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The Seventh Circuit Court of Appeals vacated a district court appointing an arbitrator because neither the Federal Arbitration Act (FAA) nor the Indian Gaming Regulatory Act (IGRA) conferred federal jurisdiction.
In State v. Ho-Chunk Nation, No. 06-1053, 06-1837, 2006 WL 2588936 (7th Cir. Sep. 11, 2006), the State of Wisconsin (the State) and the Ho-Chunk Nation (the Nation) entered into a compact that authorized the Nation to offer casino gaming on its lands in exchange for payments to the State. The compact required arbitration of all disputes.
When the Wisconsin Supreme Court issued a decision casting doubt on the legality of the compact, the parties planned to submit the resulting dispute to arbitration. However, the parties could not agree on an arbitrator. The State filed suit in federal court, seeking an order compelling arbitration and appointing an arbitrator. The district court issued an order appointing an arbitrator.
On appeal, the Court vacated the order because the FAA does not confer independent subject matter jurisdiction and because none of the IGRA’s bases for federal jurisdiction were applicable. The Court was unswayed by the compact’s provision for jurisdiction in the Western District of Wisconsin because “neither the parties nor their lawyers may stipulate to jurisdiction or waive arguments that the court lacks jurisdiction.”
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