Opinion ID: 1413920
Heading Depth: 3
Heading Rank: 4

Heading: Policies Underlying the Immunity Doctrine

Text: Further, an examination of the federal policies underlying the immunity doctrine convinces us that we should not grant immunity here. Tribal immunity should only apply when doing so furthers the federal policies behind the immunity doctrine. Note, Tribal Sovereign Immunity: Searching for Sensible Limits, 88 COLUM. L.REV. 173, 183, 186 (1988). Several of those federal policies are implicated here: Protection of tribal assets, preservation of tribal cultural autonomy, preservation of tribal self-determination, and promotion of commercial dealings between Indians and non-Indians. Id. at 179, 186-91. Extending immunity to Picopa would not further the federal policy seeking to protect tribal assets. Insurance protects the corporate liability, and the corporate charter exonerates the Community from corporate liability. Therefore, the Community's assets are not threatened by refusing to recognize immunity for an Indian corporation that does not meet the law's definition of subordinate economic organization. Cf. Smith Plumbing, 149 Ariz. at 536, 720 P.2d at 511 (Feldman, J., dissenting) (if tribal assets are threatened, tribal immunity policies are implicated). Policies protective of tribal cultural autonomy and self-determination also remain unhindered by permitting jurisdiction here. Picopa's charter shows that it was established for purely commercial reasons and not in any effort to promote, develop, or protect the Community's culture. Cultural autonomy survives. See Note, supra, 88 COLUM.L.REV., at 186-87. Neither is the Community's self-determination imperiled by our assertion of jurisdiction. This private action based on an off-reservation tort does not in any fashion limit the Community's powers nor the manner in which it exercises those powers. See id. at 187-88. In contrast, the federal government's policy promoting commercial dealings between Indian tribes and non-Indians is furthered by withholding immunity in this case. We realize that, here, Dixon did not voluntarily become involved with Picopa, but we believe that an Indian corporation's successful assertion of immunity, even in a negligence case, may deter persons or entities from entering into contractual relationships with that Indian corporation or any other Indian corporation. Non-Indians will undoubtedly think long and hard before entering into business relationships with Indian corporations that are immune from suit. Note, supra, 88 COLUM.L.REV., at 189 (citing Atkinson v. Haldane, 569 P.2d 151, 174 (Alaska 1977)). This may well retard a tribe's economic growth. Id. Further, Congress's provision for allowing Indian tribes to segregate themselves into governmental and commercial corporate units, see note 8, supra, arguably implies that Congress did not intend all commercial activity undertaken by Indian entities be immune from suit. Note, supra, 88 COLUM.L.REV., at 190. Thus Congress itself recognized that immunity may have deleterious effects on a tribe's economic development. The court of appeals held that the mere act of incorporation did not waive tribal immunity. Although that statement is correct, in this instance it overlooks the real issue. The waiver issue does not arise until Picopa first establishes that it has immunity to waive. We hold that Picopa is not a subordinate economic organization within the meaning of White Mountain Apache and S. Unique, and hence may not assert the Community's tribal immunity. Further, on this record, as a separate corporate entity, Picopa is not entitled to assert immunity in its own right for its off-reservation commercial activities. See Puyallup and Namekagon. We turn, therefore, to the process issues.