Opinion ID: 725497
Heading Depth: 2
Heading Rank: 3

Heading: Sovereign Immunity and Failure to Join an Indispensable Party

Text: 24 The district court determined that sovereign immunity barred the plaintiff's suit against the tribe and the Council of Chiefs. It then found that, because the tribe is an indispensable party, neither the declaratory suit nor the counterclaim could proceed. Because we find that both Niagara's claim and the applicant's counterclaim fail to raise a federal question, we need not reach the issues of the moving defendants' immunity or whether the tribe is an indispensable party. However, the individual applicants urge on appeal that, having disposed of their counterclaim as well as Niagara's claim for lack of a federal question, we should vacate this alternative basis of the district court's decision. To leave this portion of the district court's opinion intact, the applicants contend, would be to improperly impinge[ ] on the rights of state courts of competent jurisdiction to determine disputes not subject to the jurisdiction of the federal courts. See Non-Moving Appellees' Brief at 6. 25 Federal law determines whether, and to what extent, our holding will have a preclusive effect in a subsequent, state court adjudication of the issues currently before us. Gelb v. Royal Globe Ins. Co., 798 F.2d 38, 41-42 (2d Cir.1986) (A state court must apply federal law to determine the preclusive effect of a prior federal question judgment.), cert. denied, 480 U.S. 948, 107 S.Ct. 1608, 94 L.Ed.2d 794 (1987); see Jerome J. Steiker Co. v. Eccelston Properties Ltd., 156 Misc.2d 308, 593 N.Y.S.2d 394, 398 (N.Y.Sup.Ct.1992); Peros v. Cia De Nav Mar Netumar, 75 Misc.2d 913, 349 N.Y.S.2d 926, 927 (N.Y.City Civ.Ct.1973). It is a well-established principle of federal law that if an appellate court considers only one of a lower court's alternative bases for its holding, affirming the judgment without reaching the alternative bases, only the basis that is actually considered can have any preclusive effect in subsequent litigation. See Gelb, 798 F.2d at 45 ([I]f an appeal is taken [from a decision on alternative grounds] and the appellate court affirms on one ground and disregards the other, there is no collateral estoppel as to the unreviewed ground. Quoted in Greene v. United States, 79 F.3d 1348, 1352 (2d Cir.1996)); Hicks v. Quaker Oats Co., 662 F.2d 1158, 1168 & n. 6 (5th Cir.1981) (citing cases for general rule that if a judgment is appealed, collateral estoppel only works as to those issues specifically passed upon by the appellate court); Moran Towing & Transp. Co. v. Navigazione Libera Triestina, S.A., 92 F.2d 37, 40-41 (2d Cir.) (finding no res judicata effect from alternative holding not reviewed on appeal), cert. denied, 302 U.S. 744, 58 S.Ct. 145, 82 L.Ed. 575 (1937); RESTATEMENT (SECOND) OF JUDGMENTS § 27 cmt. o (1980). Because we do not pass on the alternative basis for the district court's holding in this action, that portion of the holding will have no preclusive effect in any subsequent, state court proceeding. Accordingly, we decline the applicants' request to vacate the alternative basis for the district court's judgment below.