572 U.S. 782 | SCOTUS | 2014
Lead Opinion
*785The question in this case is whether tribal sovereign immunity bars Michigan's suit against the Bay Mills Indian Community for opening a casino outside Indian lands. We hold that immunity protects Bay Mills from this legal action. Congress has not abrogated tribal sovereign immunity from a State's suit to enjoin gaming off a reservation or other Indian lands. And we decline to revisit our prior decisions holding that, absent such an abrogation (or a waiver), Indian tribes have immunity even when a suit arises from off-reservation commercial activity. Michigan must therefore resort to other mechanisms, including legal actions against the responsible individuals, to resolve this dispute.
I
The Indian Gaming Regulatory Act (IGRA or Act),
Pursuant to the Act, Michigan and Bay Mills, a federally recognized Indian Tribe, entered into a compact in 1993. See App. to Pet. for Cert. 73a-96a. The compact empowers Bay Mills to conduct class III gaming on "Indian lands"; conversely, it prohibits the Tribe from doing so outside that territory.
In 2010, Bay Mills opened another class III gaming facility in Vanderbilt, a small village in Michigan's Lower Peninsula about 125 miles from the Tribe's reservation. Bay Mills had bought the Vanderbilt property with accrued interest from a federal appropriation, which Congress had made to compensate the Tribe for 19th-century takings of its ancestral lands. See Michigan Indian Land Claims Settlement Act,
*787Michigan disagreed: The State sued Bay Mills in federal court to enjoin operation of the new casino, alleging that the facility violated IGRA and the compact because it was located outside Indian lands. The same day Michigan filed suit, the federal Department of the Interior issued an opinion concluding (as the State's complaint said) that the Tribe's use of Land Trust earnings to purchase the Vanderbilt property did not convert it into Indian territory. See App. 69-101. The District Court entered a preliminary injunction against Bay Mills, which promptly shut down the new casino and took an interlocutory appeal. While that appeal was pending, Michigan amended its complaint to join various tribal officials as defendants, as well as to add state law and federal common law claims. The Court of Appeals for the Sixth Circuit then vacated the injunction, holding (among other things) that tribal sovereign immunity barred Michigan's suit against Bay Mills unless Congress provided otherwise, and that § 2710(d)(7)(A)(ii) did not authorize the action. See
We granted certiorari to consider whether tribal sovereign immunity bars Michigan's suit against Bay Mills, 570 U.S. ----,
II
Indian tribes are " 'domestic dependent nations' " that exercise "inherent sovereign authority." Oklahoma Tax Comm'n v. Citizen Band Potawatomi Tribe of Okla.,
Among the core aspects of sovereignty that tribes possess-subject, again, to congressional action-is the "common-law immunity from suit traditionally enjoyed by sovereign powers." Santa Clara Pueblo,
In doing so, we have held that tribal immunity applies no less to suits brought by States (including in their own courts) than to those by individuals. First in Puyallup Tribe, Inc. v. Department of Game of Wash.,
Equally important here, we declined in Kiowa to make any exception for suits arising from a tribe's commercial activities, even when they take place off Indian lands. In that case, a private party sued a tribe in state court for defaulting on a promissory note. The plaintiff asked this Court to confine tribal immunity to suits involving conduct on "reservations or to noncommercial activities."
Our decisions establish as well that such a congressional decision must be clear. The baseline position, we have often held, is tribal immunity; and "[t]o abrogate [such] immunity, Congress must 'unequivocally' express that purpose." C & L Enterprises, Inc. v. Citizen Band Potawatomi Tribe of Okla.,
III
IGRA partially abrogates tribal sovereign immunity in § 2710(d)(7)(A)(ii) -but this case, viewed most naturally, falls outside that term's ambit. The provision, as noted above, authorizes a State to sue a tribe to "enjoin a class III gaming activity located on Indian lands and conducted in violation of any Tribal-State compact." See supra, at 2028; Kiowa,
Michigan first attempts to fit this suit within § 2710(d)(7)(A)(ii) by relocating the "class III gaming activity" to which *792it is objecting. True enough, Michigan states, the Vanderbilt casino lies outside Indian lands. But Bay Mills "authorized, licensed, and operated" that casino from within its own reservation. Brief for Michigan 20. According to the State, that necessary administrative action-no less than, say, dealing craps-is "class III gaming activity," and because it occurred on Indian land, this suit to enjoin it can go forward.
But that argument comes up snake eyes, because numerous provisions of IGRA show that "class III gaming activity" means just what it sounds like-the stuff involved in playing class III games. For example, § 2710(d)(3)(C)(i) refers to "the licensing and regulation of [a class III gaming] activity" and § 2710(d)(9) concerns the "operation of a class III gaming activity." Those phrases make perfect sense if "class III gaming activity" is what goes on in a casino-each roll of the dice and spin of the wheel. But they lose all meaning if, as Michigan argues, "class III gaming activity" refers equally to the off-site licensing or operation of the games.
*2033(Just plug in those words and see what happens.) See also §§ 2710(b)(2)(A), (b)(4)(A), (c)(4), (d)(1)(A) (similarly referring to class II or III "gaming activity"). The same holds true throughout the statute. Section 2717(a)(1) specifies fees to be paid by "each gaming operation that conducts a class II or class III gaming activity"-signifying that the gaming activity is the gambling in the poker hall, not the proceedings of the off-site administrative authority. And §§ 2706(a)(5) and 2713(b)(1) together describe a federal agency's power to "clos [e] a gaming activity" for "substantial violation[s]" of law-e.g., to shut down crooked blackjack tables, not the tribal regulatory body meant to oversee them. Indeed, consider IGRA's very first finding: Many tribes, Congress stated, "have licensed gaming activities on Indian lands," thereby necessitating federal regulation. § 2701(1). The "gaming activit[y]" is (once again) the gambling. And that means § 2710(d)(7)(A)(ii) does not allow Michigan's suit even *793if Bay Mills took action on its reservation to license or oversee the Vanderbilt facility.
Stymied under § 2710(d)(7)(A)(ii), Michigan next urges us to adopt a "holistic method" of interpreting IGRA that would allow a State to sue a tribe for illegal gaming off, no less than on, Indian lands. Brief for Michigan 30. Michigan asks here that we consider "IGRA's text and structure as a whole." Id., at 28. But (with one briefly raised exception) Michigan fails to identify any specific textual or structural features of the statute to support its proposed result.
*794But this Court does not revise legislation, as Michigan proposes, just because the text as written creates an apparent anomaly as to some subject it does not address. Truth be told, such anomalies often arise from statutes, if for no other reason than that Congress typically legislates by parts-addressing one thing without examining all others that might merit comparable treatment. Rejecting a similar argument that a statutory anomaly (between property and non-property taxes) made "not a whit of sense," we explained in one recent case that "Congress wrote *2034the statute it wrote"-meaning, a statute going so far and no further. See CSX Transp., Inc. v. Alabama Dept. of Revenue, 562 U.S. ----, ----,
In any event, IGRA's history and design provide a more than intelligible answer to the question Michigan poses about why Congress would have confined a State's authority to sue a tribe as § 2710(d)(7)(A)(ii) does. Congress adopted IGRA in response to this Court's decision in California v. Cabazon Band of Mission Indians,
And the resulting world, when considered functionally, is not nearly so "enigma[tic]" as Michigan suggests. Reply Brief 1. True enough, a State lacks the ability to sue a tribe for illegal gaming when that activity occurs off the reservation. But a State, on its own lands, has many other powers over tribal gaming that it does not possess (absent consent) in Indian territory. Unless federal law provides differently, "Indians going beyond reservation boundaries" are subject to any generally applicable state law. See *2035Wagnon v. Prairie Band Potawatomi Nation,
Finally, if a State really wants to sue a tribe for gaming outside Indian lands, the State need only bargain for a waiver of immunity. Under IGRA, a State and tribe negotiating a compact "may include ... remedies for breach of contract,"
Because IGRA's plain terms do not abrogate Bay Mills' immunity from this suit, Michigan (and the dissent) must make a more dramatic argument: that this Court should "revisit[ ] Kiowa 's holding" and rule that tribes "have no immunity for illegal commercial activity outside their sovereign territory." Reply Brief 8, 10; see post, at 2040. Michigan argues that tribes increasingly participate in off-reservation gaming and other commercial activity, and operate in that capacity less as governments than as private businesses. See Brief for Michigan 38 (noting, among other things, that "tribal gaming revenues have more than tripled" since Kiowa ). Further, Michigan contends, tribes have broader *798immunity from suits arising from such conduct than other sovereigns-most notably, because Congress enacted legislation limiting foreign nations' immunity for commercial activity in the United States. See id., at 41;
But this Court does not overturn its precedents lightly. Stare decisis, we have stated, "is the preferred course because it promotes the evenhanded, predictable, and consistent development of legal principles, fosters reliance on judicial decisions, and contributes to the actual and perceived integrity of the judicial process." Payne v. Tennessee,
And that is more than usually so in the circumstances here. First, Kiowa itself was no one-off: Rather, in rejecting the identical argument Michigan makes, our decision reaffirmed a long line of precedents, concluding that "the doctrine of tribal immunity"-without any exceptions for commercial or off-reservation conduct-"is settled law and controls this case."
We ruled that way for a single, simple reason: because it is fundamentally Congress's job, not ours, to determine whether or how to limit tribal immunity. The special brand of sovereignty the tribes retain-both its nature and its extent-rests in the hands of Congress. See Lara,
All that we said in Kiowa applies today, with yet one more thing: Congress has now reflected on Kiowa and made an initial (though of course not irrevocable) decision to retain that form of tribal immunity. Following Kiowa, Congress considered several bills to substantially modify tribal immunity *802in the commercial context. Two in particular-drafted by the chair of the Senate Appropriations Subcommittee on the Interior-expressly referred to Kiowa and broadly abrogated tribal immunity for most torts and breaches of contract. See S. 2299, 105th Cong., 2d Sess. (1998); S. 2302, 105th Cong., 2d Sess. (1998). But instead of adopting those reversals of Kiowa , Congress chose to enact a far more modest alternative requiring tribes either to disclose or to waive their immunity in contracts needing the Secretary of the Interior's approval. See Indian Tribal Economic Development and Contract Encouragement Act of 2000, § 2,
V
As "domestic dependent nations," Indian tribes exercise sovereignty subject to the will of the Federal Government. Cherokee Nation,
We affirm the Sixth Circuit's judgment and remand the case for further proceedings consistent with this opinion.
It is so ordered.
The Act defines "Indian lands" as "(A) all lands within the limits of any Indian reservation; and (B) any lands title to which is either held in trust by the United States for the benefit of any Indian tribe or individual[,] or held by any Indian tribe or individual subject to restriction by the United States against alienation and over which an Indian tribe exercises governmental power." § 2703(4).
The Sixth Circuit framed part of its analysis in jurisdictional terms, holding that the District Court had no authority to consider Michigan's IGRA claim because § 2710(d)(7)(A)(ii) provides federal jurisdiction only over suits to enjoin gaming on Indian lands (and Michigan's suit was not that). See
The Court of Appeals' decision applied not only to Michigan's case, but also to a consolidated case brought by the Little Traverse Bay Bands of Odawa Indians, which operates a casino about 40 miles from the Vanderbilt property. Little Traverse subsequently dismissed its suit, rather than seek review in this Court.
Michigan does not argue here that Bay Mills waived its immunity from suit. Recall that the compact expressly preserves both the Tribe's and the State's sovereign immunity. See supra, at 2028.
Michigan's single reference to another statutory provision,
Indeed, the statutory abrogation does not even cover all suits to enjoin gaming on Indian lands, thus refuting the very premise of Michigan's argument-from-anomaly. Section 2710(d)(7)(A)(ii), recall, allows a State to sue a tribe not for all "class III gaming activity located on Indian lands" (as Michigan suggests), but only for such gaming as is "conducted in violation of any Tribal-State compact ... that is in effect." Accordingly, if a tribe opens a casino on Indian lands before negotiating a compact, the surrounding State cannot sue; only the Federal Government can enforce the law. See
Michigan contends that these alternative remedies may be more intrusive on, or less respectful of, tribal sovereignty than the suit it wants to bring. See Brief for Michigan 15; Tr. of Oral Arg. 18. Bay Mills, which presumably is better positioned to address that question, emphatically disagrees. See id., at 32-33. And the law supports Bay Mills' position: Dispensing with the immunity of a sovereign for fear of pursuing available remedies against its officers or other individuals would upend all known principles of sovereign immunity.
Adhering to stare decisis is particularly appropriate here given that the State, as we have shown, has many alternative remedies: It has no need to sue the Tribe to right the wrong it alleges. See supra, at 2034 - 2035. We need not consider whether the situation would be different if no alternative remedies were available. We have never, for example, specifically addressed (nor, so far as we are aware, has Congress) whether immunity should apply in the ordinary way if a tort victim, or other plaintiff who has not chosen to deal with a tribe, has no alternative way to obtain relief for off-reservation commercial conduct. The argument that such cases would present a "special justification" for abandoning precedent is not before us. Arizona v. Rumsey,
See Nat. Gambling Impact Study Comm'n, Final Report, pp. 6-1 to 6-2 (1999), online at http://govinfo.library.unt.edu/ngisc/reports/6.pdf (as visited Apr. 30, 2014, and available in Clerk of Court's case file).
Kiowa explained that Congress, in the Foreign Sovereign Immunities Act of 1976,
Compare, e.g., Prevent All Cigarette Trafficking Act of 2009, §§ 2(e), (3)(a),
The dissent principally counters that this history is not "relevan[t]" because Kiowa was a "common-law decision." Post, at 2053. But that is to ignore what Kiowa (in line with prior rulings) specifically told Congress: that tribal immunity, far from any old common law doctrine, lies in Congress's hands to configure. See
Concurrence Opinion
The doctrine of tribal immunity has been a part of American jurisprudence for well over a century. See, e.g., Parks v. Ross,
*805The majority compellingly explains why stare decisis and deference to Congress' careful regulatory scheme require affirming the decision below. I write separately to further detail why both history and comity counsel against limiting Tribes' sovereign immunity in the manner the principal dissent advances.
I
Long before the formation of the United States, Tribes "were self-governing sovereign political communities." United States v. Wheeler,
In answering this question, the principal dissent analogizes tribal sovereign immunity to foreign sovereign immunity. Foreign sovereigns (unlike States) are generally not immune from suits arising from their commercial activities. Post, at 2057; see also Foreign Sovereign Immunities Act of 1976,
The case of Cherokee Nation v. Georgia,
II
The principal dissent contends that whenever one sovereign is sued in the courts of another, the question whether to confer sovereign immunity is not a matter of right but rather one of "comity." Post, at 2047. But in my view, the premise leads to a different conclusion than the one offered by the dissent. Principles of comity strongly counsel in favor of continued recognition of tribal sovereign immunity, including for off-reservation commercial conduct.
Comity-"that is, 'a proper respect for [a sovereign's] functions,' " Sprint Communications, Inc. v. Jacobs, 571 U.S. ----, ----,
A
We have held that Tribes may not sue States in federal court, Blatchford v. Native Village of Noatak,
Importantly, the Court barred the Tribe's suit against Florida even though the case involved the State's conduct in the course of commercial negotiations. As this Court later observed, relying in part on Seminole Tribe, the doctrine of state sovereign immunity is not "any less robust" when the case involves conduct "that is undertaken for profit, that is traditionally performed by private citizens and corporations, and that otherwise resembles the behavior of 'market participants.' " College Savings Bank v. Florida Prepaid *2042Postsecondary Ed. Expense Bd.,
As the principal dissent observes, "comity is about one sovereign respecting the dignity of another." Post, at 2047. This Court would hardly foster respect for the dignity of Tribes by allowing States to sue Tribes for commercial activity on State lands, while prohibiting Tribes from suing States for commercial activity on Indian lands. Both States and Tribes are domestic governments who come to this Court with sovereignty that they have not entirely ceded to the Federal Government.
Similar asymmetry would result if States could sue Tribes in state courts.
Two of the dissenting opinions implicitly address this asymmetry. The principal dissent reasons that States and Tribes should be treated differently for purposes of sovereign immunity because-unlike tribal sovereign immunity-*809state sovereign immunity has constitutional origins. Post, at 2047, n. 1. Justice GINSBURG offers another view: that Tribes and States should both receive less immunity. She expresses concerns about cases like Seminole Tribe, pointing to dissents that have catalogued the many problems associated with the Court's sprawling state sovereign immunity jurisprudence. Post, at 2055 - 2056 (citing, among others, Alden v. Maine,
As things stand, however, Seminole Tribe and its progeny remain the law. And so long as that is so, comity would be ill-served by unequal treatment of States and Tribes. If Tribes cannot sue States for commercial activities on tribal lands, the converse should also be true. Any other result would fail to respect the dignity of Indian Tribes.
B
The principal dissent contends that Tribes have emerged as particularly "substantial and successful" commercial actors. Post, at 2052. The dissent expresses concern that, although tribal leaders can be sued for prospective relief, ante, at 2035 (majority opinion), Tribes' purportedly growing coffers remain unexposed to *2043broad damages liability. Post, at 2050 - 2051. These observations suffer from two flaws.
First, not all Tribes are engaged in highly lucrative commercial activity. Nearly half of federally recognized Tribes in the United States do not operate gaming facilities at all. A. Meister, Casino City's Indian Gaming Industry Report 28 (2009-2010 ed.) (noting that "only 237, or 42 percent, of the 564 federally recognized Native American tribes in the U.S. operate gaming").
Second, even if all Tribes were equally successful in generating commercial revenues, that would not justify the commercial-activity exception urged by the principal dissent. For tribal gaming operations cannot be understood as mere profit-making ventures that are wholly separate from the Tribes' core governmental functions. A key goal of the Federal Government is to render Tribes more self-sufficient, and better positioned to fund their own sovereign functions, rather than relying on federal funding.
For example, States have the power to tax certain individuals and companies based on Indian reservations, making it difficult for Tribes to raise revenue from those sources. See Oklahoma Tax Comm'n v. Citizen Band Potawatomi Tribe of Okla.,
As commentators have observed, if Tribes were to impose their own taxes on *2044these same sources, the resulting double taxation would discourage economic growth. Fletcher, In Pursuit of Tribal Economic Development as a Substitute for Reservation Tax Revenue,
If non-Indians controlled only a small amount of property on Indian reservations, and if only a negligible amount of land was held in fee, the double-taxation concern might be less severe. But for many Tribes, that is not the case. History explains why this is so: Federal policies enacted in the late 19th and early 20th centuries rendered a devastating blow to tribal ownership. In 1887, Congress enacted the Dawes Act.
A second component of the Dawes Act opened "surplus" land on Indian reservations to settlement by non-Indians.
These policies have left a devastating legacy, as the cases that have come before this Court demonstrate. We noted in Montana v. United States,
Moreover, Tribes are largely unable to obtain substantial revenue by taxing tribal members who reside on non-fee land that was not allotted under the Dawes Act. As one scholar *813recently observed, even if Tribes imposed high taxes on Indian residents, "there is very little income, property, *2045or sales they could tax." Fletcher, supra, at 774. The poverty and unemployment rates on Indian reservations are significantly greater than the national average. See n. 4, infra . As a result, "there is no stable tax base on most reservations." Fletcher, supra, at 774; see Williams, Small Steps on the Long Road to Self-Sufficiency for Indian Nations: The Indian Tribal Governmental Tax Status Act of 1982, 22 Harv. J. Legis. 335, 385 (1985).
To be sure, poverty has decreased over the past few decades on reservations that have gaming activity. One recent study found that between 1990 and 2000, the presence of a tribal casino increased average per capita income by 7.4% and reduced the family poverty rate by 4.9 percentage points. Anderson, Tribal Casino Impacts on American Indians Well-Being: Evidence From Reservation-Level Census Data, 31 Contemporary Economic Policy 291, 298 (Apr. 2013). But even reservations that have gaming continue to experience significant poverty, especially relative to the national average. See id., at 296. The same is true of Indian reservations more generally.
Both history and proper respect for tribal sovereignty-or comity-counsel against creating a special "commercial activity" exception to tribal sovereign immunity. For these reasons, and for the important reasons of stare decisis and *814deference to Congress outlined in the majority opinion, I concur.
Dissenting Opinion
In Kiowa Tribe of Okla. v. Manufacturing Technologies, Inc.,
Justice THOMAS, with whom Justice SCALIA, Justice GINSBURG, and Justice ALITO join, dissenting.
In Kiowa Tribe of Okla. v. Manufacturing Technologies, Inc.,
That decision, wrong to begin with, has only worsened with the passage of time. In the 16 years since Kiowa, tribal commerce has proliferated and the inequities engendered by unwarranted tribal immunity have multiplied. Nevertheless, the Court turns down a chance to rectify its *2046error. Still lacking a substantive justification for Kiowa 's rule, the majority relies on notions of deference to Congress and stare decisis . Because those considerations do not support (and cannot sustain) Kiowa 's unjustifiable rule and its mounting consequences, I respectfully dissent. *815I
A
There is no substantive basis for Kiowa 's extension of tribal immunity to off-reservation commercial acts. As this Court explained in Kiowa, the common-law doctrine of tribal sovereign immunity arose "almost by accident."
1
Despite the Indian tribes' subjection to the authority and protection of the United States Government, this Court has deemed them "domestic dependent nations" that retain limited attributes of their historic sovereignty. Cherokee Nation v. Georgia,
This basis for immunity-the only substantive basis the majority invokes-is unobjectionable when a tribe raises immunity as a defense in its own courts. We have long recognized that in the sovereign's own courts, "the sovereign's power to determine the jurisdiction of its own courts and to define the substantive legal rights of its citizens adequately explains the lesser authority to define its own immunity." Kiowa,
2
Immunity for independent foreign nations in federal courts is grounded in international "comity," Verlinden B. v. Central Bank of Nigeria,
There is a further reason that comity cannot support tribal immunity for off-reservation commercial activities. At bottom, comity is about one sovereign respecting the dignity of another. See Nevada v. Hall,
*818("The Constitution ... 'leaves to the several States a residuary and inviolable sovereignty' " (quoting The Federalist No. 39, at 256)). When an Indian tribe engages in commercial activity outside its own territory, it necessarily acts within the territory of a sovereign State. This is why, "[a]bsent express federal law to the contrary, Indians going beyond reservation boundaries have generally been held subject to nondiscriminatory state law otherwise applicable to all citizens of the State." Mescalero Apache Tribe v. Jones,
Nor does granting tribes immunity with respect to their commercial conduct in state territory serve the practical aim of comity: allaying friction between sovereigns. See Banco Nacional de Cuba, supra, at 417-418,
3
This Court has previously suggested that recognizing tribal immunity furthers a perceived congressional goal of promoting tribal self-sufficiency and self-governance. See Kiowa,supra, at 757,
Nor is immunity for off-reservation commercial acts necessary to protect tribal self-governance. As the Kiowa majority conceded, "[i]n our interdependent and mobile society, ... tribal immunity extends beyond what is needed to safeguard tribal self-governance."
B
Despite acknowledging that there is scant substantive justification for extending tribal immunity to off-reservation commercial acts, this Court did just that in Kiowa. See
This asserted "deference" to Congress was a fiction and remains an enigma, however, because the Kiowa Court did not actually leave to Congress the decision whether to extend tribal immunity. Tribal immunity is a common-law doctrine adopted and shaped by this Court. Oklahoma Tax Comm'n v. Citizen Band Potawatomi Tribe of Okla.,
Accident or no, it was this Court, not Congress, that adopted the doctrine of tribal sovereign immunity in the first instance. And it was this Court that left open a question about its scope. Why should Congress-and only Congress, according to the Kiowa Court-have to take *2050on a problem this Court created? In other areas of federal common law, until Congress intervenes, it is up to us to correct our errors. See, e.g., Exxon Shipping Co. v. Baker,
II
Today, the Court reaffirms Kiowa . Unsurprisingly, it offers no new substantive defense for Kiowa 's indefensible view of tribal immunity. Instead, the majority relies on a combination of the Kiowa Court's purported deference to Congress and considerations of stare decisis . I have already explained why it was error to ground the Kiowa rule in deference to Congress. I turn now to stare decisis . Contrary to the majority's claim, that policy does not require us to preserve this Court's mistake in Kiowa . The Court's failure to justify Kiowa 's rule and the decision's untoward consequences outweigh the majority's arguments for perpetuating the error.
A
Stare decisis may sometimes be "the preferred course," but as this Court acknowledges, it is "not an inexorable command." Payne v. Tennessee,
In the 16 years since Kiowa, the commercial activities of tribes have increased dramatically. This is especially evident within the tribal gambling industry. Combined tribal gaming revenues in 28 States have more than tripled-from *823$8.5 billion in 1998 to $27.9 billion in 2012. National Indian Gaming Commission, 2012 Indian Gaming Revenues Increase 2.7 Percent (July 23, 2013), online at http://www.nigc.gov/LinkClick.aspx?fileticket=Fhd5shyZ1fM% 3D (all Internet materials as visited May 2, 2014, and available in Clerk of Court's case file). But tribal businesses extend well beyond gambling and far past reservation borders. In addition to ventures that take advantage of on-reservation resources (like tourism, recreation, mining, forestry, and agriculture), tribes engage in "domestic and international business ventures" including manufacturing, retail, banking, construction, energy, telecommunications, and more. Graham, An Interdisciplinary Approach to American Indian Economic Development,
As the commercial activity of tribes has proliferated, the conflict and inequities brought on by blanket tribal immunity have also increased. Tribal immunity significantly limits, and often extinguishes, the States' ability to protect their citizens and enforce the law against tribal businesses. This case is but one example: No one can seriously dispute that *824Bay Mills' operation of a casino outside its reservation (and thus within Michigan territory) would violate both state law and the Tribe's compact with Michigan. Yet, immunity poses a substantial impediment to Michigan's efforts to halt the casino's operation permanently. The problem repeats itself every time a tribe fails to pay state taxes, harms a tort victim, breaches a contract, or otherwise violates state laws, and tribal immunity bars the only feasible legal remedy. Given the wide reach of tribal immunity, such scenarios are commonplace.
In the wake of Kiowa, tribal immunity has also been exploited in new areas that are often heavily regulated by States. For instance, payday lenders (companies that lend consumers short-term advances on paychecks at interest rates that can reach upwards of 1,000 percent per annum) often arrange to share fees or profits with tribes so they can use tribal immunity as a shield for conduct of questionable legality. Martin & Schwartz, The Alliance Between Payday Lenders and Tribes: Are Both Tribal Sovereignty and Consumer Protection at Risk?
In sum, any number of Indian tribes across the country have emerged as substantial and successful competitors in interstate and international commerce, both within and beyond Indian lands. As long as tribal immunity remains out of sync with this reality, it will continue to invite problems, including de facto deregulation of highly regulated activities; unfairness to tort victims; and increasingly fractious relations with States and individuals alike. The growing harms wrought by Kiowa 's unjustifiable rule fully justify overruling it.
*826B
In support of its adherence to stare decisis, the majority asserts that "Congress has now reflected on Kiowa " and has decided to "retain" the decision. Ante, at 2037; see also ante, at 2039 ("[W]e act today against the backdrop of an apparent congressional choice: to keep tribal immunity ... in a case like this one"). On its face, however, this is a curious assertion. To this day, Congress has never granted tribal sovereign immunity in any shape or form-much less immunity that extends as far as Kiowa went. What the majority really means, I gather, is that the Court must stay its hand because Congress has implicitly approved of Kiowa 's rule by not overturning it.
This argument from legislative inaction is unavailing. As a practical matter, it is " 'impossible to assert with any degree of assurance that congressional failure to act represents' affirmative congressional approval of" one of this Court's decisions. Patterson v. McLean Credit Union,
Even assuming the general validity of arguments from legislative inaction, they *2053are a poor fit in this common-law context. Such arguments are typically based on the premise *827that the failure of later Congresses to reject a judicial decision interpreting a statute says something about what Congress understands the statute to mean. See, e.g.,
First, the majority cites two Senate bills that proposed to abrogate tribal immunity for contract and tort claims against tribes. See S. 2299, 105th Cong., 2d Sess. (1998) (contract claims); S. 2302, 105th Cong., 2d Sess. (1998) (tort claims). Neither bill expresses Congress' views on Kiowa 's rule, for both died in committee without a vote.
*829Second, the majority notes various post-Kiowa enactments that either abrogate tribal immunity in various limited contexts or leave it be. See ante, at 2037, 2038, n. 10. None of these enactments provides a reason to believe that Congress both considered and approved Kiowa 's holding. None of them targets with any precision the immunity of Indian tribes for off-reservation commercial activities. See, e.g., Indian Tribal Economic Development and Contract Encouragement Act of 2000 (codified at
The majority posits that its inference of congressional approval of Kiowa is stronger because Congress failed to act after the Kiowa Court "urg[ed]" Congress to consider the question presented. Ante, at 2037, 2038 - 2039 (quoting Kiowa,
C
The majority's remaining arguments for retaining Kiowa are also unconvincing.
First, the majority characterizes Kiowa as one case in a "long line of precedents" in which the Court has recognized tribal immunity "without any exceptions for commercial or off-reservation conduct." Ante, at 2036. True, the Court has relied on tribal immunity as a general matter in *2055several cases. But not until Kiowa were we required to decide whether immunity should extend to commercial activities beyond Indian reservations. See supra, at 2048. And after Kiowa, we have mentioned it only once, and then only in dicta. C & L Enterprises, Inc. v. Citizen Band Potawatomi Tribe of Okla.,
Second, the majority suggests that tribes and their business partners have now relied on Kiowa in structuring their contracts and transactions. Ante, at 2036. But even when Kiowa extended the scope of tribal immunity, it was readily apparent that the Court had strong misgivings about it. Not one Member of the Kiowa Court identified a substantive justification for its extension of immunity: Three would not have expanded the immunity in the first place, Kiowa,
* * *
In Kiowa, this Court adopted a rule without a reason: a sweeping immunity from suit untethered from commercial realities and the usual justifications for immunity, premised on the misguided notion that only Congress can place sensible limits on a doctrine we created. The decision was mistaken then, and the Court's decision to reaffirm it in the face of the unfairness and conflict it has engendered is doubly so. I respectfully dissent.
State sovereign immunity is an exception: This Court has said that the States' immunity from suit in federal court is secured by the Constitution. See Kimel v. Florida Bd. of Regents,
The Court in Kiowa noted that in one case, we upheld a claim of immunity where "a state court had asserted jurisdiction over tribal fishing 'both on and off its reservation.' "
Nor did the Kiowa Court "defer" to any pre-existing congressional policy choices. As I have already made clear, the rule the Court chose in Kiowa was divorced from, and in some ways contrary to any federal interest. See Part I-A, supra ; see also Kiowa,
Lower courts have held that tribal immunity shields not only Indian tribes themselves, but also entities deemed "arms of the tribe." See, e.g., Breakthrough Management Group, Inc. v. Chukchansi Gold Casino & Resort,
The majority appears to agree that the Court can revise the judicial doctrine of tribal immunity, because it reserves the right to make an "off-reservation" tort exception to Kiowa 's blanket rule. See ante, at 2036 - 2037, n. 8. In light of that reservation, the majority's declaration that it is "Congress's job ... to determine whether or how to limit tribal immunity" rings hollow. Id., at 2037. Such a judge-made exception would no more defer to Congress to "make the call whether to curtail a tribe's immunity" than would recognizing that Kiowa was wrongly decided in the first instance. Id., at 2037. In any event, I welcome the majority's interest in fulfilling its independent responsibility to correct Kiowa 's mistaken extension of immunity "without any exceptions for commercial or off-reservation conduct." Id., at 2036. I regret only that the Court does not see fit to take that step today.
Of course, stare decisis still applies in the common-law context; I reject only the notion that arguments from legislative inaction have any place in the analysis.
I also reject the majority's intimation that stare decisis applies as strongly to common-law decisions as to those involving statutory interpretation. The majority asserts that stare decisis should have " 'special force' " in this case because " 'Congress remains free to alter what we have done.' " Ante, at 2036 (quoting Patterson v. McLean Credit Union,
Dissenting Opinion
I join Justice THOMAS' dissenting opinion with one reservation. Kiowa Tribe of Okla. v. Manufacturing Technologies, Inc.,
While this case involves a suit against a Tribe in federal court, the principal dissent also critiques tribal sovereign immunity in state courts. Post, at 2047 - 2048.
The term " 'Indian gaming facility' is defined as any tribal enterprise that offer[s] gaming in accordance with [the Indian Gaming Regulation Act].' " A. Meister, Casino City's Indian Gaming Industry Report 10 (2009-2010 ed.).
This figure does not include land taken from Indian Tribes after World War II; during that time, some Tribes and reservations were liquidated and given to non-Indians. A. Debo, A History of Indians of the United States 301-312 (1970).
See Dept. of Interior, Office of Assistant Secretary-Indian Affairs, 2013 American Indian Population and Labor Force Report 11 (Jan. 16, 2014) (placing the poverty rate among American Indians at 23%); see also Dept. of Commerce, Bureau of Census, Press Release, Income, Poverty and Health Insurance Coverage in the United States: 2010 (Sept. 13, 2011) stating that the national poverty rate in 2010 was 15.1%), online at http://www.census.gov/newsroom/releases/archives/income_wealth/cb13-165. html (as visited May 22, 2014, and available in Clerk of Court's Case file).
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