New Mexico Supreme Court Decides Tribal Casino Injury Suits to Stay in Tribal Courts

19.01.2024

The New Mexico Supreme Court has delivered a groundbreaking decision that personal injury lawsuits against tribal casinos in the state must remain within the jurisdiction of tribal courts or through arbitration.

This unanimous ruling, stemming from a case involving an injury at Buffalo Thunder Resort and Casino in 2014, marks a crucial development in the jurisdictional landscape of such cases.

Implications for Bodily Injury and Property Damages Lawsuits

As per the court’s decision, state courts will no longer hold the authority to adjudicate bodily injury and property damages lawsuits filed by visitors to tribal casinos. This shifts the legal responsibility for these cases solely to tribal courts or arbitration channels, significantly impacting how these matters are handled in the future.

The decision was welcomed by Pojoaque Pueblo, owners of Buffalo Thunder. Pueblo Gov. Jenelle Roybal, through attorney Daniel Rey-Bear, expressed satisfaction with the ruling, stating it validates the sovereign authority of Indian Pueblos and Nations in New Mexico and aligns with the state’s gaming compact obligations.

Background of the Gaming Compacts and Termination Clause

The gaming compacts between the state and tribal governments included a waiver of tribal sovereign immunity, allowing jurisdiction to move from tribal to state courts for certain damage claims. However, following federal court rulings in 2013 and 2018, the Supreme Court concluded these decisions triggered the termination clause of the so-called “visitor protection provision.”

Chief Justice C. Shannon Bacon emphasized that the court’s opinion was based on reviewing the gambling compacts as contracts. The court did not provide an opinion on whether the Indian Gaming Regulatory Act prohibited jurisdictional shifting in all circumstances but determined whether previous rulings qualified as final to trigger the termination of the visitor protection provision.

Case Background: Jeremiah Sipp’s Lawsuit

The ruling reversed a state Court of Appeals decision allowing Jeremiah Sipp (also known as Sage Rader) to proceed with his lawsuit in state court against Buffalo Thunder Inc. Sipp claimed severe head and spinal injuries from an incident at the casino, with his attorney declining to comment on the Supreme Court’s decision.

Attorney Richard Hughes, representing Santa Ana and Santa Clara pueblos, called the ruling “hugely important” and likely the final word on this issue. He anticipates many plaintiffs might opt for arbitration rather than tribal courts due to misconceptions about tribal court fairness.

Our Comment on the Article

The New Mexico Supreme Court’s decision is a pivotal moment in affirming the sovereignty and legal autonomy of tribal nations in the state. This ruling not only clarifies the jurisdictional boundaries for injury lawsuits against tribal casinos but also reinforces the importance of respecting tribal governance and legal systems.

It reflects a growing recognition of tribal courts’ capability to fairly adjudicate such cases, moving away from misconceived biases. This decision could serve as a precedent for similar cases nationwide, underscoring the balance between state and tribal jurisdiction in gaming-related legal matters.