Wes Colombe v. Rosebud Sioux Tribe
747 F.3d 1020
8th Cir.2014Background
- The Rosebud Sioux Tribe operates a casino on tribal trust land in South Dakota and contracted with BBC Entertainment, Inc. for five years beginning in 1994.
- BBC allegedly funded an initial Operation Expense Reserve but verbally modified the funding to 7.5% of net profits monthly, contrary to the contract's written terms.
- BBC withdrew $415,857 from the OER, claiming a 35% share of the remaining balance, aligning with net-profit divisions; the Tribe sued in tribal court for breach.
- IGRA and NIGC require NIGC Chairman approval for casino management contracts and any modifications; the oral modification was never presented to the NIGC Chairman.
- The Rosebud tribal court ruled against BBC; the Tribe sought relief via Rosebud Supreme Court, which remanded for damages; BBC did not appeal the remand decision.
- BBC’s insolvency led to a tribal suit to pierce BBC’s veil to recover judgment from BBC’s owners; Colombe moved to dismiss, arguing lack of tribal jurisdiction under IGRA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exhaustion of tribal remedies on jurisdiction | BBC argued IGRA limits jurisdiction; Rosebud Supreme Court lacked authority over jurisdictional challenge. | Tribe contends BBC failed to exhaust tribal remedies on tribal court jurisdiction over the modification issue. | BBC failed to exhaust tribal remedies; district court should have dismissed. |
| Exhaustion of other issues post-remand | BBC exhausted issues related to the tribal court’s jurisdiction; other remanded issues remained. | Tribe contends BBC did not exhaust issues remaining after remand. | District court proper to dismiss non-exhausted post-remand issues. |
| Excusing exhaustion due to insolvency or futility | Colombe/ BBC contend economic impossibility and futility of challenging tribal jurisdiction excused exhaustion. | Tribe argues no authority to excuse exhaustion on insolvency or speculative futility. | No excusal; futility and insolvency not sufficient to excuse exhaustion. |
Key Cases Cited
- Duncan Energy Co. v. Three Affiliated Tribes of Fort Berthold Reservation, 27 F.3d 1294 (8th Cir. 1994) (favoring tribal court first to determine jurisdiction)
- Reservation Tel. Coop. v. Three Affiliated Tribes of Fort Berthold Reservation, 76 F.3d 181 (8th Cir. 1996) (comity and exhaustion principle for tribal jurisdiction questions)
- Iowa Mut. Ins. Co. v. LaPlante, 480 U.S. 9 (1987) (tribal exhaustion requires full appellate opportunity before federal review)
- DISH Network Serv. L.L.C. v. Laducer, 725 F.3d 877 (8th Cir. 2013) (emphasizes tribal expertise in jurisdictional evaluation and exhaustion)
- National Farmers Union Ins. Cos. v. Crow Tribe of Indians, 471 U.S. 845 (1985) ( futility exception to exhaustion limited; need actual opportunity)
- White v. Pueblo of San Juan, 728 F.2d 1307 (10th Cir. 1984) (skepticism toward excusing exhaustion on mere speculation of futility)
- Nelson v. Adams USA, Inc., 529 U.S. 460 (2000) (notice and fairly put on issues; limits on broad jurisdictional challenges)