The People ex rel. Jan Lynn Owen, as Commissioner v. Miami Nation Enterprises Et…

Summary

The California Supreme Court held that a tribally affiliated business entity claiming sovereign immunity must prove by a preponderance of the evidence that it is an arm of the tribe. Applying a five-factor test addressing creation, tribal intent, purpose, control, and financial relationship, the court concluded that the online lenders had not shown sufficiently close practical ties to their tribes to warrant immunity. The court reversed the Court of Appeal and remanded for further proceedings, including consideration of whether the parties had fully litigated the immunity issue under the clarified standard.