K2 America Corp. v. Roland Oil & Gas, LLC

In this appeal, we consider whether federal jurisdiction exists over a lawsuit between two Montana corporations alleging state law claims arising from a dispute over lands held by the United States in trust for various Indian allottees. We conclude that federal jurisdiction does not extend to the claims, and we affirm the judgment of the district court.

I

A

Plaintiff-Appellant K2 America Corporation (“K2”) appeals the dismissal for lack of subject matter jurisdiction of its action against Defendant-Appellee Roland Oil & Gas, LLC (“Roland”). K2 asserts tort, contract, and state statutory claims and seeks, among other remedies, a constructive trust and declaratory judgment over an oil and gas lease located on allotted land, wherein title to the land is held by the United States in trust for various Indian allottees.

In its complaint K2 alleges the following facts, which we take as true in reviewing a Rule 12(b)(1) motion to dismiss for lack of jurisdiction. Wolfe v. Strankman, 392 F.3d 358, 362 (9th Cir.2004).

K2, a Montana corporation, engages in exploration and production of oil and gas resources, and holds a number of leases in Montana. Roland is a Montana limited…