Opinion ID: 502461
Heading Depth: 2
Heading Rank: 10

Heading: opportunity to obtain bia approval

Text: 97 AMA contends the district court erred in granting the Band's motion for summary judgment without first giving AMA an opportunity to obtain BIA approval of the 1983 agreement. AMA relies on Koberstein as support for this contention. 98 In Koberstein, the governing body of the Wisconsin Winnebago Tribe (Tribe) entered into a tribal bingo management agreement with Ho-Chunk Management Corp. (contractor) to construct and manage a bingo facility on the Tribe's reservation. 762 F.2d at 614. The contractor submitted the agreement to the BIA for approval under 25 U.S.C. Sec. 81. Id. at 615. The BIA determined BIA approval was not necessary because the funds the contractor was to receive were not trust funds or proceeds of trust property. Id. On the same day the bingo facility opened, the tribe voted to rescind the agreement with the contractor, but the contractor continued to operate the facility. Id. at 616. The tribe filed suit to enjoin the contractor from operating bingo games on its reservation, alleging the bingo agreement was void under 25 U.S.C. Sec. 81. Id. The district court granted summary judgment in favor of the tribe, holding the agreement null and void since it had not been approved by the BIA. Id. Because the district court believe[d] that equity demands that defendants be given a period of time to cure the defect which mandated summary judgment against them or to resolve its responsibilities in an orderly fashion, it gave the contractor three months before the agreement would become null and void to obtain BIA approval. Id. During this period, the contractor submitted the agreement to the BIA, which disapproved the agreement. Id. at 616 n. 4. The Seventh Circuit did not discuss the propriety of the district court's order staying the effective date of the judgment to permit the contractor to obtain BIA approval. 99 In AMA's opposition to the Band's motion for summary judgment, it requested the district court to give AMA a reasonable period of time to cure the defect by submitting the agreement to the BIA and obtaining its approval. The district court implicitly rejected this request when it granted the Band's summary judgment motion without addressing this issue. 100 The abuse of discretion standard of review is applicable to the district court's refusal to continue this matter so that AMA could attempt to obtain BIA approval. Under this standard, a reviewing court cannot reverse unless it has a definite and firm conviction that the court below committed a clear error of judgment in the conclusion it reached upon a weighing of the relevant factors. Fjelstad v. American Honda Motor Co., 762 F.2d 1334, 1337 (9th Cir.1985). The appellate court cannot simply substitute its judgment for that of the lower court. Chism v. National Heritage Life Ins. Co., 637 F.2d 1328, 1331 (9th Cir.1981). 101 On April 7, 1986, the Assistant Secretary for Indian Affairs of the Department of the Interior sent a memorandum to all Area Directors establishing guidelines for approval of tribal bingo management agreements under section 81. The memorandum stated in pertinent part: 102 [A]ll gambling management contracts of tribes or tribal enterprises should be presumed to fall within the scope of 25 U.S.C. Sec. 81.... 103 The Secretary's policy statement recognizes ... the fact that ... federal courts are continuing to hold that 25 U.S.C. Sec. 81 makes tribal bingo management contracts null and void unless they are approved.... I will be writing to the tribes to request that they submit their management contracts for review if they have not yet done so. You should also encourage the tribes in your Area which have unapproved contracts to submit them for review. If feasible, you should offer to assist them in renegotiating the contracts to bring them into conformity with the guidelines. 104 The Assistant Secretary then listed 31 guidelines which should be considered when Area Directors review tribal bingo management contracts. Guideline number four provides: 105 The contract must have a fixed limited time to run, which must be distinctly stated. The contract term should not exceed five years unless there is provision for renegotiation of the management fee or other adjustment of the fee to accommodate changes in circumstances. For contracts of longer than five years duration, the opportunity for renegotiation or other provision for adjudgment should arise no later than five years after the contract is entered and thereafter at intervals of no longer than five years. 106 Section one of the 1983 agreement, provides for a term of 25 years. There is no provision for renegotiation or adjustment of the management fee. Thus, the 1983 agreement did not comply with the guidelines established by the Assistant Secretary of the Interior. The district court did not abuse its discretion in refusing to grant a continuance to permit AMA to attempt to obtain BIA approval. BIA approval would have been denied. 107 AFFIRMED.