DAVID J. WAXSE, Magistrate Judge.
This matter is before the Court on the State of Kansas' Motion to Intervene ("Motion") (ECF No. 7). Defendant Kenneth L. Salazar, in his official capacity as Secretary of the United States Department of the Interior ("Department"), does not oppose the Motion. Plaintiff Wyandotte Nation ("Wyandotte"), a federally-recognized Indian tribe, opposes the Motion. For the reasons set forth below, the Motion is granted.
On July 26, 2011, Wyandotte initiated this action challenging the Department's failure to accept title to a tract of land known as the "Park City Tract" into a trust created for Wyandotte's benefit as allegedly required by the Land Claim Settlement Act ("PL 602").
Wyandotte alleges that, on November 25, 1992, it purchased the Park City Tract, a tract of land in Park City, Kansas, with PL 602 Funds. On January 21, 1993, Wyandotte then submitted an application requesting that the Department take the Park City Tract into trust pursuant to PL 602. This request was transmitted from a Department field office to the Washington, D.C. office for further review on February 19, 1993. But the Department never took any action on the request.
In 1995, Wyandotte states that it purchased a second tract of land with the PL 602 Funds in Kansas City, Kansas ("Shriner Tract") and requested that the Department accept that tract of land into trust. In 1996, the Department accepted the Shriner Tract of land into trust, and approved gaming activities on that property under the Indian Gaming Regulatory Act ("IGRA").
Following remand, in 2002, the Department determined that the Shriner Tract was purchased with PL 602 Funds and affirmed its decision to accept the property in trust. Wyandotte then began operating gaming facilities on the site. From 2002 to 2010, Wyandotte, Kansas and other Indian tribes have engaged in extensive litigation surrounding the Shriner Tract and Wyandotte's ability to open a gaming facility on that land. Indeed, the Department's decision to accept the Shriner Tract into trust, and Wyandotte's decision to operate a gaming facility on the site spawned multiple lawsuits. On April 13, 2006, and during the litigation regarding the Shriner Tract, Wyandotte resubmitted its application to have the Park City Tract purchased in 1992 taken into trust pursuant to PL 602. Like the Shriner Tract, Wyandotte intends to operate a gaming facility on the Park City Tract.
In its lawsuit against the Department, Wyandotte alleges that "despite [Wyandotte's] repeated requests and its undeniable need for prompt action, the Secretary [of the Interior] has refused to act on the Park City Land trust acquisition, to provide any reasonable explanation for his delay, or even to specify a date by which he will act."
On September 9, 2011, before filing an Answer, the Department moved to transfer this case, pursuant to 28 U.S.C. § 1404(a), to this Court. While the Motion to Transfer (ECF No. 6) was pending, on September 20, 2011, Kansas filed the pending Motion. On November 22, 2011, the United States District Court for the District of Columbia granted the Department's Motion to Transfer the case to this Court and, because the motion to transfer was granted, the court withheld any judgment on Kansas' Motion (ECF No. 17). This Court has reviewed the briefing on the current Motion and is prepared to rule.
Kansas argues that it should be permitted to intervene as a matter of right under Rule 24(a) of the Federal Rules of Civil Procedure. Kansas asserts that it meets all of the requirements for intervention as of right under Rule 24(a). First, Kansas argues that its Motion was timely filed because it was filed before any significant action had been taken in the case and granting the Motion would not prejudice the other parties. Kansas additionally argues that it has two significant, protectable interests that warrant intervention as of right. The first interest that Kansas contends is at stake in this matter is its sovereign interest in exercising power over the individuals and land within its geographic boundaries. Kansas notes that if the Park City Tract is taken into trust, it will lose its authority to enforce state laws on that tract of land, including labor laws, liquor laws, sales taxes, and health and safety laws.
The second protected interest that Kansas claims is affected by this litigation is their competitive and economic interest in preventing the Park City Tract from being taken into trust by the Secretary. Under the IGRA, Wyandotte will be able to conduct gaming activities on the Park City Tract only if the Department takes title to the tract in trust.
Kansas also argues that once its legally-protected, significant interests are established, it follows that its ability to protect these interests will be impaired if it is denied intervention. Because Kansas would lose its ability to enforce its laws on the Park City Tract if Wyandotte is successful in this action, Kansas asserts that its significant interest in maintaining sovereignty over the Park City Tract could be impaired by the outcome of this mater. Kansas argues that the removal of land within its territorial boundaries from state control, as would happen if Wyandotte prevails in this matter to compel the Department to take the Park City Tract into trust, constitutes a significant impairment of its right as a sovereign state. Further, Kansas argues that their economic and competitive interests in the gaming industry near the Park City Tract could be impacted by the outcome of this matter. Specifically, Kansas alleges that its financial interest in the Mulvane Casino will be directly impaired if Wyandotte prevails in the present action. If Wyandotte prevails and the Department is forced to take the land into trust, Kansas argues, Wyandotte would then be able to pursue its stated goal of opening a gaming facility on the Park City Tract that would directly compete with, and negatively impact, the state's financial and competitive interest in the Mulvane Casino.
Kansas also argues that its interests are not adequately represented by the parties to this litigation. Stressing the minimal requirements of this inquiry, Kansas asserts that the Department does not share its interests in exercising sovereignty over the Park City Tract or its economic and competitive interests in preventing a gaming facility from competing with the Mulvane Casino. Because the Department does not share either of Kansas' purported interests in the outcome of the litigation, Kansas argues that its interests would be inadequately protected by the Department.
Finally, Kansas argues that it satisfies all standing requirements under Article III of the United States Constitution and any prudential standing considerations. Kansas alleges that its interest in this matter satisfies the three-pronged inquiry for Article III standing, which requires (1) injury-in-fact, (2) causation, and (3) redressability. The injury-in-fact requirement is allegedly satisfied by Kansas' interests that purportedly justify intervention as of right. Kansas' right to taxing and regulatory authority over land within its borders and its economic and competitive interests in the Mulvane Casino would be injured if Wyandotte prevails in this matter. Kansas argues that the causation element of standing is satisfied because the merits of this case involve whether the Department must take the Park City Tract into trust. If the Park City Tract is taken into trust, Kansas argues, it will cause the alleged injury to Kansas' sovereign and economic rights. Kansas also argues that it satisfies the redressability requirement for standing because a favorable disposition of this matter would prevent the Park City Tract from being taken into trust. Kansas asserts that if the land is not taken into trust, both of its purported interests would be protected. Lastly, Kansas argues that there are no prudential standing considerations that should bar its intervention in this matter. Although Kansas alleges that prudential standing may not even be an appropriate inquiry for analyzing intervention as of right, it asserts that prudential considerations should not prevent its intervention because the ultimate outcome of this matter is clearly within its zone of interest. Because Kansas asserts a protectable legal interest closely related to the outcome of this matter, it argues that it falls within the prudential zone of interest test and that no prudential considerations bar its intervention.
In conclusion, Kansas argues that they should be allowed to intervene as of right under Rule 24(a) because its motion is timely, it has legally-protected and significant interests in the outcome of the litigation, its interests could be impaired by this action, its interests are not adequately represented by a party to the action, and it satisfies any standing requirements for intervention as of right. Because all of these factors are satisfied, Kansas' argument concludes, it is entitled to intervene as of right in this matter under Rule 24(a).
In the alternative, if intervention as a matter of right is denied by this Court, Kansas argues that it should be allowed to permissively intervene under Rule 24(b) of the Federal Rules of Civil Procedure. Kansas argues that it should be granted permissive intervention because it meets any jurisdiction requirements, filed a timely motion and has a claim or defense that involves a common question of law or fact with the present matter.
Wyandotte opposes Kansas' Motion, arguing that neither intervention as a matter of right nor permissive intervention should be granted in this matter. Wyandotte asserts that Kansas' Motion should be denied primarily because this matter involves the narrow issue of whether the Department must take the Park City Tract into trust and Kansas has no legally protected interest in the outcome of this action. Wyandotte concludes that granting Kansas' Motion would invite the re-litigation of issues settled in prior cases and the interjection of irrelevant issues. Accordingly, Wyandotte urges the Court to deny Kansas' Motion in its entirety.
Wyandotte argues that Kansas should be denied intervention as of right because it does not have a legally cognizable interest that could be impaired by this matter. Wyandotte describes this case simply, concerning only whether the Department has failed to satisfy its legally-required obligation, as established in prior litigation, to take the Park City Tract into trust because it was purchased with PL 602 funds. Because this matter deals only with this narrow issue, Wyandotte's argument continues, Kansas has no legally protected interest in its outcome. Wyandotte argues that Kansas' purported interests in the outcome of this matter are not legally protected because PL 602 imposes a mandatory duty on the Department to take the land into trust. Wyandotte asserts that this mandatory duty was established in prior litigation, and any arguments that Kansas might raise against it are barred by res judicata or claim preclusion. Consequently, Wyandotte contends that any right Kansas might have in the litigation is not legally protected. Therefore, intervention as a matter of right should be denied.
Wyandotte also asserts that Kansas does not have Article III standing for intervention in this matter. Wyandotte argues that Kansas lacks Article III standing because a favorable decision would not redress Kansas' alleged injury because the counter-claims and cross-claims contained in its proposed answer are allegedly barred by res judicata. Consequently, Wyandotte concludes, Kansas lacks Article III standing for intervention.
Wyandotte also opposes Kansas' Motion for permissive intervention. Wyandotte urges the Court to reject Kansas' alternative request for permissive intervention because granting permissive intervention would unduly delay or prejudice the existing parties in violation of Rule 24(b)(3).
Defendant Department does not oppose Kansas' Motion. But the Department does not concede this Court's jurisdiction to hear the counter-claims and cross-claims contained in Kansas' proposed Answer.
Rule 24(a) of the Federal Rules of Civil Procedure requires that "[o]n timely motion, the court must permit anyone to intervene who claims an interest relating to the property or transaction that is the subject of the action, and is so situated that disposing of the action may as a practical matter impair or impede the movant's ability to protect its interest unless existing parties adequately represent that interest."
The first requirement for intervention as of right is that the motion to intervene be timely.
Whether the party seeking intervention has an interest relating to the litigation is a broad inquiry, requiring the Court to assess only "the practical effect of the litigation" on the movant's interest.
The Court finds that Kansas' asserted interest in exercising sovereignty over people and land that are physically located within its territory constitutes a legally protectable interest justifying intervention as of right. It is undisputed that the Park City Tract is wholly within Kansas' territorial boundaries and that the state currently has sovereignty over it, including taxing, regulatory and legal authority. Although never specifically addressed in this context, the Supreme Court has recognized that states have an important interest in sovereignty over territory within the state's boundaries.
The Court concludes that Kansas' interest in exercising sovereignty over people and land within its territorial boundaries constitutes a significant and legally protectable interest. Thus, the Court need not consider whether Kansas' alleged interest in preventing the establishment of a casino that would compete with the state-operated casino in which Kansas has an economic interest would similarly constitute a legally protectable and significant interest that could justify intervention as of right. Accordingly, the Court expresses no opinion as to whether Kansas' purported economic and competitive interests in a casino are sufficient to justify intervention under Rule 24(a).
Whether the interest of the party seeking intervention as of right may be impaired by the litigation is a minimal burden, requiring a showing only that denial of intervention could possibly impair a substantial legal interest.
The Court is satisfied that Kansas has met its minimal burden of showing the potential that its interest in exercising sovereignty over the Park City Tract may be impaired if intervention is denied. It is not necessary to show that Kansas' rights are guaranteed to be impaired by the litigation, and it is irrelevant that impairment may not occur even if Wyandotte prevails.
Having found that Kansas has articulated a legally protected right that could be impaired by the outcome of the litigation, the Court must consider whether Kansas' interests are adequately represented by an existing party. This too is a minimal burden, requiring the movant to show only the possibility that the representation may be inadequate.
No party to this action can or will adequately represent Kansas' significant interest in the matter. Clearly, Wyandotte's interest in having the Park City Tract taken into trust, thus removing it from Kansas' jurisdiction, is in direct conflict with Kansas' interest in the land. The Court is additionally satisfied that the Department will not adequately represent Kansas' interests in this litigation. Kansas has met the minimal burden of demonstrating a divergence of interest between it and the Department. Unlike Kansas, the Department has no interest in the exercise of sovereignty over the people and land within the boundaries of the state. In addition to the Department's lack of an identical interest with Kansas, there is a great potential for a divergence of interest in this case. Unlike Kansas' interest in protecting its taxing and regulatory authority over land and people within its territory, the Department's interest in this case is discharging its statutory and policy-related duties as established by Congress. Kansas will likely oppose Wyandotte's action to have the Park City Tract taken into trust regardless of the Department's policy position, which very well could change with respect to the land at issue. This would create an obvious and not unlikely divergence of interest. Although the Department is currently opposing Wyandotte's action to have the land taken into trust, it is clearly doing so for reasons entirely unrelated to Kansas' interest in exercising sovereignty over the Park City Tract. Because the possibility of divergence need not be great under this liberal standard, Kansas has satisfied the Court that there is a strong likelihood that neither Wyandotte nor the Department can or will adequately represent its interest.
In addressing whether Article III standing must be established by a party seeking to intervene in a matter, "circuit courts . . . have reached different results."
For the foregoing reasons, Kansas satisfies all of the elements required for intervention as of right under Rule 24(a) and established Tenth Circuit precedent. Accordingly, its Motion is granted.
In the alternative to intervention as of right under Rule 24(a), Kansas requests that this Court grant it permissive intervention under Rule 24(b). Because the Court grants Kansas' Motion with respect to intervention as of right, it does not reach the issue of whether Kansas should be allowed to permissively intervene.