Kiowa Indian Tribe v. HooverKiowa Indian Tribe v. Hoover
This is a consolidated appeal of the dismissal of a
In conjunction with its
I
State Proceedings
The Kiowa Tribe of Oklahoma is a federally recognized Indian tribe.
1
61 Fed.Reg. 58,211, 58,213 (1996). This consolidated appeal stems from a series of related suits
2
against the Kiowa Tribe and certain named tribal representatives arising from promissory notes the Tribe gave to purchаse all stock in ClintonSherman Aviation, Inc.
3
Neither Congress nor the Tribe' consented to these suits or otherwise waived the Tribe’s sovereign immunity. To the contrary, the Tribe specifically reserved its sovereign rights in the notes upon which it was sued.
See, e.g.,
Hoover,
Creditor Robert M. Hoover, Jr., a non-Indian, sued the Tribe and six named individuals in state court alleging the Tribe breached a contraсt by failing to make any of the agreed payments on a promissory note for $142,500.
5
Hoover,
Meanwhile, Aircraft Equipment Company (Aircraft Equipment) sued Kiowa for breach of an assumption agreement in which the Tribe agreed to assume the indebtedness of Aircraft Equipment on a note, and failed to make the required payments on the outstanding debt of $180,000.
6
Aircraft Equip. Co. v. Kiowa Tribe,
While the decision of the state district court in
Aircraft Equip. I
was on appeal, Aircraft Equipment initiated post-judgment proceedings in the state district court to satisfy the money judgment entered against the Tribe.
7
See Aircraft Equip. Co. v. Kiowa Tribe,
Aircraft Equipment also sought equitable relief in the nature of a creditor’s bill.
Aircraft Equip. II,
Federal Proceedings
While the appeal in
Aircraft Equip. II
was pending before the Oklahoma Supreme Court, the Tribe concluded pursuit of further relief in state court was “vain, useless and inadequate” in light of the
Hoover
and
Aircraft Equip. I
decisions and commenced a
After a hearing before the federal district court, the Kiowa Tribe’s motion for a preliminary injunction was denied. Kiowa appealed the denial of the preliminary injunction. 10 While that appeal was pending, the district court dismissed the Tribe’s suit, holding the Rooker-Feldman doctrine barred the court from hearing Kiowa’s claims. The Kiowa Tribe appealed. These appeals have been consolidated pursuant to a motion by the Tribe.
During the pendency of this appeal, the Supreme Court rendеred a decision in
Kiowa Tribe v. Manufacturing Tech. Inc.,
— U.S. —,
II
The ultimate questions for our decision are whether the Tribe’s
The federal district court dismissed the Kiowa Tribe’s
Rooker-Feldman Doctrine
The threshold question is whether consideration of the Tribe’s
While the Tribe’s appeal in
Aircraft Equip. II
was pending before the Oklahoma Supreme Court, the federal district court concluded the Tribe’s
Both Supreme Court jurisprudence and the factual context of the case at bar compel a narrow reаding of the “inextricably intertwined” test. In
Pennzoil Co. v. Texaco, Inc.,
The Court’s very invocation of
Younger
implies the district court properly exercised jurisdiction over Texaco’s
The Supreme Court’s reasoning in Pennzoil indicates that if the purpose of a federal action is “separable from and collateral to” a state court judgment, then the claim is not “inextricably intertwined” merely because the action necessitates some consideration of the merits of the state court judgment. Moreover, on its facts, Pennzoil demonstrates that asking a federal court to enjoin post-judgment collection procedures that allegedly violate a party’s federal rights is distinguishable from asking a federal court to review the merits of the underlying judgment.
We find further support for our reading of
Pennzoil
in
Oklahoma Tax Comm’n v. Citizen Band Potawatomi Indian Tribe,
While the
Rooker-Feldman
doctrine was not at issue in
Citizen Band,
the ease does illustrate that the question of whether certain post-judgment enforcement procedures are available may be separable from and collateral to the question of whether a judgment may be entered in the first instance against an Indian tribe, even though the answers to both questions turn on the reach of tribal sovereign immunity. Both
Pennzoil
and
Citizen Band
instruct us to examine carefully
Although the Tribe’s
Federal district court review of the availability of particular post-judgment enforcement procedures could have proceeded without disturbing the underlying judgments in
Hoover
and
Aircraft Equip. I.
Thus, the Tribe’s
Accordingly, the decision of the district court dismissing the Tribe’s
Preliminary Injunction
While its
The grant of a preliminary injunction is within thе sound discretion of the district court.
See Lundgrin v. Claytor,
By way of demonstrating irreparable harm, the Tribe contended its creditors were-seizing assets necessary to run the tribal government, thus interfering with the Tribe’s ability to engage in self-government, and threatening a partial shutdown of a sovereign tribe’s government. The Tribe also contended that the burdens of litigating in a court without jurisdiction over the Tribe constituted per se irreparable harm. The district court, however, concluded the Tribe failed to demonstrate it was incapable of posting a supersedeas bond or that such a bond would not prevent the threatened injury to Kiowa’s ability to govern. Absent such a showing, the district' court found it was simply not appropriate to issue a preliminary injunction.
Recognizing the sovereign status of the Kiowa Tribe, we are convinced the Tribe has made a sufficient showing of irreparable harm as a matter of law. First, the seizure of tribal assets, including severаnce taxes owed to the Tribe, and the concomitant
As we have noted, the decision of the district court relied only on the issue of irreparable harm and did not address the other three conditions required for issuance of a preliminary injunction. Accordingly, we reverse the district court’s denial of a preliminary injunction and remand for further consideration of the Tribe’s request consistent with this opinion.
Ill
The district court’s decisions to dismiss the Tribe’s
Notes
. Federal recognition means Kiowa “is entitled to the immunities and privileges available to ... federally acknowledged Indian tribes by virtue of their. govemment-to-government relationship with the United States.”
. Related suits include
Hoover v. Kiowa Tribe,
. At the time the notes were issued, Clinton-Sherman Aviation, Inc. was an Oklahoma corporation engaged in aircraft reрair and maintenance at the former Clinton-Sherman Air Force Base, located near Bums Flat, outside Indian Country.
See Hoover,
. The Tribe expressly reserved its tribal sovereign immunity by inserting provisions similar to the following into the various notes and security agreements: “Nothing in this Guaranty subjects or limits the sovereign rights of the Kiowa Tribe of Oklahoma.”
Aircraft Equip. Co.,
. On April 3, 1990, the Tribe, represented by six individuals named in Mr. Hoover’s complaint, made, executed, and delivered the promissory note to Mr. Hoover. The Tribe simultaneously executed a security agreement pledging as security 5,000 shares of common stock of Clinton-Sherman Aviation, Inc. After the Tribe's alleged breach, Mr. Hoover gave proper notice to the Tribe and sold the stock at public auction, buying it himself for $1.00. He then filed suit against the Tribe to recover the balance on the note.
See Hoover,
. Aircraft Equipment was the maker of a note payable to Carl E. Gungoll Exploration Joint Venture (Gungoll Exploration) in the amount of $200,000, with $180,000 still owing. The Tribe agreed to assume Aircraft Equipment’s obligation on the note in order to purchase all Aircraft Equipment’s assets. When the Tribe failed to make the agreed upon payments to Gungoll Exploration, Aircraft Equipment made the payments, and then sued the Tribe to recover.
Aircraft Equip. Co.,
. The record also indicates Mr. Hoover garnished the First National Bank of Mountain View, seeking to seize three bank accounts holding tribal funds used for operation of tribal programs; garnished the Bureau of Indian Affairs, seeking to seize tribal funds maintained by the Bureau; initiated execution on real estate held in trust by the United States for the use and benefit of the Tribe; and initiated execution on several motor vehicles owned by the Tribe and used in administration of tribal governmental programs.81-86.
Tribal tax revenues also were seized, and federal funds appropriated to the Tribe were frozen by various creditors in other post-judgment actions related to the Clinton-Sherman Aviation deal. See, e.g., Carl E. Gungoll Exploration Joint Venture v. Kiowa Tribe, (W.D.Okla.) No. CIV-96-2059-T (before removal, CJ90-10166, Dist. Ct. of Okla. County) (Anadarko Bank & Trust Co., garnishee); Hoover v. Kiowa Tribe, (W.D.Okla.) No. CIV-96-1624L (before removal, No. CJ-91-667, Dist. Ct. of Okla. County) (First Nat'l Bank of Mountain View, garnishee). Federal program funds have now been recovered by the Tribe. (Oral Argument, Nov. 17, 1997.)
. Under the General Revenue and Taxation ordinance adopted by the Tribe, failure to pay the severance tax on a monthly basis creates a lien on all oil and gas proceeds attributable to the working interest owners of mineral rights.
See Aircraft Equip. II,
. The Tribe also sought actual and punitive damages against Mr. Hoover and Aircraft Equipment, plus attornеys’ fees.
. The Tribe filed a motion for injunction pending appeal pursuant to
. At least one court has suggested the
Rooker-Feldman
doctrine "is broader than claim and issue preclusion because it does not depend on a final judgment on the merits."
Charchenko v. City of Stillwater,