Opinion ID: 5141755
Heading Depth: 3
Heading Rank: 1

Heading: The Land at Issue

Text: Moses Allotment Number 8 (“MA-8”) is a plot of land in eastern Washington; the RV park is on that land. In the 1900s, the United States originally issued title to this land to American Indian Wapato John, a member of the Moses Band of the Columbia Tribe, as an “allotment” in trust: a distinct plot of land set aside for Wapato John. According to the federal statute establishing this particular trust, the land’s legal title vested in the United States, which was to hold the land in trust for ten years for Wapato John’s sole use and benefit. The land’s beneficial title (i.e., the land’s equitable title) vested in Wapato John. During the ten-year trust period, the land was to be managed by the Department of the Interior (now the BIA) and was subject to restrictions on alienation, encumbrance, and state taxation. That trust period for MA-8 has been repeatedly extended over the years (and these trust extensions correspondingly extended the restrictions as well) such that to this day, the United States continues to hold legal title to the land, in trust for Wapato John’s heirs. Today, beneficial ownership in MA-8 is rather fractionated. Twenty-seven heirs of Wapato John—here, referred to as the individual allottees (“IAs”)—own separate, undivided beneficial interests in the land. Wapato Heritage, LLC (“Wapato Heritage”) and the Confederated Tribes of the Colville Reservation (the “Tribe”) also hold undivided, beneficial interests in MA-8. 1 The BIA retains legal title as The Tribe owns a 32.2% interest in the land and Wapato Heritage 1 (owned by the grandsons of a deceased individual allottee by the name of William Wapato Evans, Jr.) holds a 23.8% interest as a life estate; this GRONDAL V. UNITED STATES 11 trustee to all such beneficial interests held by the IAs, Wapato Heritage, and the Tribe. Throughout most of 20th century, MA-8 was left unimproved. But in 1979, William Wapato Evans, Jr. (an heir of Wapato John and then-holder of an approximately 5% beneficial interest in MA-8) sought to improve MA-8 and thereby generate income for himself and the other IAs. At that time, the IAs between them owned the vast majority of the beneficial interest in MA-8, and per BIA regulation, Evans obtained approval from a majority of those IA interests to lease the entirety of MA-8 to develop a recreational vehicle park (the “Mill Bay RV Park”). With approvals in hand, Evans negotiated and signed the “Master Lease.” 2 Under the terms of the Master Lease, signed in 1984, the IAs leased use of MA-8 to Evans for a term of twenty-five years, but Evans retained an option to renew the lease for another twenty-five years. To exercise this option, the Master Lease required Evans to provide written notice to both the Lessors (the IAs) and the BIA twelve months prior to the expiration of the original twenty-five-year term. The Master Lease permitted Evans to sublease the property upon written approval of the BIA and provided that such subleases would be assigned to the Lessors, rather than cancelled, if estate reverts to the Tribe after the death of Evans’ last living great grandchild. Separately, around 4.5% of the land is held in fee. 2 The Master Lease defines the “Lessee” as Evans, and the “Lessor” as individuals named in “Exhibit A.” As it happens, Exhibit A could not be located and may not exist, but, per prior litigation, the parties here agree that the individuals listed in Exhibit A are the IAs who owned the fractionated interests in MA-8 at the time the Master Lease was signed. The BIA, as trustee, signed the Lease on behalf of the IA Lessors. 12 GRONDAL V. UNITED STATES the Master Lease itself was terminated “by cancellation or otherwise.” Evans subleased most of MA-8 to his corporation, Mar-Lu, Ltd. 3 He also subleased a portion of MA-8 to a development corporation owned by the Tribe for the operation of a casino. Thereafter, Evans, through Mar-Lu, developed and sold “regular memberships” to the Mill Bay RV Park. These “regular memberships” allowed purchasers to use and park their vehicles on the RV park on a first-come, first-served basis under the site plan of the Master Lease. 4 Later, in 1989, Evans obtained approval from the BIA to modify the site plan so that Evans could sell “expanded membership[s].” These expanded memberships, expressly subject to the terms of the Master Lease, granted members the “right to use” the Mill Bay RV Park and guaranteed them each a designated spot in the RV park.