21 F.4th 1140
9th Cir.2021Background
- MA-8 is a Moses-band allotment originally patented in trust to Wapato John; legal title vested in the United States (held by the BIA), with beneficial interests in multiple individual allottees (IAs), Wapato Heritage LLC, and the Confederated Tribes of the Colville Reservation.
- In 1984 the IAs (via BIA approval) executed a Master Lease to William W. Evans Jr. for 25 years with a 25‑year renewal option; Evans developed Mill Bay RV Park and sold member agreements marketed as lasting through 2034.
- Evans’s purported 1985 renewal notice was never given to the IAs as the lease required; Wapato Heritage (Evans’s successor) later sued, lost in district court and on appeal (Wapato Heritage I), and the Master Lease expired in 2009 without a valid extension.
- Mill Bay and Paul Grondal sued for a declaratory judgment asserting rights to occupy MA-8 through 2034; the BIA counterclaimed for trespass/ejectment. The district court denied Mill Bay’s defenses in 2010, then (after delays) granted BIA summary judgment and ejectment in 2020.
- On appeal the Ninth Circuit reviewed four primary defenses: BIA standing (trust status of MA-8), res judicata based on a 2004 state-court settlement, Master Lease ¶8 (assignment of subleases on termination), and equitable estoppel based on prior BIA conduct; the panel affirmed the district court on all points.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| BIA standing / trust status of MA-8 | MA-8 is no longer trust land (trust extensions were invalid); BIA lacks standing to eject | MA-8 remained in trust through successive lawful extensions; BIA holds legal title and can sue for trespass | MA-8 remains held in trust; the challenged trust extensions were lawful; BIA has standing to seek ejectment |
| Res judicata (2004 state settlement) | 2004 Settlement Agreement (state mediation) granted Mill Bay use through 2034 and precludes BIA ejectment | BIA was not a party to the state litigation and was not in privity with Wapato Heritage; claims differ | No res judicata: BIA not party/privity; the federal suit concerns different claims (Master Lease renewal) |
| Master Lease ¶8 (assignment of subleases on termination) | ¶8 preserves/assigns Mill Bay members’ subleases so members remain through 2034 | ¶8 applies only if lease was terminated prematurely (cancellation); lease here expired by passage of time | ¶8 does not apply to ordinary expiration; Master Lease expired without renewal, so subleases were not preserved beyond lease term |
| Equitable estoppel (BIA representations) | BIA’s conduct and representations induced reliance; estoppel should bar ejectment | United States acting as trustee for Indian land is not subject to equitable estoppel (City of Tacoma) | City of Tacoma controls; equitable estoppel unavailable against the U.S. in its trustee capacity; defense fails |
Key Cases Cited
- Starr v. Long Jim, 227 U.S. 613 (1913) (Moses Agreement did not guarantee fee title and allowed U.S. to hold allotments in trust)
- United States v. City of Tacoma, 332 F.3d 574 (9th Cir. 2003) (U.S. as trustee for Indian land not subject to equitable estoppel)
- Wapato Heritage LLC v. United States, 637 F.3d 1033 (9th Cir. 2011) (prior appeal confirming requirements for lease renewal notice under the Master Lease)
- County of Yakima v. Confederated Tribes & Bands of Yakima Indian Nation, 502 U.S. 251 (1992) (historical context on allotment trust protections and alienability/taxation)
- United States v. Mitchell, 445 U.S. 535 (1980) (discussion of trust restrictions, including alienation and taxation)
- DeCoteau v. Dist. Cnty. Ct., 420 U.S. 425 (1975) (Congressional authorization and treatment of trust relations)
- Jicarilla Apache Nation v. United States, 564 U.S. 162 (2011) (distinguishing when government actions may reflect sovereign interests rather than pure trustee actions)
