United States of America Ex Rel. Seymour Buxbom v. Naegele Outdoor Advertising Company of California, Inc., a California Corporation

Naegele appeals from summary judgment granted to Buxbom on a claim under 25 U.S.C. § 81 (1982). Because of recent action taken by the Bureau of Indian Affairs, we now reverse with instructions to enter judgment against Buxbom and to dismiss the action.

In March of 1978, the Morongo Band of Indians and Naegele Outdoor Advertising Company entered into a ten-year agency agreement under which Naegele would construct and maintain billboards on a portion of the Morongo reservation. The Band paid Naegele $60,000 to be used for the construction of the billboards; Naegele paid the Band $60,000 for the privilege of being the Band’s agent and an additional $250,000, representing advance payment of ten annual fees of $25,000 each. The agreement had not been approved by the Bureau of Indian Affairs before these payments, and Buxbom brought suit against Naegele under the qui tarn provision of 25 U.S.C. § 81 . Buxbom sought a declaration that the agreement was void for failure to secure the BIA’s approval and that pursuant to 25 U.S.C. § 81 , the $60,000 received by Naegele from the Band should be forfeited, with Buxbom taking half and the United States taking the other half.

The agreement…