Corporation of the President of the Church of Jesus Christ of Latter-Day Saints v. RJ
Corporation of the President of the Church of Jesus Christ of Latter-Day Saints v. RJ
Opinion of the Court
MEMORANDUM DECISION AND ORDER
This case relates to lawsuits presently pending before the Navajo Nation District Court. In those cases, Defendants RJ, MM, BN, and LK (Doe Defendants) allege that they suffered abuse years ago after Plaintiffs, the Corporation of the President of the Church of Jesus Christ of Latter-Day Saints and LDS Family Services, placed them off-reservation with LDS families as part of the Indian Student Placement Program (ISPP). In their Amended Complaint, Plaintiffs here seek a declaration that the Navajo Nation District Court lacks jurisdiction to adjudicate the underlying cases, and request an injunction prohibiting Doe Defendants from proceeding with their cases in Tribal Court. Plaintiffs argue that the Tribal Court clearly lacks jurisdiction over Doe Defendants’ claims, and that this court should so find now, without requiring Plaintiffs to exhaust their Tribal Court remedies by presenting their jurisdictional arguments to the Tribal Court in the first instance.
Two motions are before the court: (1) Plaintiffs’ Motion for Preliminary Injunction and (2) Defendants’ Motion to Dismiss. For the reasons detailed below, the court grants Doe Defendants’ Motion to Dismiss, concluding that Plaintiffs must exhaust their Tribal Court remedies before seeking relief from this court. Because the court grants the Motion to Dismiss, it denies as moot Plaintiffs’ Motion for Preliminary Injunction.
BACKGROUND
Doe Defendants filed three separate actions in the Navajo Nation District Court, District of Window Rock, Arizona. In the cases before the Tribal Court, Doe Defendants allege injuries resulting from their placement with LDS families while participating in the ISPP between 1965 and 1983.
Doe Defendants do not claim that any of the sexual abuse at issue occurred on the reservation or on property owned by the Navajo Tribe.
• “The decision to remove [Doe Defendants] from their families was made by case workers and/or employees and/or agents of [the Church Entities] while on the Navajo Nation.”6
• “On two occasions, once at a church and once at his home, ‘RJ disclosed the abuse to ... an employee of LDS Social Services,’ ”7
• “The failure to warn [Doe Defendants] and their families, the failure to disclose or report sexual abuse to [Doe Defendants’] parents, police, or to child protective services occurred within the Navajo Nation.”8
In contrast, Plaintiffs allege in their Amended Complaint in this case that:
[decisions regarding the placement of participating tribal members from the part of the reservation where Doe Defendants lived were made by LDS Social Services employees operating from their offices in Cedar City and Salt Lake City, with input from the ecclesiastical leaders of the host families where the tribal members were placed.9
At this stage of the case, the court is required to accept Plaintiffs’ allegations as true. The court therefore accepts for purposes of deciding Doe Defendants’ Motion to Dismiss that none of the alleged abuse occurred on the reservation, and that none of the placement decisions were made on the reservation.
Doe Defendants assert eight causes of action in their Tribal Court cases: (1) childhood sexual abuse, (2) assault and battery, (3) negligence, (4) negligent supervision/failure to warn, (5) intentional infliction of emotional distress, (6) equitable relief, (7) common law nuisance and request for injunctive relief, and (8) violations of Navajo Common Law.
Plaintiffs responded to Doe Defendants’ Tribal Court complaints by filing this federal court action. Plaintiffs seek a declaration that the Navajo Nation District Court lacks jurisdiction to consider Doe Defendants’ lawsuits. Plaintiffs also filed a Motion for Preliminary Injunction asking this court to enjoin Doe Defendants from proceeding with their cases in Tribal Court.
In their Motion to Dismiss, Doe Defendants argue: (1) that Plaintiffs have failed to state a claim upon which relief can be granted under Federal Rule of Civil Proce
ANALYSIS
I. Legal Standard
Before addressing the substance of the arguments advanced by the parties, the court must first identify the controlling legal standards. That is not an easy task in this case. Different standards govern the court’s analysis of two related sets of issues. The court below explains both the legal standards that apply when deciding whether Plaintiffs must exhaust their remedies in the Tribal Court before seeking relief from this court, and the legal standards that define the scope of the Tribal Court’s adjudicative jurisdiction over nonmembers.
A. Exhaustion Rule and Exceptions
“The tribal exhaustion rule provides that, absent exceptional circumstances, federal courts typically ‘should abstain from hearing cases that challenge tribal court jurisdiction until tribal court remedies, including tribal appellate review, are exhausted.’ ”
The Supreme Court, however, has recognized four exceptions to the exhaustion rule including: “(1) where an assertion of tribal jurisdiction is motivated by a desire to harass or is conducted in bad faith; (2) where the action is patently violative of express jurisdictional prohibitions; (3) where exhaustion would be futile because of the lack of an adequate opportunity to challenge the court’s jurisdiction!; and] .... (4) where it is clear that the tribal court lacks jurisdiction and that judicial proceedings would serve no purpose other than delay.”
Plaintiffs here invoke the fourth exception to the exhaustion rule. Plaintiffs claim that the Tribal Court clearly lacks jurisdiction, so requiring them to exhaust their remedies before the Tribal Court would serve no purpose other than delay.
B. Tribal Jurisdiction Under the Montana Rule
Because Doe Defendants have identified no specific statute or treaty granting the Tribe jurisdiction over Plaintiffs’ claims, the court must consider the inherent sovereign authority of the Tribe to assert adjudicative jurisdiction over non-members. “Indian tribes [are] ‘distinct, independent political communities’, qualified to exercise many of the powers and prerogatives of self-government.”
Montana v. United, States provides the starting point for analyzing the Tribal Court’s jurisdiction over non-Indians.
The Court in Montana set forth the “general rule that, absent a different congressional direction, Indian tribes lack civil authority over the conduct of nonmembers on non-Indian land within the reservation.”
To be sure, Indian tribes retain inherent sovereign power to exercise some forms of civil jurisdiction over non-Indians on their reservations, even on non-Indian lands. [First, a] tribe may regulate, through taxation, licensing, or other means, the activities of nonmembers who enter consensual relationships with the tribe or its members, through commercial dealings, contracts, leases, or other arrangements. [Second, a] tribe may also retain inherent power to exercise civil authority over the conduct of non-Indians on fee lands within its reservation when that conduct threatens or has some direct effect on the political integrity, the economic security, or health or welfare of the tribe.34
These exceptions are limited in nature and “cannot be construed in a manner that would ‘swallow the rule’ or ‘severely shrink’ it.”
It appears that the Court further narrowed the Montana exceptions in its 2008 Plains Commerce Bank decision.
An equally divided Supreme Court recently affirmed this decision.
In addition, it appears that a Tribal Court may exercise jurisdiction over a non-member only when the non-member has either implicitly or expressly consented to such jurisdiction.
Although Montana addressed only a tribe’s legislative jurisdiction, in Strate v. A-1 Contractors
“A tribe’s regulation of nonmember conduct through tort law is analyzed under the Montana framework,”
II. Plaintiffs Fail to Make the Substantial Showing Necessary to Avoid the Exhaustion Rule
Having set forth the governing legal standards, the court now turns to the specific issue presented in Doe Defendants’ Motion to Dismiss: whether Plaintiffs have made a plausible claim that the undue delay exception to the exhaustion rule applies in this case: The issue is not whether the Navajo Nation District Court ultimately enjoys jurisdiction over Doé Defendants’ Tribal Court claims, but instead whether Plaintiffs have met their substantial burden at this stage of the proceedings to show that it is “‘clear that the tribal court lacks jurisdiction,’ such that ‘the exhaustion requirement would serve no purpose other than delay.’ ”
A. Plaintiffs’ Argument that the Montana Exceptions are not Implicated is Unconvincing
Plaintiffs argue that the general Montana rule, not its exceptions, controls the court’s jurisdictional analysis, and that under the Montana rule the Tribal Court clearly lacks jurisdiction over Doe Defendants’ claims. Plaintiffs maintain that the exceptions to Montana’s general rule “only come into play when the actionable conduct occurs on tribal lands.”
The court concludes, however, that Doe Defendants have alleged that actionable conduct underlying at least some of their claims occurred on the Navajo Reservation. While it is undisputed that the alleged sexual assaults occurred off reservation, and the court must assume for purposes of the Motion to Dismiss that Plaintiffs made their placement decisions off Reservation, Doe Defendants have still alleged that negligent acts occurred on reservation. These acts include Plaintiffs’ alleged negligent failure to report sexual abuse, and their alleged failure to disclose abuse to the parents of Doe Defendants.
Plaintiffs insist that “a purported failure to report is not conduct that could create tribal jurisdiction.”
While the court appreciates that whether an omission gives rise to tort liability and whether an omission gives rise to Tribal Court jurisdiction are two different (if possibly related) questions, the court does not read Plains Commerce Bank to support Plaintiffs’ broad proposition that tortious omissions are not “conduct” under a Montana analysis. When discussing “conduct,” the Court in Plains Commerce
Nowhere does the Court in Plains Commerce Bank discuss the distinction between a tortious act and a tortious omission in the context of a jurisdictional analysis. Nor is it apparent to the court why, assuming causally related injury is alleged, tortious acts and omissions should be evaluated differently for jurisdictional purposes. Because the court finds Plains Commerce Bank inapposite, the court concludes that Doe Defendants’ allegations that tortious omissions occurred on reservation implicate the exceptions to the general Montana rule.
B. Tribal Jurisdiction is Not Clearly Foreclosed Under the First Montana Exception Based on the Record Before the Court
Having concluded that it is appropriate here to look to the exceptions to the Montana rule, the court next considers Plaintiffs’ argument that “like the Montana rule itself, both exceptions require actionable conduct on tribal lands.”
Plaintiffs argue that “for jurisdiction to exist [under this exception], the conduct giving rise to the cause of action had to occur on tribal lands.” But as addressed above, Doe Defendants allege that tortious conduct occurred on tribal lands. Doe Defendants allege that “Plaintiffs entered into agreements with the families of each of the Defendants, who were children at the time, to participate in the ISPP.”
Jurisdictional discovery is necessary to develop the factual record before the court can conclude that the Tribal Court clearly lacks jurisdiction under the consensual relationship exception. The existing record is significantly incomplete concerning the nature and scope of the agreements them
Because the court cannot find that the Tribal Court clearly lacks jurisdiction based on Plaintiffs’ arguments, the sparse factual record before it, and its analysis under the unsettled relevant case law, the court concludes that Plaintiffs have failed to meet their substantial burden to show that the court should apply the undue delay exception to the exhaustion rule. In view of that ruling, the court declines to reach the second Montana exception.
C. The Policies Supporting Exhaustion would be Served by Having the Tribal Court Decide its Jurisdiction in the First Instance
Beyond the court’s Montana analysis, the court concludes that the policy considerations favoring tribal exhaustion are amply served here by allowing the Tribal Court to first decide its jurisdiction. As discussed above, the Supreme Court in National Farmers identified “three specific interests [that] are advanced by proper application of the [exhaustion] rule: (1) furthering congressional policy of supporting tribal self-government; (2) promoting the orderly administration of justice by allowing a full record to be developed in the tribal court; and (3) obtaining the benefit of tribal expertise if further review becomes necessary.”
First, exhaustion of Doe Defendants’ cases before the Tribal Court will promote tribal self-government and the development of the Tribal Courts. Requiring exhaustion will allow the Tribal Court to assess its own jurisdiction in the first instance. As discussed above, Doe Defendants’ claims present complex factual and legal issues. Enabling the Tribal Court to carefully analyze these issues will likely advance the Tribal Court’s jurisdictional jurisprudence. Second, additional jurisdictional discovery is necessary before this court can adequately assess the Tribal Court’s jurisdiction in the underlying cases. Exhaustion will thus “promote the orderly administration of justice” by allowing the Tribal Court to fully develop this factual record. Finally, exhaustion will provide a reviewing federal court the benefit of the Tribal Court’s expertise, respecting both tribal jurisdiction and the unique causes of action alleged under Navajo Law.
Conclusion
Plaintiffs have failed at this stage in the proceeding to meet their substantial burden of showing that Tribal Court jurisdiction is clearly foreclosed. While it appears that jurisdiction over certain claims — including those for direct liability for the sexual assaults — may be foreclosed, it is not clear that Tribal Court jurisdiction is clearly lacking for all of Doe Defendants’ claims. Because Plaintiffs request an injunction that would prevent Doe Defendants from proceeding in Tribal Court on any of their claims, it was Plaintiffs’ burden to show that all routes to jurisdiction were clearly foreclosed. The court GRANTS Doe Defendants’ Motion to Dismiss. (Dkt. 20.) Plaintiffs must first exhaust their remedies in the Tribal Court before seeking redress in this court. The case is dismissed without prejudice. The court DENIES as moot Plaintiffs’ Motion for Preliminary Injunction. (Dkt. 19.)
SO ORDERED this 16th day of November, 2016.
.When considering a motion to dismiss, the court accepts the well-pled allegations in the complaint as true and then “determine[s] if they plausibly suggest an entitlement to relief.” Ashcroft v. Iqbal, 556 U.S. 662, 681, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The court sets forth the facts as alleged in Plaintiffs’ Amended Complaint, except where explicitly noted.
. Dkt. 17 ¶¶ 1, 9.
. Dkt. 25 at 5. Doe Defendants included this statement in their reply to Plaintiffs’ Motion for Preliminary Injunction and Plaintiffs do not refute it.
. Dkt. 17 ¶ 9.
. Id. ¶ 10.
. Id. ¶ 11 (internal quotation marks omitted).
. Id.
. Id (internal quotation marks omitted). Doe Defendants also point to additional allegations in their underlying complaints, including that "[t]he negligent acts of removing Plaintiffs from Navajo Nation and the decision to place them in dangerous homes occurred on the Navajo Nation. Likewise, the failure to disclose to Plaintiffs parents, to police or to child protective services, about the sexual abuse that was occurring within the LPP also occurred within the Navajo Nation.” Dkt. 25 at 5.
. Dkt. 17 ¶ 12.
. Dkt. 17-2 at 7-17.
. Dkt. 17; Dkt. 19.
. Dkt. 20.
. Id. at 3.
. Id. at 10.
. Id. at 14.
. Although neither party addresses the issue, the court is aware of case law stating that a failure to exhaust nonjudicial remedies is ordinarily construed as an unenumeráted 12(b) motion, rather than one under 12(b)(6). See Dish Network Corp. v. Tewa, No. CV 12-8077-PCT-JAT, 2012 WL 5381437, at *2 (D. Ariz. Nov. 1, 2012) (unpublished) (“Defendants' motion to dismiss for failure to exhaust tribal court remedies should be treated as an unen-umerated 12(b) motion. On such a motion, 'the court may look beyond the pleadings and decide disputed issues of fact.’ ” (citations omitted)); A.B. ex rel. Blaik v. Health Care Serv. Corp., No. CIV-14-990-D, 2015 WL 6160260, at *2 (W.D. Okla. Oct. 20, 2015) (unpublished) ("A motion to dismiss for failure to exhaust non-judicial remedies is treated as an 'unenumerated’ motion under Rule 12(b). In deciding such a motion, the Court accepts as true all well-pled allegations, and, ... may look beyond the pleadings and decide disputed issues of fact. If the district court concludes the plaintiff has not exhausted nonjudicial remedies, the proper remedy is dismissal of the claim without prejudice." (citations omitted)). The court finds no meaningful distinction between these standards as applied to this case, and therefore applies the standard briefed by the parties.
. Crowe & Dunlevy, P.C. v. Stidham, 640 F.3d 1140, 1149 (10th Cir. 2011) (quoting Bank of Okla. v. Muscogee (Creek) Nation, 972 F.2d 1166, 1170 (10th Cir. 1992)).
. 471 U.S. 845, 856-57, 105 S.Ct. 2447, 85 L.Ed.2d 818 (1985).
. Kerr-McGee Corp. v. Farley, 115 F.3d 1498, 1507 (10th Cir. 1997).
. Id. (internal quotation marks omitted).
. Thlopthlocco Tribal Town v. Stidham, 762 F.3d 1226, 1238 (10th Cir. 2014) (internal quotation marks omitted).
. Id.
. Id. at 1239 (internal quotation marks omitted).
. At oral argument, Plaintiffs additionally argued that Doe Defendants brought their eighth cause of action in bad faith. Plaintiffs contend that, while they did not clearly raise this issue in their briefing, it was implicit in their claim that the eighth cause of action had no basis in law. The court declines to consider Plaintiffs' bad faith argument because they did not raise it in the briefing in a manner that would have allowed Doe Defendants to adequately respond. See Bronson v. Swensen, 500 F.3d 1099, 1104 (10th Cir. 2007) ("[W]e routinely have declined to consider arguments that are not raised, or are inadequately presented, in an appellant’s opening brief.”); Utah Envtl. Congress v. MacWhorter, No. 2:08-cv-118-SA, 2011 WL 4901317, at *16 (D. Utah Oct. 14, 2011) (unpublished) (declining to consider an argument that was not clearly raised in the plaintiff's brief when the issue "could not be identified by Defendants with any certainty, and certainly was not adequately briefed”).
. Thlopthlocco Tribal Town, 762 F.3d at 1239-40.
. Plains Commerce Bank v. Long Family Land & Cattle Co, 554 U.S. 316, 327, 128 S.Ct. 2709, 171 L.Ed.2d 457 (2008) (citation omitted).
. National Farmers, 471 U.S. at 856, 105 S.Ct. 2447.
. Plains Commerce Bank, 554 U.S. at 327, 128 S.Ct. 2709 (internal quotation marks omitted).
. Id. at 328, 128 S.Ct. 2709 (alteration in original) (internal quotation marks omitted).
. 450 U.S. 544, 101 S.Ct. 1245, 67 L.Ed.2d 493 (1981).
. Strate v. A-1 Contractors, 520 U.S. at 438, 445, 117 S.Ct. 1404 (1997).
. Id. at 446, 117 S.Ct. 1404.
. Id. at 439, 117 S.Ct. 1404.
. Montana, 450 U.S. at 565-66, 101 S.Ct. 1245.
. Plains Commerce Bank, 554 U.S. at 330, 128 S.Ct. 2709.
. See Dolgencorp, Inc. v. Mississippi Band of Choctaw Indians, 746 F.3d 167, 172 (5th Cir. 2014).
. Atkinson Trading Co. v. Shirley, 532 U.S. 645, 656, 121 S.Ct. 1825, 149 L.Ed.2d 889 (2001).
. 554 U.S. 316, 128 S.Ct. 2709, 171 L.Ed.2d 457 (2008).
. Plains Commerce Bank, 554 U.S. at 332, 128 S.Ct. 2709 (quoting Montana, 450 U.S. at 564, 101 S.Ct. 1245) (second alteration in the original); see also Nevada v. Hicks, 533 U.S. 353, 361, 121 S.Ct. 2304, 150 L.Ed.2d 398 (2001) ("Tribal assertion of regulatory authority over nonmembers must be connected to that right of the Indians to make their own laws and be governed by them,”).
. Dolgencorp, 746 F.3d at 175.
. Id. ("It is hard to imagine how a single employment relationship between a tribe member and a business could ever have such an impact. On the other hand, at a higher level of generality, the ability to regulate the working conditions (particularly as it pertains to health and safety) of tribe members employed on reservation land is plainly central to the tribe’s power of self-government. Nothing in Plains Commerce requires a focus on the highly specific rather than the general.”).
. Dollar General Corp. v. Mississippi Band of Choctaw Indians, — U.S. —, 136 S.Ct. 2159, 195 L.Ed.2d 637 (2016).
. See Dolgencorp, 746 F.3d at 175 n.6 (noting that such a reading of Plains Commerce Bank would "read the first Montana exception out of existence” because "[i]f regulation of some consensual relationship is necessary to protect tribal self-government or to control internal relations, it would seem to fall necessarily within the second Montana exception”); cf. State Farm Ins. Cos. v. Turtle Mountain Fleet Farm, LLC, No. 1:12-cv-00094, 2014 WL 1883633, at *7-8 (D.N.D. May 12, 2014) (unpublished) (rejecting State Farm’s argument that in light of Plains Commerce Bank the consensual relationship must now be with the tribe itself rather than an individual member).
. Plains Commerce Bank, 554 U.S. at 337, 128 S.Ct. 2709 (stating that because the constitution and bill of rights do not apply to Indian tribes, and because non-members have no say in tribal government, tribal “laws and regulations may be fairly imposed only if the nonmember has consented, either expressly or by his actions”).
. Id. at 331, 128 S.Ct. 2709.
. 520 U.S. 438, 117 S.Ct. 1404, 137 L.Ed.2d 661 (1997).
. Id. at 453, 117 S.Ct. 1404 (alterations in original) (internal quotation marks omitted).
. Id.
. See Hicks, 533 U.S. at 358, 121 S.Ct. 2304 ("That formulation leaves open the question whether a tribe's adjudicative jurisdiction over nonmember defendants equals its legislative jurisdiction. We will not have to answer that open question if we determine that the Tribes in any event lack legislative jurisdiction in this case.”).
. Dolgencorp, 746 F.3d at 172 (citing Attorney’s Process & Investigation Services, Inc. v. Sac & Fox Tribe, 609 F.3d 927, 938 (8th Cir. 2010) (“If the Tribe retains the power under Montana to regulate .,. conduct, we fail to see how it makes any difference whether it does so through precisely tailored regulations or through tort claims ,...”); Philip Morris USA, Inc. v. King Mountain Tobacco Co., 569 F.3d 932, 939 (9th Cir. 2009) ("The Montana framework is applicable to tribal adjudicative jurisdiction, which extends no further than the Montana exceptions.”)).
. Id. at 173 (quoting Attorney’s Process, 609 F.3d at 938).
. See Crowe & Dunlevy, P.C., 640 F.3d at 1149 (quoting Burrell v. Armijo, 456 F.3d 1159, 1168 (10th Cir. 2006)).
. Dkt. 17 at 8-9,
. At oral argument, but not in their briefing, Plaintiffs asked the court to analyze the jurisdiction of the Tribal Court as to each of the causes of action individually. Plaintiffs argued that, even if the court were to send' some causes of action back to the Tribal Court-for exhaustion, it would be inappropriate to require exhaustion on any claims over which the Tribal Court clearly lacked jurisdiction. The court finds this argument unpersuasive and declines to undertake an exacting analysis of each cause of action. Instead, the court concludes that if Plaintiffs must exhaust their Tribal Court remedies as to any of Doe Defendants’ claims, it is appropriate to send the entire case back to the Tribal Court for consideration of Plaintiffs’ jurisdictional defenses.
. Dkt. 19 at 9.
. Dkt. 24 at 6.
. Dkt. 19 at 14.
. Dkt. 24 at 3.
. Dkt. 25 at 4-5.
. Dkt, 24 at 5.
. Id.
. Plains Commerce Bank, 554 U.S. at 334, 128 S.Ct. 2709.
. Dkt. 24 at 6.
. Montana, 450 U.S. at 565-66, 101 S.Ct. 1245.
. Dolgencorp, 746 F.3d at 173.
. Atkinson Trading, 532 U.S. at 656, 121 S.Ct. 1825.
. Dkt. 20 at 8 (citing Second Am. Comp, for Deck J. ¶¶ 9-12; see also Pis. Exs. A, B, & C).
. Id.
. Kerr-McGee Corp, 115 F.3d at 1507.
Reference
- Full Case Name
- The CORPORATION OF the PRESIDENT OF THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS, a Utah Corporation and LDS Family Services, a Utah Non-Profit Corporation v. RJ, MM, BN, and LK, individuals
- Status
- Published