Big Valley Band of Pomo Indians v. Superior Court

The Big Valley Band of Porno Indians (Tribe) operates a casino. Five casino employees (Employees) who had been terminated from employment sued the Tribe for breach of contract, alleging it failed to provide adequate severance pay. The Tribe enjoys sovereign immunity from a breach of contract suit. That enjoyment is not undermined by the presence of an arbitration clause in its contracts. The trial court is directed to sustain the Tribe’s demurrer.

FACTUAL AND PROCEDURAL BACKGROUND

The federally recognized Pomo Indian tribe owns and operates the Konocti Vista Casino. Gregory Sexton was hired as general manager of the casino pursuant to a written employment contract signed by the tribal chairman. Under the contract, if Sexton were terminated without cause he would be entitled to severance pay equal to four months’ compensation. The contract also contains an arbitration clause providing that all disputes arising out of the contract or for its breach shall be submitted to arbitration.

Sexton allegedly signed employment contracts with the other plaintiffs on behalf of the Tribe. The contracts contain the same arbitration and termination provisions that appear in Sexton’s…