*1 NATIVE VILLAGE OF
STEVENS, Appellant, & MANAGEMENT
ALASKA
PLANNING, Appellee.
No. S-1345. of Alaska.
Supreme Court
May 24, 1988. Aug. Denied
Rehearing Walleri, Tanana Chiefs Con-
Michael J. ference, Inc., Fairbanks, appellant. for Fairbanks, Merdes, appel- Edward A. lee. RABINOWITZ, C.J.,
Before MATTHEWS, BURKE, COMPTON and MOORE, JJ.
OPINION MATTHEWS, Justice. dispute out of a contract
This case arises (Ste- between the Native of Stevens Management Village) & vens and Alaska (AMP). Planning juryA returned a verdict AMP, finding had that Stevens *2 administration, ing, budget- appeal, On Stevens construction contract. breached the grounds it ing, progress on which Village three and construction evaluation. raises aside. should be set May, parties verdict In amended the believes the First, this suit is agreed provide that barred agreement. it claims AMP to con- sovereign immunity. Sec- administration, the doctrine expediting, engi- struction ond, the contract violated it contends that neering, construction services on the and regulations and government procurement project place of electrification Marks En- Finally, it therefore unenforceable. was contract, gineering. original Under the personal contract was a contends that the compensated per- AMP to was seven containing no term service contract definite plus percent cent of costs five construction and was therefore terminable of duration management of total costs for financial party. of either We conclude at the will Under services. the amendment to the Village that does not have sover- Stevens agreement, relating solely the electrifi- to that eign immunity. We further conclude project, per cation AMP was $35 to receive ground Village is the second Stevens raises expenses. plus hour none- meritorious. AMP is 2, 1983, By dated letter December Ste- quantum meruit re- theless entitled to Village vens terminated contract with covery. we un- Because find the contract Village AMP. Stevens claims that HUD not reach third enforceable we do problems and the state had found with the ground Village. We raised Stevens project’s electrification administration and therefore and remand retrial reverse for a Village’s relationship to AMP. Stevens damages. on the issue of Village asserts AMP failed to also provide report requested by status I. OF THE STATEMENT CASE failing that it for officials and fired AMP A. Statement Facts AMP, perform obligations. its contractual is Village Stevens an Alaska Native vil- hand, on the other claims that it was fired lage organized Reorgani- Village because Stevens learned could seq. (IRA), 461 et zation U.S.C. §§ get the services free TCC or the same the Yukon in Inte- located on River federal Public Health Service. Village rior Stevens re- Alaska. Department Housing ceived a federal Background B. Procedural (HUD) Development grant and for Urban $369,000 bring electricity to to be used to brought against AMP suit Stevens Vil- village. Tanana Chiefs Confer- lage Stevens for breach contract. Vil- ence, (TCC) Inc.1 assisted Stevens ground lage moved dismiss on the hiring in obtaining grant and an the HUD barred doctrine of suit was (Marks engineering management firm and sovereign immunity. The court denied trial Engineering) manage the electrification motion, concluding that the project. on the immunity defense did not exist facts event, that, any
AMP in of this and joint specializing is a case venture village had community Alaskan bush been waived. court devel- opment granted projects. oper- partial summary AMP AMP’s motion for owned Slaby finding ated judgment, David Nims. On that a valid contract ex- James parties. March isted It also denied Stevens entered between Village’s partial into a pursuant contract with AMP to Stevens cross-motion perform argu- “planning summary judgment, rejecting which AMP would services, management agreement and be ment that because the one established Engineer personal Architect and services which contained no record for Village.” duration, community period definite it was either Stevens AMP provide grant missing also to services as writ- essential that no con- such term so Conference, porations respect 1. The Tanana Chiefs Inc. non- contracts is a profit corporation grants. village cor- formed assist Martinez, Clara Pueblo v. Santa See it was terminable at formed or tract was L supra, 2d party. Ed either U.S.] [436 will Nonetheless, 98 S Ct [at 1676]. court Village’s petition to this Stevens authorization, of federal trib- absence denied. rulings was of the above for review aspects like al all of tribal to dismiss Village later moved privileged sovereignty, from diminu- con- ground on the claim AMP’s *3 States. in it was because unenforceable tract was Engineer v. Three Tribes Wold Affiliated procurement federal and state violation ing, 476 U.S. 877, 2305, 890-91, 106 S.Ct. court denied this regulations. The trial 2313, 881, (1986). 90 L.Ed.2d 894 well. motion as We conclude that Stevens trial, jury returned verdict After sovereign immunity does not have because $38,891.00. AMP, awarding it, Alaska, groups like in is not most native II. DISCUSSION in self-governing any meaningful or sense sovereign. supported This conclusion is by the Doc- This Suit is not Barred
A.
Atkinson v.
court,
the decisions of this
Sovereign Immunity
trine of
Haldane,
lans,
emphasis
located on the Annette Island Reser-
Id.
statement
“No
917-18.
at
recognized
has been
power
recognized in Alaska was inaccu-
dent nation
have been
Id.
at 920.5
in Alaska.”
re-
the Metlakatlans
have
rate because
Congressional
recognition.
In all
ceived
noted, Metlakatla
was reversed
As
however,
legal
respects,
conclu-
community of
as to
Supreme Court
in Metlakatla are accurate.6
sions
commu-
affirmed
Metlakatla
50-53,
S.Ct.
Egan,
Alaska,
unpublished
deci
oral
in an
Reserve
District
sion,
Puckett,
(1962), expressed
Tyonek
82-369
567-68
Decision,
(Transcript
December
of Oral
same views:
Civil
some
Village Tyonek
1986),
that the
has concluded
Alaska,
The Indians of southeastern
who
Moquawkie
Reserve
on the former
located
sovereign
very substantially adopted
history
have
adopted by
and been
Tyonek’s
"based on
civilization,
man’s
the white
govern
the federal
in which
and the manner
position
in the hostile and isolated
never
Tyonek."
20. The
Id. at
ment has dealt
early
many tribes in other States. As
as 1886
among
unique
Alaska vil
Tyonek
history
holding
judge,
Alaska Indians sub
McCord,
in Petition
lages, as
Amendment,
ject
denied that
to the Thirteenth
occupied
Tyonek
F.Supp.
because
principle
of Indian national
time it
Order Reservation
Executive
adopted
(US)
Georgia
6 Pet
enunciated in Worcester v
by-laws
a constitution
483, applied
Re Sah
8 L ed
to them.
Reorganization
49 Stat. 1250
Quah,
(D
[1886]).
If should think it that desirable would subject not be any provision Oregon this or of the Indian the civil criminal laws of and Report provided: on 7. Governor’s Task Force Feder- 10.Section of the Act “That the (Feb. 14, 1986) (here- al-State-Tribal Relations general Oregon the State of laws of now in force Report). inafter hereby are trict, to be declared the law in said dis- may applicable so far the same be and (1982), 8. 25 U.S.C. 473a 49 Stat. 1250 provisions not in conflict with the of this Act (1873); the laws of the United States...." Report, supra 9. 17 Stat. 485-530 note at 73. States, jurisdiction of subject as the white residents extent
the same courts.... its the District. Id. supra note at
Report,
1899, Congress
de-
Third.
In
enacted a
subject to the
were held
Natives
Alaska
superseding
crim-
tailed criminal code12
Oregon
criminal laws
general civil
Oregon
which had been
inal
laws
Organic
though
even
Alas-
under
by reference in the
adopted for Alaska
in his
governor recommended
ka’s second
enacting
In
local
Organic Act of 1884.
be amend-
that
report to
this,
national
legislation such as
“the
exempt
be
Natives would
ed so that
as the
... acts
States,
v. United
In
provisions.11 Kie
in ad-
act within their several limits
ments
(1886),
Tlingit
Indian
Fed.
ordinary rights
person
ministering the
Tlingit village
his
in a
killed
wife
who had
Dana,
In re
Fed.
property.”
prosecution
subject
properly
was held
(D.C.N.Y.1895);
United States
899-900
Oregon
Criminal
provision
under a
Doo-Noch-Keen,
2 Alaska
applicable in Alaska rather
Code
was
supra
Either the
Report,
note
88-89.
Major
the Federal
Indian
than under
Act,13
law,
Major Crimes
Indian
or tribal
(1885)
Act, 23 Stat. 362
which was
Crimes
crime,
depending
the nature
by one
applicable to homicides committed
not the 1899 Alaska Criminal Code would
Indian in Indian
against
Indian
another
if
villages
apply to Natives within Native
country.
sovereign or located
Quah,
(1886),
However, Congress
In re Sah
country.”
17. supra 7, note at 108 n. 74. reserva- Village not have a does dis- or rural community neighborhood, trict, may organize shows, and, never as the record insofar adopt constitutions to organized section under one. It was of had charters to receive and by-laws and incorporation of section proviso and the 16 of the IRA loans and However, consistent IRA. [IRA], of the Alaska 16, of the ... 10, §§ history of the Alaska legislative the with IRA, the Secre- Act authorized 2 of the Section Village of Stevens the constitution designate Indian to the Interior tary of power general police give it does —the to withdraw Alaska and in reservations re- except “any keep to power order— by “actually occupied Indians public lands by set aside the serve purpose. for that or Eskimos” Withholding gener- the village.”20 the for al Interior accomplished under police power was language section 1 of the proviso The which instructions Department Reorganization Act “as- prescribe to power “The part: stated were not mem- that Alaska Natives sumed relating government, for civil ordinances federally recognized Indian bers order, may extend law and particularly to tribes_” 7, Report, note 110- supra an may as be held only to such lands Congressional express ll.18 It was thus com- use of the the Indian reservation groups to applicable most Native statement in Alaska that munity. ...”21 they recog- had not been nized as tribes. Village granted never Since Stevens reservation, power of local the section 2 of the The more controversial In our extended to it. empowered Secretary to cre- been ment has never Alaska, regarded view, approval of section the mere ate reservations Village by the Sec- Department necessary to Interior for Stevens constitution protect rights Interior, Alaska Natives. with- which itself government retary holds Village, economic supra power note 111. Reser- to Report, of local thought Vil- to be a neces- to afford the vations were also not suffice does purpose appli- sary precondition to communities’ lage native tribal status exercising government powers under local doctrine of cation Ickes Secretary immunity. 16 of the IRA. As section stated in his letter to the House Committee accompanying summary, Reorga- Bill: In on Indian Affairs Alaska Indian important nization First, of Alaska are to Act is for two reasons. native communities “[I]f expressly it up systems government, of local it will states that Native set necessary stipulate groups in geographical Alaska have not been accorded Second, jurisdictions. recognition. forth a limits of their set accomplish Reservations sets might up by Secretary means achieve which Native of the Interior will self-governing status. this.”19 18. The House Committee on Indian Village property Affairs said or lands without proviso necessary consent, aid, that this peculiar “is get legal because as set forth in organizations nontribal under which the act June operate. They the Alaska Indians organization have no tribal To the use members nonmem- control general- as the term is understood bers of reserve aside Federal set ly.” H.Rep. Cong., No. 74th 2d Sess. Village keep for the order Government in the reserve. life, guard arts and to foster native To H.Rep. No. Cong., 74th 2d Sess. 3-5 against possessions native customs not (1936) (letter from Harold Ickes to Honorable law. Rogers), reprinted Will Report, supra . note Only grant third clause conditional is a at 112. power government; powers, unique to the other IV, important, corporations are 20. Article the Constitution of the while common organizations. provides: of Stevens and fraternal following powers: The shall have the Interior, things good 21.Dept, Organiza- do To all for the common Instructions for Reorganization right tions Alaska Under The which it has done or has had the to do (48 984) past against of June Stat. And and which Federal are (49 1250) May may apply. Act of Stat. law and law as And such Territorial Thereto, (Decem- 1(a) Amendments Instruction To deal with the and Territorial Federal 1937), Report, reprinted supra ber note Governments on Village, matters interest stop any giving away taking at 113. *9 Stevens that status was case of subject lands are tion. to state and local taxa- not achieved.22 Id. 1620. ANCSA abolishes all § in except reservations Alaska the Annette legislation passed sub- nothing in We see Island Reserve. Id. 1618. gives ANCSA § Reorganiza- sequent the Alaska to either state chartered municipalities or the recognition of constitutes Act which 1,280 state itself at least acres of the land authority. To the con- sovereign tribal underlying nificantly, village. each Sig- Id. § Native Claims of the Alaska trary, passage grant go this does not to IRA (ANCSA)23evidences Con- Settlement gress’s corporations, which would been logi- have non-reservation intent recipients cal if they were meant to have a policy subject largely to law. be Indeed, in government.25 role local there is 2(b): in section expressed of ANCSA nothing legislative in the history ANC- accomplished the settlement should be SA which remotely suggests that IRA vil- conformity certainty, in rapidly, with lages are to be recognized having as real economic and social needs with the of government role. Natives, litigation, by with maxi- without in participation mum sions Natives deci- 5. Conclusion affecting rights property, and their In a following series enactments the into the establishing ra- any permanent without Treaty first third extending of Cession and institutions, rights, privi- cially defined this century, Congress has creating leges, obligations, or without demonstrated communities intent that Alaska Native wardship system lengthy or reservation not be accorded trusteeship, adding or and without to tribal status. The this conclusion was the zation Act a mechanism accuracy historical property categories of and institutions expressly recognized enjoying special privileges or tax to proviso to the Reorgani- Alaska Indian legislation establishing special relation- and, although that Act afforded ships between the United States self-governing sta- ment and the of Alaska.... State might tus be achieved Native communi- 1601(b). 43 U.S.C. § ties, the mechanism not utilized Village. case of grants Stevens simple title in No enactment ANCSA fee subsequent regional corporations Reorgani- to village lands to Alaska Indian granted zation Act or organized under which are which are state law sov- ereign authority in sons, and in Alaska. For these any be treated as rea- corporations, exceptions opinions as accordance with temporary our Metlakatla, Atkinson and alienability stock. Id. we conclude §§ is not paid entitled to uti- The funds under ANCSA paid regional corporations.24 Id. lize defense of tribal are immuni- ty. temporary period, 1605. After a ANCSA parties special 22. The another issue this protection briefed IRA concluded that the of immu- IRA, nity case: whether section 16 of the 25 U.S.C. necessary great or desirable for the (1982), prevents against § 476 Ste- execution property. bulk Native Village's vens assets without its consent. Enti- 1613(c)(3) amended, organized 25.Section provides: ties under section 16 the IRA are sale, power prevent vested with "to dis- Village Corporation convey [T]he shall then lease, position, lands, any encumbrance Municipal Corporation in the Native vil- lands, lage interests in or other tribal assets without to the State Municipal in trust for appeal Corporation consent the tribe.” village established the Native money judgment, future, is from a from an order remaining in the title to the surface characterizing assets execution. improved estate of the land on which the what, question any, if are village assets available is located and as much addi- satisfy judgment should be raised in necessary tional land as is community post-judgment proceeding. trial in a expansion, court appropriate rights-of-way use, public community other foreseeable seq. U.S.C. 1601 et Provided, needs: That the amount lands to purpose 24. One served the doctrine of tribal Municipal Corporation transferred to the sovereign immunity give special protection is to 1,280 or in trust shall be no less than acres to dane, money. Indian lands and Atkinson v. Hal- Village Corporation unless the and Munic- Congress, by P.2d granting at 160. ipal- Corporation or the State in trust can money regu- Natives’ lands and to state agree writing on an amount which is less corporations lated exempt which are not them one eighty thousand two hundred suit, imposing significant and without restraints acres.... lands, on the evidently alienation of the *10 Finding Erred Village that the con- also asserts Lower Court The that Stevens B. against was prohibitions federal the Contract violated tract Enforceable responds AMP that it contracts. Allegations Violated contingent fee Despite project Regulations federally funded Procurement only Federal that AMP the electrification by was on worked moved to dismiss Village also Stevens governed by the amend- was project, which con- ground that on the claim
AMP’s
provided for
contract
that
ment
violated
it
because
unenforceable
tract
position
AMP’s
compensation.
hourly rate
regulations.
procurement
state
and
federal
The lower
record.
supported
is not
holding
motion,
court denied
trial
Slaby’s
in Daniel
assertions
found
court
affidavit,
violation, any
is a
fact
there
“if
that
of AMP’s
support
submitted
waived,
Federal
has been
violation
to be true.
summary judgment,
for
motion
it,
the State
waived
government’s
following:
contained the
That affidavit
Village has —the
it,
and
waived
ment’s
any any
project/grants
have waived
d. Additional
that
I
this action
parties
—
preparation
on
worked
included
of the
violation.”
Village] capital
improvement
.[Stevens
pro
is clear that violations
law
Case
program submitted to the Alaska State
regulations may render a con
curement
(item B),
a HUD CDBG
Legislature
Comdisco,
v.
Inc.
unenforceable.
tract
[Community Development Block Grant]
States,
(7th cir.
756 F.2d
United
developing
revolving housing
for
loan
Quinn
Corp.,
v.
and Western
1985);
Gulf
a HUD
program,
jobs project
for devel-
(2d Cir.1981); Schoenbrod v.
F.2d 89
oping
cooperative
process-
a fisheries
States,
404, 187
Ct.Cl.
410 F.2d
(item
ing plant
C),
on the Yukon River
Newspaper
New York Mail &
grant requests
logging
two CRA
for
States,
F.Supp.
Transp. Co. United
storage (items
F).
E
and fuel
&
I
denied,
276, 139
cert.
Ct.Cl. 751
grants
worked on these
based on the
332,
federal federal law. sovereign powers; up they yielded The First Circuit statute, plenary in the exercise of and, directly rely- Appeals faced this issue ing on control, removed still oth- Congress has precedent, concluded Supreme Court ers. recognition implied federal express or that was immunity. necessary to establish Indi- recognize that the our cases “But up their full given have an tribes sovereignty.... sovereignty that to, and our research has are cited We unique retain is of Indian tribes uncovered, case which conditions the no only exists It limited character. on the invocation factors lant: formal federal and is the sufferance to appel- emphasized the state or But until Con- complete defeasance. recognition of the existing acts, their gress sovereign powers. retain statute, particular by treaty or tribe sum, dealing prolonged course of between *14 aspects sov- possess those tribes still government, geo- of and the federal tribe treaty or by ereignty not withdrawn location, graphic na- the tribe’s warlike statute, neces- implication as a by or ture, protection of a the absence of state status dependent sary result their exercise of a tribe or the continued full tribe’s of sovereign powers. Bottomly Tribe, Passamaquoddy 599 surpris- authority of is not absence 1061, (1st Cir.1979) (quoting F.2d 1065-66 ing, urged by appellant analysis for the Wheeler, 313, United States v. 435 U.S. and the state seems to us to fundamen- 322-23, 303, 1079, 1085-86, 98 S.Ct. 55 L.Ed.2d tally principles of misconceive basic fed- (1978))(emphasis original 312-13 or effect, ap- eral Indian law. their court; by Bottomly added footnotes omit- proach the of an would condition exercise ted).7 Since had not waived the aspect sovereignty showing on a of sovereign tribe’s that the court held granted by it had federal recognition of the been the tribe the doctrine barred the suit even government, by explicit either though Congress explicitly had never implicitlythrough a course implicitly recognized the tribe. 599 F.2d at dealing. Supreme re- As the however, proper cently explained, analysis just is the reverse: Although Court has never issue, addressed this are, analysis powers of Indian “The court’s relevant decisions leads to the conclusion the First Circuit reached. general, powers a limited same ‘inherent Im- been extin- sovereignty which has never Therefore, curring). unlikely For it seems units. that Con governmental tribal as cal existence gress recognize Corporation is intended to all IRA 16 section Indian example, Ketchikan corporations purposes sovereign and 17. as tribes for 16 sections IRA organized both any immunity. descended "are members Yet its community, natives but are particular Indian Equalization in Ketchi v. Alaska Native happen live 7. Accord Board differing groups who Sisterhood, 14, Camp No. 666 P.2d v. Alaska Bhd. and 1015, Equalization Board kan.” J., 14, 1983) (Rabinowitz, (Alaska Sisterhood, P.2d 666 con- Camp. No. 1024 Bhd. J., 1983) (Rabinowitz, curring). con 1015, (Alaska 1025
47
ty.
contrary,
To the
discussion in
each
attribute of sover-
munity from suit is one
n his
tribes,
suggests
immunity
that the basis
eignty
which are
retained
sovereign
rather
torical
status
than
predating annexation
entities
recognition.
though
is
Three
“It
See
United States.
Affiliated
Tribes,
890,
2313,
106
sovereigns
476 U.S. at
S.Ct. at
immunity
theirs as
which was
(“The
no substantive
court decisions. Cong., 1st
S.Rep. No. 100th Sess. Cong. U.S.Code & Admin.News
1988, pp.
Thus, appears has cho- courts on to abdicate to the this issue.
sen any express
In the absence of federal rec-
ognition waiver court is to follow the bound common principles
law Supreme my
announced Court. opinion the court’s fails to
view do this. JANES, individually,
Richard and as representative, Appellant,
class
OTIS ENGINEERING
CORPORATION, Appellee.
No. S-1665. of Alaska. 3, 1988.
June
Rehearing Denied June
