Dolgencorp, Inc. v. The Mississippi Band of Choctaw Indians

Dolgencorp, Inc. (defendant) operated a Dollar General store within the Choctaw Indian Reservation in Mississippi. The store was located on land leased from the Mississippi Band of Choctaw Indians (tribe) (plaintiff). Dale Townsend (defendant) was the store manager. Dolgencorp, through Townsend, agreed to participate in the tribe’s Youth Opportunity Program (YOP), which placed tribal youth as unpaid interns in local businesses for educational purposes. John Doe (plaintiff), a 13-year-old Choctaw, was placed at the Dollar General. During Doe’s unpaid internship, Townsend sexually assaulted him. Doe filed a tort action against Townsend and Dolgencorp in Choctaw tribal court, alleging that Dolgencorp was vicariously liable for Townsend’s actions. Dolgencorp and Townsend moved to dismiss, arguing that the tribal court lacked subject-matter jurisdiction over Doe’s tort claim because Dolgencorp and Townsend were not tribal members. The tribal court denied the motion to dismiss. On appeal, the Choctaw Supreme Court affirmed. Townsend and Dolgencorp then filed an action in federal district court against Doe and the tribe, again moving to dismiss the pending tribal court action for lack of jurisdiction. The district court granted Townsend’s motion but denied Dolgencorp’s, holding that the tribal court had civil jurisdiction over Dolgencorp because Dolgencorp had entered into a consensual relationship with the tribe, thereby invoking the tribe’s regulatory jurisdiction. Dolgencorp appealed.