Smith v. Babbitt

• Decision Date: 17 February 1995
• Docket Number: Civ. No. 3-94-1435.
• Parties: Louise B. SMITH, et al., Plaintiffs, v. Bruce BABBITT, et al., Defendants.
• Court: U.S. District Court — District of Minnesota

875 F. Supp. 1353

Louise B. SMITH, et al., Plaintiffs, v. Bruce BABBITT, et al., Defendants.

Civ. No. 3-94-1435.

United States District Court, D. Minnesota, Third Division.

February 17, 1995.

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James H. Cohen, Cohen Law Office, Santa Fe, NM, and Leslie L. Lienemann, Stingley Law Office, Minneapolis, MN, for plaintiffs.

Robert M. Small, Asst. U.S. Atty., Minneapolis, MN, for defendants Bruce Babbitt, Denise Homer and Harold Monteau.

Richard A. Duncan and Jerry W. Snider, Faegre & Benson, Minneapolis, MN, and Kurt Van BlueDog and Vanya Hogen-Kind, BlueDog Law Office, Bloomington, MN, for defendants Shakopee Mdewakanton Sioux Community, Shakopee Mdewakanton Sioux Community Business Council, Stanley R. Crooks, Kenneth Anderson, and Darlene McNeal.

MEMORANDUM OPINION AND ORDER

KYLE, District Judge.

Introduction

This matter is before the Court on Plaintiffs' Motion for Preliminary Injunction (Doc. No. 3) and Defendants Shakopee Mdewakanton Sioux (Dakota) Community (the "Community"), Shakopee Mdewakanton Sioux (Dakota) Community Business Council (the "Business Council"), Stanley R. Crooks, Kenneth Anderson, and Darlene McNeal's Motion to Dismiss (Doc. No. 9). Plaintiffs commenced this action alleging violations of the Indian Gaming Regulatory Act ("IGRA"), 25 U.S.C. §§ 2701-2721, the Indian Civil Rights Act ("ICRA"), 25 U.S.C. §§ 1301-1303, the Indian Reorganization Act ("IRA"), 25 U.S.C. §§ 461-479, the Racketeering and Corrupt Organizations Act ("RICO"), 18 U.S.C. §§ 1961-1968, and the Community's Constitution. The Community operates a tribal gaming facility and distributes proceeds from this facility to Community members on a per capita basis. Plaintiffs' claims arise out of the Community's membership determinations. Plaintiffs claim that proceeds and other membership benefits have been unlawfully given to individuals who are not qualified members of the Community, and unlawfully withheld from individuals who are qualified members of the Community.

Background

I. Parties

Plaintiffs are a group of individuals who claim to be "constitutionally qualified" members of the Community. (Amend.Compl. ¶ 12.) Several of the named Plaintiffs are currently enrolled as members of the Community, with full membership privileges, while others have been either denied membership or have had their membership applications "postponed indefinitely." (Id.) Plaintiffs commenced this action in their individual capacities and "as representative of the class of constitutionally qualified members who collectively constitute the sole legitimate governing body of the Community." (Id.)

Defendant Bruce Babbitt is the United States Secretary of the Interior. He is named in his official capacity.

Defendant Denise Homer is the acting Area Director of the Minneapolis Area Office of the Bureau of Indian Affairs ("BIA"). She is named in her official capacity.

Defendant Harold Monteau is the Chair of the National Indian Gaming Commission ("NIGC"). The NIGC is an agency within the Department of the Interior created to monitor gaming conducted on Indian lands. 25 U.S.C. § 2706. He is named in his official capacity.¹

Defendant Community is a federally recognized Indian tribe. The Community conducts gaming at a casino located on federal trust land near Prior Lake, Minnesota.

Defendant Business Council is an executive body consisting of a Chairperson, Vice Chairperson, and Secretary-Treasurer. The Business Council acts on behalf of the Community and performs such duties which may be delegated to it by the General Council of the Community. The General Council was established pursuant to 25 U.S.C. § 476 as the governing body of the Community. (See Amend.Compl. Ex. A.)

Defendant Stanley R. Crooks is the Chairperson of the Business Council, Defendant Kenneth Anderson is the Vice Chairperson of the Business Council, and Defendant Darlene McNeal is the Secretary-Treasurer of the Business Council. They are named in their official and individual capacities.²

II. Factual background

A. Membership

Plaintiffs' claims are based on tribal membership criteria set out in the Community's Constitution. The Community Constitution was adopted in 1969 pursuant to Section 16 of the IRA, 25 U.S.C. § 476. Article II, Section 1 of this Constitution defines the "members" of the Community as (1) those members whose names appeared on the 1969 census roll of residents of the Mdewakanton Sioux Prior Lake Reservation; (2) all children of at least one-fourth (¼) degree Mdewakanton Sioux Indian blood born to an enrolled member of the Community; and (3) all descendants of at least one-fourth (¼) degree Mdewakanton Sioux Indian blood who can trace their blood relationship to Mdewakanton Sioux Indians who resided in Minnesota on May 20, 1886, provided they are found qualified by the Community's governing body and are not enrolled as members in another tribe or band of Indians. (Amend.Compl. Ex. A, art. II.) Article II, Section 2 of the Constitution provides that the Community's governing body may pass resolutions governing future membership, adoptions, and loss of membership "subject to the approval of the Secretary of the Interior." (Id.) Plaintiffs contend that 180 of the Community's purported 225 members fail to meet the Community's constitutional requirements for membership, and that other individuals who meet the constitutional membership requirements have been wrongfully prevented from being enrolled as members. (Amend.Compl. ¶ 2.)

The Community has enacted several ordinances relating to gaming proceed distributions to individuals who allegedly do not meet the Community's constitutional membership requirements. On December 29, 1988, the General Council passed an ordinance entitled "Business Proceeds Distribution Ordinance," No. 12-29-99-002. (Id., Ex. B.) This ordinance authorized non-members of the tribe to receive proceeds from the Community's businesses. (Id.) On April 30, 1990, the General Council passed a resolution entitled "Confirming Present Voting Membership," No. 4-30-90-006. (Id. Ex. F.) This resolution purportedly "confirmed" the membership and voting rights of persons whom Plaintiffs claim are not constitutionally qualified members of the Community. (Id. ¶ 43.)

On October 27, 1993, the General Council passed an ordinance entitled "Gaming Revenue Allocation Amendments to Business Proceeds Distribution Ordinance," No. 10-27-003. (Id. Ex. I.) This ordinance purported to amend the December 29, 1988 Business Proceeds Distribution Ordinance in order to comply with the requirements of IGRA, 25 U.S.C. § 2710(b)(3). (Id. at 1.) Specifically, this ordinance prohibited gaming proceed distributions to "non-members" of the Community. (Id.) According to Plaintiffs, this ordinance does not comport with IGRA and continues to permit non-members of the Community to illegally share in the net revenues of the Community's gaming facility. (Id. ¶ 49.)

Following its enactment, the General Council submitted the Gaming Revenue Allocation Amendments to Business Proceeds Distribution Ordinance to the Acting Area Director for the Minneapolis Area office of the BIA for approval. On November 12, 1993, the BIA Area Director approved this ordinance. (Id. Ex. L.) On December 20, 1993, several of the Plaintiffs named in this action appealed the Area Director's approval to the Interior Board of Indian Appeals. (Federal Defs.' Ex. A.) The Board of Indian Appeals determined that the Plaintiffs did not have standing to contest the BIA's approval of the Community's gaming ordinance and accordingly dismissed the Plaintiffs' appeal. Feezor v. Acting Minneapolis Area Director, IBIA 94-36-A, 25 IBIA 296 (April 28, 1994) (Federal Defs' Ex. B).

On October 27, 1993, the General Council also enacted an "Adoption Ordinance," No. 10-27-93-001. This ordinance purportedly permitted individuals to become members of the Community without meeting the blood quantum requirement. The BIA Area Director disapproved that ordinance on November 12, 1993. On November 30, 1993, the General Council replaced the October 27, 1993 "Adoption Ordinance" with a second ordinance, also entitled "Adoption Ordinance," No. 11-30-93-002. The BIA Area Director disapproved this ordinance on December 13, 1993. (Amend.Compl. Ex. M.) The Community filed an appeal from the Area Director's disapproval, (Federal Defs.' Ex. C); this appeal is pending. According to the Federal Defendants, if the Community is successful on appeal, the Plaintiffs' allegations regarding ineligibility for those persons who are less than ¼ Mdewakanton blood "will become moot." (Federal Defs.' Mem. in Opp. to Pls.' Mot. for Prelim. Inj. at 8.)

B. Tribal Court Proceedings

On February 17, 1994, the Plaintiffs filed a complaint in the Community's tribal court alleging, inter alia, that the Community Defendants unlawfully distributed proceeds from the Community's gaming facility to individuals who are not qualified members of the Community, and unlawfully withheld proceeds from individuals who are qualified members. (Amend.Compl.Ex.T.) Plaintiffs accordingly asserted claims alleging violations of IGRA, IRA, and the Community Constitution. (Id.) Plaintiffs moved for a preliminary injunction seeking to prohibit all individuals who did not meet the constitutional criteria for membership from participating in General Council meetings and from receiving per capita distributions of tribal gaming revenues. (Amend.Compl. ¶ 68.) The tribal court initially granted Plaintiffs' motion with respect to 31 individuals. However, on July 8, 1994, the tribal court dissolved that injunction and denied the Plaintiffs' motion. (Id. Ex. HH; ¶ 71.) On March 30, 1994, Plaintiffs appealed the tribal court's ruling on its motion to the Community's Court of Appeals. (Hogen-Kind Aff., Ex. A-3.) The Court of Appeals heard Plaintiffs' appeal on October 3, 1994, and has not yet rendered a decision. (Amend.Compl.Ex.Y.) Thus Plaintiffs'...