Document: 523 U.S. 751118 S.Ct. 1700140 L.Ed.2d 981 KIOWA TRIBE OF OKLAHOMA, Petitionerv.MANUFACTURING TECHNOLOGIES, INC. No. 96-1037. Supreme Court of the United States Argued Jan. 12, 1998. Decided May 26, Syllabus * Petitioner, a federally recognized Indian Tribe, owns land in Oklahoma, and holds trust for it there. After Tribe's industrial development commission agreed to buy from respondent certain stock issued by third party, then-chairman its business committee signed promissory note, name, agreeing pay $285,000 plus interest. The note recites was at Carnegie, where Tribe has complex on land. According respondent, however, executed delivered Oklahoma City, beyond tribal lands, obligated make payments that city. does not specify governing law, but provides nothing subjects or limits sovereign rights. defaulted note; sued state court; moved dismiss lack jurisdiction, relying part immunity suit. trial court denied motion entered judgment respondent. Civil Appeals affirmed, holding tribes are subject suit breaches contract involving off-reservation commercial conduct. Held: enjoy civil suits contracts, whether those contracts involve governmental activities they were made off reservation. As matter federal tribe is only Congress authorized waived immunity. See, e.g., Three Affiliated Tribes Fort Berthold Reservation v. Wold Engineering, 476 877, 890, 106 2305, 2312-2313, 90 881. Respondent's request confine such transactions reservations rejected. This Court's precedents have drawn distinctions, see, Puyallup Inc. Department Game Wash., 433 165, 168, 172, 97 2616, 2619, 53 667, cases allowing apply their substantive laws occurring outside country nonmembers continue suit, Tax Comm'n Citizen Band Potawatomi Okla., 498 505, 510, 111 905, 909-910, 112 1112. Appeals' belief law mandate mistaken. It diminution States. E.g., Tribes, supra, 891, S.Ct., 2313. Nevertheless, doctrine developed almost accident: reciting it, Fidelity & Guaranty Co., 309 506, 512, 60 653, 656, 84 L.Ed. 894, rest early assumed without extensive reasoning, Turner States, 248 354, 358, 39 109, 110, 63 291. wisdom perpetuating may be doubted, chooses adhere earlier decisions deference Congress, see Potawatomi, which wish exercise authority limit through explicit legislation, Santa Clara Pueblo Martinez, 436 49, 58, 98 1670, 1676-1677, 56 106. done so thus far, nor petitioner immunity, governs here. Pp. ____-____. Reversed. KENNEDY, J., opinion Court, REHNQUIST, C. O'CONNOR, SCALIA, SOUTER, BREYER, JJ., joined. STEVENS, filed dissenting opinion, THOMAS GINSBURG, R. Brown Wallace, OK, petitioner. Edward DuMont, New York as amicus curiae special leave Court. John E. Patterson, Jr., Justice KENNEDY 1 In this against an tribe, rejected tribe's claim Our case date often rule While these we reverse judgment. 2 Petitioner Kiowa Federal Government. and, addition, State Tribe. Though record vague about some key details, facts appear follows: 1990, entity called Industrial Development Commission Manufacturing Technologies Clinton-Sherman Aviation, On April 3, then-Chairman Business Committee name By face held City. law. paragraph entitled "Waivers Governing Law,'' provide: "Nothing Note rights Oklahoma.'' App. 14. 3 defaulted; declined review judgment, granted certiorari. 521 ----, 117 2506, 138 1010 (1997). II 4 See 881 (1986); (1978); 894 (1940) (USF G). To date, our sustained drawing distinction based occurred. one case, had asserted jurisdiction over fishing "both reservation.'' 167, 2618, 667 (1977). We "well founded,'' though did discuss relevance taken place. Id., 2621. Nor yet between tribe. ibid. (recognizing fishing, well activity); 1112 (1991) taxation cigarette sales); USF G, coal-mining lease). asks us activities, distinctions. 5 contrary. tax regulate within country. Mescalero Apache Jones, 411 145, 148-149, 93 1267, 1270-1271, 36 114 (1973); also Organized Village Kake Egan, 369 60, 75, 82 562, 570-571, 7 573 (1962). say conduct, no longer enjoys example, reaffirmed while sales store nonmembers, collect unpaid taxes. U.S., 909-910. There difference right demand compliance with means available enforce them. id., 514, 911-912. 6 nonetheless believed resting decision Hoover 909 P.2d 59 (Okla.1995), cert. denied, 517 1188, 116 1675, 134 779 (1996). Hoover, activity, like sister State, solely comity. P.2d, 62 (citing Nevada Hall, 440 410, 426, 99 1182, 1191, 416 (1979)). because itself open breach suits, allow citizens sue other sovereigns acting State. noted, possessed coextensive Blatchford Native Noatak, 501 775, 2578, 115 686 (1991). Blatchford, distinguished Constitutional Convention. They parties "mutuality . concession'' "makes States' surrender plausible.'' 782, 2582; accord Idaho Coeur d'Alene Idaho, 2028, 2033-2034, 438 So 2313; Washington Confederated Colville Reservation, 447 134, 154, 100 2069, 2081-2082, 65 10 (1980). settled controls accident. said own opinions 291 (1919). indeed cited examination shows simply stand proposition. arose lands Creek Nation's "public domain'' "the powers [the] people.'' Turner, 355, 109. Nation gave each individual grazing portion public Creeks turn leased non-Indian. He built long fence around land, mob Indians tore down. then passed Claims. Claims dismissed Turner's Brandeis, affirmed. stated: "The fundamental obstacle recovery recover damages resulting failure government officers keep peace.'' 110. "No liability existed general law.'' 357, 8 quoted language heart Turner. is, best, assumption sake argument, reasoned statement doctrine. One cannot even congressional enactment needed overcome very different reason why pass Act: been dissolved. Without authorization could any least consent.'' fact dissolution, status, predicate legislation authorizing then, slender reed supporting principle 9 's passing reference become saying: "These Nations exempt Congressional authorization.'' 656 110). quasi-sovereigns, enjoyed "from judicial attack'' absent consent sued. 513-514, 656-657. Later cases, albeit little analysis, reiterated Puyallup, 172-173, 2621-2622; 890-891, 2312-2313; 2582-2583; d'Alene, 2033-2034. came under attack few years ago supra. there asked abandon narrow businesses far removed self-governance internal affairs. retained doctrine, theory failed abrogate order promote economic self-sufficiency. rationale, must said, can challenged inapposite modern, wide-ranging enterprises extending traditional customs activities. separate criticized "founded upon anachronistic fiction'' suggested might extend activity. 514-515, 911-913 (concurring opinion). 11 reasons doubt At time, thought necessary protect nascent governments encroachments interdependent mobile society, extends what safeguard self-governance. evident when take commerce. Tribal now include ski resorts, gambling, cigarettes non-Indians. supra; Seminole Fla. Florida, 44, 1114, 252 context, harm who unaware dealing do know choice matter, tort victims. 12 These considerations suggest need overarching rule. Respondent ask repudiate outright, suggests instead noncommercial decline draw defer role important 13 acted background decisions. restricted limited circumstances. 25 U.S.C. §450f(c)(3) (mandatory insurance); §2710(d)(7)(A)(ii) (gaming activities). And statutes declared intention alter it. §450n (nothing financial-assistance program construed "affecting, modifying, diminishing, otherwise impairing tribe''); 909-910 (discussing Financing Act 1974, 88 Stat. 77, §1451 et seq.). 14 considering Congress' reforming find instructive problems foreign countries. began Chief Marshall courts armed ship state, American port. Schooner Exchange McFaddon, Cranch 116, 287 (1812). narrow, "that regarded virtually absolute sovereigns.'' Verlinden B.V. Central Bank Nigeria, 461 480, 486, 103 1962, 1967, 76 81 (1983). 1952, known Tate Letter, announcing policy denying acts nation. 486-487, 1967-1968. Difficulties implementing led 1976 enact Foreign Sovereign Immunities Act, more predictable precise rules. 488-489, 1968-1969 1976, 28 §§1604, 1605, 1607). 15 Like Verlinden, Although lead bounds constitutional limitations, legislation. Pueblo, 1676-1677. 16 both fields, position weigh accommodate competing concerns reliance interests. capacity Legislative Branch address issue comprehensive counsels caution area. "has occasionally classes tribes'' always liberty dispense it.'' 910. so. 17 light concerns, revisit choose Congress. abrogated case. contrary 18 19 whom GINSBURG join, dissenting. 20 "Absent express contrary, going reservation boundaries generally nondiscriminatory applicable all State.'' 1270, (1973). statute treaty petitioner, application Nor, my should judge-made pre-empt decide themselves 21 amalgam two quite concepts, sovereign's another sovereign.'' 414, 1185, (1979). former category, power determine define legal adequately explains lesser Kawananakoa Polyblank, 205 349, 353, 27 526, 527, 51 834 (1907). second sovereign, normally depends 136, An assertion proceeding unique implicates three sovereigns: itself, 22 correctly observes, "developed accident.'' Ante, __. Its origin attributed Five Civilized Tribes. (1919), Nation, whose than "a reed'' support court. latter G), Government sought royalties due coal leases behalf Choctaw Chickasaw Nations. Government's action barred prior "void undertakes fix credit Nations,'' rested grounds. First, companion decided day,1 ruled "cross-claims justiciable consented consideration,'' ibid.; adjudication cross-claim ground statement, supported citation Eighth Circuit addressing that: Ibid. (emphasis added). most, litigating Moreover, G out conduct occurred reservations. 23 subsequent clear legislative tribes, on-reservation activities.2 Thus, litigation consumed decade included precluded regulating Reservation. 175-176, 2622-2623, true incident holding, vacated portions state-court decree directed itself. 2621-2622. That action, practical effect upheld granting relief entire class represented Blackmun, "strongest supporters Court,''3 wrote separately his "doubts continuing vitality day enunciated '' 178, 2624, purport explain predominant argument reservation,'' 2618-2619, occasion consider validity injunction relating fishing. 24 several since broadly referred tribes' "with analysis,'' ante, __, controversies arising territory. (1978), member her daughter lived challenge membership lacked "intratribal controvers[y] affecting matters self-government sovereignty.'' 53, 1674. (1986), North Dakota require blanket waiver condition permitting private "unduly intrusive common ability govern according laws,'' required up coercive 2313.4 Most recently, entertain Oklahoma's claims taxes treated same 509-511, (1991).5 sum, none applied purely Despite broad used wrong merely following precedent, never considered immune meaningful nexus functions. attempted set forth explanation adjudicate disputes Accordingly, I agree too late entirely, would present contours. 26 compelling favor restraint. law-making belongs first instance nullify modify grant unlimited justify performance function. comity judges observe; pre-empts power. undergird strong presumption construing Cipollone Liggett Group, Inc., 505 504, 516, 518, 2608, 2617, 120 407 (1992), added force absence defining creation common-law "default'' justified setting rule, deferring exercising "caution,'' __-rather, creating fails identify interests extension immunity-indeed, concedes lacks justification, __-and completely ignores State's cry "comprehensive pre-emption inquiry context'' described calls "not plan, nature federal, stake ''' 884, 2310 (quoting White Mountain Bracker, 448 2584-2585, 665 (1980)). Stronger fill gap left 29 Second, strikingly anomalous. Why broader Government, nations? national policy, §§1346(b), 2674 (Federal Tort Act); §§1346(a)(2), 1491 (Tucker Act). states carried elsewhere "direct States.'' §1605(a)(2). surrendered aspects sovereignty joined Union arguably legitimate basis concluding retained-or, indeed, ever had-any 30 Third, unjust. especially respect victims opportunity negotiate immunity; reasoning lawsuits voluntary contractual relationships. Governments, individuals, debts accountable unlawful, injurious 31 respectfully dissent. syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Timber Lumber 200 321, 337, 282, 287, 50 499. Shaw, 495, 659, 888 (1940). " notion Marshall's Worcester Georgia, Pet. 515, 561, 483; Kansas Indians, Wall. 737, 755-757, 667; 761, 708, distinct nation penetrate, yielded closer analysis confronted, course developments, diverse concrete situations.'' 72, 569, Dussias, Heeding Demands Justice: Blackmun's Law Opinions, 71 N.D.L.Rev. 41, 43 (1995). particular counter-claims concerned construction water-supply system 881, 2308. cites (1991), (1997), having "reiterated doctrine'' Each Eleventh Amendment being references scope were, course, dicta.

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