Welsh v. Loudbear – Do It For The Caselaw

Holding: Tribal officials sued in their individual capacities are not entitled to sovereign immunity, and the Tribe is not a required party in this litigation.
Standard: De novo review for sovereign immunity and required party status.
Vote: The panel unanimously reversed the district court's dismissal.
Practical effect: Civil RICO claims against tribal officials may proceed in federal court if the relief sought is against the individuals personally rather than the tribal treasury.

The Ninth Circuit reversed the dismissal of a civil RICO action against three Colorado River Indian Tribes officials, holding that they were not entitled to sovereign immunity when sued in their individual capacities and that the Tribe was not a required party.

Background

Plaintiffs, including Kyle Welsh and the estate of Jill Welsh, leased a smoke shop on the Colorado River Indian Tribes reservation. After the Tribe terminated the lease, the Plaintiffs filed a civil RICO action against three tribal officials alleging racketeering, extortion, and conversion. The district court dismissed the case, ruling that the officials were protected by sovereign immunity and that the Tribe was a necessary party whose joinder was impossible.

The court’s reasoning

The panel held that under Lewis versus Clarke, the inquiry is whether the remedy sought is truly against the sovereign. Because the Plaintiffs sought money damages against the officials in their individual capacities, the Tribe was not the real party in interest. Furthermore, the Tribe was not a required party under Federal Rule of Civil Procedure nineteen because the litigation would not affect its real property or contractual rights.

Individual capacity suits for money damages related to an officer’s official duties are generally permissible.

Maxwell v. County of San Diego, 708 F.3d 1075, 1088 (9th Cir. 2013)

What it means going forward

Civil RICO claims against tribal officials may proceed in federal court if the relief sought is against the individuals personally rather than the tribal treasury.