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Dixie Manufacturing Co. See Parker Drilling Co. Metlakatla Indian Cmty. Alaska Section 16 of the IRA, 25 U. Section 17 provides:. Thus, the statute is silent as to whether Section 17 incorporated tribes have sovereign immunity.

We conclude that it is more appropriate to interpret this silence as not abrogating sovereign immunity for two reasons. First, in Kiowa Tribe of Oklahoma v. The Court came to this conclusion, in part, because sovereign immunity is part of the common law.

See United States v. So, unless Congress abrogates a tribe's immunity, or the tribe waives its immunity, the tribe's immunity remains intact. The Supreme Court has also held that abrogation of tribal-sovereign immunity must be clear and may not be implied. Tax Comm'n v. Citizen Band Potawatomi Tribe of Okla.

Martinez, U. Because the language of Section 17 does not explicitly waive sovereign immunity, we conclude that it should not be interpreted to do so impliedly. Second, "statutes are to be construed liberally in favor of the Indians, or [tribes] with ambiguous provisions being interpreted to their benefit.

Blackfeet Tribe of Indians, U. This directive to favor tribes counsels against interpreting Section 17 as impliedly waiving tribal-sovereign immunity. MBF responds by arguing that under a multi-factor test, CNI is not "an arm" of the Chickasaw Nation and thus does not enjoy tribal-sovereign immunity.

MBF relies on a Colorado appellate court decision, State ex rel. Suthers v. Ass'n of Vill. Council Presidents, 84 P. But neither of these cases addressed directly a Section 17 corporation; instead, the cases addressed entities incorporated under tribal or state law. In sum, we conclude that the better reading of Section 17 is that it creates "arms of the tribe" that do not automatically forfeit tribal-sovereign immunity. Of course, a tribe may choose to expressly waive its tribal-sovereign immunity either in its charter or by agreement.

See Kiowa, U. Here, however, CNI did not make that choice. CNI's charter requires board approval to waive sovereign immunity. The charter provides:. Some courts have held that a broad sue-and-be-sued clause does waive tribal-sovereign immunity. Thus, even if we were to conclude that a broad sue-and-be-sued clause waives tribal-sovereign immunity, this clause is insufficient to do the job. Ninigret Dev. Narragansett Indian Wetuomuck Hous. Therefore, we conclude that the charter does not contain an express waiver of tribal-sovereign immunity.

In addition to the tribal charter, an agreement can validly waive tribal-sovereign immunity. Here, the parties agree that the board of directors did not pass a resolution waiving sovereign immunity. The parties did, however, sign a waiver provision whereby both parties waived all immunities. In short, without board approval, CNI's sovereign immunity remains intact. MBF also argues that even without board approval, CNI waived sovereign immunity based on equitable doctrines because CNI signed the agreement representing that it waived sovereign immunity.

We disagree. Courts have held that unauthorized acts of tribal officials are insufficient to waive tribal-sovereign immunity. See Native Am. Seneca-Cayuga Tobacco Co. Seminole Tribe of Fla. Massena Mgmt. Sky City Casino, N. Ute Mountain Ute Tribe, P. Accordingly, we conclude that CNI's charter controls, and, without board approval, the waiver in the agreement is insufficient. This result may seem unfair, but that is the reality of sovereign immunity: "[I]mmunity can harm those who.

These considerations might suggest a need to abrogate tribal immunity, [but]. Because we conclude that CNI enjoys tribal-sovereign immunity, we do not address the issues of diversity jurisdiction and federal-question jurisdiction. Your Notes edit none. Cited By 20 This case has been cited by other opinions: Michigan v. Bay Mills Indian Community Dilliner v. Seneca-Cayuga Tribe Sakarapanee v.

Authorities 20 This opinion cites: Santa Clara Pueblo v. Manufacturing Technologies, Inc. Blackfeet Tribe, U.