27 Cal.App.5th 565
Cal. Ct. App.2018Background
- Plaintiff Robert Findleton performed work for the Coyote Valley Band of Pomo Indians under two related agreements (Construction Agreement and Rental Contract, amended by a Third Amendment) and sought mediation/arbitration when unpaid.
- Findleton petitioned the Mendocino County Superior Court (2012) to compel mediation and arbitration; the Tribe moved to quash service and dismiss for lack of jurisdiction, asserting sovereign immunity and nonexhaustion of tribal remedies.
- In the first appeal (Findleton I), the Court of Appeal held the Tribe waived sovereign immunity to arbitrate and to judicially enforce arbitration and any award, and reversed the superior court’s dismissal and fee award to the Tribe.
- On remand, Findleton moved to compel arbitration and for attorney fees he incurred on appeal enforcing arbitration; the Tribe asked the superior court to defer ruling pending a demurrer asserting lack of jurisdiction and tribal-court delegation.
- The superior court denied a stay as to the fee motion, awarded Findleton costs and $28,148.75 in attorney fees for appellate work to enforce arbitration, and the Tribe appealed.
- The Court of Appeal affirmed: it held the Tribe had waived sovereign immunity for fees incurred enforcing the right to arbitrate, declined to require tribal-court exhaustion because no functioning tribal court existed when the action began, and rejected the Tribe’s abstention and timeliness arguments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the superior court had jurisdiction to award appellate attorney fees incurred to enforce arbitration | Fees are recoverable under the contract fee clause for costs incurred enforcing arbitration; prior appellate ruling waived sovereign immunity | Tribe contends waiver did not extend to fees under the Rental Contract or that no prevailing party exists under that clause | Court: Jurisdiction existed — Findleton I’s waiver includes judicial enforcement of arbitration and fees incurred to enforce that right; Tribe’s new arguments waived or barred by law of the case |
| Whether the Court of Appeal should consider Tribe’s new contract-scope and allocation arguments raised for first time on appeal | N/A (Findleton relied on trial record and did not need Tribe to litigate) | Tribe urged the appellate court to reach these unraised factual/legal points about which agreements govern fees | Court: Declined to consider new arguments—Tribe forfeited them by not raising below; issues involve factual inquiry unsuitable for first presentation on appeal |
| Whether state court should abstain/require exhaustion of tribal-court remedies (comity) | No exhaustion required because no functioning tribal court existed when suit filed; exhaustion would be futile and cause delay | Tribe urged LaPlante comity/exhaustion rule to require abstention to allow tribal court to decide jurisdiction | Court: Abstention/exhaustion not required here; Krempel and related authorities support not requiring exhaustion where no tribal forum was available when suit commenced |
| Whether the superior court prematurely decided fees before resolving jurisdiction | Fees ruling was appropriate; court overruled the Tribe’s jurisdictional objections | Tribe argued ruling was premature because jurisdiction was contested and demurrer was forthcoming | Court: No abuse of discretion; trial court concluded it had jurisdiction and appellate review affirms that conclusion |
Key Cases Cited
- Findleton v. Coyote Band of Pomo Indians, 1 Cal.App.5th 1194 (Cal. Ct. App.) (prior opinion holding Tribe waived sovereign immunity to arbitrate and permitting judicial enforcement)
- Iowa Mut. Ins. Co. v. LaPlante, 480 U.S. 9 (U.S. 1987) (federal comity/exhaustion principles require tribal courts be given first opportunity to decide jurisdictional issues)
- Nat’l Farmers Union Ins. Cos. v. Crow Tribe, 471 U.S. 845 (U.S. 1985) (articulating tribal remedy exhaustion doctrine)
- Krempel v. Prairie Island Indian Cmty., 125 F.3d 621 (8th Cir. 1997) (exhaustion not required where tribal court did not exist or was not operational when action filed)
- C & L Enters. v. Citizen Band Potawatomi Tribe of Okla., 532 U.S. 411 (U.S. 2001) (tribal-status and arbitration waiver issues require presentation in lower courts)