Opinion ID: 1413920
Heading Depth: 4
Heading Rank: 1

Heading: Picopa's Independence from the Community

Text: Besides the corporate status, significant differences exist between Picopa and FATCO/GRF. Picopa has a board of directors, separate from the tribal government, which exercises full managerial control over the corporation. Thus, unlike FATCO and GRF, the tribal government does not manage the corporation. See Smith Plumbing Co., Inc. v. Aetna Casualty & Surety Co., 149 Ariz. 524, 533 n. 1, 720 P.2d 499, 508 n. 1 (Feldman, J., dissenting) (recognizing distinction between commercial entities that are part of tribal government and those that are not). Further, the purchase of general liability insurance covering Picopa's negligence and the limited liability clause found in Picopa's charter insulate the Community's assets from Picopa's debts. This counsels against a finding that Picopa is a subordinate economic organization. Although we have held that the presence of liability insurance is irrelevant to determining whether a tribe has waived its immunity, Graves, 117 Ariz. at 34, 570 P.2d at 805, we believe the presence of liability insurance is relevant to the question of whether an Indian commercial entity is a subordinate economic organization under White Mountain Apache. The purchase of liability insurance is some evidence that the Community expected its corporation to be liable for its torts. [10] We also believe that the ordinance's express declaration that the Community formed Picopa solely for business purposes and without any declared objective of promoting the Community's general tribal or economic development further evidences Picopa's independence from the Community. This is an additional factor weighing against a finding that Picopa is a subordinate economic organization. [11] Cf. White Mountain Apache, 107 Ariz. at 6, 480 P.2d at 656 (plan of operation contained express declaration of tribe's general economic development as purpose of commercial entity), and S. Unique, 138 Ariz. at 381, 674 P.2d at 1379 (same).