Aron Security, Inc. v. Unkechaug Indian Nation
151 A.D.3d 674
| N.Y. App. Div. | 2017Background
- Aron Security, Inc. (plaintiff) contracted to provide services to the Unkechaug Indian Nation (defendant/tribe).
- Plaintiff sued for breach of contract after the tribe allegedly failed to pay; a judgment for plaintiff was entered May 22, 2014.
- Plaintiff served an information subpoena on nonparty Michelle Jackson (a tribal signatory) to aid collection; Jackson did not respond and plaintiff moved to hold her in contempt.
- The tribe moved postjudgment under CPLR 3211(a)(2) to dismiss for lack of subject matter jurisdiction, invoking tribal sovereign immunity.
- The Supreme Court denied the tribe’s motion and denied the plaintiff’s contempt motion with leave to renew; appeals followed.
- The Appellate Division reversed: it held the contract did not contain an unequivocal waiver of tribal sovereign immunity, granted dismissal, vacated the judgment, and denied the contempt motion as academic.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contract waived the tribe's sovereign immunity so the suit may proceed | The forum-selection clause (Suffolk County) plus a New York choice-of-law clause show consent to be sued in New York | Clause is ambiguous and does not unequivocally consent to suit in state court; sovereign immunity remains | The contract did not unequivocally waive sovereign immunity; dismissal for lack of subject-matter jurisdiction granted |
| Whether the court should hold nonparty Michelle Jackson in contempt for ignoring an information subpoena | Plaintiff sought contempt to enforce the subpoena and aid collection of its judgment | Tribe argued lack of jurisdiction; once dismissal granted the contempt issue is moot | Contempt motion denied as academic after dismissal; judgment vacated |
Key Cases Cited
- Matter of Ransom v. St. Regis Mohawk Educ. & Community Fund, 86 N.Y.2d 553 (N.Y. 1995) (tribal sovereign immunity exists and waivers must be unequivocal)
- Oklahoma Tax Comm'n v. Citizen Band Potawatomi Tribe of Okla., 498 U.S. 505 (U.S. 1991) (recognition of tribal sovereign immunity)
- Kiowa Tribe of Okla. v. Manufacturing Technologies, Inc., 523 U.S. 751 (U.S. 1998) (tribal immunity covers commercial contracts)
- C & L Enterprises, Inc. v. Citizen Band Potawatomi Tribe of Okla., 532 U.S. 411 (U.S. 2001) (an unambiguous arbitration clause plus enforcement mechanism can constitute waiver)
- Ninigret Development Corp. v. Narragansett Indian Wetuomuck Housing Auth., 207 F.3d 21 (1st Cir. 2000) (arbitration clause effect on waiver analyzed)
- Sokaogon Gaming Enter. Corp. v. Tushie-Montgomery Assoc., 86 F.3d 656 (7th Cir. 1996) (arbitration-related waiver principles)
- Rosebud Sioux Tribe v. Val-U Const. Co. of S.D., 50 F.3d 560 (8th Cir. 1995) (arbitration clause can effectuate waiver of immunity)