# Petition for Writ of Certiorari — Schwarzenegger v. Rincon Band of Luiseno Mission Indians of the Rincon Reservation (No. 08-1030)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 2008

## Text

Supreme Court, U.S.
P FILED

\4 ~() No, 081030 FEB 11 2009

In the Supreme Court of the GAnited States

ARNOLD SCHWARZENEGGER, GOVERNOR OF CALIFORNIA AND
THE STATE OF CALIFORNIA,

Petitioners,
V.

RINCON BAND OF LUISENO MISSION INDIANS OF THE RINCON
RESERVATION, A/K/A RINCON SAN LUISENO BAND OF
MISSION INDIANS A/K/A RINCON BAND OF LUISENO INDIANS,

Respondent.

ON PETITION FOR WRIT OF CERTIORARI TO THE
UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

EDMUND G. BROWN JR.
Attorney General of California
Manuel M. Medeiros
State Solicitor General
ROBERT L. MUKAI
Senior Assistant Attorney
General
SARA J. DRAKE
Supervising Deputy Attorney
General
PETER H. KAUFMAN
Deputy Attorney General
Counsel of Record
110 West A Street, Suite 1100
San Diego, CA 92101
P.O. Box 85266
San Diego, CA 92186-5266
Telephone: (619) 645-2020
Fax: (619) 645-2012
Counsel for Petitioners

QUESTION PRESENTED

In 1999, the State of California and sixty-one
federally recognized tribes entered into virtually
identical tribal-state class III gaming compacts
(Compacts) under the authority of the Indian Gaming
Regulatory Act, 25 U.S.C. §§ 2701-2721 (IGRA). The
Compacts allow those tribes to operate slot machines
if they have been issued licenses for those devices
from a prioritized and limited license pool established
by the Compacts, or if they have obtained a compact
amendment allowing them to operate slot machines
without reference to that license pool. The question
presented is:

May the asserted ability of a court of appeals to
resolve inconsistent district court decisions on the
same claim for relief be relied upon to conclude that
an absent person need not be joined under Federal
Rule of Civil Procedure 19(a)?

TABLE OF CONTENTS

Petition for a Writ of Certiorari
Opinions Below

Jurisdiction

Statutory Provisions Involved

Statement
Reasons for Granting the Petition
Discussion

The Ninth Circuit’s refusal to recognize
the State’s exposure to inconsistent
obligations, warrants this Court’s review

Conclusion

TABLE OF AUTHORITIES

CASES

Keweenaw Bay Indian Community v. Michigan
ED F.3d. 1349 (OT Cir. 1993). nssese....rccscoeseoees ibd Fi biagse Siena 7

Republic of the Philippines v. Pimentel
128 S. Ct. 2180 (2008)

STATUTES

25 U.S.C. §§ 2701-2721

28 U.S.C. § 1254(1)

COURT RULES

Federal Rule of Civil Procedure

S| ee Bit ahaa pabidginde sccwuesaiencah vivesalebgpiisd (dues aiaaebane nae

Rule 19(a)

TABLE OF CONTENTS

Page

Ninth Circuit memorandum (Aug. 8, 2008), Case No.
06-55259, Rincon Band of Luiseno Mission Indians of
the Rincon Reservation v. Arnold Schwarzenegger, et

al. (Appendix A)

Ninth Circuit order denying petition for panel
rehearing and petition for rehearing en banc (Nov.
14, 2008), Case No. 06-55259, Rincon Band of
Luiseno Mission Indians of the Rincon Reservation v.
Arnold Schwarzenegger, et al. (Appendix B)

District court order granting in part and denying in
part plaintiffs motion for reconsideration (Mar. 22,
2005), Case No. 04-CV-01151 W, Rincon Band of
Luiseno Mission Indians of the Rincon Reservation v.
Arnold Schwarzenegger, et al. (Appendix C)

Ninth Circuit order amending opinion and denying
the petition for pane! rehearing and petition for
rehearing en banc and amended opinion (August 8,
2008), Case No. 06-16145, Cachi/] dehe Band of
Wintun Indians of the Colusa Indian Community v.
State of California, et al. (Appendix D)

Ninth Circuit opinion (Aug. 8, 2008), Case No. 06-
16145, Cachil dehe Band of Wintun Indians v. State
of California, et al. (Appendix E)

District court memorandum and order granting
defendants’ motion for judgment on the pleadings
(May 16, 2006), Case No. CIV S-04-2265 FCD KJM,
Cachil dehe Band of Wintun Indians of the Colusa
Indian Community v. State of California, et al.
(Appendix F)

Ninth Circuit memorandum (Oct. 6, 2008), Case No.
07°55536, San Pasqua/ Band of Mission Indians v.
State of California, et al. (Appendix G)

_ a OR rrr a = ee rt Re

TABLE OF CONTENTS

(continued)
Page

Ninth Circuit order denying petition for panel
rehearing (Dec. 29, 2008), Case No. 07-55536, San
Pasqual Band of Mission Indians v. State of
California, et al.

(Appendix H)

District court order granting motion to dismiss
second amended complaint (Mar. 20, 2007), Case No.
06-cv-0988-LAB (AJB), San Pasqual Band of Mission
Indians v. State of California, et al. (Appendix I)

Tribal-State Gaming Compact (Sep. 10, 1999)
(Appendix J)

Amendment to the Tribal-State Compact Between
the State of California and the Pauma Band of
Luiseno Mission Indians of the Pauma & Yuima
Reservation (Jun. 21, 2004) (Appendix K)

Amendment to the Tribal-State Compact Between
the State of California and the Pechanga Band of
Luiseno Indians (Appendix L)

Federal Rules of Civil Procedure, Rule 19
(Appendix M)

— tt ot Se

PETITION FOR A WRIT OF CERTIORARI

Arnold Schwarzenegger, Governor of California
and the State of California appearing by and through
Edmund G. Brown Jr., Attorney General of
California, respectfully petition this Honorable Court
for a writ of certiorari to review the judgment of the
United States Court of Appeals for the Ninth Circuit.

OPINIONS BELOW

The opinion of the court of appeals (App. A,
infra, at 1-4) is unreported. The opinion of the
district court is unreported. (App. C, infra, at 7-18.)

JURISDICTION

The judgment of the court of appeals was
entered on August 8, 2008. A petition for rehearing
was denied on November 14, 2008. (App. B, infra, at
5: A Court has jurisdiction under 28 U.S.C. §
1254(1

STATUTORY PROVISIONS INVOLVED

The pertinent statutory provision, specifically
Federal Rule of Civil Procedure 19 is set forth in an
appendix to this brief. (App. M, infra, at 290-92.)

STATEMENT

In 1999, the State of California (State) and
sixty-one federally ‘ecognized tribes entered into
class III gaming compacts (the Compacts) that
provided the tribes the right to operate slot machines
and certain banked and percentage card games free
of non-tribal competition for twenty years. (See,
htup jw ww .cgce.ca.govicompacts asp; App. J, znfra, at
127-85.

Specifically, the Compacts allow each tribe to
operate up to 350 slot machines or the number of slot
machines that tribe was operating on September 1,
1999, whichever is greater. (App. J, infra, at 135-6.)
In addition, the Compacts provide that the tribes
may operate additional slot machines if they are able
to obtain licenses for those devices from a license
pool. (/d. at 137.)

The Compacts limit the number of available
licenses according to a formula and require that the
tribes pay specified fees in consideration of receiving
such licenses. (App. J, infra, at 137.) They also
establish a priority system for the issuance of these
licenses. (/d. at 138-39.) The California Gambling
Control Commission (Commission), as the trustee of
the fund into which such license fees are paid,
calculated the number of available licenses, and
utilized the priority system established by the
Compacts to issue licenses to tribes that applied for
them, until the available licenses were Po onl
From that point onward, the Commission utilized the
Compacts’ priority system to issue licenses that
became’ available through the return' or
relinquishment of previously-issued licenses to the
license pool. Other than through acquisition of such
licenses under the Compacts’ priority system, tribes
seeking to operate additional slot machines were
required to obtain the right to operate those
machines through a compact amendment. (App. J,
infra, at 139; 181.)

After the license pool was depleted, the
Governor and various tribes commenced compact
amendment negotiations. In those negotiations, the
tribes sought to obtain the right to operate slot
machines other than through issuance of licenses by
the Commission from the license pool established by
the Compacts. In 2004, the Governor and five tribes
arrived at an agreement on certain amendments to
the Compacts, (see,
http://www.cgcc.ca.gov/compacts.asp.) subsequently

ratified by the California Legislature under
provisions of California law and approved by the
Secretary of the Interior under [GRA. In 2007,
compact amendments arrived at with several
additional tribes in 2006 became effective. (/d.) The
amendments allowed the tribes to operate additional
slot machines without licenses, increased the period
during which the tribes’ slot machines could be
operated and provided a monetary remedy in the
event non-tribal class III gaming is permitted in
California. In return, the tribes agreed: (a) to
increase their revenue sharing contributions to the
State over that which was required under the
Compacts; (h) to mitigate adverse environmental
impacts stemming from their casino operations; and
(c) to protect the health and safety of patrons and
employees through a series of regulatory measures
not found in the Compacts. (See, generally, a 2004
compact amendment, App. K, infra, at 186-230 anda
2007 compact amendment, App. L, infra, at 231-89.)

The terms of these compact amendments render
the operation of slot machines under the
amendments more costly to the signatory tribes than
under the Compacts’ license structure. (E.g.,
compare 1999 Compact per device costs, App. J,
infra, at 138; 140 with per device costs in a 2004
amendment, App. K, infra, at 188-90 and in a 2007
amendment, App. L, infra, at 233-39.)

The Rincon Band of Luiseno Mission Indians
(Rincon) filed suit against Governor Schwarzenegger
and the State for breach of compact on the basis of
the Commission’s alleged miscalculation regarding
the number of available slot machine licenses. (App.
A, infra, at 2.)

In senarate suits, the San Pasqual Band of
Mission Indians (San Pasqual) and the Cachil dehe
Band of W:ntun Indians of the Colusa Community
(Colusa), likewise, sued the State for breach of
compact based upon a claim the Commission had

miscalculated the number of licenses available. (App.
G, infra, at 92; App. D, infra, at 26.)

All three suits were dismissed by three separate
federal district judges under Rule 19 on the ground
that the other tribes that were signatories to the
Compacts were necessary (required)! parties that
could not be joined because of their tribal sovereign
immunity. The district court in the Ayncon suit
concluded that the absent tribal signatories to the
Compacts were required because the State faced the
risk of inconsistent obligations with respect to the
number of slot machine licenses available under the
Compacts. (App. C, infra, at 12.) The district court
in the Colusa suit determined that the absent tribes
were required, in part, because the Commission could
face inconsistent obligations from multiple suits on
the same claims for relief with respect to the number
of Mesa. slot machine licenses. (App. F, infra, at
83.

The district court in the San Pasqua/ suit also
determined that the absent tribes were required
parties because the State faced the possibility of
inconsistent obligations. In addition, it ruled that
the five tribes with amended compacts had a
contract-derived interest in any calculation of the
maximum number of slot machines that a signatory
tribe could operate without a compact amendment.
(App. I, infra, at 112; 118.)

Each district court decision was appealed to the
Ninth Circuit. The Co/usa and Hincon appeals were
not consolidated, but were argued on the same day.
(App. A, infra, at 1; App. E, infra, at 47.) The Ninth
Circuit did not permit oral argument on the San
Pasqual appeal. (App. G, infra, at 92.) The Ninth
Circuit issued a decision certified for publication in

'The language of Rule 19 has been amended since the
district court decisions. The word “required” replaces the word
“necessary” in Rule 19(a).

the Colusa appeal, in which it reversed the district
court’s decision to dismiss each of Colusa’s breach of
compact claims for relief. (App. E, infra, at 48-49.)
The Ninth Circuit held that the district court had
abused its discretion in finding the absent tribes
were required parties. (/d. at 56-57.) The Ninth
Circuit then issued unpublished memorandum
decisions in the Aincon and San Pasqual appeals in
which it reversed the district court decisions based on
its decision in the Colusa appeal. (App. A, infra, at 3;
App. G, infra, at 93.)

The Ninth Circuit denied subsequent petitions
for rehearing filed in the Colusa, Rincon and San
Pasqual appeals (App. D, infra, at 21; App. B, znfra,
at 6; App. H, infra, at 94), but did amend its decision
in the Co/usa appeal on October 24, 2008. (App. D,
infra, at 20°21.) That amendment did not alter the
Ninth Circuit’s original holding that the absent tribes
were not required parties.

The Ninth’Circuit held that the State would not
be subject to a significant risk of inconsistent
obligations within the meaning of Rule 19(a) with
respect to the number of slot machine licenses that
could be issued because “should different district
courts reach inconsistent conclusions with respect to
the size of the license pool created under the 1999
Compacts, such inconsistencies could be resolved in
an appeal to this court.” (App. D, infra, at 35 n.12.)

REASONS FOR GRANTING THE PETITION

The Ninth Circuit's decision warrants this
Court’s review for the same reason the Ninth
Circuit’s decision in the Colusa case warrants
review.” Review is appropriate because the appellate

2 The State filed a petition for writ of certiorari in State
of California et al v. Cachil dehe Band of Wintun Indians of the
(continued...)

court's decision conflicts with the established
construction of a rule of civil procedure federal courts
must routinely apply in thousands of cases each year.

The Ninth Circuit's decision undermines a
fundamental purpose this Court and other circuits
have identified as underlying Rule 19. That purpose
is to avoid exposing a party to the possibility of facing
inconsistent obligations stemming from multiple
suits on the same claim for relief in different actions
by requiring the joinder, under Rule 19(a), of absent
parties that might bring the same claim in a different
action,

Absent this Court’s review, the Ninth Circuit's
decision could create severe strains in the efficient
administration of justice throughout the country by
inundating already overburdened district courts with
multiple suits raising the same claim for relief.
Governor Arnold Schwarzenegger and the State,
therefore, respectfully request that this Court hold
this petition pending disposition of the petition for
writ of certiorari filed in State et al v. Cachil dehe
Band of Wintun Indians of the Colusa Indian
Community, No. 08°931 and, if that petition is
granted, grant and hold this petition pending
disposition of that case.

DISCUSSION

THE NINTH CIRCUITS REFUSAL TO
RECOGNIZE THE STATE'S EXPOSURE TO
INCONSISTENT OBLIGATIONS, WARRANTS
THIS COURT’S REVIEW

As this Court and other circuits have found, the
“social interest in the efficient administration of

(...continued)
Colusa Indian Community, No. 08-931 on January 22, 2008.

justice and the avoidance of multiple litigation is an
interest that has traditionally been thought to
support compulsory joinder of absent and potentially
adverse claimants under Rule 19(a).” Republic of the
Philippines v. Pimentel, 128 S. Ct. 2180, 2193 (2008)
(citing Illinois Brick Co. v. Illinois, 431 U.S. 720, 737-
388 (1977)) (internal quotation marks omitted);
Keweenaw Bay Indian Community v. Michigan 11
F.3d. 1341 (6th Cir. 1993)

Notwithstanding these precedents, the Ninth
Circuit’s decision assiduously avoids finding the
absent tribes to be required parties through its
conclusion that even though the State and the
Commission might be subject to _ inconsistent
leterminations regarding the number of slot machine
licenses authorized by the Compacts, the absent
tribes are not required parties because the Ninth
Circuit could resolve any such inconsistencies on
appeal. (App. D, infra, at 35 n.12.) This conclusion,
unsupported by any precedent, is inconsistent with
Republic of the Philippines v. Pimentel, 128 S. Ct.
2180, 2193 (2008) in which this Court held that it
“would not further the public interest in settling...
disputels] as a whole because [the absent parties]
would not be bound by . . . [a] judgment in an action
where they were not parties.” /d.

The Ninth Circuit’s decision, therefore, rests on
two presumptions, both of which are erroneous.
First, it assumes that an appellate court could bind:
absent tribal signatories to the Compacts to a
judgment. Second, it speculates that all claims for
relief regarding the maximum number of slot
machine licenses authorized by the Compacts
whenever and wherever they are brought either will
be appzaled in a manner that allows all such appeals
to be considered at the same time, or that an
appellate court will follow prior decisions on the same
question regarding later appeals.

While, in this case, the Ninth Circuit easily
conformed the appellate results of three trial court

decisions which had not yet been h2ard on the
merits, there 1s no guarantee of such a result in the
future. Thus, the possibility of inconsistent appellate
decisions on the same claim for velief exist in cases
which do not fortuitously come before the same
appellate court on the same issue, in time to permit
simultaneous confirmation of conflicting or
inconsistent judgments below.

Further, if a subsequent appellate panel were to
consider itself bound by a prior appellate decision on
the same claim, irrespective of the merit of
arguments advanced in favor of a _ different
conclusion, litigants would be deprived of due
process. If future litigants perceived the possibility
of such an outcome, individuals and entities that
otherwise would be immune from suit or otherwise
not subject to joinder could be forced to waive their
immunity in order to protect their interests.

CONCLUSION

For the foregoing reasons, petitioners
respectfully request that this petition be held
pending this Court’s disposition of the petition for
writ of certiorari now pending in State et al. v. Cachil
dehe Band of Wintun Indians of the Colusa Indian
Community, No. 08-931 and, if that petition is
granted, grant and hold this petition pending the
Court’s disposition of the petition in that case.

Dated: February 9, 2009

Respectfully submitted

EDMUND G. BROWN JR.
Attorney General of California
Manuel M. Medeiros

State Solicitor General
ROBERT L. MUKAI

Senior Assistant Attorney General
SARA J. DRAKE

Supervising Deputy Attorney
General

PETER H. KAUFMAN

Deputy Attorney General

Counsel of Record
Counsel for Petitioners

SA2006300920
80330461 .duc

APPENDIX A

APPENDIX A

NOT FOR PUBLICATION

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

RINCON BAND OF LUISENO
MISSION INDIANS OF THE
RINCON RESERVATION,
A/K/A Rincon San Luiseno
Band Of Mission Indians a/k/a
Rincon Band Of Luiseno
Indians,

Plaintiff - Appellant,

v.

ARNOLD
SCHWARZENEGGER,
Governor Of California;
WILLIAM LOCKYER,
Attorney General Of California;
STATE OF CALIFORNIA,

Defendants — Appellees.

| No. 06-55259

D.C. No. CV-04-
01151-TJW

MEMORANDUM *

(Filed Aug. 8, 2008)

Appeal from the United States District Court for the
Southern District of California Thomas J. Whelan,
District Judge, Presiding
Argued and Submitted
April 9, 2008, Pasadena, California

“This disposition is not appropriate for publication and is not
precedent except as provided by 9th Cir. R. 36-3.

Before: CANBY, KLEINFELD, and BYBEE, Circuit
Judges.

The Rincon Band of Luiseno Mission Indians
("Rincon") brought this action against the governor of
California’ ("the State") seeking, inter alia, reliance
damages and a declaratory judgment regarding the
aggregate maximum number of slot machine licenses
available to Indian tribes in California who were
parties to approximately 60 essentially identical
Indian Gaming Compacts between those tribes and
the State. The district court dismissed several of
Rincon's claims, including these two. It dismissed the
declaratory judgment action for failure to join all
other tribes with similar compacts, who were subject
to the same licensing pool, as required parties under
Federal Rule of Civil Procedure 19. It dismissed the
claim for damages as barred by the Eleventh
Amendment of the U.S. Constitution. A partial final
judgment was entered on the dismissed claims
pursuant to Federal Rule of Civil Procedure 54(b).
Rincon brings this appeal to challenge the dismissal of
the declaratory judgment and reliance damage claims.
We have jurisdiction pursuant to 28 U.S.C. § 1291,
and we affirm in part and reverse in part.

We review for abuse of discretion a dismissal
under Rule 19 for failure to join a required party. See

' Originally, California Attorney General William
Lockyer was also named as a defendant. Rincon conceded at the
district court that Lockyer did not need to be a party to the
litigation, and the district court dismissed the claims against
him.

Dawavendewa v. Salt River Project, 276 F.3d 1150,
1154 (9th Cir. 2002). We review de novo legal
conclusions underlying the court's decision. See
Disabled Rights Action Comm. v. Las Vegas Events,
Inc., 375 F.3d 861, 879 (9th Cir. 2004). De novo review
may therefore extend to determinations of whether a
third party's interests would be impaired within the
meaning of the joiner rules, if that determination
decided a question of law. Am. Greyhound Racing,
Inc. v. Hull, 305 F.3d 1015, 1022 (9th Cir. 2002).
Immunity under the Eleventh Amendment presents
questions of law reviewed de novo. See Cholula Ready
Mix, Inc. v. Civic, 382 F.3d 969, 973 (9th Cir.2004).

Rincon's declaratory judgment claim challenging
the State's calculation of the maximum number of
licenses in the 1999 Compact pool presents an issue
identical to one addressed in Cachil Dehe Band of
Wintun Indians v. California, No. 06-16145 (August 8,
2008), filed contemporaneously with this
memorandum disposition. In Cachil Dehe Band, we
held that an Indian tribe that is party to a 1999
Compact with California may proceed to litigate the
size of the total license pool without joining other
compacting tribes, because those tribes have no
protectable interest in the size of the license pool that
qualifies them as required parties within the meaning
of Rule 19(a). That ruling controls the present appeal
of Rincon's declaratory judgment claim. Accordingly,
we reverse the decision of the district court and
remand this claim for further appropriate
proceedings.

We affirm the district court's dismissal of
Rincon's action for reliance damages against the State.
A waiver of Eleventh Amendment immunity requires
"the most express language or ... overwhelming
implications ... as will leave no room for any other
reasonable construction.” Edelman v. Jordan, 415
U.S. 651, 673 (1974) (internal quotation marks,

citations and alterations omitted). Rincon identifies
no such waiver applicable here. The Compact does not
waive the State's immunity from collateral damages
actions. This damages action does not arise out of a
breach of the Compact, so it falls outside the statutory
waiver for actions “arising from ... the state's violation
of the terms of any Tribal-State compact to which the
state is or may become a party." Cal. Gov’t Code §
98005, upheld by Hotel Employees & Restaurant
Employees Int'l Union v. Davis, 981 P.2d 990 (Cal.
1999). Therefore, the Eleventh Amendment bars the
action. We affirm the district court's dismissal of this
claim.

The parties shall bear their own costs on appeal.

AFFIRMED IN PART, REVERSED IN PART,
AND REMANDED.

APPENDIX B

APPENDIX B

NOT FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

RINCON BAND OF LUISENO
MISSION INDIANS OF THE
RINCON RESERVATION,
A/K/A Rincon Luiseno Band Of
Mission Indians A/K/A Rincon
Band Of Luiseno Indians,

Plaintiff - Appellant,

ARNOLD

SCHWARZENEGGER,
Governor of California;
WILLIAM LOCKYER,

Attorney General of California;
STATE OF CALIFORNIA,

Defendants - Appellees.

Case No. 06-55259
D.C. NO.
CV-04-01151-TJW

ORDER

(Filed Nov. 14,
2008)

Before: CANBY, KLEINFELD, and BYBEE, Circuit
Judges.

The motion of the Bands of Mission Indians to
file an amici brief in support of appellees’ petition for
panel rehearing and petition for rehearing en banc is
GRANTED. The amici brief is ordered filed. No
response need be filed.

The panel has unanimously voted to deny the
petition for panel rehearing. Judges Kleinfeld and
Bybee have voted to deny the petition for rehearing en
banc, and Judge Canby has so recommended.

The petition for en banc rehearing has been
circulated to the full court, and no judge of the court
has requested a vote on the petition for rehearing en

bane. Fed. R. App. P. 35(b).

The petition for panel rehearing and the petition
for rehearing en banc are DENIED.

APPENDIX C

APPENDIX C
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF CALIFORNIA

RINCON BAND OF Case No.
LUISENO MISSION 04-CV-01151 W
INDIANS OF THE
RINCON RESERVATION, | ORDER GRANTING
IN PART AND
Plaintiff DENYING IN PART
PLAINTIFF'S
v. MOTION FOR
RECONSIDERATION
ARNOLD

SCHWARZENEGGER, (Filed Mar. 22, 2005)
WILLIAM LOCKYER;
STATE OF CALIFORNIA,

Defendants

Plaintiff Rincon Band of Luiseno Mission
Indians ("Plaintiff) move for reconsideration of a
portion of this Court's September 21, 2004 order
dismissing this action. Plaintiff asserts that the Court
should have retained jurisdiction over several
dismissed claims pursuant to 28 U.S.C. §§ 1331 and
1362. Defendants Arnold Schwarzenegger, William
Lockyer, and the State of California ("Defendants")
oppose. All parties are represented by counsel. The
Court decides the matter on the papers submitted and
without oral argument pursuant to Civil Local Rule
7.1(d.1). For the reasons set forth helow, the Court
GRANTS in part and DENIES in part Plaintiff's
reconsideration motion,

BACKGROUND

The background of this case is well known to the
arties and is more fully set forth in this Court's
Reptewbee 21, 2004 Order (“September 21 Order”)
dismissing two of Plaintiff's claims for failure to join a
necessary and indispensable party. In its September
21 Order this Court also declined to exercise
supplemental jurisdiction under 28 U.S.C. § 1367 to
consider Plaintiff's remaining claims, consisting of
various breach of contract claims. As no claims
remained, the Court dismissed the action in its
entirety.

On October 5, 2004 Plaintiff moved for a new
trial or for reconsideration of this Court's refusal to
exercise supplemental jurisdiction over Plaintiff's

contract claims.’ Plaintiff now claims that this Court
has jurisdiction over Plaintiffs breach of contract
claims under 28 U.S.C. § 1331 and § 1362. Plaintiff
does not seek reconsideration of this Court's dismissal
of Plaintiffs first two claims for failure to join a
necessary and indispensable party.

Il. LEGAL STANDARD

Under Fed. R. Civ. P. 59(e), a federal district
court has discretion to reconsider an order granting
final judgment. Sheet Metal Workers’ Int'l Ass'n Local
Union No. 359 v. Madison Indus., Inc., of Arizona, 84
F.3d 1186, 1192 (9th Cir. 1996). A district court
should generally leave a previous decision undisturbed

Since they were filed within ten days of the September
21 Order, the Court will treat both of Plaintiffs motions as
reconsideration motions under Rule 59(e)

absent a showing that it either represented clear error
or would work a manifest injustice. Christianson uv.
Colt Indus. Operating Corp., 486 U.S. 800, 817 (1988).
A district court may alter or amend a judgment under
rule 59(e) only if the motion is filed no later than ten
days after entry of the judgment. Fed. R. Civ. P. 59(e).
"Reconsideration {under Rule 59(e)] is appropriate if
the district court (1) is presented with newly
discovered evidence, (2) committed clear error or the
initial decision was manifestly unjust, or (3) if there is
an intervening change in controlling law." School Dist.
No. 1d, Multnomah County v. ACandS Inc., 5 F.3d
1255, 1263 (9th Cir. 1993)

IiIl. DISCUSSION

Having reviewed the parties’ moving papers and
the applicable law, the Court GRANTS Plaintiff's

reconsideration motion. However, reviewing the
record before it, and Defendants’ original motion to
dismiss, the Court concludes that Plaintiff's fifth and
seventh claims must be DISMISSED.

A. This Court has Original Federal
Jurisdiction Over Plaintiffs Contract
Claims

Due to an inadvertent legal error, this Court
misinterpreted the federal jurisdictional limits of the
compacts at issue. In its September 21 Order this
Court concluded that Plaintiffs contract claims arose
under state law and declined to “xercise supplemental
jurisdiction. Upon further review of the Indian
Gaming Regulatory Act, 25 U.S.C. §2702, (“IGRA”)
and the applicable Ninth Circuit precedent, the Court
agrees with Plaintiff that Claims involving Tribal-
State compact interpretation fall within the original
jurisdiction of the District Courts.

In Gila River Indian Community _ uv.
Henningham, Durham. and Richardson the Ninth
Circuit held that there was "no reason ... to extend the
reach of federal common law to cover all contracts
entered into by Indian tribes. Otherwise the federal
courts 20 might become a small claims court for all
such disputes." 626 F.2d 708, 714 (9th Cir. 1980).
IGRA, however, permits federal jurisdiction for
contractual claims’ arising under _ Tribal-State
compacts. 25 U.S.C. §2702(7)(a)(). In Cabazon Band
of Mission Indians v. Wilson, the Ninth Circuit held
that Tribal-State Compacts under IGRA were a
creation of federal law and that district courts retain
jurisdiction over Compact related contract claims
pursuant to 28 U.S.C. §§ 1331 and 1362. See Cabazon
Band of Mission Indians v. Wilson, 124 F.3d 1050,
1055~56 (9th Cir. 1997). Although IGRA only
explicitly grants federal jurisdiction over Compact
negotiation, the Cabazon court recognized that “it

would be extraordinary were the statute to provide
jurisdiction to entertain a suit to force the State to
negotiate a compact yet provide no avenue of relief
were the State to defy or repudiate that very
compact." Cabazon, 124 F.3d at 1056.

Here, Plaintiff's third through eighth claims all
directly relate to interpretation, enforcement or
application of the 1999 Tribal-State Compacts under
IGRA. See (Complaint 11 121-46). Each of these claims
are founded on Defendants' alleged breaches of
obligations arising directly from the Compact.
Therefore, these claims were validly asserted under
this Court's original jurisdiction and should not have
been dismissed under 28 U.S.C. §1367.? Cabazon, 124

é Although Plaintiff's seventh claim is more loosely tied to

the Compact at issue, the Court concludes that it is sufficiently
related to arise under this Court's original jurisdiction.
(continued...)

F.3d at 1056. Accordingly, the Court GRANTS
Plaintiff's motion to reconsider its earlier ruling
declining to exercise supplemental jurisdiction over
these claims.

B. Plaintiffs Fifth and Seventh Claims
Must be Dismissed

Although the Court has jurisdiction over
Plaintiff's fifth and seventh claims, having reviewed
the record and the parties' original briefing regarding
Defendants’ motion to dismiss, the Court concludes
that Plaintiffs fifth and seventh claims must be
dismissed.

Plaintiffs Fifth Claim Must
be Dismissed for Failure to
Join a Necessary and

Indispensible Party

Plaintiff's fifth claim for relief seeks a
declaratory judgment stating the correct number of
gaming device licenses available under the 1999
Compacts. (Complaint 11 42). Defendants contend that
this claim, like Plaintiff's first and second claims must
be dismissed for failure to join the other 61 Tribes
benefitting from the license pool See (Def’s Mot.
Dismiss at 20). Plaintiff opposes, offering nearly
identical grounds to those this Court rejected
regarding Plaintiffs first and second claims in its
September 21 Order. For the reasons expressed in the
September 21 Order and below, the Court concludes

(...continued)

Alternatively, the Court exercises its discretion in lhght of its
amended ruling and grants supplemental jurisdiction to claim
seven under section 1367.

that Plaintiff's fifth claim must be dismissed for
failure to join a necessary and indispensable party.

Rule 19(a) provides that parties are necessary if:

1) in the person's absence complete relief
cannot be accorded among those already
parties, or (2) the person claims an interest
relating to the subject of the action and is
so situated that the disposition of the action
in the person's absence may (I) as a
practical matter impair or impede the
person's ability to protect that interest or
(ii) leave any of the persons already parties
subject to a substantial risk of incurring
double, multiple, or otherwise inconsistent
obligations by reason of the claims interest.

FED. R. Civ. Proc. 19(a). Here, the other 61 tribes
benefitting from the license pool certainly have an
interest in any declaration this Court might make
regarding the number of licenses available under. the
1999 Compacts, in which all the tribes participate. See
FED. R. Civ. PRoc. 19(a)(2). However, any order this
Court might issue would not preclude those tribes
located outside of the Southern District of California
from seeking declaratory relief on the same issue
against the State in another forum, thereby raising
the specter of Defendants being’ subject’ to
inconsistent obligations. Id.; United States v. Bowen,
172 F3d 682, 688 (9th Cir. 1999).° Although Plaintiff

3 Such potential inconsistent obligations are not merely a
theoretical possibility - five non-compact tribes, proceeding as
third-party beneficiaries, have already filed an action against
the State in Sacramento Superior Court regarding their
monetary interest in the Compact section at issue in this
declaratory judgment claim. See (Def Mot. to Dismiss, Ex. B).

may be correct that it adequately represents the other
61 tribe's interests regarding the license pool, absent
their joiner Plaintiff certainly cannot protect
Defendants from the very real _ possibility of
inconsistent judgraents regarding the number of
available licenses. Thus, the other 61 tribes are
necessary parties to Plaintiff's fifth claim and must be
joined if feasible. FED. R. Crv. PRoc. 19 (a)(2)(ii).

As discussed in detail in the September 21
Order, the absent tribes cannot be joined.* This Court
has already concluded that the tribes are entitled to
sovereign immunity and that Congress did not waive
that immunity under IGRA. See (September 21 Order).
The Court sees no reason to disturb that ruling here.

Likewise, the absent tribes are indispensable for
reasons similar to those discussed in the September 21
Order. As discussed above, Defendants may be
prejudiced in the absence of the other 61 tribes by

facing the possibility of conflicting obligations
regarding the number of available !icenses. Moreover,
relief cannot be shaped to lessen that prejudice. No
matter what declaration this Court might issue there
is no way for it to prevent other courts from issuing
conflicting rulings. For the same reason, no adequate
remedy is available in the other 61 tribes' absence.
Finally, although there may not be an alternative
forum available to Plaintiff, that factor alone is not

4 Although the September 21 Order focused on the joinder
of the Five Tribes whose Compacts Plaintiff sought to
invalidate, the same analysis applies to the other 61 Compact
tribes. Even if the 56 tribes who have not appeared as amici in
this action agreed to waive sovereign immunity, the five tribes
who have appeared as amici have unequivocally refused to do
so. Thus, joinder of all necessary parties would remain
impossible.

dispositive. See Dawavendewa v. Salt River Project,
276 F.3d 1150, 1162 (9th Cir. 2002). The majority of
the Rule 19(b) factors therefore lead this Court to
conclude that the 61 absent tribes are indispensable
parties to Plaintiffs fifth claim. As they cannot be
joined, Plaintiff's fifth claim must be dismissed.

2. Plaintiffs Seventh Claim Is
Barred By The _ Eleventh
Amendment

Plaintiff's seventh claim seeks $12,750,000 of
damages against Defendants for allegedly breaching
the 1999 Compact and requiring Plaintiff to build an
unnecessary temporary gaming facility. Defendants
contend that this claim is barred by the Eleventh
Amendment. Plaintiff counters that California waived
Defendants’ Eleventh Amendment immunity. The
Court disagrees.

The Eleventh Amendment to the US.
Constitution grants sovereign immunity against "any
suit in law or equity, commenced or prosecuted
against one of the United States by citizens of another
state, or by citizens or subjects of a foreign state." U.S.
Constitution Amendment XI. Claims _ against
sovereign states in the federal courts are only
permitted if the State waives its sovereign immunity.
The Supreme Court has held "the test for determining
whether a State has waived its immunity from
federal-court jurisdiction is a_ stringent one."
Atascadero State Hosp. v. Scanlon, 473 U.S. 234, 241
(1985) (superseded on other grounds by statute). A
State is “deemed to have waived its immunity only
where stated by the most express language or by such
overwhelming implication from the text as will leave
no room for any other reasonable construction."
Atascadero, 473 U.S. at 239-40 (internal quotations
omitted). Federalism interests (require that such a

waiver be clear and unequivocal." Port Auth. Trans-

Hudson Corp. v. Feeney, 495 U.S. 299,305 (1990).

California Government Code § 98005 states in
part:

California also submits to the jurisdiction of
the courts of the United States in any
action brought against the state by any
federally recognized California Indian tribe
asserting any cause of action arising from
the state's refusal to enter into negotiations
with that tribe for the purpose of entering
into a_ different Tribal-State compact
pursuant to IGRA or to conduct those
negotiations in good faith, the _ state's
refusal to enter into negotiations
concerning the amendment of a Tribal-
State compact to which the state is a party,
or to negotiate in good faith concerning
that amendment, or the state's violation of
the terms of any Tribal-State compact to
which the state is or may become a party.

Id. Section 98005 was enacted through Proposition 5,
a California ballot referendum on Indian gaming,
subsequently struck down by the California Supreme
Court in Hotel Employees & Restaurant Employees
Int'l Union v. Davis, 21 Cal. 4th 585 (Cal. 1999). The
Hotel Employees Court struck down the majority of
Proposition 5, yet left the last sentence of the
jurisdiction clause in Section 98005. Id. at 615.

Plaintiff argues that California waived its
sovereign immunity for the purpose of the seventh
claim for relief under section 98005. The Court
respectfully disagrees.

Section 98005 permits federal court jurisdiction
over Tribal-State compact claims pursuant to IGRA

Claims involving Compact interpretation, injunctive
and declaratory relief are properly brought in federal
district court. However, nothing in Section 98005's
text specifically waives the State's sovereign immunity
against suits for monetary damages. Simply put, there
is there is no “overwhelming implication from the text
itself’ that California submitted itself to federal
jurisdiction for Tribal damage claims. Atascadero, 473
U.S. at 239-40 (1985).

Nor is there no other reasonable construction of
the statute's language. Jd. The history of section
98005 suggests that its sole purpose was to make the
State amenable 7 to suit under IGRA in the wake of
the Supreme Court's decision in Seminole Tribe of
Florida v. Florida, 517 U.S. 44, 55-56 (1996), which
struck down IGRA's abrogation of state sovereign
immunity. See Hotel Employees, 21 Cal. 4th at 614-
615. As the invalid IGRA provision which section
98005 mimics never authorized damages suits, it
logically follows that neither does section 98005. See
Confederated Tribes and Bands of Yakama Indian
Nation v. Lowry, 968 F. Supp. 531, 535 n.6 (E.D.
Wash.,1996) (noting that 25 U.SC. § 2710(d)(7)(A)(ii)
did not authorize damages suits under IGRA vacated
on other grounds by 176 F.3d 467. In fact, section
9.4(a)(2) of Rincon's Compact expressly provides that
California has not waived its sovereign immunity with
respect to claims for monetary damages:

The State and the Tribe expressly

consent to be sued therein and. waive any

immunity therefrom that they may have

provided that ... (2) Neither side makes

any claim for monetary damages (that is

—_ ee specific performance,
u

including enforcement of a provision of
this Compact requiring payment of
money to one or another of the parties, or
declaratory relief is sought).

(Doc. No. 20, Ex. A at 29).

Thus, not only is it not overwhelmingly clear
from the statute's text that the State intended to
waive its immunity from damages claims, the
circumstances surrounding section 98005's enactment
affirmatively suggest that such a waiver was not
intended. Accordingly, Plaintiff's seventh claim is
barred by the Eleventh Amendment.

C, Attorney General Bill Lockyer

Additionally, this Court agrees with Defendants
that California Attorney General Bill Lockyer
("Lockyer") has not been implicated by Plaintiff's
claims and no remedy is directed towards Lockyer or
his duties under state law. Plaintiff concedes that the
Attorney General need not be a party to this
litigation. Therefore, Defendant Lockyer will be
removed as a named defendant from all further
proceedings in this case.

IV. CONCLUSION AND ORDER

In light of the foregoing, the Court GRANTS
Plaintiffs motion for a new trial and reconsideration
(Doc. Nos. 38-1, 38-2). The Court GRANTS
Defendants’ original motion to dismiss Plaintiff's fifth
and seventh claims and to remove California Attorney
General Bill Lockyer as a named defendant in this
action. Finding that leave to amend would be futile,
Plaintiff's fifth and seventh claims are DISMISSED
WITH PREJUDICE.

IT IS SO ORDERED.
DATE: March 21, 2005

/si/ HON. THOMAS J. WHELAN
HON. THOMAS J. WHELAN
United States District Court
Southern District of California

APPENDIX D

App. 19

APPENDIX D

FOR PUBLICATION

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

CACHIL DEHE BAND OF WINTUN | No. 06-16145
INDIANS OF THE COLUSA INDIAN D.C. No. CV-04-
COMMUNITY, a Federally 02265-FCD
Recognized Indian Tribe,

Plaintiff-Appellant, ORDER
AMENDING

v. OPINION AND
DENYING THE
STATE OF CALIFORNIA; PETITION FOR
CALIFORNIA GAMBLING CONTROL PANEL
COMMISSION, an Agency of the REHEARING AND
State of California; and ARNOLD PETITION FOR
SCHWARZENEGGER, Governor of REHEARING EN
the State of California, BANC AND
AMENDED
Defendants-Appellees. OPINION

Appeal from the United States District Court for the
Eastern District of California Frank C. Damrell,

District Judge, Presiding

Argued and Submitted
April 9, 2008-Pasadena, California

Filed August 8, 2008
Amended October 24, 2008

Before: William C. Canby, Jr., Andrew J. Kleinfeld,
and Jay S. Bybee, Circuit Judges.

Opinion by Judge Canby

COUNSEL
George Forman, Forman & Associates, San Rafael,
California, for the plaintiff-appellant. Christine M.
Murphy, Deputy Attorney General, Sacramento,
California (briefs); Peter H. Kaufman, Deputy
Attorney General, San Diego, California (oral
argument); for the: defendants-appellees.

ORDER

The opinion filed in this case on August 8, 2008;
slip op. at 10159, to appear at 536 F.3d 1034 (9th Cir.
2008), is amended as follows:

At slip op. at 10166, first full paragraph, line 6:
Insert "by the tribe on September 1, 1999," after
"number of gaming devices operated."

,

At slip op. at 10169, lines 3-4: delete "for the
issuance of up to 22,500 additional gaming device
licenses" and substitute therefor: "for the operation of
up to 22,500 additional gaming devices."

At slip op. 10174, lines 11-12: delete "for the
issuance of up to 22,500 additional licenses" and
substitute therefor: "for the operation of up to 22,500
additional gaming devices."

With these amendments, the panel has voted to
deny the petition for panel rehearing. Judges
Kleinfeld and Bybee have voted to deny the petition

for rehearing en banc, and Judge Canby has so
recommended.

The petition for en banc rehearing, together with
these amendments, has been circulated to the full
court, and no judge of the court has requested a vote
on the petition for rehearing en banc. Fed. R. App. P.
35(b).

The petition for panel rehearing and the petition
for rehearing en banc are DENIED. No further
petitions for rehearing or rehearing en banc may be
filed. No other petitions for panel or en banc
rehearing remain pending.

OPINION
CANBY, Circuit Judge:

This appeal concerns the joinder requirements of
Rule 19 of the Federal Rules of Civil Procedure and
their effect on litigation brought by an Indian tribe
engaged in casino gaming. The Cachil Dehe Band of
Wintun Indians of the Colusa Indian Community
("Colusa"), a federally recognized Indian tribe, entered
into a gaming compact with the State of California in
1999. Colusa brought this action for declaratory and
injunctive relief against the State, its Governor and
the California Gambling Control Commission
(collectively, "the State"). Colusa challenges the
Commission's interpretation of the compact and the
Commission's assumption of authority to administer
unilaterally the licensing of electronic gaming devices.
The district court concluded that the many other
Indian tribes that had entered into identical gaming
compacts with the State in 1999, as well as
California's non-gaming tribes, were required parties
to this action. Because Indian tribes enjoy sovereign
immunity and the action could not proceed in their

absence, the district court granted the State's motion
for judgment on the pleadings. Colusa appeals.
Because we conclude that the absent tribes are not
required parties to this action, we reverse the district
court's judgment (with one minor exception) and
remand for further proceedings.

BACKGROUND

In 1988, Congress enacted the Indian Gaming
Regulatory Act ("IGRA") "to provide a statutory basis
for the operation of gaming by Indian tribes as a
means of promoting tribal economic development,
self-sufficiency, and strong tribal governments.” 25
U.S.C. § 2702(1). IGRA recognizes three classes of
gaming. 25 U.S.C. § 2703(6)-(8). Slot machines and
equivalent gaming devices, which are the exclusive
subject of this litigation, are Class III games. See 25
U.S.C. § 2703(7)(B)(ii), (8). Under the statute, a tribe

may conduct Class III gaming activities only "in
conformance with a Tribal-State compact entered into
by the Indian tribe." 25 U.S.C. § 2710(d)(1)(C).

In September 1999, Colusa entered into a
gaming compact (the "Compact") with the State of
California, which sets forth various provisions relating
to the operation of Class III gaming devices. See
Tribal-State Gaming Compact Between the Colusa
Indian Community and the State of California (Oct. 8,
1999). At the same time, sixty-two other tribes (the
"Compact Tribes") executed virtually identical
bilateral compacts with the State (the "1999
Compacts"). ' See Artichoke Joe's Cal. Grand Casino v.
Norton, 353 F.3d 712, 717-18 (9th Cir. 2003). The
1999 Compacts limit the number of gaming devices

A generic copy of a 1999 Compact is available at

http://www.cgcc.ca.gov/enabling/tsc.pdf (last visited July 31,
2008).

operated by each tribe to 2,000. See 1999 Compacts, §
4,3.2.2(a). They also establish a formula setting a
statewide maximum number of gaming devices that
all Compact Tribes may license in the aggregate under

the 1999 Compacts. Id. § 4.3.2.2(a)(1).

A Compact Tribe, however, is not free to choose
unilaterally how many gaming devices to operate,
even if it wishes to operate fewer devices than the
2,000 limit. The Compacts establish a threshold
number of devices that tribes may operate without a
license. Id. § 4.3.1. In Colusa's case, that number was
set at the number of gaming devices, 523, operated by
the Tribe on September 1, 1999. For each additional
gaming device, Colusa is required to obtain a license.
Id.§ 4.3.2.2(a). These licenses are distributed among
the Compact Tribes who apply to obtain them
pursuant to a detailed draw process. See id. §
4.3.2.2(a)(3). Under this process, a Compact Tribe's
likelihood of being awarded a license hinges on its
placement in one of five priority tiers. Jd. Placement
in a particular tier depends in part-though not
exclusively upon the number of gaming devices
already operated by the tribe; the fewer gaming
devices a tribe operates, the higher its priority tier. Jd.
If, in any given round, more licenses are requested in
aggregate by the Compact Tribes than the
Commission is distributing, the license draw process
is structured to award the bulk of those licenses to the
Compact Tribes who have not yet developed large
gaming operations. Id.

In 2001, then-Governor Gray Davis issued an
executive Order requiring the California Gambling
Control Commission ("Commission") to take control of
the licensing of gaming devices. Exec. Order No. D-29-
01 (Mar. 8, 2001). Previously, a tribal administrator
had conducted gaming device license draws. As soon
as the Commission assumed control, it declared the

licenses issued in previous draws invalid and replaced
them with licenses issued by the Commission.

The 1999 Compacts also envision a revenue-
sharing mechanism for the benefit of California's non-
gaming tribes. See 1999 Compacts, § 4.3.2.1. In order
to acquire licenses for gaming devices in excess of
their initial allowance, Compact Tribes must pay "a
non-refundable one-time pre-payment fee" of $1,250
for each gaming device being licensed. Id. § 4.3.2.2(e).
In addition, in order to keep their licenses current,
Compact Tribes must pay annual fees for each
licensed device in accordance with a pre-determined
fee schedule. Id. § 4.3.2.2(a)(2). The fees are to be
deposited in the Revenue Sharing Trust Fund
("Revenue Fund"), a fund created by the California
State Legislature and administered by _ the
Commission as trustee. Jd. Each Non-Compact Tribe’
is entitled to receive a distribution of $1.1 million per
year from the Revenue Fund, unless the funds therein
are insufficient, in which case the available funds are
distributed in equal shares among the Non-Compact
Tribes. Id. § 4.3.2.1(a). The Commission has
interpreted the 1999 Compacts as providing that the
nonrefundable, one-time pre-payment fee may be used
as a credit toward annual license fees, and that no
annual fees would be required for the first 350
licenses issued to a tribe.

Pursuant to the 1999 Compacts, the Legislature
also created the Indian Gaming Special Distribution
Fund ("Distribution Fund"). Cal. Go’s Code §

2

For purposes of revenue sharing, the 1999 Compacts
define a Compact Tribe as a tribe having a compact with the
State authorizing Class Ill Gaming; Non-Compact Tribes are
defined as federally recognized tribes that are operating fewer
than 350 gaming devices, whether or not such a tribe has a
compact with the State.

12012.85. The 1999 Compacts direct each gaming
tribe to contribute to the Distribution Fund a portion
of its revenues calculated according to the number of
gaming devices operated by the tribe on September 1,
1999, and the "net wins" of those devices. 1999
Compacts § 5.l(a). The Legislature may then
appropriate funds from the Distribution Fund to
make up for "shortfalls that may occur in the...
Revenue ... Fund. This shall be the priority use of
moneys in the ... Distribution Fund." Cal. Gov’ts Code
§ 12012.85(d).

In 2002, the Commission notified Colusa and
other Compact Tribes that it would conduct a round
of gaming device license draws that September. Prior
to the draw, Colusa was operating its threshold
number of 523 gaming devices for which it did not
need licenses. Colusa notified the Commission of its
intent to draw 250 licenses and tendered a $312,500
check as its non-refundable one-time pre-payment fee.
Colusa was placed in the third priority tier and
received 250 licenses. In November 2003, the
Commission notified Colusa that it would conduct
another round of draws in December 2003. Colusa
requested 377 licenses and submitted a pre-payment
of $471,250. Colusa was assigned to the fourth
priority tier, a classification that Colusa challenges in
this litigation. Colusa alleges that it was assigned to
the fourth tier because it had previously drawn some
licenses in the third tier, even though the number of
gaming devices it operated after the earlier drawing
should have continued to place it in the third tier. The
December drawing was held with Colusa in the fourth
tier and it received no licenses. The Commission
refunded the prepayment for those requested licenses
in full. In October 2004, the Commission conducted a
third draw. Colusa advanced fees for 341 licenses and
was again placed in the fourth priority tier. It received
only 73 licenses. Colusa anticipates receiving a refund

of the pre-payment on the licenses that it did not
receive in the draw.

Immediately after the December 2003 draw,
Colusa requested that the Governor meet and confer
with the Tribe with regard to (1) Colusa's assignment
to the fourth priority tier in the December 2003 draw;
(2) the Commission's determination of the statewide
aggregate number of licenses available to all tribes for
issuance under the 1999 Compacts; (3) the
Commission's role and authority in the draw process;
and (4) the Commission's retention of the $312,500
tendered by the Tribe in connection with its draw of
250 licenses in September 2002. After an unsuccessful
meeting, the State formally rejected each of Colusa's
positions. Colusa then initiated this litigation.

In its complaint, Colusa asserts that the State,
through the actions of the Commission, breached the
Compact by: (1) excluding Colusa from the third
priority tier in the December 2003 and October 2004
draws; (2) unilaterally determining the aggregate
number of licenses authorized by the Compact; (3)
refusing to refund Colusa's non-refundable one-time
pre-payment fee in conjunction with the licenses
Col:'sa obtained in September 2002 and October 2004;
(4) conducting rounds of draws of licenses without
authority; and (5) failing to negotiate in good faith.
The State filed a motion for judgment on the
pleadings, seeking to dismiss Colusa's first, second,
third, and fourth claims for failure to join necessary
and indispensable parties and its fifth claim for failure
to exhaust non-judicial remedies.* The district court

3 Colusa lists its fifth cause of action-failure to negotiate in
good faith -among its grounds for appeal. It does not, however,
advance any argument in support of reversing the district court's
judgment with respect to that claim. Accordingly, we deem the
claim abandoned. See Fed. R. App. P. 28(a)(9)(A); Acosta-Huerta

(continued...)

granted the State’s motion to dismiss and entered
judgment in its favor. Colusa appeals.

While Colusa's appeal was pending, the State
negotiated and executed amendments to the 1999
Compacts individually with at least five Indian tribes,
not including Colusa.* These amended compacts,

(...continued)

v. Estelle, 7 F.3d 139, 144 (9thCir. 1992) ("Issues raised in a brief
whicn are not supported by argument are deemed abandcned.")
(quoting Leer v. Murphy, 844 F.2d 628, 634 (9th Cir. 1988)). We
therefore affirm the district court's dismissal of that claim.

’ Amendment to the Tribal-State Compact Between the
State of California and the Agua Caliente Band of Cahuilla
Indians (Aug. 8, 2006); Amendment to the Tribal-State Compact
Between the State of California and the Morongo Band of
Mission Indians (Aug. 29, 2006); Amendment to the Tribal-State
Compact Between the State of California and the Pechanga Band
of Luiseno Mission Indians (Aug. 28, 2006); Amendment to the
Tribal-State Compact Between the State of California and the
Sycuan Band of the Kumeyaay Nation’ (Aug. 30, 2006);,
Amendment to the Tribal-State Compact Between the State of
California and the San Manuel Band of Serrano Mission Indians
of the San Manuel Reservation (Aug. 28, 2006); see also Indian
Gaming, 72 Fed. Reg. 71,939-02-71,939-04 (Dec.19, 2007)
(notices); Indian Gaming, 73 Fed. Reg. 3,480-01 (Jan. 18, 2008)
(notice); California Gambling Control Commission, Tribal-State
Gaming Compacts, http://www.cgcec.ca.gov/compacts.asp (last
visited July 31, 2008). We take judicial notice of these amended
compacts pursuant to Federal Rule of Evidence 201, which
"permits us to ‘take judicial notice of the records of state
[entities] and other undisputed matters of public record,’
[including] executed Compact|s] ... not in the district court
record." Wilbur v, Locke, 423 F.3d 1101, 1112 (9th Cir. 2005)
(quoting. Disabled Rights Action Comm. v. Las Vegas Events.
Inc., 375 F.3d 861, 866 n.I (9th Cir. 2004)). We note and overrule
the State's objection to our consideration of these materials.

which became effective between December 2007 and
January 2008 ("2007 Amended Compacts"), provide
for the operation of up to 22,500 additional gaming
devices outside the limits established by the 1999
Compacts. ° See 2007 Amended Compacts § II.B
(amended § 4.3.1(a)). In addition, four of the five 2007
Amended Compacts provide that, if a shortfall occurs
in the Revenue Fund, "the State 'Gaming Agency shall
direct a portion of the revenue contribution" made by
each of the 2007 Compact Tribes "to increase the
revenue contribution to the [Revenue Fund] in an
amount sufficient to ensure the [Revenue Fund] has
sufficient resources for each eligible recipient Indian
tribe to receive quarterly payments pursuant to
Government Code Section 12012.90."" E.g.,
Amendment to the Tribal-State Compact Between the
State of California and the Morongo Band of Mission
Indians § IAMB (Aug. 29, 2006) (amended § 4.3.1.(1)),
available at http://www.cgcc.ca.gov/compacts.asp (last

visited July 31, 2008). The aggregate revenue
contribution made by these four tribes, which is
therefore available to fill any shortfall in the Revenue
Fund, exceeds $140 million per year. See 2007
Amended Compacts § II.B (amended § 4.3.1(b)(i)).

DISCUSSION

In addressing the State's Rule 19 motion to
dismiss Colusa's claims for failure to join required
parties, "the proper approach is first to decide whether
the tribes are .. . ‘[required]' parties who should

? The 2007 Amended Compacts allow the amending tribes
to continue operating machines pursuant to licenses previously
issued under the pool provision as well as machines which were
operated on September 1, 1999. The pool provision licenses
remain in force even though the 2007 Amended Compacts repeal
the pool provision itself.

normally be joined under the standards of Rule 19(a)."
Am. Greyhound Racing, Inc. v. Hull, 305 F.3d 1015,
1022 (9th Cir. 2002).° If, as the district court
concluded in this case, the tribes are required parties,
"the court must determine whether, in equity and
good conscience, the action should proceed among the
existing parties or should be dismissed.” Fed. R. Civ.
P. 19(b). On appeal, we review the district court's Rule
19 determinations for an abuse of discretion. Am.
Greyhound Racing, 305 F.3d at. 1022; cf Republic of
the Philippines v. Pimentel, 128 S. Ct. 2180, 2189
(2008) (declining to address the standard of review for
Rule 19(b) decisions). To the extent that in its inquiry
the district court “decided a question of law, we review

that determination de novo." Am. Greyhound Racing,
305 F.3d at 1022.

The issue that we find dispositive of all contested
portions of this appeal is whether the absent tribes

are "required" parties to the adjudication of Colusa's

amended since the district court's dismissal of this action. The
Rules Committee advised that the changes were "stylistic only,"
see Fed. R. Civ. P. 19 advisory comm. nn. (2008), and the
Supreme Court has agreed, see Republic of the Philippines v.
Pimentel, 128 S. Ct. 2180, 2184 (2008). Two changes are relevant
to this case. First, the word "required" replaced the word
"necessary" in subparagraph (a). Second, the word
"indispensable" is deleted from the current text of subparagraph
(b). All quotations hereinafter to materials predating the 2007
amendment are altered, with brackets, to reflect the current
language of Rule 19.

7 The parties do not dispute that the absent tribes enjoy
sovereign immunity. See Santa Clara Pueblo v. Martinez, 436
U.S. 49, 58 (1978). Accordingly, because they have not consented
to suit, they cannot be joined in this action.

first, second, third and fourth claims within the
meaning of Rule 19(a). We conclude that they are not,
and that the district court abused its discretion in
finding that the absent tribes were required parties to
the disposition of these claims. We accordingly reverse
the district court's judgment with respect to those
claims and remand for further proceedings. Our
conclusion that the absent tribes are not required
parties under Rule 19(a) makes inapplicable the
provisions of Rule 19{b) governing the decision
whether to proceed with litigation when a required
party cannot be joined; we therefore do not address
the district court's determination of that issue. °

[1] The absent tribes are "required" parties to
this action if they "claim [ ] an interest relating to the
subject of the action and [are] so situated that
disposing of the action in [their] absence may: (I) as a
practical matter impair or impede (their) ability to

protect the interest; or (ii) leave an existing party
subject to a substantial risk of incurring double,
multiple, or otherwise inconsistent obligations because
of the interest." Fed. R. Civ. P. 19(a)(1)(B) (emphases
added).? A crucial premise of mandatory joinder, then,
is that the absent tribes possess an interest in the

8 For the same reason, our analysis is not affected by the
Supreme Court's recent holding in Pimentel, 128 S. Ct. at 2190.
In Pimentel, the Supreme Court reversed the decision of a panel
of this court because it had not "givien} full effect to sovereign
immunity" in its Rule 19(o) calculus. Jd. Because in our case the
absent tribes are not requi ed parties under Rule 19(a), we are
unaffected by the Rule 19(b) analysis set forth in Pimentel.

° The State does not contend that, in the absence of the
other Compact (or Non-Con *t) Tribes, “the court cannot
accord complete relief among exis! ng parties." Fed. R. Civ. P.
19(a)(1)(A).

pending litigation that is “legally protected." Makah
Indian Tribe v. Verity, 910 F.2d 555, 558 (9th Cir.
1990). We have developed few categorical rules
informing this inquiry. At one end of the spectrum, we
have held that the interest at stake need not be
"property in the sense of the due process clause." Am.
Greyhound Racing, 305 F.3d at 1023. At the other end
of the spectrum, we have recognized that the "interest
must be more than a financial stake, and more than
speculation about a future event." Makah, 910 F.2d at
558 (citations omitted); see also N. Alaska Envitl. Ctr.
v. Hodel, 803 F.2d 466, 468-69 (9th Cir. 1986) (holding
that miners who had submitted mining plans to
National Park Service were not necessary parties to
an ‘action to enjoin mining’ in parks until
environmental, impact statements were prepared).
Within the wide boundaries set by these general
principles, we have emphasized the "practical" and
"fact-specific’ nature of the inquiry. Makah, 910 F.2d
at 558; see also Bakia v. County of Los Angeles, 687
F.2d 299, 301 (9th Cir. 1982) (per curiam) ("There is
no precise formula for determining whether a
particular nonparty should be joined under Rule 19(a)
.... The determination is heavily influenced by the
facts and circumstances of each case."). Accordingly;
an interest that "arises from terms in bargained
contracts" may be protected, but we have required
that such an interest be "substantial." Am. Greyhound
Racing, 305 F.3d at 1023. An interest in a fixed fund
or limited resource that the court is asked to allocate
may also be protected. Makah, 910 F.2d at 558-59. At
the same time, an absent party has no legally
protected interest at stake in a suit merely to enforce
compliance with administrative procedures. See N.
Alaska, 803 F.2d at 469; Makah, 910 F.2d at 559 ("The
absent tribes vould not be prejudiced because all of
the tribes have an equal interest in an administrative
process that is lawful.").

The Size of the License Pool

Colusa challenges the Commission's computation
of the statewide maximum number of licenses that
may be issued under the 1999 Compacts. The district
court dismissed Colusa's claim, concluding that the
other Compact Tribes are required parties in the
absence of which the action should be dismissed.
Although we agree with the district court that some
absent tribes may prefer that the State issue fewer
licenses, we reverse its dismissal of Colusa's claim
because the absent tribes’ only interest relevant for
Rule 19(a) purposes is freedom from competition. We
hold that this interest, without more, is not "legally
protected" for Rule 19 purposes.

{2] It is important to identify clearly the
Compact Tribes' interest at stake. Those Compact
Tribes that currently enjoy on in the gaming industry
will likely prefer to maintain a low statewide
maximum number of licenses available under the
1999 Compacts. On the other hand, those who intend
to expand their gaming operations and compete with
the dominant gaming tribes will gladly accept an
increase in the size of the license pool created by the
1999 Compacts. Indeed, the State itself repeatedly
characterizes the absent tribes' interest at stake as the
preservation of their "market share" within
California's gaming industry. Properly framed, then,
the respective advantages that various tribes may
enjoy under a more generous or_ restrictive
interpretation of the pool provision are an economic
incident of their market positions under, a common
licensing regime.

[3] The mere fact that the outcome of Colusa's
litigation may have some financial consequences for
the non-party tribes is not sufficient to make those
tribes required parties, however. See, e.g., Makah, 910

F.2d at 558 ("[The] interest must be more than a
financial stake."). The absent tribes must have a
legally protected interest and, on this record, the only
potential protection lies in the 1999 Compacts
themselves. The interest could be protected if it
actually "arises from terms in bargained contracts."
Am. reyhound Racing, 305 F.3d at 1023. We
conclude that it does not.'""The 1999 Com pacts do not
purport to establish, through the license pool
provision or otherwise, an overarching limit on the
number of gaming licenses generally available in
California. Rather, they place a limit only on the
smaller universe of licenses that may be issued under
the 1999 Compacts. ”' This limit alone is insufficient to
determine the competitive landscape of California's
gaming industry, for it leaves the State at liberty to
issue an unlimited number of licenses outside the pool
created by the 1999 Compacts. Indeed, the State has
recently negotiated amendments, now in effect, to the
1999 Compacts with several tribes. These

amendments provide for the operation of up to 22,500
additional gaming devices outside the pool created by

10 We do not decide the broader question whether avoiding
competition ever qualifies as a legally protected interest under
Rule 19(a) in the context of Indian gaming. We note, however,
that the legislative history of IGRA casts considerable doubt on a
state's assertion of any such interest in the context of Indian
Gaming; the Senate's Select Committee on Indian Affairs
reported its intent that the states not use IGRA’s Class III
gaming compact requirement as a _ protectionist measure,
although that concern was directed at the protection of non-
tribal operators, not absent tribes as in this case. See S. Rep. No.
100-446, at 13 (1988), reprinted in 1988 U.S.C.C.A.N. 3071, 3083.
m “The 1999 Compacts establish a formula for a limit on
the “number of machines that all Compact Tribes in the
aggregate may license pursuant to this Section. . , ," 1999
Compacts § 4.3.2.2(a)(1) (emphasis added),

the 1999 Compacts. These actions reflect the reality
that the 1999 Compacts afford no express or implied
protection against competition per se. The interest of
some of the absent tribes in avuiding competition does
not "arise [ ] from terms in bargained contracts," id.,
and is accordingly not "legally protected" under the
circumstances of this case. The absent 1999 Compact
tribes thus are not required parties for litigation of
Colusa's claim seeking to raise the aggregate limit on
licenses under the 1999 Compacts.

In reaching this conclusion, we reject the State's
contention that its licensing scheme is comparable to
the system for the allocation of limited resources at
issue in Makah. In Makah, we held that absent tribes
had a protected interest that made them necessary
parties to a claim for amendment of a preexisting
allocation of a finite resource-a particular year's off-
shore salmon harvest-because an allocation to one
tribe necessarily entailed the parallel deprivation of
another. Makah, 910 F.2d at 556-57. The resource at
issue was finite: ocean fishing of salmon in excess of
the total permitted harvest would jeopardize the
survival of the species’ population in the region's
weakest runs. /d. at 557. In contrast, the gaming
licensing scheme at issue here rations a rescurce
license for gaming devices-that is, if not for purely
economic considerations, effectively unlimited. Thus,
for the reasoning of Makah to beat all relevant to this
case, the State would need to show that, despite not
being inherently finite, the resource of licenses for
gaming devices is rendered at least legally finite by
operation of the terms of the 1999 Compacts. As we
have already explained, however, the statewide cap
put in place by the 1999 Compacts does not, without
more, constrain the number of gaming licenses
generally available in California. Thus, the absent
tribes have no legally protected interest in the
determination of the license pool that may be issued
under the 1999 Compacts.

{4} Finally, we also find it significant that,
unlike the plaintiff in American Greyhound Racing,
Colusa does not seek to invalidate compacts to which
it is not a party; this litigation is not "aimed" at the
other tribes and their gaming. Am. Greyhound
Racing, 305 F.3d at 1026. On the contrary, Colusa
seeks to enforce a provision of its own Compact which
may affect other tribes only incidentally. Under the
specific circumstances of this case, the Compact
Tribes are not required parties to the adjudication of
Colusa's challenge to the size of the 1999 Compact
license pool.'”

Colusa's Placement in Priority Tier IV

Colusa next challenges its placement in the
fourth priority tier since the December 2003 draw.
The district court dismissed Colusa's claim on the
ground that the absent Compact Tribes “would be
deprived of thleir gaming] licenses or the opportunity
to obtain those licenses." This ruling was error, for it
misconstrues both the nature of the absent tribes'
interest; in the licenses that may be issued in the
future and the consequences of litigating Colusa's
challenge to its placement in the fourth tier. It is true
that, if one assumes that the license pool is finite, an
order to issue new licenses to Colusa may render those
licenses unavailable to the absent tribes, thereby
depriving them of their "opportunity" to obtain them.

12 We also are not persuaded by the State's unexplained
contention that adjudication of Coiusa's challenge to the
Commission's determination of the statewide cap would expose
the State to a significant risk of “inconsistent obligations" within
the meaning of Rule 1%. Should different district courts reach
inconsistent conclusions with respect to the size of the license
pool created under the 1999 Compacts, such inconsistencies
could be resolved in an appeal! to this court

Nonetheless, we conclude that the absent tribes'
interest in their "opportunity" to obtain future
licenses is insufficient to render them "required"
parties for Rule 19(a) purposes.

{5} Once again, it is necessary carefully to
identify the absent parties' interest at stake. To the
extent that the “opportunity” to obtain licenses means
the entitlement to participate in future rounds of
draws, the litigation of Colusa's tier assignment will
not "as a practical matter impair or impede the
{absent tribes'] ability to protect the interest." FED. R.
Civ. P. 19(a)(1)(B)(i). The absent tribes remain free to
enter future draws. The possible compiaint of the
absent tribes, however, is that assignment of Colusa
to a higher priority tier may dilute the probability
that the absent tribes will obtain the licenses they
apply for. But the absent tribes have no guarantee
against having to compete with any particular number
of tribes in their tier or a higher-priority tier. Nor can
it be said that any particular degree of likelihood of
receiving licenses “arises from terms in bargained
contracts" and, more specifically, from the 1999
Compacts. Am. Greyhound Racing, 305 F.3d at 1023.
Under IGRA, entering into a compact with state
authorities is, of course, a threshold requirement for
Indian tribes wishing to develop Class III gaming
operations. See 25 U.S.C. § 2710(d)(1)(C). In that
sense, if it were not for the 1999 Compacts, the absent
tribes would have no likelihood of ever obtaining any
licenses. In our "practical" and "fact-specific" Rule 19
inquiry, however, we require more than mere "but-for"
causation before recognizing a legally protected
interest. Makah, 910 F.2d at 558; see also Bakia, 687
F.2d at 301. Here, in addition to the threshold
requirement of a compact, a number of other factors
determine the actual likelihood that any given tribe
will receive any licenses. As the facts of this litigation
demonstrate, crucial among these factors is the past,
present and future demand for new licenses by other

tribes placed in higher or equal priority tiers. A tribe
wishing to obtain additional licenses has absolutely no
control over the overall demand for new licenses, or
over the number of tribes that may be placed in the
same or a higher priority tier. Thus, the causal
connection between the terms of the 1999 Compacts
and an absent tribe's likelihood of obtaining future
licenses is attenuated indeed. See Makah, 910 F2d at
558 ("speculation about a future event” does not give
rise to a legally protected interest). We .therefore
conclude that no particular degree of likelihood of
obtaining licenses "arises from terms in bargained
contracts," Am. Greyhound Racing, 305 F.3d at 1023.
As a consequence,-the opportunity to obtain licenses
does not qualify as a legally protected interest for Rule
19 purposes.

The interest of the absent tribes in Colusa's tier
assignment is therefore quite different from the
interest of the absent tribes in American Greyhound
Racing. In that case, we emphasized that the gaming
compacts between Arizona and the Indian tribes,
which were the subject of that litigation, "provideld]
for automatic renewal if neither party gives the
requisite notice of termination. [That] provision [was]
an integral part of the existing compacts, and was part
of the bargain that the tribes entered with the State."
Am. Greyhound Racing, 305 F.3d at 1023. We
reversed the district court's injunction because it
modified the compacts of the absent tribes and
stripped those tribes of the very object of their
bargain-automatic renewal unless’ the _ parties
affirmatively terminated the compacts. id. Here,
Colusa's tier claim does not negate any absent tribe's
right to its place in any tier, or its right to participate
in the manner guaranteed by the Compacts. Colusa's
claim at most increases the competition for licenses to
be drawn but, as we have explained, the 1999
Compacts do not guarantee freedom from
competition, nor do they grant an entitlement to draw

any specific license or number of licenses or even a
predetermined place in line that may entail a
particular likelihood of obtaining new licenses. Thus,
American Greyhound Racing does not control,
because litigation of Colusa's claim for placement in a
higher tier cannot impair any Compact rights that
were the object of the bargain of the absent tribes.

[6] Different considerations apply to the interest
of the absent tribes in the licenses that they have
already received. We do not question that the
Compact Tribes which requested and obtained
licenses in the December 2003 and subsequent draws
by placing ahead of Colusa have a legally protected
interest in those licenses. In order for the absent
tribes to be "required" parties under Rule 19, however,
the State must also show that their ability to protect
their interest "may ... as a practical matter [be]
impair[ed}" by the litigation of Colusa's claim to a
higher tier placement. Fed. R. Civ. P. 19(a)(1)(B)(i).
To the extent that Colusa seeks prospective relief in
the form of a declaration that may place it in the third
priority tier in future draws, such relief, if granted,
would not prejudice absent tribes’ legally protected
interest in their existing licenses.’* It was therefore an
abuse of discretion for the district court to prohibit
Colusa from litigating the legality of the Commission's '
interpretation of the tier system. Like the Makah
court, however, we emphasize that "the scope of the
relief available [to Colusa] ... is narrow." Makah, 910

13 The State's contention that prospective relief is
inapposite because Colusa's tier placement would be determined
by a formula not available to the other Compact Tribes is
unavailing. As we explained, the 1999 Compacts do not create a
legally protected interest in either freedom from competition, see
supra p. 14927-28, or a specific place in line in future draws, see
supra p. 14932-33.

F.2d at 559. Accordingly, to the extent Colusa seeks
injunctive relief requiring the Commission to restore
Colusa to the position it would have occupied under
its claimed interpretation of the Compact by issuing
new licenses, such relief may be granted only insofar
as it does not interfere with the validity or
distribution of the licenses already assigned to the
other Compact Tribes.“

Colusa's Pre-payment Fees

In its next claim, Colusa seeks restitution of the
$403,750 it tendered to the Commission as pre-
payment for the 323 licenses it has obtained in the
draws thus far. The Commission, as trustee of the
Revenue Fund, is holding the prepayment as a credit
against future annual fees. Colusa argues that the
pre-payment should be refunded because Colusa will
not owe any annual fees until it draws at least 350
licenses-an illusory prospect so long as the tribe is
assigned to the fourth priority tier.’ The district court

= We reject the State's argument that, if Colusa prevailed

on its first claim that it was entitled to a higher tier placement,
the entire license draw process would have to be retroactively
undone. Colusa does not seek this remedy and we see no reason
why a court of equity would be compelled to grant it.

We also reject the State's contention that "the other 1999
Compact tribes, which have been placed in tiers based on the
Commission's interpretation of the tier process, would
nevertheless have suffered prejudice." The licenses that have
already been issued comprise the absent tribes' only
legally protected interest at stake. As we have made clear,
however, none of those licenses may be invalidated at the
remedial stage.

” The Tribe drew 250 licenses in September 2002, and
another 73 in October 2004, for a total of 323 licenses. Colusa
(continued...)

dismissed the claim because Colusa's non-refundable
pre-payment is deposited in the Revenue Fund and,
"to the extent that there is insufficient money to pay
each Non-Compact Trib? $1.1 million per year, an
award to plaintiff will lessen the amount of money
distributed to each other tribe." Thus the district
court held that the claim could not be litigated in the
absence of the non-Compact tribes eligible for
distributions from the Fund.

[7] We need not decide whether the district
court's Rule 19(a) determination was correct. The
State's intervening amendment and ratification of its
1999 Compacts with several gaming tribes, which is
memorialized in the 2007 Amended Compacts, have
significantly altered the financing of the Revenue
Fund. Four of the 2007 Amended Compacts that are
now in effect contain the following provision:

If it is determined that there is an
insufficient amount in the Indian
Gaming Revenue Sharing Trust Fund in
a fiscal year to distribute the quarterly
payments pursuant to Government Code
Section 12012.90 to each _ eligible
recipient Indian tribe, then the State
Gaming Agency shall direct a portion of
the revenue contribution in Section
4.3.1(b)(i) to increase the revenue
contribution to the Indian Gaming
Revenue Sharing Trust Fund in Section
4.3.2.2 in an amount sufficient to ensure
the Indian Gaming Revenue Sharing
Trust Fund has sufficient resources for
each eligible recipient Indian tribe to

(...continued)
represents that it will not be permitted to draw any more licenses
so long as it remains in a low priority tier.

receive quarterly payments pursuant to
Government Code Section 12012.90.

E.g., Amendment to the Tribal-State Compact
Between the State of California and the Morongo
Band of Mission Indians § II.B (Aug. 29, 2006),
(amended § 4.3.1(1)). The “revenue contribution"
specified in amended section 4:3.1 (b)(i) of these four
2007 Amended Compacts, in turn, guarantees an
annual aggregate inflow to the State in excess of $140
million. See 2007 Amended Compacts § II.B (amended
§ 4.3.1(b)(~)). Should a shortfall develop in the
Revenue Fund, the Commission "shall" direct a
sufficient portion of this amount to the Revenue Fund
to make up for the shortfall. The potential backfill of
more than $140 million per year guaranteed by the
2007 Amended Compacis apr-ars as a _ practical
matter to be more than sufficient to make up for any
shortfall in the Revenue Fund. * We therefore
conclude that the refund of Colusa's $403,750 pre-

payment fee, if appropriate under the Compact, will
not "as a practical matter impair or impede [the Non-
Compact Tribes'] ability to protect [their] interest" in
receiving their annual $1.1 million distribution as
required by California stats law. Fed. R. Civ. P.
19(a)(1)(B)i).”

16 As of September 20, 2007, 71 Indian tribes were eligible
to receive the $1.!-million annual distribution from the Revenue
Fund. See, e.g., California 14936 Gambling Control] Commission,
Revenue Sharing Trust Fund Recipients (Sept. 20, 2007),
available at http://www.cgcc.ca.gov/
rstfi/2008/DistribFundReport020503%20%-20-%203312008. pdf
(last visited July 31, 2008).

si We reject the State's argument that “actual
implementation (which is not described in {the 2007 Compacts])
could result in delayed reimbursement" to the Non-Compact

(continued...)

In the alternative, the State contends that the
Compact Tribes are also required parties to the pre-
payment fee claim. It argues that Colusa's success in
obtaining its refund would impair the Compact Tribes'
ability to protect their interest in "the 1999 Compact's
interpretation and the fulfillment of its terms by all
1999 Compact tribes." The State's argument sweeps
much too broadly. Nothing in the Compact establishes
any obligation towards the other Compact Tribes
insofar as the payment or refund ability of Colusa's
advance fees into the Revenue Fund are concerned.
With respect to the prepayment provision, the 1999
Compacts are quintessentially bilateral. Accordingly,
the Compact Tribes' relevant Rule 19 interest must
arise, if at all, from the bare fact that the Compact
Tribes are simultaneously parties to identical bilateral
compacts with the State. We have never held that the
mere coincidence of parallel and independent
contractual obligations vis-a-vis a common party

requires joinder of all similarly situated parties. Cf
Dawavendewa ov. Salt River Project Agric.
Improvement & Power Dist., 276 F.3d 1150, 1157 (9th.
Cir. 2002) ("[A] party to a contract is necessary, and if
not susceptibie to joinder, indispensable to litigation
seeking to decimate that contract.") (emphasis added).

(...continued)
Tribes. Rule 19 requires "more than speculation about a future
event." Makah, 910 F.2d at 558 (citations omitted).

18 It is true that, under the Compact, Colusa “agree[d] with

all other Compact Tribes ... that each Non-Compact Tribe in the
State shall receive the sum of $1.1 million per year." 1999
Compacts, § 4.3.2.1(a) (emphasis added). No reciprocal obligation
to contribute any specific .amount or forgo otherwise legitimate
claims to the pre-payment fees, however, arises from this joint
commitment.

The mutuality-of-party requirement of res judicata
and defensive collateral estoppels ensures that the
similarly situated absent tribes will not be prejudiced
if and when they decide to challenge the Commission's
interpretation of the refund provision of the 1999
Compacts.’* On the facts of this case, we decline the
State's invitation to extend the scope of mandatory
joinder.

[8] Finally, we reject the State's argument that
failure to join the Compact Tribes may expose the
State to inconsistent obligations. As the First Circuit
has cogently explained,

"{ilnconsistent obligations" are not ... the
same as inconsistent adjudications or
results. Inconsistent obligations occur when
a party is unable to comply with one court's
order without breaching another court's
order concerning the same _ incident.

Inconsistent adjudications or results, by
contrast, occur when a_— defendant
successfully defends a claim in one forum,
yet loses on another clam arising from the
same incident in another forum.

ed We also note that the State's contention that Colusa's

success would impair "the fulfillment of [the 1999 Compacts']
terms by all Compact tribes" is vitiated by its circular reasoning.
If Colusa succeeds in its claim, it will obtain relief that will, by
definition, "fulfill" the pre-payment term of the Compact. In
other words, the only "fulfillment" that Colusa's claim, if
successful, would impair is that of the Commission's current
interpretation of the provision. The Compact Tribes, however,
have no “legally protected” interest in the "fulfillment" of the

Commission's particular interpretation of the Compact.

Delgado v. Plaza Las Americas, Inc., 139 F.3d 1, 3 (1st
Cir. 1998) (per curiam) (footnote and citations
omitted); see also 4 James Wm. Moore et al., Moore's
Federal Practice-Civil § 19.03{4][d] (2008). We adopt
the approach endorsed by the First Circuit.
Accordingly, the possibility that the State may have to
refund Colusa's pre-payment fees while adhering to a
different interpretation of the Compact in its dealings
with some other tribes does not, without more, rise to
the level of creating a "substantial risk" of incurring
"inconsistent obligations." Fed. R. Civ. PP.
19(a)(1)(B) (ii).

The Commission's Authority to Conduct
Rounds of Draws

Colusa finally argues that the Commission lacks
authority under the compact unilaterally to conduct
draws of gaming device licenses. As relief, Colusa

requests a declaration that the Commission "has no
authority under the Compact’ u:.taterally to
administer the system established under the Compact
for the issuance of Gaming device licenses, but only to
do so in consultation with the Tribe." The district
court concluded that, if Colusa "prevailed, the relief
would deprive absent parties of their legal
entitlements to the licenses awarded pursuant to an
invalid process." We reverse the districs court's
determination because it is contrary to our decision in
Makah.

[9] In Makah, we held that the absent tribes
were not required parties to the adjudication of the
plaintiff tribe's "procedura! claims"- its claim that the
harvest quotas imposed by the Secretary of Commerce
“were the product of commitments made outside the
administrative process." Makah, 910 F.2d at 557
(internal quotation marks omitted). We reasoned that
"(tlhe absent tribes would not be prejudiced because
all of the tribes have an equal interest in an

administrative process that is lawful." Jd. at 559. In so
holding, we also made clear that Rule 19 required "the
scope of the relief available to the Makah on their
procedural claims {to be] narrow" and limited to
prospective relief. Jd. We find this reasoning
dispositive in this case as well. Much like their
counterparts in Makah, the absent tribes "have an
equal interest in an administrative process that is
lawful," Id. - that is, that the Commission not conduct
the draws of licenses ultra vires. Moreover, as we have
already made clear, Rule 19 necessarily confines the
relief that may be granted on Colusa's claims to
remedies that do not invalidate the licenses that have
already been issued to the absent Compact Tribes. See
Makah, 910 F.2d at 559. Thus, we reverse the district
court's dismissal of Colusa's fourth claim, albeit with
the proviso that, were Colusa to prevail on the merits,
no existing license may be invalidated at the remedial
stage.”

20 We reject the State's contention that, if Colusa prevailed
in establishing its fourth claim, the existing licenses would
necessarily be void ab initio. It is true that, in Lockyer v. City and
County of San Francisco, the Supreme Court of California held
that marriage licenses issued by the City of San Fra:icisco to
same-sex couples in violation of state law were "void and of no
legal effect from their inception." 33 Cal. 4th 1055, 1113 (2004).
In that case, however, the Supreme Court of California
emphasized the "unusual, perhaps unprecedented, set of
circumstances" surrounding the invalidation of the marriage
licenses in question. Jd Moreover, in reaching its conclusion, the
court relied exclusively on the relevant provisions of California's
Family Code and on case law addressing specifically marriages
celebrated in violation of state law. Jd. at 1113-14. Thus, Lockyer
is not controlling. The parties have directed our attention to no
other case-and we could find none-in support of the proposition
that, under California law, the district court may not limit relief
to future conduct if Colusa prevailed on the merits of its claim.

CONCLUSION

We affirm the _ district court's judgment
dismissing Colusa's claim for failure to negotiate in
good faith. We reverse the district court's judgment
dismissing Colusa's other claims on the pleadings, and
remand for further proceedings consistent with this
opinion. Colusa is entitled to its costs on appeal.

AFFIRMED IN PART; REVERSED AND
REMANDED IN PART.

APPENDIX E

APPENDIX E
FOR PUBLICATION

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

(ACHIL DEHE BAND OF WINTUN
INDIANS OF THE COLUSA INDIAN
COMMUNITY, A Federally
Recognized Indian Tribe,

Plaintiff-Appellant, No. 06-16145
| D.C. No.
V. CV-04-02265-FCD

STATE OF CALIFORNIA; OPINION
CALIFORNIA GAMBLING CONTROL
COMMISSION, AN AGENCY OF
THE STATE OF CALIFORNIA; AND
ARNOLD SCHWARZENEGGER,
GOVERNOR OF THE STATE OF,
CALIFORNIA,

Defendants-Appellees.

Appeal from the United States District Court
for the Eastern District of California
Frank C. Damrell, District Judge, Presiding

Argued and Submitted
April 9, 2008-Pasadena, California

Filed August 8, 2008

Before: William C. Canby, Jr., Andrew J. Kleinfeld,
and Jay S. Bybee, Circuit Judges.

Opinion by Judge Canby

COUNSEL

George Forman, Forman & Associates, San Rafael,
California, for the plaintiff-appellant.

Christine M. Murphy, Deputy Attorney General,
Sacramento, California (briefs); Peter H. Kaufman,
Deputy Attorney General, San Diego, California (oral
argument); for the defendants-appellees.

OPINION
CANBY, Circuit Judge:

This appeal concerns the joinder requirements of
Rule 19 of the Federal Rules of Civil Procedure and
their effect on litigation brought by an Indian tribe
engaged in casino gaming. The Cachil Dehe Band of
Wintun Indians of the Colusa Indian Community
("Colusa"), a federally recognized Indian tribe, entered
into a gaming compact with the State of California in
1999. Colusa brought this action for declaratory and
injunctive relief against the State, its Governor and
the California Gambling Control Commission
(collectively, "the State"). Colusa challenges the
Commission's interpretation of the compact and the
Commission's assumption of authority to administer
unilaterally the licensing of electronic gaming devices.
The district court concluded that the many other
Indian tribes that had entered into identical gaming
compacts with the State in 1999, as well as
California's non-gaming tribes, were required parties
to this action. Because Indian tribes enjoy sovereign
immunity and the action could not proceed in their
absence, the district court granted the State's motion
for judgment on the pleadings. Colusa appeals.
Because we conclude that the absent tribes are not
required parties to this action, we reverse the district

court's judgment (with one minor exception) and
remand for further proceedings.

BACKGROUND

In 1988, Congress enacted the Indian Gaming
Regulatory Act ("IGRA") "to provide a statutory basis
for the operation of gaming by Indian tribes as a
means of promoting tribal economic development, sell-
sufficiency, and strong tribal governments." 25 U.S.C.
§ 2702(1). IGRA recognizes three classes of gaming. 25
U.S.C. § 2703(6)-(8). Slot machines and equivalent

aming devices, which are the exclusive subject of this
hiti gation, are Class III games. See 25 US.C. $
2703(7)(B) (ii), (8). Under the statute, a tribe may
conduct Class III gaming activities only "in:
conformance with a Tribal-State compact entered into
by the Indian tribe." 25 U.S.C. § 2710(d)(1)(C).

In September 1999, Colusa entered into a
gaming compact (the "Compact") with the State of
California, which sets forth various provisions relating
to the operation of Class III gaming devices. See
Tribal-State Gaming Compact Between the Colusa
Indian Community and the State of California (Oct. 8,
1999). At the same time, sixty-two other tribes (the
"Compact Tribes") executed virtually identical
bilateral compacts with the State (the "1999
Compacts").’ See Artichoke Joe's Cal. Grand Casino v.
Norton, 353 F.3d 712, 717-18 (9th Cir. 2003). The
1999 Compacts limit the number of gaming devices
operated by each tribe to 2,000. See 1999 Compacts, §
4.3.2.2(a). They also establish a formula setting a
statewide maximum number of gaming devices that

l A generic copy of a 1999 Compact is available at
http://www.cgcc.ca.gov/enabling/tse.pdf (last visited July 31,
2008).

all Compact Tribes may license in the aggregate under
the 1999 Compacts. Id. § 4;3.2.2(a)()).

A Compact Tribe, however, is not free to choose
unilaterally how many gaming devices to operate,
even if it wishes to operate fewer devices than the
2,000 limit. ‘The Compacts establish a threshold
number of devices that tribes may operate without a
license. Jd. § 4.3.1. In Colusa's case, that number was
set at the number of gaming devices, 523, operated by
the Tribe on September 1, 1999. For each additional
gaming device, Colusa is required to obtain a license.
Id.§ 4.3.2.2(a). These licenses are distributed among
the Compact Tribes who apply to obtain them
pursuant to a detailed draw process. See id. $
4.3.2.2(a)(3). Under this process, a Compact Tribe's
likelihood of being awarded a license hinges on its
placement in one of five priority tiers. Id. Placement
in a particular tier depends in part-though not
exclusively upon the number of gaming devices
already operated by the tribe; the fewer gaming
devices a tribe operates, the higher its priority tier. Id.
If, in any given round, more licenses are requested in
aggregate by the Compact Tribes than _ the
Commission is distributing, the license draw process
is structured to award the bulk of those licenses to the
Compact Tribes who have not yet developed large
gaming operations. Id.

In 2001, then-Governor Gray Davis issued an
executive order requiring the California Gambling
Control Commission ("Commission") to take control of
the licensing of gaming devices. Exec. Order No. D-
29-01 (Mar. 8, 2001). Previously, a_ tribal
administrator had conducted gaming device license
draws. As soon as the Commission assumed control, it
declared the licenses issued in previous draws invalid
and replaced them with licenses issued by the
Commission.

The 1999 Compacts also envision a revenue-
sharing mechanism for the benefit of California's non-
gaming tribes. See 1999 Compacts, § 4.3.2.1. In order
to acquire licenses for gaming devices in excess of
their initial allowance, Compact Tribes must pay "a
non-refundable one-time pre-payment fee" of $1,250
for each gaming device being licensed. Id. § 4.3.2.2(e).
In addition, in order to keep their licenses current,
Compact Tribes must pay annual fees for each
licensed device in accordance with a pre-determined
fee schedule. Jd. § 4.3.2.2(a)(2). The fees are to be
deposited in ‘the Revenue Sharing Trust Fund
("Revenue Fund"), a fund created by the California
State Legislature and administered by the
Commission as_ trustee. Jd. Each Non-Compact
Tribe’ is entitled to receive a distribution of $1.1
million per year from the Revenue Fund, unless the
funds therein are insufficient, in which case the
available funds are distributed in equal shares among
the Non-Compact Tribes. Id. § 4.3.2.1(a). The

Commission has interpreted the 1999 Compacts as
providing that the nonrefundable, one-time pre-
payment fee may be used as a credit toward annual
license fees, and that no annual fees would be
required for the first 350 licenses issued to a tribe.

Pursuant to the 1999 Compacts, the Legislature
also created the Indian Gaming Special Distribution
Fund ("Distribution Fund"). Cal. Gov't Code §
12012.85. The 1999 Compacts direct each gaming
tribe to contribute to the Distribution Fund a portion
of its revenues calculated according to the number of

2 For purposes of revenue sharing, the 1999 Compacts
define a Compact Tribe as a tribe having a compact with the
State authorizing Class III Gaming; Non-Compact Tribes are
defined as federally recognized tribes that are operating fewer
than 350 gaming devices, whether or not such a tribe has a
compact with the State.

gaming devices operated and the "net wins" of those
devices. 1999 Compacts § 5.1(a). The Legislature may
then appropriate funds from the Distribution Fund to
make up for "shortfalls that may occur in the...
Revenue ... Fund. This shall be the priority use of
moneys in the... «Distribution Fund." Cal. Gov't Code
§ 12012.85(d).

In 2002, the Commission notified Colusa and
other Compact Tribes that it would conduct a round
of gaming device license draws that September. Prior
to the draw, Colusa was operating its threshold
number of 523 gaming devices for which it did not
need licenses. Colusa notified the Commission of its
intent to draw 250 licenses and tendered a $312,500
check as its non-refundable one-time pre-payment fee.
Colusa was placed in the third priority tier and
received 250 licenses. In November 2003, the
Commission notified Colusa that it would conduct
another round of draws in December 2003. Colusa
requested 377 licenses and submitted a pre-payment
of $471,250 Colusa was assigned to the fourth priority
tier, a classification that Colusa challenges in this
litigation. Colusa alleges that it was assigned to the
fourth tier because it had previously drawn some
licenses in the third tier, even though the number of
gaming devices it operated after the earlier drawing
should have continued to place it in the third tier.
The December drawing was held with Colusa in the
fourth tier and it received no _ licenses. The
Commission refunded the prepayment for those
requested licenses in full. In October 2004, the
Commission conducted a third draw. Colusa advanced
fees for 341 licenses and was again placed in the
fourth priority tier. It received only 73 licenses.
Colusa anticipates receiving a refund of the pre-
= on the licenses that it did not receive in the

raw.

Immediately after the December 2003 draw,
Colusa requested that the Governor meet and confer
with the Tribe with regard to (1) Colusa's assignment
to the fourth priority tier in the December 2003 draw;
(2) the Commission's determination of the statewide
aggregate number of licenses available to all tribes for
issuance under the 1999 Compacts; (3) the
Commission's role and authority in the draw process;
and (4) the Commission's retention of the $312,500
tendered by the Tribe in connection with its draw of
250 licenses in September 2002. After an
unsuccessful meeting, the State formally rejected each
of Colusa's positions. Colusa then initiated this
litigation.

In its complaint, Colusa asserts that the State,
through the actions of the Commission, breached the
Compact by: (1) excluding Colusa from the third
priority tier in the December 2003 and October 2004
draws; (2) unilaterally determining the aggregate
number of licenses authorized by the Compact; (3)
refusing to refund Colusa's non-refundable one-time
prepayment fee in conjunction with the _ licenses
Colusa obtained in September 2002 and October 2004;
(4) conducting rounds of draws of licenses without
authority; and (5) failing to negotiate in good faith.
The State filed a motion for judgment on the
pleadings, seeking to dismiss Colusa's first, second
third, and fourth claims for failure to join necessary
and indispensable parties and its fifth claim for failure
to exhaust non-judicial remedies.’ The district court

3 Colusa lists its fifth cause of action-failure to negotiate ‘n
good faith-among its grounds for appeal. It does not, however,
advance any argument in support of reversing the district court's
judgment with respect to. that claim. Accordingly, we deem the
claim abandoned. See Fed. R. App. P. 28(a)(9)(A); Acosta-Huerta
v. Estelle, 7 F.3d 139, 144 (9th Cir. 1992) ("Issues raised in a brief
which are not supported by argument are deemed abandoned.")

(continued...)

granted the State's motion to dismiss and entered
judgment in its favor. Colusa appeals.

While Colusa's appeal was pending, the State
negotiated and executed amendments to the 1999
Compacts individually with at least five Indian tribes,
not including Colusa.“ These amended compacts,
which became effective between December 2007 and

(...continued)
(quoting Leer v. Murphy, 844 F.2d 628, 634 (9th Cir. 1988)). We
therefore affirm the district court's dismissal of that claim.

: Amendment to the Tribal-State Compact Between the
State of California and the Agua Caliente Band of Cahuilla
Indians (Aug. 8, 2006); Amendment to the Tribal-State Compact
Between the State of California and the Morongo Band of
Mission Indians (Aug. 29, 2006); Amendment to the Tribal-State
Compact Between the State of California and the Pechanga Band
of Luiseno Mission Indians (Avg. 28, 2006); Amendment to the
Tribal-State Compact Between the State of California and the
Sycuan Band of the Kumeyaay Nation (Aug. 30, 2006);
Amendment to the Tribal-State Compact Between the State of
California and the San Manuel Band of Serrano Mission Indians
of the San Manuel Reservation (Aug. 28, 2006); see also Indian
Gaming, 72 Fed. Reg. 71,939-02-71,939-04 (Dec. 19,2007)
(notices); Indian Gaming, 73 Fed. Reg. 3,480-01 (Jan. 18,2008)
(notice); California Gambling Control Commission, Tribal-State
Gaming Compacts, http://www.cgcc.ca.gov/compacts.asp (last
visited July 31, 2008). We take judicial notice of these amended
compacts pursuant to - Federal Rule of Evidence 201, which
"permits us to ‘take judicial notice of the records of state
[entities] and other undisputed matters of public record,'
[including] executed Compact/s] ... not in the district court
record." Wilbur v. Locke, 423 F.3d 1101, 1112 (9th Cir. 2005)
(quoting Disabled Rights Action Comm. v. Las Vegas Events,
Inc., 375 F.3d 861, 866 n.1 (9th Cir. 2004)). We note and overrule
the State's objection to our consideration of these materials.

January 2008 ("2007 Amended Compacts"), provide
for the issuance of up to 22,500 additional gaming
device licenses outside the limits established by the
1999 Compacts.° See 2007 Amended Compacts § II B
(amended § 4.3.1(a)). In addition, four of the five 2007
Amended Compacts provide that, if a shortfall occurs
in the Revenue Fund, "the State Gaming Agency shall
direct a portion of the revenue contribution" made by
each of the 2007 Compact Tribes "to increase the
revenue contribution to the [Revenue Fund] in an
amount sufficient to ensure the [Revenue Fund] has
sufficient resources for each eligible recipient Indian
tribe to receive quarterly payments pursuant to
Government Code: Section 1201290." E.g.,
Amendment to the Tribal-State Compact Between the
State of California and the Morongo Band of
Mission Indians § n.B (Aug. 29, 2006) (amended
4.3.1.(1)), available at
http://www.cgcec.ca.gov/compacts.asp (last visited July
31, 2008). The aggregate revenue contribution made
by these four tribes, which is therefore available to fill

any shortfall in the Revenue Fund, exceeds $140
million per year. See 2007 Amended Compacts § II.B
(amended § 4.3.1(b)(i)).

DISCUSSION

In addressing the State's Rule 19 motion to
dismiss Colusa's claims for failure to join required
parties, "the proper approach is first to decide whether
the tribes are .. ‘{required]' parties who should
normally be joined under the standards of Ruie 19(a)."

hig The 2007 Amended Compacts allow the amending tribes
to continue operating machines pursuant to licenses previously
issued under the pool provision as well as machines which were
operated on September 1, 1999. The pool provision licenses
remain in force even though the 2007 Amended Compacts repeal

the pool provision itself.

Am. Greyhound Racing, Inc. v. Hull, 305 F.3d 1015,
1022 (9th Cir. 2002).° If, as the district court
concluded in this case, the tribes are required parties,
"the court must determine whether, in equity and
good conscience, the action should: proceed among the
existing parties or should be dismissed."” Fed. R. Civ.
P. 19(b). On appeal, we review the district court's
Rule 19 determinations for an abuse of discretion.
Am. Greyhound Racing, 305 F.3d at 1022; cf Republic
of the Philippines v. Pimentel, 128 S. Ct. 2180, 2189
(2008) (declining to address the standard of review for
Rule 19(b) decisions). To the extent that in its inquiry
the district court "decided a question of law, we review
that determination de novo." Am. Greyhound Racing,
305 F.3d at 1022. The issue that we find dispositive of
all contested portions of this appeal is whether the
absent tribes are "required" parties to the adjudication
of Colusa's first, second, third and fourth claims
within the meaning of Rule 19(a). We conclude that
they are not, and that the district court abused its

discretion in finding that the absent tribes were

The language of Federal Rule of Civil Procedure 19 has
been amended since the district court's dismissal of this action.
The Rules Committee advised that the changes were "stylistic
only," see Fed. R. Civ. P. 19 advisory conim. nn. (2008), and the
Supreme Court has agreed, see Republic of the Philippines v.
Pimentel, 128 S. Ct. 2180, 2184 (2008). Two changes are relevant
to this case. First, the word "required" replaced the word
"necessary" in subparagraph (a). Second, the word
'~indispensable" is de'eted from the current text of subparagraph
(b). All quotations hereinafter to materials predating the 2007
amendment are altered, with brackets, to reflect the current
language of Rule 19

The parties do not dispute that the absent tribes enjoy
sovereign immunity. See Canta Clara Pueblo v. Martinez, 436
U.S. 49, 58 (1978). Accordingly, because they have not consented
to suit, they cannot be joined in this action.

required parties to the disposition of these claims. We
accordingly reverse the district court's judgment with
respect to those claims and remand for further
proceedings Our conclusion that the absent tribes are
not required parties under Rule 19(a) makes
inapplicable the provisions of Rule 19(b) governing
the decision whether to proceed with litigation when a
required party cannot be joined; we therefore do not
address the district court's determination of that
issue.

{1} The absent tribes are "required" parties: to
this action if they "claim[ ] an interest relating to the
subject of the action and [are] so situated that
disposing of the action in [their] absence may: (i) as a
practical matter impair or impede [their] ability to
protect the interest; or (ii) leave an existing party
subject to a substantial risk of incurring double,
multiple, or otherwise inconsistent obligations because
of the interest." Fed. R. Civ. P. 19(a)(1)(B) (emphases

added).® A crucial premise of mandatory joinder,
then, is that the absent tribes possess an interest in
the pending litigation that is "legally protected."
Makah Indian Tribe v. Verity, 910 F.2d 555, 558 (9th
Cir. 1990). We have developed few categorical] rules
informing this inquiry. At one end of the spectrum,
we have held that the interest at stake need not be

6 For the same reason, our analysis is not affected by the
Supreme Court's recent holding in Pimentel, 128 S. Ct. at 2190.
In Pimentel, the Supreme Court reversed the decision of a panel
of this court because it had not "giv[en] full effect to sovereign
immunity" in its Rule 19(b) calculus. Jd. Because in our case the
absent tribes are not required parties under Rule 19(a), we are
unaffected by the Rule 19(b) analysis set forth in Pimentel.

The State does not contend that, in the absence of the
other Compact (or Non-Compact) Tribes, "the court cannot
accord complete relief among existing parties." Fed. R. Civ. P.

19(a)(1)(A).

"property in the sense of the due process clause." Am.
Greyhound Racing, 305 F.3d at 1023. At the other end
of the spectrum, we have recognized that the "interest
must be more than a financial stake, and more than
speculation about a future event." Makah, 910 F.2d at
558 (citations omitted); see also N. Alaska Envitl. Ctr.
v. Hodel, 803 F.2d 466, 468-69 (9th Cir. 1986) (holding
that miners who had submitted mining plans to
National Park Service were not necessary parties to
an action to enjoin mining in parks. until
environmental impact statements were prepared).
Within the wide boundaries set by these general
principles, we have emphasized the "practical" and
"fact-specific" nature of the inquiry. Makah, 910 F.2d
at 558; see also Bakia v. County of Los Angeles, 687
F.2d 299, 301 (9th Cir. 1982) (per curiam) ("There is
no precise formula for determining whether a
particular nonparty should be joined under Rule 19(a)

.. The determination is heavily influenced by the
facts and circumstances of each case."). Accordingly,
an interest that "arises from terms in bargained
contracts" may be protected, but we have required
that such an interest be "substantial." Am. Greyhound
Racing, 305 F.3d at 1023. An interest in a fixed fund
or limited resource that the court is asked to allocate
may also be protected. Makah, 910 F.2d at 558-59. At
the same time, an absent party has no legally
protected interest at stake in a suit merely to enforce
compliance with administrative procedures. See N.
Alaska, 803 F.2d at 469; Makah, 910 F.2d at 559 ("The
absent tribes would not be prejudiced because all of
the tribes have an equal interest in an administrative
process that is lawful.").

The Size of the License Pool

Colusa challenges the Commission's computation
of the statewide maximum number of licenses that
may be issued under the 1999 Compacts. The district
court dismissed Colusa's claim, concluding that the

other Compact Tribes are required parties in the
absence of which the action should be dismissed.
Although we agree with the district court that some
absent tribes may prefer that the State issue fewer
licenses, we reverse its dismissal of Colusa's claim
because the absent tribes’ only interest relevant for
Rule 19(a) purposes is free from competition. We hold
that this interest, without more, is not "legally
protected" for Rule 19 purposes.

{2} It is important to identify clearly the
Compact Tribes’ interest at stake. Those Compact
Tribes that currently enjoy a dominant position in the
gaming industry will likely prefer to maintain a low
statewide maximum number of licenses available
under the 1999 Compacts. On the other hand, those
who intend to expand their gaming operations and
compete with the dominant gaming tribes will gladly
accept an increase in the size of the license pool
created by the 1999 Compacts. Indeed, the State itself
repeatedly characterizes the absent tribes” interest at
stake as the preservation of their "market share"
within California's gaming industry. Properly framed,
then, the respective advantages that various tribes
may enjoy under a more generous or restrictive
interpretation of the pool provision are an economic
incident of their market positions under a common
licensing regime.

[3] The mere fact that the outcome of Colusa's
litigation may have some financial consequences for
the non-party tribes is not sufficient to make those
tribes required parties, however. See, e.g., Makah, 910
F.2d at 558 ("[The] interest must be more than a
financial stake."). The absent tribes must have a
legally protected interest and, on this record, the only
potential protection lies in the 1999 Compacts
themselves. The interest could be protected if it
actually “arises from terms in bargained contracts."
Am. Snnhound Racing, 305 F.3d at 1023. We

conclude that it does not.’ The 1999 Compacts do not
purport to establish, through the license pool
provision or otherwise, an overarching limit on the
number of gaming licenses generally available in
California. Rather, they place a limit only on the
smaller universe of licenses that may be issued under
the 1999 Compacts.” This limit alone is insufficient to
determine the competitive landscape of California's
gaming industry, for it leaves the State at liberty to
issue an unlimited number of licenses outside the pool
created by the 1999 Compacts. Indeed, the State has
recently negotiated amendments, now in effect, to the
1999 Compacts with several tribes. These
amendments provide for the issuance of up to 22,500
additional licenses outside the pool created by the
1999 Compacts. These actions reflect the reality that
the 1999 Compacts afford no express or implied
protection against competition per se. The interest of
some of the absent tribes in avoiding competition does

not "arise[ | from terms in bargained contracts," id,
and is accordingly not "legally protected" under the
circumstances of this case. The absent 1999 Compact

10 We do not decide the broader question whether avoiding

competition ever qualifies as a legally protected interest under
Rule 19(a) in the’context of Indian gaming. We note, however,
that the legislative history of IGRA casts considerable doubt on a
state's assertion of any such interest in the context of Indian
gaming; the Senate's Select Committee on Indian Affairs
reported its intent that the states not use IGRA's Class III
gaming compact requirement as a protectionist measure,
although that concern was directed at the protection of non-
tribal operators, not absent tribes as in this case. See S. Rep. No
100-446, at 13 (1988), reprinted in 1988 U.S.C.C.A.N, 3071, 3083.
'' The 1999 Compacts establish a formula for a limit on the
"number of machines that all Compact Tribes in the aggregate
may license pursuant to this Section " 1999 Compacts §
4.3.2.2(a)(l) (emphasis added).

tribes thus are not required parties for litigation of
Colusa's claim seeking to raise the aggregate limit on
licenses under the 1999 Compacts.

In reaching this conclusion, we reject the State's
contention that its licensing scheme is comparable to
the system for the allocation of limited resources at
issue in Makah. In Makah, we held that absent tribes
had a protected interest that made them necessary
parties to a claim for amendment of a preexisting
allocation of a finite resource-a particular year's off-
shore salmon harvest-because an allocation to one
tribe necessarily entailed the parallel deprivation of
another. Makah, 910 F.2d at 556-57. The resource at
issue was finite: ocean fishing of salmon in excess of
the total rmitted harvest would jeopardize the
survival of the species’ population in the region's
weakest runs. /d at 557. In contrast, the gaming
licensing scheme at issue here rations a resource
licenses for gaming devices-that is, if not for purely
economic considerations, effectively unlimited. Thus,
for the reasoning of Makah to be at all relevant ‘to
this case, the State would need to show that, despite
not being inherently finite, the resource of licenses for
gaming devices is rendered at least legally finite by
operation of the terms of the 1999 Compacts. As we
have already explained, however, the statewide cap
put in place by the 1999 Compacts does not, without
more, constrain the number of gaming licenses
generally available in California. Thus, the absent
tribes have no legally protected interest in the
determination of the license pool that may be issued
under the 1999 Compacts.

[4] Finally, we also find it significant that,
unlike the plaintiff in American Greyhound Racing,
Colusa does not seek to , invalidate compacts to which
it is not a party; this litigation is not "aimed" at the
other tribes and their gaming. Am. Greyhound
Racing, 305 F.3d at 1026. On the contrary, Colusa

seeks to enforce a provision of its own Compact which
may affect ‘other tribes only incidentally. Under the
specific circumstances of this case, the Compact

ribes are not required parties to the adjudication of
Colusa's challenge to the size of the 1999 Compact
license pool.”

Colusa's Placement in Priority Tier [IV

Colusa next challenges its placement in the
fourth priority tier since the December 2003 draw.
The district court dismissed Colusa's claim on the
ground that the absent Compact Tribes "would be
deprived of thleir gaming] licenses or the opportunity
to obtain those licenses." This ruling was error, for it
misconstrues both the nature of the absent tribes’
interest in the licenses that may be issued in the
future and the consequences of litigating Colusa's
challenge to its placement in the fourth tier. It is true
that, if one assumes that the license pool is finite, an
order to issue new licenses to Colusa may render those
licenses unavailable to the absent tribes, thereby
depriving them of their "opportunity" to obtain them.
Nonetheless, we conclude that the absent tribes’
interest in their “opportunity” to obtain future
licenses is insufficient to render them "required"
parties for Rule 19(a) purposes.

[5] Once again, it is necessary carefully to
identify the absent parties’ interest at stake. To the

We also are not persuaded by the State's unexplained
contention that adjudication of Colusa'’s challenge to the
Commission's determination of the statewide cap would expose
the State tu a significant risk of "inconsistent obligations" within
the meaning of Rule 19. Should different district courts reach
inconsistent conclusions with respect to the size of the license
pool created under the 1999 Compacts, such inconsistencies
could be resolved in an appeal to this court

extent that the "opportunity" to obtain licenses means
the entitlement to participate in future rounds of
draws, the litigation of Colusa's tier assignment will
not “as a practical matter impai: or impede the
[absent tribes'] ability to protect t

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_0176%3A1. Public record. Not legal advice.
