts are distinct for remedy and procedure |
Key Cases Cited
- Williams v. Lee, 358 U.S. 217 (1959) (state jurisdiction barred where it would infringe tribal self-government)
- Washington v. Confederated Tribes of Colville Indian Reservation, 447 U.S. 134 (1980) (infringement test balancing tribal/federal and state interests)
- Osborn v. United States, 918 F.2d 724 (8th Cir. 1990) (courts may weigh evidence and hold hearings on factual 12(b)(1) attacks)
- Freeman v. United States, 556 F.3d 326 (5th Cir. 2009) (jurisdictional discovery not automatic; denied if record shows discovery unlikely to produce jurisdictional facts)
- Weeks Constr., Inc. v. Oglala Sioux Hous. Auth., 797 F.2d 668 (8th Cir. 1986) (recognizing tribal housing authority as an arm of tribal government)