indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Native American Bank - Native people investing in Native communities
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
7th Circuit bars tribal jurisdiction in Indian payday loan dispute

Filed Under: Business | Law
More on: 7th circuit, cheyenne river sioux, jurisdiction, payday loans, south dakota, tribal courts
   


A screen shot of a television ad for the defunct Western Sky Financial. Image from Daily Finance

The 7th Circuit Court of Appeals has revived a class action lawsuit against a defunct Indian payday lender after finding a lack of tribal court jurisdiction in the case.

Martin A. Webb, a member of the Cheyennne River Sioux Tribe of South Dakota, ran Western Sky Financial until he was forced out of business due to scrutiny from state and federal authorities. Some of his non-Indian customers in Illinois sued him based on provisions in their loan agreements that required them to file disputes in tribal court.

After hearing the case in January 2013, the 7th Circuit asked for further proceedings to determine whether the tribe's court system would be able to handle such disputes. If so, it could have asked the non-Indian customers to exhaust their tribal remedies, as required by the U.S. Supreme Court decision in National Farmers Union Insurance Cos. v. Crow Tribe.

But the 7th Circuit said making that determination wasn't necessary. The court said there was no tribal jurisdiction because it arose between non-Indians and a private company that wasn't owned by the tribe.

"The present dispute does not arise from the actions of nonmembers on reservation land and does not otherwise raise issues of tribal integrity, sovereignty, self-government, or allocation of resources," the decision stated. "There simply is no colorable claim that the courts of the Cheyenne River Sioux Tribe can exercise jurisdiction over the Plaintiffs. Tribal exhaustion, therefore, is not required."

Professor Matthew Fletcher of Turtle Talk said the decision sends a warning to tribes that own payday loan operations.

"Particularly troublesome is the holding and (hopefully) dicta from the opinion that suggests tribal courts have no jurisdiction involving off-reservation lending operations, even though the operation is based in Indian country and even though the lending instrument includes a forum selection clause naming a tribal forum," Fletcher said on Turtle Talk.

Get the Story:
Seventh Circuit revives class action over payday loans, calls arbitration clause ‘unconscionable’ and process ‘a sham’ (Legal Newsline 8/25)

7th Circuit Decision:
Deborah Jackson v. Payday Financial, LLC (August 22, 2014)

Oral Arguments in Deborah Jackson v. Payday Financial:


Copyright © Indianz.Com
More headlines...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Elizabeth Cook-Lynn: Indian children exploited for fundraisers (11/28)
Ned Blackhawk: Remember the Sand Creek Massacre of 1864 (11/28)
Steven Newcomb: Leadership and the liberation of our nations (11/28)
Dina Gilio-Whitaker: Native Hawaiians working for sovereignty (11/28)
Native women ask city in New York to find new name for park (11/28)
African-American lawmakers seek probe into Pamunkey Tribe (11/28)
Mashantucket Tribe seeks to expand sale of alcohol at casino (11/28)
Mohegan Tribe still pushing for commercial casino in New York (11/28)
Native Sun News: Urban Indian organization seeks new center (11/26)
Tentative schedule for White House Tribal Nations Conference (11/26)
White House invites youth to DC for Tribal Nations Conference (11/26)
Leslie Wheelock: Touting nation-to-nation trading and tourism (11/26)
Kevin Abourezk: A mystery of Indian agents with same name (11/26)
Michael Allen: My ancestor took part in Sand Creek Massacre (11/26)
Dean Suagee: EPA's Clean Power Plan affects Indian Country (11/26)
Mark Rogers: Finding something to be thankful for this holiday (11/26)
Former convicted leader of Crow Tribe seeks to clear his name (11/26)
Blackfeet Nation denies political motive in arrest of ex-leader (11/26)
Appeal set in dispute over Navajo Nation presidential hopeful (11/26)
Judge allows NFL team lawsuit against young Native activists (11/26)
NPR: Alaska Natives put traditional spin on Thanksgiving meal (11/26)
Column: Group helps rescue dogs from Pine Ridge Reservation (11/26)
First Nation offers reward for information about missing man (11/26)
First Nations face loss of funds over failure to submit salaries (11/26)
Santa Ysabel Band responds to state lawsuit over online bingo (11/26)
Citizen Potawatomi Nation to meet over liquor sales at casino (11/26)
Flandreau Santee Sioux Tribe could lose casino's liquor license (11/26)
Mashantucket Tribe looks to shift revenues away from gaming (11/26)
Agua Caliente Band selects planner to revamp land near casino (11/26)
Washington gaming panel cuts jobs as non-Indian revenue falls (11/26)
Native Sun News: Oglala Sioux Tribe to issue IDs at tournament (11/25)
James Giago Davies: Polygamy and shunning in Lakota culture (11/25)
Ben Shelly: There's a lot to be thankful for on the Navajo Nation (11/25)
Cara Cowan Watts: Share the blessings of the Cherokee Nation (11/25)
Joe Sexton: BIA's 'ugly' land policies stuck in the 19th century (11/25)
Jenny Durkan: Cop who killed Native man wasn't charged either (11/25)
Oklahoma claims Citizen Potawatomi Nation must collect taxes (11/25)
Divided court won't extend Seneca Nation immunity to business (11/25)
Vice: North Dakota tribe sees $25M a month in energy royalties (11/25)
Members of Lumbee Tribe proud to carry on tradition of service (11/25)
Flandreau Santee Sioux Tribe donates $10K to local food pantry (11/25)
Slate: Non-Indians were encouraged to move to tribal territory (11/25)
Column: Remains of Dakota man hanged in 1862 kept in home (11/25)
Family members plead guilty to thefts from reservation town (11/25)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.