DANIEL L. HOVLAND, District Judge
Before the Court is the Plaintiffs' motion for summary judgment filed on January 6, 2011. See Docket No. 9. The Defendant filed a response in opposition to the motion and a "Motion to Dismiss for Lack of Subject Matter Jurisdiction" on January 19, 2011. See Docket Nos. 11 and 13. The Plaintiffs filed a reply brief and a response in opposition to the Defendant's motion to dismiss on February 1, 2011. See Docket Nos. 15 and 16. For the reasons stated below, the Plaintiffs' motion for summary judgment and the Defendant's motion to dismiss are denied.
On December 20, 2000, Raymond Poitra purchased a 1999 Lincoln Navigator from Eide Ford Lincoln Mercury, Inc. ("Eide Ford"). See Docket No. 1-1. Eide Ford is located in Bismarck, North Dakota, and at the time of the purchase Poitra lived in Belcourt, North Dakota. See Docket No. 1-1. The "North Dakota Simple Interest Vehicle Retail Installment Contract" ("the contract") used to execute the sale does
On July 7, 2004, Ford Motor Credit Company obtained a default judgment from the Turtle Mountain Tribal Court. See Docket No. 1-2. The Turtle Mountain Tribal Court found Poitra to be in default of the contract and that Ford Motor Credit Company was entitled to repossess and sell the Lincoln Navigator.
On June 15, 2007, Poitra filed a lawsuit against Ford in the Turtle Mountain Tribal Court. See Docket No. 1-3. In the complaint, Poitra asserts that Ford failed to execute the default judgment it obtained in 2004. Poitra contends further, "As a result, the vehicle fell into disrepair as unknown persons were driving the vehicle without properly servicing said vehicle for a short time." See Docket No. 1-3. In the complaint, Poitra seeks a judgment that Ford must rescind any and all negative credit reports, pay damages in the amount of $9,583.20 for rent/storage, costs, and attorney's fees. In an unwritten order, a tribal judge found that the tribal court had jurisdiction over Poitra's claim. Ford appealed this decision to the Turtle Mountain Appellate Court.
The Turtle Mountain Tribal Court of Appeals affirmed the tribal court's finding on February 22, 2010. See Docket No. 1-4. The appellate court held, "The cause of action commenced by Poitra is directly related to the lawsuit Ford brought to repossess the Lincoln Navigator because Poitra has been potentially harmed by Ford's failure to repossess in a timely manner." See Docket No. 1-4. The Turtle Mountain Court of Appeals explained further, "A non-Indian cannot utilize a tribal forum to gain relief against a tribal member and then attempt to avoid that jurisdiction when it acts negligently in that same action resulting in potential harm to the tribal member." See Docket No.
On May 28, 2010, Ford filed a "Complaint for Injunctive and Declaratory Judgment" in federal court. See Docket No. 1. Ford seeks a judgment granting the following relief:
See Docket No. 1. On August 6, 2010, Poitra filed an answer and a counterclaim for attorney's fees. See Docket No. 3.
On January 19, 2011, Poitra filed a response to Ford's motion and a motion to dismiss for lack of subject matter jurisdiction. See Docket Nos. 11 and 13. Poitra contends that Plains Commerce Bank is inapplicable and that the tribal court has jurisdiction under Montana because Ford entered into commercial dealings with Poitra on the reservation. Poitra further contends that this Court does not have subject matter jurisdiction because Ford has failed to exhaust tribal remedies.
Summary judgment is appropriate when the evidence, viewed in a light most favorable to the non-moving party, indicates that no genuine issues of material fact exist and that the moving party is entitled to judgment as a matter of law. Davison v. City of Minneapolis, Minn., 490 F.3d 648, 654 (8th Cir.2007); see Fed.R.Civ.P. 56(c). Summary judgment is not appropriate if there are factual disputes that may affect the outcome of the case under the applicable substantive law. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). An issue of material fact is genuine if the evidence would allow a reasonable jury to return a verdict for the non-moving party. Id.
The Court must inquire whether the evidence presents a sufficient disagreement to require the submission of the case to a jury or whether the evidence is so one-sided that one party must prevail as a matter of law. Diesel Mach., Inc. v. B.R. Lee Indus., Inc., 418 F.3d 820, 832 (8th Cir.2005). The moving party bears the burden of demonstrating an absence of a genuine issue of material fact. Simpson v. Des Moines Water Works, 425 F.3d 538, 541 (8th Cir.2005). The non-moving party "may not rely merely on allegations or denials in its own pleading; rather, its response must . . . set out specific facts showing a genuine issue for trial." Fed. R.Civ.P. 56(e)(2).
Pursuant to 28 U.S.C. § 1331, this Court is empowered to determine whether a tribal court has exceeded the lawful limits of its jurisdiction. Nat'l Farmers Union Ins. Cos. v. Crow Tribe of Indians, 471 U.S. 845, 853, 105 S.Ct. 2447, 85 L.Ed.2d 818 (1985). "The question of whether an Indian tribe retains the power to compel a non-Indian property owner to submit to the civil jurisdiction of a tribal court is one that must be answered by reference to federal law and is a `federal question' under § 1331." Id. at 852, 105 S.Ct. 2447. The United States Supreme Court also explained "that examination should be conducted in the first instance in the Tribal Court itself." Id. at 856, 105 S.Ct. 2447. In Iowa Mut. Ins. Co. v. LaPlante, 480 U.S. 9, 107 S.Ct. 971, 94 L.Ed.2d 10 (1987), the United States Supreme Court held, "At a minimum, exhaustion of tribal remedies means that tribal appellate courts must have the opportunity to review the determinations of the lower tribal courts." LaPlante, 480 U.S. at 17, 107 S.Ct. 971.
Ford contends that it is not subject to the jurisdiction of the tribal court. An analysis of the tribal court's jurisdiction starts with the United States Supreme Court's decision in Montana v. United States, 450 U.S. 544, 101 S.Ct. 1245, 67 L.Ed.2d 493 (1981), a "pathmarking case concerning tribal civil authority over nonmembers." Strate v. A-1 Contractors, 520 U.S. 438, 445, 117 S.Ct. 1404, 137 L.Ed.2d 661 (1997). The Supreme Court in Montana specifically addressed the reach of tribal jurisdiction over non-Indian parties. In Montana, the Supreme Court announced the general proposition that the inherent sovereign powers of an Indian tribe do not extend to the activities of non-members of the tribe. However, Indian tribes retain sovereignty over non-members in two specific instances:
Montana, 450 U.S. at 565-66, 101 S.Ct. 1245 (internal citations omitted). The Supreme Court further explained the Montana rule in Strate:
Strate, 520 U.S. at 446, 117 S.Ct. 1404.
The Turtle Mountain Tribal Court does not have civil jurisdiction over Ford unless one of the two recognized Montana exceptions is applicable. With respect to the first Montana exception, the Turtle Mountain Tribal Court has jurisdiction over Ford if it entered into "consensual relationships with the tribe or its members, through commercial dealing, contracts, leases, or other arrangements." Montana, 450 U.S. at 565, 101 S.Ct. 1245. Poitra contends that the sale took place in Belcourt, North Dakota and within the boundaries of the Turtle Mountain Indian Reservation. Ford contends that the sale took place in Bismarck, North Dakota, outside the boundaries of the reservation. Neither party has provided any affidavits to support their assertions. The Court finds that genuine issues of fact exist as to whether the sale took place on the reservation.
Smith v. Salish Kootenai Coll., 434 F.3d 1127, 1139-40 (9th Cir.2006) (footnotes omitted). Ford filed suit against Poitra in Turtle Mountain Tribal Court, alleging that Poitra had breached the retail installment contract by failing to make payments. Ford obtained a default judgment in tribal court on July 7, 2004. See Docket No. 1-2. Poitra's suit against Ford in the Turtle Mountain Tribal Court arises out of Ford's failure to enforce the default judgment. See Docket No. 1-3.
The Turtle Mountain Tribal Court of Appeals explained in its order, "A non-Indian cannot utilize a tribal forum to gain relief against a tribal member and then attempt to avoid that jurisdiction when it acts negligently in that same action resulting in potential harm to the tribal member." See Docket No. 1-4. This Court agrees. When Ford filed suit in tribal court in 2004, Ford consented to tribal court jurisdiction and entered into a "`consensual relationship' with the tribe within the meaning of Montana." Smith, 434 F.3d at 1140. The Court finds that the first Montana exception applies and the Turtle Mountain Tribal Court has jurisdiction. Accordingly, Ford's motion for summary judgment is denied and Ford's complaint is dismissed.
The Court has considered the entire record, the parties' briefs, and relevant case law. The Court