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Tribe Set to Proceed in Suit Against Insurer After a Federal Court Confirms Sovereignty Case Involving a Tribal Court

Tribe Set to Proceed in Suit Against Insurer After a Federal Court Confirms Sovereignty Case Involving a Tribal Court

Tribe Set to Proceed in Suit Against Insurer After a Federal Court Confirms Sovereignty Case Involving a Tribal Court

The Cabazon Band of Cahuilla Indians (Cabazon) has secured another court victory in its pursuit of millions in insurance coverage relating to the COVID-19 pandemic in litigation led by Procopio’s Glenn Feldman, who has represented Cabazon for 45 years. The Ninth Circuit federal court affirmed that jurisdiction over Cabazon’s suit against Lexington Insurance Co. for coverage related to the tribe’s casino closure in 202 should lie in the Cabazon Reservation Court.

Feldman is now 4-0 in establishing tribal court jurisdiction for the underlying litigation, having won in in tribal court, tribal appeals court, federal district court and now in the Ninth Circuit.

In this instance Feldman, assisted by Native American Law practice Senior Associate Racheal White Hawk, represented Cabazon Reservation Court Chief Judge Doug Welmas, who along with another Reservation Court Judge had been sued by Lexington Insurance. The plaintiff claimed the tribal court did not have jurisdiction in a suit against them brought by Cabazon. The Ninth Circuit disagreed, noting that because the insurer had entered into a contract with the tribe to insure tribal property on the tribe’s reservation, the resulting consensual business relationship gave the tribal court jurisdiction.

The COVID-19 shutdown cost Cabazon millions of dollars with their casino shuttered. The Ninth Circuit decision should permit the tribe to finally pursue their suit against their insurer, which has refused to pay the tribe, in tribal court.

Feldman told Law360 this fight over sovereignty is nothing new, noting “tribes are constantly fighting to assert their rights… the various Indian tribes were once independent and sovereign nations, and that their claim to sovereignty long predates that of our own government.'”

Feldman argued before the U.S. Supreme Court for Cabazon in the landmark 1987 case, California v. Cabazon and Morongo Bands of Mission Indians, in which the High Court confirmed tribal rights to operate gaming without interference from state government.

Learn more about this ongoing litigation in Law360 (subscription required).

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