Milbank Mutual Insurance v. Eagleman

                                No. 84-507

               IN THE SUPREME COIJRT OF THE STATE OF MONTANA
                                     1985




MILBANK MUTUAL INSURANCE COLWANY,
a corporation,
                          Plaintiff and Respondent,

    -vs-
MELVIN EAGLEMAN, JR.
                          Defendant and Appellant.




APPEAL FROM:     District Court of the Fifteenth Judicial District,
                 In and for the County of Roosevelt,
                 The Honorable M. James Sorte, Judge presiding.

COUNSEL OF RECORD:

         For Appellant:

                Carol C. Johns, Nontana Legal Services, Wolf Point,
                Montana

         For Respondent :
                Cannon & Sheehy; Edmund F. Sheehy, Jr., Helena,
                Montana



                                  Submitted on Briefs:   June 13, 1985
                                              Decided:   September 12, 1985


Filed:




                                  Clerk
Mr.   J u s t i c e F r e d J. Weber d e l i v e r e d t h e Opinion o f t h e C o u r t .

        The R o o s e v e l t County D i s t r i c t C o u r t e n t e r e d           a   default

judgment         in     favor       of       Milbank      Mutual        Insurance          Company

(Milbank) on December 9 ,                     1983.     Appellant,          Melvin Eagleman,

Jr.    (Eagleman), a p p e a l s .           W e reverse.

        The i s s u e s a r e :

        1.    F7as E a g l e m a n ' s       notice of     appeal          timely    f i l e d with

t h i s Court?

        2.     Did       the      District            Court     have         subject           matter

jurisdiction?

        Eagleman        i s a n e n r o l l e d member o f            t h e F o r t Peck S i o u x

and A s s i n i b o i n e T r i b e s and r e s i d e s on t h e F o r t Peck R e s e r v a -

tion.        Eagleman          took      a    1981 Ford       Thunderbird           without       the

permission         of    the      owner,       plaintiff's           insured,       Lawrence       F.

Blackdog.          Eagleman damaged t h e v e h i c l e w i t h i n t h e e x t e r i o r

b o u n d a r i e s o f t h e F o r t Peck R e s e r v a t i o n .

        Milbank         paid     its     insured       $7,400        and    brought        a    civil

a c t i o n a g a i n s t Eagleman i n D i s t r i c t C o u r t s e e k i n g $7,400 i n

damages.         Eagleman d i d n o t a p p e a r and a d e f a u l t judgment was

entered.

        I n A p r i l 1 9 8 3 , t h e Department o f , J u s t i c e , Motor V e h i c l e

Division,        notified         Eagleman       that     his        driver's       l i c e n s e was

suspended f o r f a i l u r e t o s a t i s f y t h e judgment.                  On September

'11, 1 9 8 4 , Eagleman f i l e d a motion t o s e t a s i d e t h e d e f a u l t

judgment on t h e g r o u n d s t h a t it was v o i d u n d e r R u l e 6 0 ( b ) ( 4 ) ,

M.R.Civ.P.

        The motion          was       deemed     denied       by     operation        of       law on

September 21,           1984.       O O c t o b e r 26,
                                     n                        1984, t h e D i s t r i c t Court

g r a n t e d a motion         f o r an e x t e n s i o n o f t i m e f o r f i l i n g n o t i c e

of    a p p e a l t o t h i s C o u r t on a showing o f e x c u s a b l e n e g l e c t .

Eagleman f i l e d n o t i c e o f a p p e a l on O c t o b e r 26, 1984.
     Was Eagleman's notice of appeal timely filed with this
Court?
     On September 11, 1984, Eagleman filed a motion to set
aside the default judgment.     Rule 59 (d), M.R.Civ.P.    requires
that a hearing on the motion be had within 10 days.        Since no
hearing was held within 10 days, Eagleman's motion was deemed
denied on September 21, 1984.
     Eagleman filed notice of appeal on October 26, 1984,
thirty-five days after his motion was deemed denied.       Milbank
contends the notice of appeal was not timely filed.
     Under Rule 5, M.R.App.Civ.P.,    the time to file a notice
of appeal may be extended.    In Zell v. Zell (1977), 172 Mont.
496, 499-500, 565 P.2d       311, 313, we   discussed     excusable
neglect and the extension of time to file a notice of appeal.
         We believe that allowing a party to
         request such an extension of time before
         or after the expiration of the original
         time      prescribed    by     Rule    5,
         M.R.App.Civ.P.,   is the better procedure
         and we adopt this view.
         This does not, however, give a party an
         unlimited amount of time to request an
         extension of time from the district
         court. Rule 5 provides:
         "Upon showing of excusable neglect, the
         district court may extend the time for
         filing the notice o f appeal by any party
         for a period not to exceed 30 days from
         the expiratior o-- the origins 1 time
                           '?
         =scribed    3 - Rule."
                         this -          (Emphasis
         supplied.)
     On October 26, 1984, Eagleman was granted an extension

of time for filing a     notice of appeal upon a showing of
excusable neglect.   The notice of appeal was filed within the
30-day extension of time authorized by Rule 5, M.R.App.Civ.P.
     The appeal was timely filed.
        Did t h e D i s t r i c t C o u r t have s u b j e c t m a t t e r j u r i s d i c t i o n ?

        T h e r e i s no d i s p u t e t h a t Eagleman i s a n e n r o l l e d member

of t h e F o r t Peck S i o u x and A s s i n i b o i n e T r i b e s and t h a t t h e
accident occurred within t h e e x t e r i o r boundaries of t h e F o r t

Peck R e s e r v a t i o n .

        Subject        matter      jurisdiction           over      civil       litigation        in

Montana between I n d i a n s and n o n - I n d i a n s              a r i s i n g o u t of con-

d u c t on a n I n d i a n r e s e r v a t i o n i s g o v e r n e d by t h e t h r e e - p a r t

t e s t o f S t a t e e x r e l . I r o n B e a r v . D i s t r i c t C o u r t ( 1 9 7 3 ) , 162

Mont.     335, 346, 512 P.2d              1292, 1299:

           B e f o r e a d i s t r i c t c o u r t c a n assume j u r i s -
           d i c t i o n i n any m a t t e r s u b m i t t e d t o i t , it
           must f i n d s u b j e c t m a t t e r j u r i s d i c t i o n by
           determining:               (1) w h e t h e r t h e f e d e r a l
           t r e a t i e s and s t a t u t e s a p p l i c a b l e have
           preempted s t a t e j u r i s d i c t i o n ; ( 2 ) w h e t h e r
           t h e e x e r c i s e o f s t a t e j u r i s d i c t i o n would
           interfere with             ...         [ t r i b a l ] self-gov-
           e r n m e n t ; and ( 3 ) w h e t h e r t h e T r i b a l C o u r t
           is currently exercising jurisdiction o r
           has exercised j u r i s d i c t i o n                 i n such a
           manner a s t o p r e e m p t s t a t e j u r i s d i c t i o n .

        The f i r s t and s e c o n d e l e m e n t s o f t h e t e s t w e r e a d o p t e d

f r o m W i l l i a m s v . Lee ( 1 9 5 9 ) , 358 U.S.          217.      The U n i t e d S t a t e s

Supreme C o u r t h a s i n t e r p r e t e d t h e s e two e l e m e n t s t o b e d i s -

junctive;         if    either       is    present,         the     state       lacks     subject

matter jurisdiction.

           C o n g r e s s h a s b r o a d power t o r e g u l a t e
           t r i b a l a f f a i r s u n d e r t h e I n d i a n Commerce
           C l a u s e , A r t . 1, 58, c l . 3.              This congres-
           s i o n a l a u t h o r i t y and t h e "semi-indepen-
           d e n t p o s i t i o n " o f I n d i a n t r i b e s have
           g i v e n r i s e t o two i n d e p e n d e n t b u t r e l a t e d
           b a r r i e r s t o t h e a s s e r t i o n o f s t a t e regu-
           latory authority over t r i b a l reservations
           and members.                F i r s t , t h e e x e r c i s e o f such
           a u t h o r i t y may b e pre-empted by f e d e r a l
           law.        Second, it may u n l a w f u l l y i n f r i n g e
           "on t h e r i g h t o f r e s e r v a t i o n I n d i a n s t o
           make t h e i r own l a w s and b e r u l e d by
           them."           W i l l i a m s v. L e e , 358 U.S. 217,
           220 ( 1 9 5 9 ) .           The two b a r r i e r s a r e i n d e -
           pendent because e i t h e r , s t a n d i n g a l o n e ,
           can b e a s u f f i c i e n t b a s i s f o r h o l d i n g
           state          law         inapplicable             to       activity
            undertaken       on         the        reservation        or      by
            t r i b a l members.

White Mountain Apache T r i b e v. B r a c k e r                   ( 1 9 8 0 ) , 448 U.S.       136,

142-43       (citations omitted).

         Has s t a t e j u r i s d i c t i o n     been preempted by f e d e r a l t r e a -

ties o r relevant statutes?                        The 1851 T r e a t y o f F o r t Laramie

reserved        land      for    the     S i o u x and A s s i n i b o i n e T r i b e s .      J,and

r e s e r v e d by t r i b e s t h r o u g h . t r e a t i e s , a g r e e m e n t s r a t i f i e d by

C o n g r e s s , o r e x e c u t i v e o r d e r s was o r i g i n a l l y beyond t h e r e a c h

of s t a t e governmental a u t h o r i t y .             However, s u b s e q u e n t f e d e r a l

law p e r m i t t e d s t a t e s t o assume j u r i s d i c t i o n , w i t h t h e t r i b e ' s

consent,        over c i v i l causes of                action arising within                Indian

country.          Montana        has not obtained c i v i l              jurisdiction           over

the      Fort     Peck      Sioux       and      Assiniboine        Tribes         under     either

Public       Law 280        or    the     Civil        Rights   Act      of   1968.          See   28

U.S.C.      §   1 3 6 0 ( a ) ; 25 U.S.C.          §   1322(a).     A s we s t a t e d i n Iron

Bear:

         I n Montana, t h e s t a t e assumed j u r i s d i c t i o n a f t e r
         P u b l i c Law 280 on o n l y o n e r e s e r v a t i o n ,     [the]
         Flathead [Reservation]                .
                                             I t h a s n o t a c t e d concern-
                                                                           ...
         i n g t h e o t h e r s i x Montana r e s e r v a t i o n s

i r o n Rear,
--                 162 Mont. a t 342, 512 P.2d a t 1297.

         Because Montana h a s n o t o b t a i n e d j u r i s d i c t i o n u n d e r t h e

above l a w s and t h e T r i b e s have d e c i d e d t o e x e r c i s e j u r i s d i c -

tion i n t h i s area,            it may b e a r g u e d t h a t f e d e r a l p r e e m p t i o n

is in effect.            Because r e c e n t f e d e r a l c a s e s a r e n o t c l e a r , w e

c h o o s e n o t t o r u l e on t h e p r e e m p t i o n i s s u e .

         Would t h e e x e r c i s e o f s t a t e j u r i s d i c t i o n i n t e r f e r e w i t h

tribal      self-government?               The N i n t h C i r c u i t C o u r t o f A p p e a l s ,

which u s e s a s i m i l a r t e s t , r e c e n t l y a n a l y z e d i n f r i n g e m e n t o f

t r i b a l s o v e r e i g n t y and s t a t e d :

            A     t r i b e ' s i n t e r e s t i n self-government
            c o u l d b e i m p l i c a t e d i n o n e o f two ways.
            F i r s t , i f a s t a t e o r f e d e r a l c o u r t re-
            s o l v e s a d i s p u t e which was w i t h i n t h e
            province of t h e t r i b a l c o u r t s o r of o t h e r
         nonjudicial law-applying tribal institu-
         tions, that court would impinge upon the
         tribe's right to adjudicate controversies
         arising within it.   Second, if the dis-
         pute itself calls into question the
         validity or propriety of an act fairly
         attributable to the tribe as a govern-
         mental body, tribal self-government is
         drawn directly into the controversy.
         We have recognized that the tribal court
         is generally the exclusive forum for the
         adjudication of disputes affecting the
         interests of both Indians and non-Indians
         which arise on the reservation       ...

         We emphasize that the Indians in the Fort
         Belknap community are, and always have
         been, entitled to assume exclusive juris-
         diction over civil controversies within
         the reservation. However, if the dispute
         itself does not implicate the tribal
         government and the tribe has decided not
         to exercise its exclusive jurisdiction,
         it does not follow that the state courts
         are without power to resolve a contro-
         versy occurring within the state but on a
         reservation ...
R.J. Williams Co. v. Fort Belknap Housing Auth.. (9th Cir.
                                 cert. denied,       U.S.

105 S.Ct. 3476 (1985) (citations omitted).
        Subchapter 1, 5 107 of the Fort Peck Tribes Comprehen-
sive Code Of Justice (1983) defines the extent of the Tribal
Court's jurisdiction as follows:
         The [Tribal] Court shall have jurisdic-
         tion over any action where one party to
         the action shall be an Indian,  ... and
         (a) the cause of action arises under the
         Constitution or laws of the Tribes; or
         (b) an Indian party to the action re-
         sides on the Fort Peck Reservation.
Likewise, the 1965 Tribal Code stated that the Tribal Court
had jurisdiction over all civil actions "where the plaintiff
is not a member of the Tribes and the defendant is an Indi-
an. "   Chap. I, S 2 (b), Fort Peck Tribal Code (1965).
     The dispute between Milbank and Eagleman, an enrolled
member of the tribes, is a civil controversy arising within
the exterior boundaries of the reservation.          The Fort Peck
Sioux and Assiniboine Tribes are entitled to and have assumed
exclusive jurisdiction.      Under the facts of this case, it
would be an infringement of tribal self-government to allow a
non-Indian to sue a tribal member in a forum other than one
the Fort Peck Sioux and Assiniboine Tribes have established
for themselves.
     The Fort Peck Code further establishes that the Tribal
Court is currently authorized to exercise jurisdiction over
this type of a case.   This meets the third test of --
                                                    Iron Bear.
    We hold that the District Court's exercise of jurisdic-
tion interferes with tribal sovereignty and the right to
self-government   of   the   Fort   Peck   Sioux   and   Assiniboine
Tribes.
    We reverse the judgment of the District Court for lack
of subject matter jurisdiction and direct the court to vacate
its judqment against the defendant.




We concur: