Document: 523 U.S. 696118 S.Ct. 1650140 L.Ed.2d 898 MONTANA, et al., Petitioners,v.CROW TRIBE OF INDIANS al. No. 96-1829. Supreme Court of the United States Argued Feb. 24, 1998. Decided May 18, Syllabus * In 1904, Crow Tribe ceded part its Montana Reservation to for settlement by non-Indians. The holds rights minerals underlying strip in trust Tribe. 1972, with approval Department Interior and pursuant Indian Mineral Leasing Act 1938 (IMLA), Westmoreland Resources, Inc., a non-Indian company, entered into mining lease coal strip. After executing lease, signed contracts customers, four utility companies, allowing it pass on utilities cost valid taxes. renegotiated 1974. amended had an extendable ten-year term, set some highest royalties States. 1975, imposed severance tax gross proceeds all produced State, including reservation proper paid these taxes without timely pursuit procedures law provides protests refunds. Some six months after State taxes, Tribal Council adopted own tax. approved Tribe's as applied but, because limitation constitution, did not approve beneath again enacted mined 1982, rejected 1978, brought federal action injunctive declaratory relief against counties, alleging that State's were preempted IMLA infringed right govern itself. District dismissed complaint. Ninth Circuit reversed, holding allegations, if proved, would establish Appeals noted, however, none Westmoreland's apparently be entitled any refund event declared invalid. v. Montana, 650 F.2d 1104, 1113, n. 13 (Crow I). agreement, approval, under which agreed pay equal then-existing less payments was required subdivisions. agreement achieved, prospectively, permission long sought. It allowed have place so that, successful litigation could claim itself amounts ordered Court's registry pendente lite. also enabled avoid double taxation, absolved company from payment obligation 1976-1982 period. 1983, granted motion deposit registry, pending resolution controversy over Montana's taxing authority. 1987, court same interim Later year, intervened behalf protect interests trustee upon levied. trial, determined preempt at concluding both void interfering tribal self-governance. 819 895, 903 II). stressed, inter alia, least negative impact marketability coal. Id., 900. This summarily affirmed. When case returned 1988, distribution funds Subsequently, filed complaints Big Horn County recover prior 1983 1987 orders directing deposits court's registry. Neither nor requested, additional or alternate relief, recovery actual financial losses attributable concluded disgorgement remedy sought appropriate. Key decision this Cotton Petroleum Corp. New Mexico, 490 163, 109 1698, 104 209, may impose on-reservation oil gas production lessee. indicated invalidated II lacked power all, but "extraordinarily high.'' 186-187, 17, S.Ct., 1713, 17. considered before essential allow pass-through company's customers. Furthermore, 1982 stipulated no liability Moreover, deposited funds, post-1982 payments, been turned full benefit further noted endeavor nothing prompt initiate appropriate proceedings. received evidence concerning effect described parties' conflicting positions issue, made findings matter. ignored abused discretion. Held: restitution is warranted. Pp. ____-____. (a) As rule, nontaxpayer sue another. evidently rule mind when I, Montana. maintains, gained does fall within "refund'' category. must examined light pathmarking 209. There, clarified neither IMLA, other law, categorically preempts state nondiscriminatory extraction enterprises operations. Both jurisdiction production. distinguished footnote, indicating coal, exorbitant rate. (b) first argues it, should 1975-1982 payments; therefore require turn collected However, makes plain, enjoys authority total exclusion other. situation differs cases like Valley Thomas, Mont. 345, 97 P.2d only one particular activity. taxed during period question, withheld permission, distancing County. correctly took factors account exorbitant, inequitable, remedy. (c) urge high alternative justification requiring disgorge Westmoreland. rests concern actually sold, deprived fair share economic rent. Again, exacted approval. And suggests even higher 1974, merits emphasis Petroleum, tax, albeit extraordinarily high. consider awarding Tribe, lieu collected, damages based suffered. oversight. complaint contained prayer compensatory damages. Nor proof entitlement such relief. concentrated desired remedy; deliberately proved sold price too Federal Rule Civil Procedure 54(c) aid shown While foreclosing course Rules thorough grasp lead take, satisfied improperly overturned judgment. 92 F.3d 826, 98 1194, reversed remanded. GINSBURG, J., delivered opinion Court, REHNQUIST, C.J., STEVENS, SCALIA, KENNEDY, THOMAS, BREYER, JJ., joined. SOUTER, concurring dissenting part, O'CONNOR, Clay Riggs Smith, Helena, MT, petitioners. Robert S. Pelcyger, Louisville, CO, private respondent. Jeffrey A. Lamken, Washington, DC, respondents. Justice GINSBURG Court. 1 originated 1978 enjoin counties extracted mines held Having succeeded endeavor, now seek coal-related once nontribal enterprise We hold 2 A 3 Just north northern surface boundary lies "ceded strip,'' approximately 1,137,500 acres land originally reservation. tract 1904 Act. Apr. 27, ch. 1624, 33 Stat. 352; see Ash Sheep Co. States, 252 159, 40 241, 64 L.Ed. 507 (1920). Surface thereafter conveyed non-Indians, Since Counties Horn, Treasure, Yellowstone exercised legal responsibility public services strip, has civil area. See 1107 (C.A.9 1981) (noting Appeals' understanding, Little Light Crist, 649 682, 685 1981), "the area reservation''). 4 52 347, 25 U.S.C. §396a seq., 31,000 1972 Midwest utilities. began spring 5 November lease. recognized time being among 657 F.Supp. 573, 587 (D.Mont.1985); App. 376 (testimony president royalty "by far nation'').1 attending 1974 renegotiation stated found associated documents "satisfactory they provide financial, social protections deems necessary.'' 44. provided term ten years, running June 14, 1972. 8. Pursuant almost $18 million through October 1983. F.Supp., 588. 6 July Mont.Code Ann. §§15-23-701 15-23-704, 15-35-101 15-35-111 (1979). rate applicable 30 percent contract sales extracted;2 price. During relevant periods,3 $46.8 $11.4 County.4 Pet. Cert. 37; Tr. Oral Arg. 13-14. subsequently agreed, exchange $50,000, dismiss prejudice 294-296. 7 January 1976, ordinance setting out Coal Taxation Code. 79-86. Code "all persons engaged carrying business boundaries Reservatio[n].'' 81; id., 97-98. boundaries, Code, included 81.5 Under subject review Interior. 329. 8 1977, code "to extent proper.'' 98. Because "disapproved strip.'' 153; 217-218, 329.6 897 1987). According Superintendent Agency, Bureau Affairs, continued withhold extension constitution "disclaimed outside reservation.'' 218. endeavored amend satisfy Department's objection; petition refusal B 9 seeking imposition proceed belonging alleged, failure granted. 469 154 (D.Mont.1979). reversed. 1104 (1981), amended, 665 1390 (1982) F.2d, 1113-1115, impermissibly sovereignty, 1115-1117. 10 trained nonmonetary then pursuing, stop noted: "As already . true statutes are invalid.'' 13. observed attempt lessees' partially frustrated Secretary Interior's sanction ordinances insofar 1115, 19. 11 I decision, September. arrangement, make 135-141; 329-330. might Correspondingly, present future, 32-35. 12 keeping their jointly 32. motion. Thereafter, paying State. 35, 36. ordering deposits, ultimately over, interest, prevailing party (Montana Tribe), recalled Circuit's observation previously Montana.'' 213 (citing 13). provisional attended concern; "preserve[d Court's] [to give post-1982] moneys rightful owner trial merits.'' 215. Trial 1984, 573 (D.Mont.1985). 895 1987) held, "preempted policies,'' reflected "void self-government.'' 903. Explaining stressed considerations: vital interest development resources, 899, 901; "at [of coal],'' 900; exactions "narrowly tailored'' serve "legitimate'' interests, 902. appealed, 484 997, 108 685, 638 (1988). 14 order release object new twist, did. protracted litigation, asserted qualified receipt funds. preempted. according Westmoreland, years following 1982-the fund period-for want Therefore, urged, receive back 15 Rejecting novel Circuit, 1117, II, 898, characterized ""component itself.''' 286. follows, next said, supra, __-__, covered well, erred ever opining otherwise, operations stated, modified amending 287; __. That Tribe-Westmoreland accord controlled, concluded, rendering amount payable Shortly thereafter, 288-291. 16 secured exclusively commenced fray us. Filing County, invoked theories assumpsit constructive support prayers $58.2 county 243-260. These alleged violation unjust inequitable them retain "equity good conscience,'' monies illegally together thereon. 249-250, 258-259.7 taxes.8 17 moved summary judgment, arguing, existed belonged payer question. 72. December 1990, denied ground airing order. 67-85. 18 On application, certified interlocutory appeal, 28 §1292(b), question whether judgment properly denied. 61-66. 1991, initially year later, 1992, appeal improvidently 969 848 III). dismissing commented "sole issue'' presented although nevertheless positioned trust. "was addressed'' II. recited passages why ""the tax[es] threaten[ed] Congress' overriding objective encouraging self-government development.''' 848-849 (quoting 903). C 19 conducted April 1994 determine unjustly enriched subdivisions expense detailed conclusions, explained why, 17-38, 42-54. 20 rested three principal points: first, fact, settled mineral resource Tribe; second, policy favoring development; finally, preemption decision. Critical recognized, determination "Montana's burdened increasing costs producers, reduced Tribe.'' 45 899). 21 Counterbalancing case, subdivisions, " [p]ublic residents businesses [c]eded [s]trip, many facilitate coal.'' 47; __, 5. reasoning, respective 22 rendered two 209 (1989). invalidated, issue 23 exercise authority, hand, Interior, obtained period, 1975-1982. __-__. error, presence cause error. Rather, questioned later pointed noncompliance 36-37. 24 Accorded weight evaluation, 35. 36.9 Ibid.; proceedings 50-51. regard, statement ""as invalid.''' 53 26 Concerning entertained evidence, supplementing offered earlier. testified "he identify lost due taxes,'' 29, experts testimony sale positions, 29-30. 27 Satisfied justifying impel demanded reasonably sized though gain enrichment refused between 1975 remitted Tribe.10 judgment; per curiam opinion, read opinions demanded, i.e., making 1194 (1996) IV). Acknowledging absence traditional requirements trust,'' F.3d, 828, remanded entry left "unresolved request[s] prejudgment [and attorney's fees].'' 830-831. 29 view, adhered "law case,'' 828,11 discretion, 830. particular, faulted giving undue fact rather than 828-829,12 plain U.S., 176-187, 1707-1713, "similar [state] always preempted,'' IV, 829. Further, discounted mined.'' Ibid. Finally, attributed finding "would [the Department's] [Westmoreland] do lease.'' 830; ibid. ("Westmoreland willing early there reason [District Court] distinguish 1982.'').13 certiorari, 522 ----, 118 294, 139 226 (1997), reverse Appeals. 31 certiorari presents Tribe-or trustee-may lessee, who forfeited refund. Taxpayer undisputed, qualify failed pursue protest prescribes. relinquishing return 32 See, e.g., Furman Univ. Livingston, 136 S.E.2d 254, 256, 244 S.C. 200, 204 (1964); Krauss Develle, 236 La. 1072, 1077, 110 So.2d 104, 106 (1959); Kesbec, Inc. McGoldrick, 278 N.Y. 293, 297, N.E.2d 288, 290 (1938); cf. California, 746, 752, 113 1784, 1788, 123 528 (1993). "is refund'' ways analyzing claim. First, liable wrong sovereign; recipient those payments. Second, adversely affected economy reducing demand charge; remedial transferring eliminate expense. 34 Before inspecting justifications Appeals, we clear view our affirmance II.14 (1989), Mexico's Jicarilla Apache 1712-1713. holding, acknowledged 167-169, 1702-1703, reduce leases, imposed, discrimination, "Unless until Congress each sovereigns[-State Tribe-]has [on-reservation production].'' 189, 1714. 35 footnote referring Solicitor General's representation high'' recognition thus indicates, 187, (according expert, ""more twice state's taxes''').15 examine books (and States) current claims restitution. 36 argument rely typified 345 (1939). involved providing licensing motor vehicles vehicle owned taxable. claimed McCone unlawfully issuing licenses, collecting license fees, taxable sued monetary Valley, McCone, licenses fees collected. scant sense, reasoned, instead "exact fee anew [vehicle] owner, leaving latter his remedy, any, illegal exaction.'' 385-386, P.2d, 366. 37 49-50, pattern here. statute bound counties. One, other, sole subdivision authorized collect fee. Here, dispositively lessee (whether wrongly rightly) permission. 38 bears repetition September never judicial pre-1982 disapprovals, absent 13, impede gaining clearance, released significant remedy.16 39 comprehended, basis 1982. At oral argument, counsel went unsold 37. Instead, "actually sold''; maintained, "deprived Tribe] rent.'' 41 No royalties, also, 46, 50, 1712-1713 (New production, amounting about value taxpayer's expected marginal ability increase rate''). 42 cannot call nn. 7, __.17 43 homing came president. He "identify [no] taxes.'' 29. he customers "exercise[d] option continuing probably factor,'' identified "demand, sources, transportation.'' Indeed, just "no now'' "coal [due to] tax.'' 54(c), therefore, instructs "every final shall grant whose favor entitled, party's pleadings.'' 44 sum, carefully fairly warranted ruling, heed closely history record tangled, long-pending case. Proceeding did, tenable case'' indulge "abuse discretion.'' 829, result displaced extent: With respect operations, gone since 1987. retention preregistry assessed court-ordered best assessment, obliged parties presented. here argued disgorgement. They develop different kind size. foreclose 46 47 For reasons consistent opinion. 48 ordered. 49 whom O'CONNOR joins, part. 50 meticulous treatment exhausting discussion way 186, II), aff'd, (1988), shows error 1976 explains, ante, objectionable wholly disentitled operation, ""extraordinarily high''' affecting simply excessive. free levy portion below threshold excessiveness, concur vacate remand 51 If stopped there, stage engage serious weighing partial complaint, which, seeks "illegally collected.''* Although request predicated reading expansive, naturally encompasses lesser excess limit. open further, indicate done either raised dispositive bar pre-1983 revenues, contrary what suggested, 35-37, excessive reweigh equities. considering received, facts, some, impedes entirely it. says "foreclose take'' conclusions effectively thwart application rules bear resulting truncation discretion respectfully dissent. 54 land, certain point. Beyond point, add burden. another revenue lawful accepted principles entitle government former receiving. most general level, "person other.'' Restatement Restitution §1, p. (1937). more specific [w]here person money erroneous belief, induced mistake owed duty do, whereas third person, transferee person.'' §126(1) 514. accordingly majority recognize, jurisdictions claiming transaction, surrender one, them, (1939); College Park Eastern Airlines, 250 Ga. 741, 742-744, 300 513, 515-516 (1983) (invoking "general equitable restitution,'' §126(1), municipality mistakenly another); Hill Atkins, 153 Ohio St. 562, 566-567, 93 22, (1950) authorizing suit town School Dist. 5, 255 Mich. 428, 429, 238 N.W. 214, 215 (1931) (authorizing school district [t]hrough breach plaintiff taxpayers due, defendant equity conscience belongs plaintiff''); Balkan Buhl, 158 Minn. 271, 279, 197 266, 269 (1924) (" [T]o permit wrongfully neighbor's territory, Such objectional beyond bare statement''). then, reflecting restitution, raises facially 55 differentiate ambit proffered distinctions come up short. point validly so, remaining element goes revenues exceeded limit taxation; taxation became while (It true, course, spheres bounded economic, geographic line. But distinction affect principle involved, argue otherwise.) 56 distinguishable governmental claimant enforceable scheme place, "could permission,'' original recent challenged times Ceded Strip.'' ruling estate reservation, 57 [t]his analysis status compels conclusion gave fully Strip component Tax activities necessarily Accordingly, purported apply operation mistaken interpretation law.'' 58 Thus, provision apparent disqualified obtain regulation. enforced refusal, bearing is, unlitigated third-party rival authorities, clearly got nothing, pocketed anyway. 59 Third, despite suggestion inapposite So matters here, capped burden then-current purport 60 To reject attempts not, deny exists. difference situations, prevent door closing comparable cases, relative competing jurisdictions' tax; property activity except extraction. merely (a unaffected favorable terms __); too, (passed Westmoreland) appropriation property, invalid counterpart collection "Montana intention rent'' 1113 (1981). viewed light, can put side questions right, am, significance point-for-point applicability bypass contending authorities ask something practical defeat taken form answer uncertain. endorses degree "exorbitant,'' "compensatory damages'' unjustified, previous award amounted windfall big enough rough preceding years. Ante, time, imposes possibility court. Perhaps sees regards distinct suffered such. exploration remand. Whether equitably penny now, know, think disentitles press revenues. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Timber & Lumber Co., 200 321, 337, 282, 287, 499. contrasted cents ton half ton, maybe ton.'' 375-376. legislature, post-1985, incrementally 25. 1975-1982, 1975-1987. jurisdictions. Chairman, March 11, opposing "has important responsibility'' particularly strip; role Chairman added, substantially where takes Reservation, exercises proprietary people 53. 3, Assistant disapproved, procedural grounds, amendment Constitution applying removal 98; Defendant's Exhs. 542, 543. Specifically, interest. 250-251, 259. An earlier addition "restitutionary, refunds, damages, relief,'' "punitive exemplary damages.'' 143, 158. refer "refunds'' "money 1993, allegedly 1976-1982. 1993 order, leave amend, observing: "This fifteen old''; "defendants motions objection''; motion, contains causes [which] change nature litigation.'' Record, Doc. 637, 4. [t]he tardy amendments] broadened'' newly facts "have known inception action.'' 3. 1988 issued suggest predating "as escrowed virtue [that] agreement.'' 36; 53-54. tortious interference contractual relationships Shell Oil Company. 54-57, affirmed disposition. 830-831, (1996). cross-petition disposing (1997). repeatedly referred III, 2, denying containing "holding,'' 1110 ("incidence [Montana's] lessee''); [a]s refund''). (District customers''). disposition affirms below, sustain judgment.'' Anderson Celebrezze, 460 780, 785, 103 1564, 1568, 75 547 (1983). 1985, observed, legislature incentive credits tax''; 1994, diligently canvassed substantial believing approval'' "Westmoreland 1976,'' attempted, unsuccessfully, show caused lose 10. essentially

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