Weeks Construction, Inc. (“Weeks”) appeals the district court’s 1 order dismissing Weeks’ breach of contract actions against the Oglala Sioux Housing Authority (“the Housing Authority”) and against the United States and the Department of Housing and Urban Development (“HUD”) for lack of jurisdiction. We affirm the decision of the district court.
The Housing Authority was created by Oglala Sioux tribal ordinance to develop and administer housing projects on the Pine Ridge Indian Reservation in South Dakota. Weeks, a Montana corporation, contracted with the Housing Authority to build housing units on the reservation. Funds for construction of the housing units for which Weeks contracted were provided pursuant to an annual contributions contract executed between HUD and the Housing Authority.
Contractual disputes arose between Weeks and the Housing Authority during construction of the housing; the Housing Authority eventually declared Weeks in default. Weeks filed suit in federal court against the Housing Authority for money damages for breach of contract. Weeks also sued the United States and HUD on the grounds that both are liable for any amounts owed Weeks by the Housing Authority under the contract. Upon separate motions of the Housing Authority and the United States and HUD, the district court dismissed the suits for lack of jurisdiction. The district court found that federal jurisdiction over the Housing Authority could be based neither on a federal question nor on diversity of citizenship. It then found that the Oglala Sioux Tribal Court must initially determine whether it has jurisdiction over Weeks’ suit against the Housing Authority. The district court also found that jurisdiction over Weeks’ claims against the United States and HUD lies exclusively with the Claims Court. This appeal followed.
I. Federal Jurisdiction over the Housing Authority
Waiver of sovereign immunity
Weeks contends that federal jurisdiction over this action exists because the “sue and be sued” clause contained in the tribal ordinance chartering the Housing Authority represents a waiver of sovereign immunity, does not limit that waiver of immunity to any particular court, and therefore is a consent to be sued in any forum. The Housing Authority does not dispute that it is amenable to suit, but maintains that its waiver of sovereign immunity cannot confer subject matter jurisdiction on the federal district court.
Indian tribes have long been recognized as possessing the common-law immunity from suit traditionally enjoyed by sovereign powers.
Santa Clara Pueblo v. Martinez,
Waiver of sovereign immunity by an Indian tribe recently has been addressed by this court. In
American Indian Agricultural Credit Consortium, Inc. v. Standing Rock Sioux Tribe,
[t]he Council hereby gives its irrevocable consent to allowing the Authority to sue and be sued in its corporate name, upon any contract, claim or obligation arising out of its activities under this ordinance and hereby authorizes the Authority to agree by contract to waive any immunity from suit which it might otherwise have; but the Tribe shall not be liable for the debts or obligations of the Authority, except insofar as expressly authorized hereafter by the Council.
Ordinance Chartering the Oglala Sioux Housing Authority, Article V, § 2 (1976).
2
A “sue and be sued” clause such as is set forth in the tribal ordinance quoted above has been recognized as constituting an express waiver of sovereign immunity.
See, e.g., American Indian Agricultural Credit,
However, the Housing Authority’s waiver of sovereign immunity under the tribal ordinance’s “sue and be sued” language does not by fiat confer jurisdiction on the federal courts. Weeks’ reliance on authority that states that an Indian tribe’s consent to suit is not limited to suit in tribal court but could extend to suit in federal court,
see Namekagon,
Federal question jurisdiction
Under 28 U.S.C. § 1331, a federal district court has “original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331 (1980). A non-frivolous claim of a right or remedy under a federal statute is sufficient to invoke federal question jurisdiction.
Northwest South Dakota Production Credit Association v. Smith,
Diversity jurisdiction
A federal court has original jurisdiction over a civil action if the parties are of diverse state citizenship and the courts of the state in which the federal court sits can entertain the suit.
4
See
28 U.S.C. § 1332(a)(1) (1976);
Woods v. Interstate Realty Co.,
“Indian tribes are ‘distinct, independent political communities, retaining their original natural rights’ in matters of local self-government,”
Santa Clara Pueblo,
The facts here show that this contract dispute arose on the reservation and raises questions of tribal law interpretation within the province of the tribal court. The ordinance setting out the tribal court’s jurisdiction provides, in relevant part, that “[t]he Oglala Sioux Tribal Court shall have jurisdiction of all suits wherein the defendant is a member of the Tribe or Tribes within their jurisdiction, and of all other suits between members and non-members which are brought before the Court by stipulation of both parties.” Oglala Sioux Tribal Code, Ch. 2, § 20 (1937). This language is nearly identical to that of the ordinance in issue in
R.J. Williams v. Fort Belknap Housing Authority. See R.J. Williams,
Weeks does not argue that the tribal court cannot hear this suit, though it has never filed suit in tribal court. Moreover, in referring this case for the tribal court’s initial consideration, we do not pass on the question whether the tribal court has jurisdiction over the parties, nor whether diversity jurisdiction could be appropriately extended to this case should the tribal court determine that the Housing Authority is not a member of the tribe. We affirm the district court’s finding that no diversity jurisdiction exists over this case.
II. Federal jurisdiction over United States and HUD
Seeking money damages in excess of $10,000, Weeks’ complaint alleges that the United States as principal and HUD as its agent were party to Weeks’ construction contract with the Housing Authority, and that as guarantors of the Housing Authority’s performance are jointly liable with the Housing Authority for any breach. The district court found that under the Tucker Act, 28 U.S.C. §§ 1346(a) and *675 1491(a)(1), the exclusive forum for this action is the Claims Court and dismissed the action against the United States and HUD for lack of jurisdiction. We agree.
In order for the district court to hear this action, there must be both a waiver of sovereign immunity and a grant of jurisdiction to the district court.
Marcus Garvey Square, Inc. v. Winston Burnett Construction Co. of California, Inc.,
Weeks contends that it does not rely on the waiver of sovereign immunity contained in the Tucker Act but looks instead to the waiver of HUD’s immunity to suit set out in 42 U.S.C. § 1404(a), and that it should therefore not be limited to the Claims Court jurisdiction on which the Tucker Act’s waiver of sovereign immunity is conditioned. Questions of Claims Court jurisdiction are to be determined by the essential nature and effect of the action as it appears from the entire record.
Reconstruction Financing Corp. v. MacArthur Mining Co.,
We affirm the district court’s decision that jurisdiction over Weeks’ action against the United States and HUD properly lies with the Claims Court. From the record, however, it does not appear that the district court considered the option of exercising its discretion to transfer the case instead of dismissing it outright. See 28 U.S.C.A. § 1631 (West Supp.1986). We therefore remand to the district court for the limited purpose of allowing it to transfer this case to the Claims Court if it finds such transfer to be in the interests of justice.
For the reasons stated above, the decision of the district court is affirmed.
Notes
. The Honorable Andrew W. Bogue, now United States Senior District Judge for the District of South Dakota, presiding.
. HUD regulations require that this provision be included in the tribe’s ordinance establishing the Housing Authority in order for the tribe to qualify for HUD assistance. See 24 C.F.R. § 905.109, and subpt. A, app. I (1985).
. In
National Farmers Union Insurance Cos. v. Crow Tribe of Indians of Montana,
— U.S.-,
. Neither party maintains that this dispute could be brought in South Dakota state court. South Dakota has never assumed general civil jurisdiction over Indian lands within the state's boundaries.
See
28 U.S.C. § 1360, commonly known as Pub.L. 280, as amended by Pub.L. 90-284, §§ 401, 402, 406, 82 Stat. 78-80, codified as 25 U.S.C. §§ 1321, 1322, 1326; S.D. Codified Laws Ann. §§ 1-1-18 — 21 (1978);
Northwest South Dakota Production Credit Association,
. This court has previously observed, in the context of applying the Eleventh Amendment to bar a suit by a tribe for money damages in federal court, that an Indian tribe is not a citizen of any state and cannot be sued in federal court under diversity jurisdiction.
Standing Rock Sioux Indian Tribe v. Dorgan,
. Weeks argues that we should adopt the reasoning of one district court, which held that a tribal housing authority is a citizen of a state for diversity purposes, as grounds to find that diversity jurisdiction exists here.
See R.C. Hedreen Co. v. Crow Tribal Housing Authority,
. This court has previously found diversity jurisdiction to exist in a suit between two Indians in an action arising on a reservation.
See Poitra
v.
Demarrias,
We are aware that our decision in
Poitra
has been questioned by commentators.
See, e.g.,
F. Cohen,
Handbook of Federal Indian Law
317 (1982)
(Poitra
"seems clearly wrong”). We need not discuss
Poitra's
correctness here, for the facts in
Poitra
are distinguishable from this case. In
Poitra,
a panel of this court found diversity jurisdiction to exist in a wrongful death suit between Indians on the grounds that a wrongful death action vindicates a state-created right, that the suit did not intrude on settled policies regarding tribal lands or customs, and that federal jurisdiction based on diversity neither encroached on state policies nor interfered with tribal self-government.
See Poitra,
. Although Weeks contends, apparently for the first time on appeal, that its action implicates equitable rights arising out of federal common law, it has never amended its complaint to state any cause of action other than a breach of contract for which money damages are sought. Weeks’ contract action for money damages may have a connection with activities undertaken as part of functions authorized by federal law, but did not itself arise under federal law and requires only the interpretation and application of contract principles under local law.
See, e.g., Jemo Associates, Inc. v. Greene Metropolitan Housing Authority,
.
In resolving questions of Tucker Act jurisdiction, a distinction between suits against the United States and suits against federal instrumentalities is required by the line of cases which has developed from the Supreme Court’s analysis in
Federal Housing Administration, Region No. 4 v. Burr,
. Weeks’ attempt to alternatively base federal subject matter jurisdiction on diversity of citizenship is also misplaced. Though this court has apparently never directly addressed this issue, we agree with those courts which have found that instrumentalities of the United States like HUD are citizens of no state for diversity purposes.
See, e.g., State of Texas v. Interstate Commerce Commission,
