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MAY 1, 2001

In a decision a tribal attorney said will have a tremendous effect throughout Indian Country, the Supreme Court on Monday said the Citizen Potawatomi Nation of Oklahoma can be sued over a seven-year-old contract dispute.

Overturning an Oklahoma state court decision, the Court unanimously said the tribe waived its immunity from lawsuit. Applying established principles on tribal immunity, the Court said the tribe's waiver was "clear" when it signed the contract with a construction firm.

As a result, the tribe has to submit to binding arbitration with C&L Enterprises, a roofing contractor, under state law. C&L wants to be compensated for the tribe's withdrawal from the contract and has been pursuing the case for several years.

"We're disappointed in the decision," said Michael Minnis, an Oklahoma City lawyer representing the tribe. "Its going to prove to be an incredible boon for the non-Indian party who didn't do any work at all."

In 1993, the tribe contracted with C&L to build a roof for a bank the tribe owns on non-tribal land. The contract was executed on non-tribal land but included a provision to submit to arbitration in the event any disputes arise.

When the tribe decided to go with another contractor, C&L filed suit. The company initially won a judgment of $25,400 plus legal and other fees against the tribe.

The tribe protested, arguing it never waived its sovereign immunity. Along with a case involving the Kiowa Tribe of Oklahoma, the dispute reached the Supreme Court.

In May 1998, the Court ruled the Kiowa Tribe hadn't clearly waived its immunity for a contract it signed off-reservation. At the same time, the Court ordered the judgment against the Citizen Potawatomi be reconsidered in light of the Kiowa decision didn't actually decide the merits of the case.

The issue appeared to have been resolved, this time in favor of the tribe. Due to the numerous conflicts between state and federal law, however, the Court agreed to step in and resolve the matter.

Although none of the Court's principles about tribal sovereign immunity were changed, Minnis said the decision will have a "significant impact" in Indian Country. He warned that tribes make sure they don't waive their immunity inadvertently by entering into a contract.

Minnis also said he expects C&L to ask for at least $100,000 in fees when the case returns to Oklahoma court.

The Citizen Potawatomi Nation had been supported by friend of the court briefs filed by the United States and the San Manuel Band of Serrano Mission Indians of California. Several states filed briefs in support of C&L Enterprises.

C&L Enterprises couldn't be reached for comment yesterday.

Get the Decision:
C & L ENTERPRISES, INC. v. CITIZEN BAND POTAWATOMI INDIAN TRIBE OF OKLAHOMA No. 00—292 (US Sup Ct March 30, 2001)

Relevant Links:
The Citizen Potawatomi Nation - http://www.potawatomi.org
The Supreme Court - http://www.supremecourtus.gov

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