Babaamaajimowinan (Telling of news in different places)
On December 22, the California Supreme Court in Owen v. Miami Nation Enterprises, held that payday lending companies failed to prove by a preponderance of the evidence that they were "arms of" Indian tribes. Therefore, the lenders were not immune from complying with a California state lending law. In its decision, the Court reaffirmed well-settled law holding that Indian tribes are immune from lawsuits. The defendant payday lenders, however, were not the tribes themselves. Rather, the defendants were companies created by federally-recognized Indian tribes under tribal laws, and the tribes hired non-tribal corporations to manage the payday lending businesses. The issue in the case was determining the circumstances under which a tribal-affiliated entity shares tribal immunity as an "arm of the tribe." The Court analyzed five factors before determining that the companies were not arms of the tribe. These factors were: (1) the entity's method of creation; (2) whether the tribe intended the entity to share in the immunity; (3) the entity's purpose; (4) the tribe's control over the entity; and (5) the financial relationship between the tribe and the entity. According to the Court, four of the five factors weighed against a finding of immunity based on the evidence.
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