The 9th Circuit Court of Appeals has sided with the Hualapai Tribe of Arizona in a closely-watched business dispute.

The tribe owns the Grand Canyon Skywalk, a popular tourist attraction that was managed by David Jin, a non-Indian developer. Their relationship soured and the tribe took control of the business in early 2012.

Jin sued the tribe in federal court in hopes of stopping the takeover. But the 9th Circuit said he failed to exhaust "all possible tribal court remedies."

"Federal law has long recognized a respect for comity and deference to the tribal court as the appropriate court of first impression to determine its jurisdiction," the 9th Circuit said in the unanimous decision.

Jin sought a bad faith exception to the rule favoring tribal court exhaustion. The 9th Circuit, however, said there was no evidence that the tribal court has mistreated his development company.

"GCSD has failed to show that the Hualapai Tribal Court does not offer an adequate and impartial opportunity to challenge jurisdiction," the decision stated, referring to the Grand Canyon Skywalk Corporation.

The 9th Circuit also rejected Jin's attempts to avoid tribal court jurisdiction altogether. The decision noted that he entered into a consensual relationship with the tribe, satisfying at least one of two exceptions laid out by the U.S. Supreme Court in Montana v. US.

"Given the consensual nature of the relationship between the parties and the potential economic impact of the agreement, the tribal court could conclude it has jurisdiction over SNW’s dispute with GCSD under either of Montana’s exceptions," the 9th Circuit stated. SNW is Sa Nyu Wa, the tribe's corporation.

The decision could help the tribe fight a $28.5 million arbitration award that a federal judge upheld in February. An appeal is being filed with the 9th Circuit.

“This is a significant victory for the Hualapai people and for tribal sovereignty," said Dave Cieslak, a spokesperson for the tribe. "The 9th Circuit’s ruling shows deference to the tribal court system and its jurisdiction over these matters.”

Turtle Talk has posted documents from the case, Grand Canyon Skywalk v. Sa Nyu Wa.

Separately, Jin has filed a new lawsuit that accuses tribal officials of defamation. That case is Grand Canyon Skywalk Development Corp. v. Steele.

9th Circuit Decision:
Grand Canyon Skywalk v. Sa Nyu Wa (April 26, 2013)

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Hualapai Tribe recalls leaders from office in business dispute (3/8)
Hualapai Tribe seeks bankruptcy protection in business dispute (3/6)
Hualapai Tribe takes control of another business on reservation (3/4)
Hualapai Tribe to appeal decision in $28.5M business dispute (2/27)
Sherry Counts: Hualapai Tribe remains open for all business (2/25)