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Seattle, WA 98101
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206.223.0840
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Contracts with Indian Tribes
Doing Business in Indian Country Can Be Lucrative and Perilous
Thirty years ago, there probably wasn’t much point in doing business with an Indian Tribe because the Tribe probably didn’t have much money. That began to change after 1987 when the U.S. Supreme Court decided that Indian Tribes could operate casinos on tribal land and that the state couldn’t interfere.
Since then, Indian Gaming has grown into big business. A study in 2006 found that Indian Casinos contributed $3.2 billion to the Washington economy in 2004. That number appears to be increasing dramatically every year.
Because of Indian Gaming, non-Indian companies in the construction, resort management, and retail businesses stand to make money in Indian Country. However, enforcing a construction contract or other agreement with an Indian Tribe is not a simple state-law contract matter.
A boilerplate construction contract with an Indian Tribe will probably not be enforceable in state, federal, or even tribal court. Therefore, if the project goes south, you will probably be without a remedy.
The solution to this problem is to negotiate a contract that specifically addresses jurisdiction and sovereign immunity long before any dispute arises. One way to address these issues is to stipulate to arbitration.
The arbitrator, or, at least, the organization or business providing the arbitrator, should be specified. The scope of the arbitrator’s powers should also be specified. This contract, including the arbitration clause, would be ratified by a resolution from the Tribal Council.
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