Miccosukee Tribe of Indians v. Cypress
975 F. Supp. 2d 1298
S.D. Fla.2013Background
- Miccosukee Tribe sues multiple defendants under federal RICO, Florida RICO, fraud, embezzlement, and related claims based on alleged misappropriation of tribal funds from 2005–2010.
- Defendants Dexter Lehtinen, Guy Lewis/Michael Tein/Lewis Tein, Miguel Hernandez, Julio Martinez, Billy Cypress, and Morgan Stanley are named; Morgan Stanley was later arbiter-ordered to arbitration and is terminated as a defendant.
- Miccosukee alleges Cypress recruited a team to embezzle millions and used tribal funds for personal expenses, with other defendants allegedly aiding through concealment and inflated fees.
- Defendants move to dismiss the Second Amended Complaint; Miccosukee responds; motions are fully briefed and ripe.
- The court treats the challenge as a facial attack on subject matter jurisdiction and applies the standards for 12(b)(1) and 12(b)(6) dismissal.
- The court concludes the action is an intra-tribal dispute and orders dismissal for lack of federal subject matter jurisdiction and declines to exercise supplemental jurisdiction over state-law claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court has subject matter jurisdiction over an intra-tribal dispute | Miccosukee asserts federal jurisdiction exists under RICO and related statutes. | Defendants contend the dispute is intra-tribal and not within federal jurisdiction. | Lack of federal subject matter jurisdiction; intra-tribal dispute dismissed. |
| Whether the court should exercise supplemental jurisdiction over remaining state-law claims | Plaintiff seeks federal adjudication of all claims together. | Defendants urge dismissal of federal claims and retention of state claims in state court if appropriate. | The court declines supplemental jurisdiction and dismisses state-law claims. |
Key Cases Cited
- Smith v. Babbitt, 100 F.3d 556 (8th Cir.1996) (intra-tribal membership dispute may limit federal jurisdiction)
- Sac & Fox Tribe of Mississippi in Iowa v. Bear, 258 F. Supp. 2d 938 (N.D. Iowa 2003) (intratribal disputes and lack of jurisdiction to adjudicate tribal governance)
- In re Sac & Fox Tribe of Mississippi in Iowa/Meskwaki Casino Litig., 340 F.3d 749 (8th Cir.2003) (affirmed intra-tribal limitations on federal jurisdiction)
- Montana v. United States, 450 U.S. 544 (1981) (tribal sovereignty and limits on federal jurisdiction over intra-tribal matters)
- Longie v. Spirit Lake Tribe, 400 F.3d 586 (8th Cir.2005) (tribal sovereignty and intra-tribal disputes)
- Cheyenne-Arapaho Tribes of Oklahoma v. Beard, 554 F. Supp. 1 (W.D. Okla. 1980) (early discussion of tribal governance and federal jurisdiction)
- Kaw Nation v. Springer, 341 F.3d 1186 (10th Cir.2003) (limits on federal jurisdiction in tribal disputes; precludes implied remedies)
- Bonner v. City of Prichard, 661 F.2d 1206 (11th Cir.1981) (binding effect of former Fifth Circuit decisions as Eleventh Circuit authority)
- United States v. Gibbs, 383 U.S. 715 (1966) (joint consideration of federal question and supplemental jurisdiction doctrines)