Oneida Indian Nation of Ny v. City of Sherrill, Ny

Decision Date04 June 2001
Docket NumberNo. 5:00-CV-1106 (Member Case).,No. 5:00-CV-506 (Related Case).,No. 5:00-CV-327 (Eviction Case).,No. 5:00-CV-223 (Lead Case).,5:00-CV-223 (Lead Case).,5:00-CV-327 (Eviction Case).,5:00-CV-1106 (Member Case).,5:00-CV-506 (Related Case).
Citation145 F.Supp.2d 226
PartiesONEIDA INDIAN NATION OF NEW YORK, Plaintiff, v. THE CITY OF SHERRILL, NEW YORK, Defendant. The State of New York, Amicus Curiae, Madison County, Amicus Curiae, Oneida County, Amicus Curiae, Oneida Ltd., Amicus Curiae. The City of Sherrill, New York, Plaintiff, v. Oneida Indian Nation of New York, Defendant. The City of Sherrill, New York, Plaintiff, v. Ray Halbritter; Keller George; Chuck Fougnier; Brian Patterson; Marilyn John; Clint Hill; Dale Rood; Dick Lynch; Ken Phillips; Iva Rodgers; Beulah Green; Ruth Burr, Defendants. Oneida Indian Nation of New York, Plaintiff, v. Madison County, Defendant.
CourtU.S. District Court — Northern District of New York

Mackenzie Smith Lewis Michell & Hughes, LLP, Peter D. Carmen, of counsel, Syracuse, NY, Zuckerman, Spaeder, Michael R. Smith, William W. Taylor, III, for counsel, Washington, DC, for Plaintiff Oneida Nation and Defendants, Oneida Nation and Halbritter, et al.

Fried, Frank, Harris, Shriver & Jacobson, Ira S. Sacks, of counsel, New York City, for Plaintiff City of Sherrill and Defendant City of Sherrill.

Hon. Eliot Spitzer, Attorney General of the State of New York, David B. Roberts, Asst. Attorney General, of counsel, Albany, NY, for Amicus Curiae, State of New York, Department of Law.

White & Case, LLP, Dwight A. Healy, of counsel, New York City, for Amicus Curiae, State of New York.

Nixon Peabody LLP, David M. Schraver, G. Robert Witmer, Jr., P.C., of counsel, Rochester, NY, for Defendant Madison County and Amicus Curiae Madison County and Oneida County.

Menter, Rudin & Trivelpiece, P.C., James H. McGowan, of counsel, Syracuse, NY, Foley & Lardner, Charles G. Curtis, Jr., of Counsel, Madison, WI, for Amicus Curiae, Oneida Ltd.

HURD, District Judge.

                                                  TABLE OF CONTENTS
                                                                                         Page
                  I. INTRODUCTION ........................................................ 231
                 II. FACTS ............................................................... 232
                     A. City of Sherrill Properties ...................................... 232
                     B. Madison County Properties ........................................ 233
                     C. Historical Background ............................................ 233
                III. CLAIMS, COUNTERCLAIMS, AND DEFENSES ................................. 236
                     A. Lead Case ........................................................ 236
                     B. Eviction Case .................................................... 238
                     C. Member Case ...................................................... 238
                     D. Related Case ..................................................... 239
                 IV. DISCUSSION .......................................................... 240
                     A. Summary Judgment Standard ........................................ 240
                     B. Indian Country ................................................... 241
                     C. Analysis ......................................................... 242
                     D. Application of Indian Country Finding ............................ 254
                        1. Lead Case...................................................... 254
                
                           a. Sherrill's Motion for Summary Judgment or Alternative
                                Injunctive Relief ....................................... 254
                           b. Nation's Cross-motion for Summary Judgment ................ 255
                              (1) Taxation Claim ........................................ 255
                              (2) Due Process Claim ..................................... 256
                              (3) Counterclaims ......................................... 258
                           c. Sherrill's Motion to Amend its Answer ..................... 259
                        2. Eviction Case ................................................ 260
                        3. Member Case .................................................. 260
                           a. Failure to State a Claim .................................. 261
                           b. Failure to Join an Indispensable Party .................... 263
                        4. Related Case ................................................. 264
                     E. Attorneys Fees .................................................. 264
                  V. CONCLUSION ......................................................... 266
                
MEMORANDUM-DECISION and ORDER

"This litigation makes abundantly clear the necessity for congressional action."

So said the United States Supreme Court in 1985 in reference to the Oneida Indian Nation land claim. County of Oneida, New York v. Oneida Indian Nation of New York State, 470 U.S. 226, 253, 105 S.Ct. 1245, 1261, 84 L.Ed.2d 169 (1985)(emphasis added)[hereinafter "Oneida II"].

Rather than heed the advice of our highest Court, Congress has not enacted legislation to extinguish or resolve Indian title and land claims in New York State. It has turned a deaf ear to the Court and remained silent for over sixteen (16) years.

Further, heroic efforts over many years on the part of Senior District Judge Neal P. McCurn and Settlement Master Ronald J. Riccio to achieve a global settlement of the Oneida Indian Nation claims were met with resistance and ultimate failure. See Oneida Indian Nation v. County of Oneida, 199 F.R.D. 61, 66 (N.D.N.Y.2000). A political resolution by legislation or agreement has apparently been rejected by Federal, State, and Local governments and by the Oneida Indian Nation. See id. at 66.

Instead, the parties have increasingly turned to the courts to settle their disputes. These cases are examples. Unlike the executive and legislative branches of government, the judiciary cannot turn a deaf ear in the face of disputes such as these. Rather, a judge must put aside any personal opinions or ideas and apply the Constitution, Treaties, and laws of this great country. This is the result.

I. INTRODUCTION

The Oneida Indian Nation of New York ("the Nation" or "the Oneidas") filed a complaint on February 4, 2000, in the lead case, 00-CV-223, pursuant to 28 U.S.C. § 1331, seeking to prevent attempts by the City of Sherrill, New York ("Sherrill") to enforce property tax laws against properties owned by the Nation [hereinafter "Lead Case"]. Sherrill moved for summary judgment, or, in the alternative, for a preliminary injunction. The Nation opposed Sherrill's motion and cross-moved for summary judgment. Additionally, Sherrill has moved for permission to amend its answer to add certain affirmative defenses. The Nation opposes the motion to amend.

On February 22, 2000, the Nation removed to this court, pursuant to 28 U.S.C. § 1441, a petition for eviction filed by Sherrill in New York State Supreme Court, Oneida County, on February 15 2000 [hereinafter "Eviction Case"]. In the Eviction Case, 00-CV-327, Sherrill sought to evict the Nation from the properties that are the subject of the Nation's February 4, 2000, complaint. Therefore, the Eviction Case was consolidated with the Lead Case on June 14, 2000.

Sherrill filed a complaint on July 17, 2000, pursuant to 28 U.S.C. § 1362, seeking declaratory relief and damages from individually named representatives of the Nation's Men's Council and Clan Mothers relating to the taxation of the properties at issue in the two aforementioned actions [hereinafter "Member Case"]. An amended complaint was filed as of right on August 7, 2000. The Member Case, 00-CV-1106, was thereafter consolidated with the Lead and Eviction Cases. The individually named Nation representatives, Ray Halbritter, Keller George, Chuck Fougnier, Brian Patterson, Marilyn John, Clint Hill, Dale Rood, Dick Lynch, Ken Phillips, Iva Rodgers, Beulah Green, and Ruth Burr (collectively "Nation representatives") moved to stay this action and to dismiss. Sherrill opposed the motion.

On November 13, 2000, Madison County and Oneida County ("the Counties"), New York State, and Oneida Ltd. filed, with permission, briefs as amici curiae in support of Sherrill's motion for summary judgment or alternatively for injunctive relief and in opposition to the Nation's motion for summary judgment. The Nation did not object to the filing of the amici curiae briefs, but did submit a responsive brief.

Also currently pending is a related case, 00-CV-506, filed by the Nation pursuant to 28 U.S.C. § 1331, against Madison County seeking to prevent enforcement of the County's property tax laws [hereinafter "Related Case"]. A motion to dismiss is pending in that action.

Oral argument was heard regarding all motions on March 9, 2001, in Utica, New York. Decision was reserved.

II. FACTS
A. City of Sherrill Properties

In 1997 and 1998 the Nation purchased, in open market transactions, fee simple title to certain parcels of land within the municipality of Sherrill. These parcels are designated by Sherrill as 322.014-1-23, 322.014-1-24, 322.014-1-25, 322.014-1-26, 322.015-2-1, 322.015-2-64, 322.015-2-65, 322.015-2-40.3, 322.015-2-45.1, 322.015-2-47. The Nation operates a gasoline filling station with convenience store and a textile manufacturing and distribution facility on the properties. Sherrill assessed property taxes against these parcels. The Nation did not pay the assessed taxes, asserting that the properties are contained within the Oneida Indian Reservation ("the Reservation") and therefore are nontaxable by state municipalities.

The Nation has a Silver Covenant Chain Grant program under which it makes ad valorem grants to schools and municipalities in which repossessed aboriginal lands are located. In order to participate in this program the municipality must remove such lands from its tax rolls pending resolution of the Nation's land claims. Sherrill and Madison County have not participated in the Nation's Silver Covenant Chain Grant program.

On August 7, 1997, Sherrill sent the Nation notices of tax delinquency. (Carmen Aff. sworn Sept....

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