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STATES COURT OF APPEALS","paragraph_id":"para_2"},{"text":"FOR THE THIRD CIRCUIT","paragraph_id":"para_3"},{"text":"_______________","paragraph_id":"para_4"},{"text":"No. 24-1908","paragraph_id":"para_5"},{"text":"_______________","paragraph_id":"para_6"},{"text":"RASHONNA M. RANSOM, on behalf of herself and others","paragraph_id":"para_7"},{"text":"similarly situated","paragraph_id":"para_8"},{"text":"v.","paragraph_id":"para_9"},{"text":"GREATPLAINS FINANCE, LLC, doing business as Cash","paragraph_id":"para_10"},{"text":"Advance Now; JOHN DOES 1–10","paragraph_id":"para_11"},{"text":"GreatPlains Finance, LLC,","paragraph_id":"para_12"},{"text":"Appellant","paragraph_id":"para_13"},{"text":"_______________","paragraph_id":"para_14"},{"text":"On Appeal from the United States District Court","paragraph_id":"para_15"},{"text":"for the District of New Jersey","paragraph_id":"para_16"},{"text":"(D.C. No. 2:22-cv-01344)","paragraph_id":"para_17"},{"text":"District Judge: Hon. William J. Martini","paragraph_id":"para_18"},{"text":"_______________","paragraph_id":"para_19"},{"text":"Argued: June 4, 2025","paragraph_id":"para_20"},{"text":"Before: HARDIMAN, BIBAS, and FISHER, Circuit Judges","paragraph_id":"para_21"},{"text":"(Filed: August 4, 2025)","paragraph_id":"para_22"},{"text":"2","paragraph_id":"para_23"},{"text":"Adam H. Charnes","paragraph_id":"para_24","court_paragraph":2},{"text":"KILPATRICK TOWNSEND & STOCKTON","paragraph_id":"para_25"},{"text":"2001 Ross Avenue","paragraph_id":"para_26"},{"text":"Suite 4400","paragraph_id":"para_27"},{"text":"Dallas, TX 75201","paragraph_id":"para_28"},{"text":"Mark H. Reeves","paragraph_id":"para_29"},{"text":"KILPATRICK TOWNSEND & STOCKTON","paragraph_id":"para_30"},{"text":"1450 Greene Street","paragraph_id":"para_31"},{"text":"Suite 230","paragraph_id":"para_32"},{"text":"Augusta, GA 30901","paragraph_id":"para_33"},{"text":"Rob R. Smith [ARGUED]","paragraph_id":"para_34"},{"text":"KILPATRICK TOWNSEND & STOCKTON","paragraph_id":"para_35"},{"text":"1420 5th Avenue","paragraph_id":"para_36"},{"text":"Suite 3700","paragraph_id":"para_37"},{"text":"Seattle, WA 98101","paragraph_id":"para_38"},{"text":"Counsel for Appellant","paragraph_id":"para_39"},{"text":"Stephen R. Ward","paragraph_id":"para_40"},{"text":"CONNER & WINTERS","paragraph_id":"para_41"},{"text":"15 E 5th Street","paragraph_id":"para_42"},{"text":"4100 First Place Tower","paragraph_id":"para_43"},{"text":"Tulsa, OK 74103","paragraph_id":"para_44"},{"text":"Counsel for Amicus Conference of Tribal Lending Commis-","paragraph_id":"para_45"},{"text":"sioners Supporting Appellant","paragraph_id":"para_46"},{"text":"Daniel Baczynski [ARGUED]","paragraph_id":"para_47"},{"text":"Mark H. Jensen","paragraph_id":"para_48"},{"text":"Yongmoon Kim","paragraph_id":"para_49"},{"text":"KIM LAW FIRM","paragraph_id":"para_50"},{"text":"411 Hackensack Avenue","paragraph_id":"para_51"},{"text":"3","paragraph_id":"para_52"},{"text":"Suite 701","paragraph_id":"para_53","court_paragraph":3},{"text":"Hackensack, NJ 07601","paragraph_id":"para_54"},{"text":"Counsel for Appellee","paragraph_id":"para_55"},{"text":"______________","paragraph_id":"para_56"},{"text":"OPINION OF THE COURT","paragraph_id":"para_57"},{"text":"_______________","paragraph_id":"para_58"},{"text":"BIBAS, Circuit Judge.","paragraph_id":"para_59"},{"text":"Governments turn money into power. In go taxes; out flow","paragraph_id":"para_60"},{"text":"police, pensions, and preschools. To figure out whether some-","paragraph_id":"para_61"},{"text":"thing is part of the government, then, often the best place to","paragraph_id":"para_62"},{"text":"look is whether it matches either half of government’s signa-","paragraph_id":"para_63"},{"text":"ture formula: Does it fund the government, and is it controlled","paragraph_id":"para_64"},{"text":"by the government?","paragraph_id":"para_65"},{"text":"This case presents a firm whose governmental status is","paragraph_id":"para_66"},{"text":"puzzling—a consumer lender owned by an Indian tribe. Lend-","paragraph_id":"para_67"},{"text":"ers are sometimes part of tribal governments. But even though","paragraph_id":"para_68"},{"text":"this one is mostly controlled by the tribe, a judgment against it","paragraph_id":"para_69"},{"text":"would not affect the tribe’s revenue. That factor often matters","paragraph_id":"para_70"},{"text":"more and speaks more clearly here. We thus hold that the","paragraph_id":"para_71"},{"text":"lender is not part of the tribe’s government and so lacks its sov-","paragraph_id":"para_72"},{"text":"ereign immunity.","paragraph_id":"para_73"},{"text":"I. THE TRIBE CREATED GREATPLAINS,","paragraph_id":"para_74"},{"text":"WHICH LENT MONEY TO RANSOM","paragraph_id":"para_75"},{"text":"Like any government, Indian tribes need money to operate","paragraph_id":"para_76"},{"text":"and care for their members. But many tribes cannot raise much","paragraph_id":"para_77"},{"text":"money by taxing income or property; Indian reservations are","paragraph_id":"para_78"},{"text":"4","paragraph_id":"para_79"},{"text":"often poor, and much of their land is owned by non-Indians,","paragraph_id":"para_80","court_paragraph":4},{"text":"whom tribes usually cannot tax. Matthew L.M. Fletcher, In","paragraph_id":"para_81"},{"text":"Pursuit of Tribal Economic Development as a Substitute for","paragraph_id":"para_82"},{"text":"Reservation Tax Revenue, 80 N.D. L. Rev. 759, 771–74 &","paragraph_id":"para_83"},{"text":"nn.87, 91, 93 (2004). Many tribes thus turn to entrepreneurship","paragraph_id":"para_84"},{"text":"to fund their governments, from “sell[ing] cigarettes and pre-","paragraph_id":"para_85"},{"text":"scription drugs online” to running casinos and hotels. Michigan","paragraph_id":"para_86"},{"text":"v. Bay Mills Indian Cmty., 572 U.S. 782, 823 (Thomas, J., dis-","paragraph_id":"para_87"},{"text":"senting) (2014); id. at 785 (majority). These businesses look","paragraph_id":"para_88"},{"text":"like any other, with one big difference: If they count as part of","paragraph_id":"para_89"},{"text":"a tribe’s government, they enjoy sovereign immunity. Id. at","paragraph_id":"para_90"},{"text":"788–90 (majority); Kiowa Tribe of Okla. v. Mfg. Techs., Inc.,","paragraph_id":"para_91"},{"text":"523 U.S. 751, 754–55 (1998).","paragraph_id":"para_92"},{"text":"Hence this case. A tribally owned lender allegedly broke a","paragraph_id":"para_93"},{"text":"slew of consumer-protection laws, an aggrieved borrower sued","paragraph_id":"para_94"},{"text":"it, and whether her suit can proceed depends on whether the","paragraph_id":"para_95"},{"text":"lender counts as part of the tribe’s government.","paragraph_id":"para_96"},{"text":"A. The tribe created GreatPlains","paragraph_id":"para_97"},{"text":"The Fort Belknap Indian Community is a federally recog-","paragraph_id":"para_98"},{"text":"nized Indian tribe in rural Montana. Like many tribes, its tax","paragraph_id":"para_99"},{"text":"base is bone dry, so it has tried to raise money by starting a","paragraph_id":"para_100"},{"text":"string of businesses. Those businesses contribute three-quarters","paragraph_id":"para_101"},{"text":"of the tribe’s non-federal budget.","paragraph_id":"para_102"},{"text":"To manage them, the tribe created a corporation: the Island","paragraph_id":"para_103"},{"text":"Mountain Development Group. Profits from the tribe’s busi-","paragraph_id":"para_104"},{"text":"nesses flow to Island Mountain, which sends a fifth of the","paragraph_id":"para_105"},{"text":"money directly to the tribe. The other four-fifths is either","paragraph_id":"para_106"},{"text":"reinvested in the tribe’s businesses or spent on projects for","paragraph_id":"para_107"},{"text":"tribal members, like housing or direct cash payments.","paragraph_id":"para_108"},{"text":"5","paragraph_id":"para_109"},{"text":"One of the tribe’s businesses is GreatPlains Finance, an","paragraph_id":"para_110","court_paragraph":5},{"text":"online consumer lender. GreatPlains was created by the tribe","paragraph_id":"para_111"},{"text":"as a limited-liability corporation under tribal law, is wholly","paragraph_id":"para_112"},{"text":"owned by it through a subsidiary, and is managed by Island","paragraph_id":"para_113"},{"text":"Mountain. It does not directly employ anyone; rather, it leases","paragraph_id":"para_114"},{"text":"all its workers from Island Mountain. And its articles of organ-","paragraph_id":"para_115"},{"text":"ization purport to shield it with the tribe’s sovereign immunity.","paragraph_id":"para_116"},{"text":"GreatPlains is one of at least eight online lenders started by","paragraph_id":"para_117"},{"text":"the tribe. From rural Montana, their websites reach across the","paragraph_id":"para_118"},{"text":"country, offering small loans at staggering interest rates. Great-","paragraph_id":"para_119"},{"text":"Plains’ website shows a sample loan of $500 with an annual","paragraph_id":"para_120"},{"text":"interest rate of 700% plus fees for late payments. Rates, Cash","paragraph_id":"para_121"},{"text":"Advance Now, https://perma.cc/XAD9-ZN8N. Rates this high","paragraph_id":"para_122"},{"text":"are illegal in most states. State Annual Percentage Rate (APR)","paragraph_id":"para_123"},{"text":"Caps for $500, $2,000 and $10,000 Installment Loans, Nat’l","paragraph_id":"para_124"},{"text":"Consumer L. Ctr., https://perma.cc/KN7M-N93N. But if tribal","paragraph_id":"para_125"},{"text":"sovereign immunity applies, the lenders are shielded from law-","paragraph_id":"para_126"},{"text":"suits. This setup is lucrative: The tribe’s lending businesses","paragraph_id":"para_127"},{"text":"pump out 90% of Island Mountain’s total revenue.","paragraph_id":"para_128"},{"text":"B. GreatPlains made a private-equity deal","paragraph_id":"para_129"},{"text":"What do you get when you combine high-interest lending","paragraph_id":"para_130"},{"text":"with immunity from suit? An attractive investment. Unsurpris-","paragraph_id":"para_131"},{"text":"ingly, in 2021, a non-tribal private-equity fund called Newport","paragraph_id":"para_132"},{"text":"Funding lent up to $10 million to GreatPlains. The agreement","paragraph_id":"para_133"},{"text":"promised Newport handsome returns: 21% interest per year,","paragraph_id":"para_134"},{"text":"plus more fees for any untapped part of the $10 million line of","paragraph_id":"para_135"},{"text":"credit. And before returning any profits to Island Mountain","paragraph_id":"para_136"},{"text":"(and thus the tribe), GreatPlains must pay Newport first.","paragraph_id":"para_137"},{"text":"6","paragraph_id":"para_138"},{"text":"GreatPlains also pledged its assets as collateral and gave","paragraph_id":"para_139","court_paragraph":6},{"text":"Newport a security interest in them. If Island Mountain threat-","paragraph_id":"para_140"},{"text":"ened GreatPlains’ ability to pay back the loan or interfered with","paragraph_id":"para_141"},{"text":"the business, that would trigger a default. At that point, New-","paragraph_id":"para_142"},{"text":"port could step in to protect its interest in GreatPlains’ assets.","paragraph_id":"para_143"},{"text":"It could also strip the tribal servicer of its power to service","paragraph_id":"para_144"},{"text":"GreatPlains’ loans and transfer that role to a non-tribal firm in","paragraph_id":"para_145"},{"text":"Indiana. And it could take control of GreatPlains’ bank accounts,","paragraph_id":"para_146"},{"text":"stopping any money from being transferred or withdrawn with-","paragraph_id":"para_147"},{"text":"out Newport’s consent.","paragraph_id":"para_148"},{"text":"GreatPlains eventually fell into default. In 2023, the tribe","paragraph_id":"para_149"},{"text":"“discover[ed] unexplained debts and evidence of potentially","paragraph_id":"para_150"},{"text":"serious internal financial improprieties” at Island Mountain, so","paragraph_id":"para_151"},{"text":"it replaced Island Mountain’s board. App. 212. That leadership","paragraph_id":"para_152"},{"text":"change triggered a default, and Newport ordered GreatPlains’","paragraph_id":"para_153"},{"text":"bankers to block any withdrawal or funds transfer from Great-","paragraph_id":"para_154"},{"text":"Plains’ accounts without Newport’s written consent. Great-","paragraph_id":"para_155"},{"text":"Plains objected but could not stop these measures.","paragraph_id":"para_156"},{"text":"C. After borrowing from GreatPlains, Ransom sued it","paragraph_id":"para_157"},{"text":"On the other side of the country, New Jerseyan Rashonna","paragraph_id":"para_158"},{"text":"Ransom faced an emergency and desperately needed cash. She","paragraph_id":"para_159"},{"text":"found GreatPlains’ website and took out two loans, one at","paragraph_id":"para_160"},{"text":"652% annual interest and the other at 542%. Though she bor-","paragraph_id":"para_161"},{"text":"rowed only $750, she owed around $4,000 in interest. She sued","paragraph_id":"para_162"},{"text":"GreatPlains, on her own behalf and for a putative class, for","paragraph_id":"para_163"},{"text":"breaking several New Jersey consumer-protection laws.","paragraph_id":"para_164"},{"text":"7","paragraph_id":"para_165"},{"text":"D. GreatPlains & Newport restructured their agreement","paragraph_id":"para_166","court_paragraph":7},{"text":"GreatPlains moved to dismiss, claiming tribal sovereign","paragraph_id":"para_167"},{"text":"immunity. The District Court disagreed. Based partly on New-","paragraph_id":"para_168"},{"text":"port’s post-default control of Great Plains, the court held that","paragraph_id":"para_169"},{"text":"the lender was not an arm of the tribe.","paragraph_id":"para_170"},{"text":"Newport then waived the default, restoring the tribe’s con-","paragraph_id":"para_171"},{"text":"trol over GreatPlains’ assets. Waiver in hand, GreatPlains","paragraph_id":"para_172"},{"text":"moved to reconsider. The District Court denied the motion, and","paragraph_id":"para_173"},{"text":"GreatPlains now appeals.","paragraph_id":"para_174"},{"text":"Tribal sovereign immunity is a mixed question of law and","paragraph_id":"para_175"},{"text":"fact. Somerlott v. Cherokee Nation Distribs., Inc., 686 F.3d","paragraph_id":"para_176"},{"text":"1144, 1148 (10th Cir. 2012). We review the District Court’s","paragraph_id":"para_177"},{"text":"factual findings for clear error and its legal conclusions on","paragraph_id":"para_178"},{"text":"tribal sovereign immunity and its application of law to the facts","paragraph_id":"para_179"},{"text":"de novo. Id.; see In re Nortel Networks, Inc., 669 F.3d 128, 137","paragraph_id":"para_180"},{"text":"(3d Cir. 2011).","paragraph_id":"para_181"},{"text":"II. WE HAVE APPELLATE JURISDICTION","paragraph_id":"para_182"},{"text":"As a rule, we have jurisdiction only over appeals from final","paragraph_id":"para_183"},{"text":"orders. 28 U.S.C. § 1291. But an exception allows interlocutory","paragraph_id":"para_184"},{"text":"appeals of collateral orders—that is, orders that (1) conclu-","paragraph_id":"para_185"},{"text":"sively decide (2) an important issue separate from the merits","paragraph_id":"para_186"},{"text":"(3) that would be “effectively unreviewable” if we waited until","paragraph_id":"para_187"},{"text":"after the final judgment. Doe v. Coll. of N.J., 997 F.3d 489, 493","paragraph_id":"para_188"},{"text":"(3d Cir. 2021) (internal quotation marks omitted). Because","paragraph_id":"para_189"},{"text":"sovereign immunity is a right to not even be dragged through","paragraph_id":"para_190"},{"text":"litigation, denials of sovereign immunity are immediately appeal-","paragraph_id":"para_191"},{"text":"able as collateral orders. P.R. Aqueduct & Sewer Auth. v.","paragraph_id":"para_192"},{"text":"Metcalf & Eddy, Inc., 506 U.S. 139, 143–45 (1993).","paragraph_id":"para_193"},{"text":"8","paragraph_id":"para_194"},{"text":"GreatPlains claims that it was wrongly denied sovereign im-","paragraph_id":"para_195","court_paragraph":8},{"text":"munity. So we have jurisdiction to hear this appeal.","paragraph_id":"para_196"},{"text":"III. WE CONSIDER ALL FACTS IN THE RECORD","paragraph_id":"para_197"},{"text":"In gauging subject-matter jurisdiction, courts typically look","paragraph_id":"para_198"},{"text":"at the facts that existed when the plaintiff filed his complaint.","paragraph_id":"para_199"},{"text":"Nuveen Mun. Tr. v. WithumSmith Brown, P.C., 692 F.3d 283,","paragraph_id":"para_200"},{"text":"294 (3d Cir. 2012). Here, many relevant facts changed after","paragraph_id":"para_201"},{"text":"Ransom sued: GreatPlains borrowed from Newport and defaulted,","paragraph_id":"para_202"},{"text":"and Newport waived the default.","paragraph_id":"para_203"},{"text":"We can consider these changed facts. The time-of-filing","paragraph_id":"para_204"},{"text":"rule has exceptions. See OI Eur. Grp. B.V. v. Bolivarian Republic","paragraph_id":"para_205"},{"text":"of Venezuela, 73 F.4th 157, 170–72 (3d Cir. 2023). And sover-","paragraph_id":"para_206"},{"text":"eign immunity is surely one of them. “[T]he general criterion","paragraph_id":"para_207"},{"text":"for determining when a suit is in fact against the sovereign is","paragraph_id":"para_208"},{"text":"the effect of the relief sought.” Pennhurst State Sch. & Hosp.","paragraph_id":"para_209"},{"text":"v. Halderman, 465 U.S. 89, 107 (1984). And post-filing","paragraph_id":"para_210"},{"text":"changes can change that effect—for instance, if a tribe sells a","paragraph_id":"para_211"},{"text":"business to a private party. Plus, a sovereign can consent to suit","paragraph_id":"para_212"},{"text":"or withdraw its consent after a complaint is filed, thus creating","paragraph_id":"para_213"},{"text":"jurisdiction that did not exist at the time of filing or destroying","paragraph_id":"para_214"},{"text":"jurisdiction that did. Beers v. Arkansas, 61 U.S. (20 How.) 527,","paragraph_id":"para_215"},{"text":"529–30 (1857); Coll. Sav. Bank v. Fla. Prepaid Postsecondary","paragraph_id":"para_216"},{"text":"Educ. Expense Bd., 527 U.S. 666, 676 (1999).","paragraph_id":"para_217"},{"text":"In short, sovereign immunity depends on whether a judg-","paragraph_id":"para_218"},{"text":"ment would hit an unconsenting sovereign, and that can change","paragraph_id":"para_219"},{"text":"right up until the judgment issues. “We therefore conclude that","paragraph_id":"para_220"},{"text":"sovereign immunity is an ongoing inquiry rather than a deter-","paragraph_id":"para_221"},{"text":"mination to be made … at the time of filing.” Iowa Tribe of","paragraph_id":"para_222"},{"text":"Kan. & Neb. v. Salazar, 607 F.3d 1225, 1237 (10th Cir. 2010).","paragraph_id":"para_223"},{"text":"9","paragraph_id":"para_224"},{"text":"So in deciding whether GreatPlains is an arm of the tribe, we","paragraph_id":"para_225","court_paragraph":9},{"text":"consider all facts as they stand today.","paragraph_id":"para_226"},{"text":"IV. WE REVIEW BOTH DECISIONS TOGETHER","paragraph_id":"para_227"},{"text":"GreatPlains appeals two decisions: the denial of its motion","paragraph_id":"para_228"},{"text":"to dismiss and the later denial of its motion to reconsider. Nor-","paragraph_id":"para_229"},{"text":"mally, we would review each separately. Lazaridis v. Wehmer,","paragraph_id":"para_230"},{"text":"591 F.3d 666, 669–70 (3d Cir. 2010).","paragraph_id":"para_231"},{"text":"But here, we can consolidate our review. Start with the motion","paragraph_id":"para_232"},{"text":"to dismiss. Reviewing de novo, we ask whether GreatPlains is","paragraph_id":"para_233"},{"text":"an arm of the tribe given all the information before us, includ-","paragraph_id":"para_234"},{"text":"ing Newport’s waiver of default. Reich v. Loc. 30, Int’l Bhd. of","paragraph_id":"para_235"},{"text":"Teamsters, 6 F.3d 978, 981–82 (3d Cir. 1993). On the motion","paragraph_id":"para_236"},{"text":"to reconsider, we ask the same question and look at the same","paragraph_id":"para_237"},{"text":"facts. And though we normally review such denials for abuse","paragraph_id":"para_238"},{"text":"of discretion, “to the extent that the denial of reconsideration is","paragraph_id":"para_239"},{"text":"predicated on an issue of law,” like sovereign immunity, we","paragraph_id":"para_240"},{"text":"review it de novo. Max’s Seafood Cafe ex rel. Lou-Ann, Inc. v.","paragraph_id":"para_241"},{"text":"Quinteros, 176 F.3d 669, 673 (3d Cir. 1999). Because both appeals","paragraph_id":"para_242"},{"text":"ask the same question, consider the same facts, and apply the","paragraph_id":"para_243"},{"text":"same standard of review, we can consolidate them into a single","paragraph_id":"para_244"},{"text":"question: Given all the facts in the record, is GreatPlains an","paragraph_id":"para_245"},{"text":"arm of the tribe?","paragraph_id":"para_246"},{"text":"V. GREATPLAINS IS NOT AN ARM OF THE TRIBE","paragraph_id":"para_247"},{"text":"It can be hard to tell where a tribe ends and a separate entity","paragraph_id":"para_248"},{"text":"begins. To draw that line, we adopt the Tenth Circuit’s test. On","paragraph_id":"para_249"},{"text":"these facts, the most important factors are how much the tribe","paragraph_id":"para_250"},{"text":"controls the entity and especially whether a judgment would","paragraph_id":"para_251"},{"text":"10","paragraph_id":"para_252"},{"text":"immediately cut tribal revenue. Under that test, GreatPlains is","paragraph_id":"para_253","court_paragraph":10},{"text":"not an arm of the tribe.","paragraph_id":"para_254"},{"text":"A. To discern an arm of a tribe, we consider five factors","paragraph_id":"para_255"},{"text":"To judge whether an entity counts as an arm of a tribe, the","paragraph_id":"para_256"},{"text":"Tenth Circuit created a multi-factor test. This test examines:","paragraph_id":"para_257"},{"text":"1) how the entity was created;","paragraph_id":"para_258"},{"text":"2) its purpose;","paragraph_id":"para_259"},{"text":"3) its ownership, management, structure, and how much","paragraph_id":"para_260"},{"text":"the tribe controls it;","paragraph_id":"para_261"},{"text":"4) the tribe’s intent to give it sovereign immunity;","paragraph_id":"para_262"},{"text":"5) its financial relationship with the tribe; and","paragraph_id":"para_263"},{"text":"6) whether giving it immunity would serve tribal sovereign","paragraph_id":"para_264"},{"text":"immunity’s purposes.","paragraph_id":"para_265"},{"text":"Breakthrough Mgmt. Grp. v. Chukchansi Gold Casino & Resort,","paragraph_id":"para_266"},{"text":"629 F.3d 1173, 1181 (10th Cir. 2010). These factors are not","paragraph_id":"para_267"},{"text":"exclusive. Id.","paragraph_id":"para_268"},{"text":"Today, we join our sister circuits in adopting that test. See","paragraph_id":"para_269"},{"text":"Williams v. Big Picture Loans, LLC, 929 F.3d 170, 177 (4th","paragraph_id":"para_270"},{"text":"Cir. 2019); Mestek v. Lac Courte Oreilles Cmty. Health Ctr.,","paragraph_id":"para_271"},{"text":"72 F.4th 255, 259 (7th Cir. 2023); White v. Univ. of Cal., 765","paragraph_id":"para_272"},{"text":"F.3d 1010, 1025 (9th Cir. 2014). Still, some factors may matter","paragraph_id":"para_273"},{"text":"more than others. In practice, factors (1), (2), and (4) may be","paragraph_id":"para_274"},{"text":"easy to manipulate. Factors (3) and (5) may often matter more.","paragraph_id":"para_275"},{"text":"And factor (5) speaks best to the reasons behind tribal sover-","paragraph_id":"para_276"},{"text":"eign immunity.","paragraph_id":"para_277"},{"text":"11","paragraph_id":"para_278"},{"text":"Most courts that follow Breakthrough’s test do not treat","paragraph_id":"para_279","court_paragraph":11},{"text":"factor (6), about the purposes of tribal sovereign immunity, as","paragraph_id":"para_280"},{"text":"its own factor. Instead, they weave it into their analysis of the","paragraph_id":"para_281"},{"text":"other five. E.g., Williams, 929 F.3d at 177. That leaves five","paragraph_id":"para_282"},{"text":"factors, with the purposes informing each factor’s importance.","paragraph_id":"para_283"},{"text":"Mestek, 72 F.4th at 259.","paragraph_id":"para_284"},{"text":"What are those purposes? Other courts have said they include","paragraph_id":"para_285"},{"text":"promoting tribal self-determination, cultural autonomy, and","paragraph_id":"para_286"},{"text":"commercial relations between Indians and non-Indians. See,","paragraph_id":"para_287"},{"text":"e.g., Breakthrough, 629 F.3d at 1188. But we find it less useful","paragraph_id":"para_288"},{"text":"to think up post hoc policy rationales and more helpful to focus","paragraph_id":"para_289"},{"text":"on why courts recognized the immunity in the first place: to","paragraph_id":"para_290"},{"text":"respect the tribe’s governance and to protect its treasury. Okla.","paragraph_id":"para_291"},{"text":"Tax Comm’n v. Citizen Band Potawatomi Indian Tribe, 498","paragraph_id":"para_292"},{"text":"U.S. 505, 509 (1991) (explaining that immunity respects tribes’","paragraph_id":"para_293"},{"text":"“inherent sovereign authority”); Breakthrough, 629 F.3d at","paragraph_id":"para_294"},{"text":"1183 (noting that one rationale for immunity was to protect","paragraph_id":"para_295"},{"text":"tribes’ treasuries). Respecting the tribe’s sovereignty corre-","paragraph_id":"para_296"},{"text":"sponds to factor (3): A suit against an entity drags the sovereign","paragraph_id":"para_297"},{"text":"into court only if the entity is under the sovereign’s control.","paragraph_id":"para_298"},{"text":"And protecting the tribe’s treasury maps on to factor (5).","paragraph_id":"para_299"},{"text":"Between those two factors, the effect on the tribe’s treasury","paragraph_id":"para_300"},{"text":"may matter more. That factor is the core of sovereign immun-","paragraph_id":"para_301"},{"text":"ity, shielding the fisc so governments can decide whether to","paragraph_id":"para_302"},{"text":"spend finite funds on healthcare, education, pensions, or satis-","paragraph_id":"para_303"},{"text":"fying individual legal claims. Richard H. Fallon, Jr., Of Legis-","paragraph_id":"para_304"},{"text":"lative Courts, Administrative Agencies, and Article III, 101","paragraph_id":"para_305"},{"text":"Harv. L. Rev. 915, 937 (1988) (“[S]overeign immunity rests on","paragraph_id":"para_306"},{"text":"the assumption that … the government should be able to weigh","paragraph_id":"para_307"},{"text":"for itself whether submission to a traditional lawsuit would","paragraph_id":"para_308"},{"text":"12","paragraph_id":"para_309"},{"text":"harm or promote the public interest.”); Alden v. Maine, 527","paragraph_id":"para_310","court_paragraph":12},{"text":"U.S. 706, 750 (1999) (“Private suits against nonconsenting","paragraph_id":"para_311"},{"text":"[sovereigns] … may threaten [their] financial integrity ….”).","paragraph_id":"para_312"},{"text":"So in the analogous context of suits against government offic-","paragraph_id":"para_313"},{"text":"ers, courts decide whether a suit is really against the sovereign","paragraph_id":"para_314"},{"text":"by looking at whether a judgment would hit the public coffers.","paragraph_id":"para_315"},{"text":"Dugan v. Rank, 372 U.S. 609, 620 (1963); Edelman v. Jordan,","paragraph_id":"para_316"},{"text":"415 U.S. 651, 663 (1974). Sovereign immunity is really immun-","paragraph_id":"para_317"},{"text":"ity for the sovereign’s treasury, so how a judgment would affect","paragraph_id":"para_318"},{"text":"tribal finances may merit the most weight.","paragraph_id":"para_319"},{"text":"In cases like this one, any tribal-immunity test regrettably","paragraph_id":"para_320"},{"text":"must also serve another purpose: separating true arms of the","paragraph_id":"para_321"},{"text":"tribe from shams. Unscrupulous lenders can seek out tribes to","paragraph_id":"para_322"},{"text":"pose as figureheads, hide behind their sovereign immunity, and","paragraph_id":"para_323"},{"text":"break state law scot-free. Unfortunately, these rent-a-tribe","paragraph_id":"para_324"},{"text":"schemes do happen. Jayne Munger, Note, Crossing State","paragraph_id":"para_325"},{"text":"Lines: The Trojan Horse Invasion of Rent-a-Bank and Rent-a-","paragraph_id":"para_326"},{"text":"Tribe Schemes in Modern Usury Laws, 87 Geo. Wash. L. Rev.","paragraph_id":"para_327"},{"text":"468, 478–79 (2019). To reserve tribal sovereign immunity for","paragraph_id":"para_328"},{"text":"tribal sovereigns, our test must sift out impostors.","paragraph_id":"para_329"},{"text":"That may mean putting less weight on factors (1), (2), and","paragraph_id":"para_330"},{"text":"(4). Whenever a non-tribal business gets a tribe to pose as a","paragraph_id":"para_331"},{"text":"figurehead, both (1) and (4) will be met: The parties may be","paragraph_id":"para_332"},{"text":"sure to incorporate the business under tribal law and to note the","paragraph_id":"para_333"},{"text":"tribe’s intent to extend it sovereign immunity. As for factor (2),","paragraph_id":"para_334"},{"text":"the entity’s purpose, it may be easy to dash off a document recit-","paragraph_id":"para_335"},{"text":"ing that the business’s purpose is helping a tribe. See People ex","paragraph_id":"para_336"},{"text":"rel. Owen v. Miami Nation Enters., 386 P.3d 357, 376, 378","paragraph_id":"para_337"},{"text":"(Cal. 2016) (even though firm’s articles of incorporation listed","paragraph_id":"para_338"},{"text":"purpose to help tribe, the “vast majority” of its revenue went to","paragraph_id":"para_339"},{"text":"13","paragraph_id":"para_340"},{"text":"non-tribal partners). True, the other half of factor (2), how","paragraph_id":"para_341","court_paragraph":13},{"text":"much the business serves that stated purpose, may prove rele-","paragraph_id":"para_342"},{"text":"vant. And it can be revealing if an entity flunks any of these","paragraph_id":"para_343"},{"text":"factors. But because these factors may come out identically for","paragraph_id":"para_344"},{"text":"true tribal arms and for shams, we do not find it very informa-","paragraph_id":"para_345"},{"text":"tive when these easily checked boxes are checked easily.","paragraph_id":"para_346"},{"text":"We thus apply the Breakthrough factors, emphasizing sub-","paragraph_id":"para_347"},{"text":"stance over form. At least on these facts, we pay particular atten-","paragraph_id":"para_348"},{"text":"tion to (3) and especially to (5). On each factor, GreatPlains","paragraph_id":"para_349"},{"text":"bears the burden of showing that it favors immunity. Bowers v.","paragraph_id":"para_350"},{"text":"NCAA, 475 F.3d 524, 546 n.25 (3d Cir. 2007).","paragraph_id":"para_351"},{"text":"B. GreatPlains is not an arm of the tribe","paragraph_id":"para_352"},{"text":"1. GreatPlains’ method of incorporation favors its being an","paragraph_id":"para_353"},{"text":"arm of the tribe. Under this factor, an entity is more likely an","paragraph_id":"para_354"},{"text":"arm of a tribe if it was (a) created under tribal law and (b) created","paragraph_id":"para_355"},{"text":"by the tribe, rather than a preexisting entity absorbed by the","paragraph_id":"para_356"},{"text":"tribe. Miami Nation, 386 P.3d at 372.","paragraph_id":"para_357"},{"text":"The District Court found that GreatPlains “was formed under","paragraph_id":"para_358"},{"text":"tribal law and did not exist before the Tribe created it.” App. 5.","paragraph_id":"para_359"},{"text":"Those factual findings were not clearly erroneous. To be sure,","paragraph_id":"para_360"},{"text":"Ransom concocts a theory that non-tribal firms created Great-","paragraph_id":"para_361"},{"text":"Plains before the tribe absorbed it. But the record shows only","paragraph_id":"para_362"},{"text":"that the tribe wanted to start a lender, had no experience doing","paragraph_id":"para_363"},{"text":"so, and thus turned to outside partners for help. Five years later,","paragraph_id":"para_364"},{"text":"Island Mountain ended GreatPlains’ relationship with those","paragraph_id":"para_365"},{"text":"partners and has run it ever since. That suggests that the tribe","paragraph_id":"para_366"},{"text":"used outsiders to help it get a new business off the ground, not","paragraph_id":"para_367"},{"text":"that outsiders had surreptitiously created the business on their","paragraph_id":"para_368"},{"text":"14","paragraph_id":"para_369"},{"text":"own. Although we give this factor little weight here, it favors","paragraph_id":"para_370","court_paragraph":14},{"text":"immunity.","paragraph_id":"para_371"},{"text":"2. GreatPlains’ purpose slightly favors treating it as an","paragraph_id":"para_372"},{"text":"arm of the tribe. This factor asks whether the entity was created","paragraph_id":"para_373"},{"text":"to benefit the tribe and to help it act as a government—for instance,","paragraph_id":"para_374"},{"text":"by raising revenue. Breakthrough, 629 F.3d at 1192. It exam-","paragraph_id":"para_375"},{"text":"ines both the entity’s stated purpose and how effectively it","paragraph_id":"para_376"},{"text":"serves that purpose. Miami Nation, 386 P.3d at 372. Because","paragraph_id":"para_377"},{"text":"the stated purpose is easy to manipulate, we put more stock in","paragraph_id":"para_378"},{"text":"how much the entity serves it. Yet we cannot fixate on results—","paragraph_id":"para_379"},{"text":"say, how much money the business earned the tribe or how","paragraph_id":"para_380"},{"text":"many tribal jobs it created. That would make a business’s tribal","paragraph_id":"para_381"},{"text":"status turn on whether it happened to succeed. So to test this","paragraph_id":"para_382"},{"text":"factor, we will focus on both (a) GreatPlains’ stated purpose","paragraph_id":"para_383"},{"text":"and (b) whether it was designed to serve that purpose.","paragraph_id":"para_384"},{"text":"As for stated purpose, the tribal resolution creating Great-","paragraph_id":"para_385"},{"text":"Plains declares that it is meant to “further the economic well-","paragraph_id":"para_386"},{"text":"being of the members of the [Fort Belknap Indian] Commu-","paragraph_id":"para_387"},{"text":"nity.” App. 117. That favors immunity, though we put little","paragraph_id":"para_388"},{"text":"stock in it.","paragraph_id":"para_389"},{"text":"Is GreatPlains designed to achieve that purpose? On bal-","paragraph_id":"para_390"},{"text":"ance yes, though the evidence is mixed. The District Court","paragraph_id":"para_391"},{"text":"found otherwise, in part because GreatPlains has no employ-","paragraph_id":"para_392"},{"text":"ees. But that is because it leases its workers from Island Moun-","paragraph_id":"para_393"},{"text":"tain. By increasing demand for Island Mountain’s workers,","paragraph_id":"para_394"},{"text":"most of whom are tribal members, GreatPlains is designed to","paragraph_id":"para_395"},{"text":"create tribal jobs.","paragraph_id":"para_396"},{"text":"On the other hand, the District Court also saw “no indica-","paragraph_id":"para_397"},{"text":"tion” that GreatPlains had ever returned any profit to the tribe,","paragraph_id":"para_398"},{"text":"15","paragraph_id":"para_399"},{"text":"after more than a decade in business and several changes in","paragraph_id":"para_400","court_paragraph":15},{"text":"management. App. 6. That fact is hard to interpret. Island","paragraph_id":"para_401"},{"text":"Mountain is entitled to all GreatPlains’ profits, so the business","paragraph_id":"para_402"},{"text":"seems designed to make money for the tribe. But it is not clear","paragraph_id":"para_403"},{"text":"that it ever has, and that does not seem to be a commercial acci-","paragraph_id":"para_404"},{"text":"dent. Charging exorbitant interest rates should be a good line","paragraph_id":"para_405"},{"text":"of business, and the tribe’s other lenders have earned it fistfuls","paragraph_id":"para_406"},{"text":"of money. GreatPlains insists that it just has not returned","paragraph_id":"para_407"},{"text":"money to the tribe yet, because it reinvests all profits in the","paragraph_id":"para_408"},{"text":"business. But it has never explained why the tribe’s other lend-","paragraph_id":"para_409"},{"text":"ers have earned the tribe so much money, yet GreatPlains is the","paragraph_id":"para_410"},{"text":"mysterious outlier. When a business repeatedly fails to achieve","paragraph_id":"para_411"},{"text":"its stated purpose for no clear reason, over more than a decade,","paragraph_id":"para_412"},{"text":"that can be evidence that it might be serving a different, unstated","paragraph_id":"para_413"},{"text":"purpose.","paragraph_id":"para_414"},{"text":"Still, those gnawing doubts cannot outweigh the solid evi-","paragraph_id":"para_415"},{"text":"dence listed above. This factor favors immunity here, but less","paragraph_id":"para_416"},{"text":"than it would otherwise.","paragraph_id":"para_417"},{"text":"3. Control leans toward GreatPlains’ being an arm of the","paragraph_id":"para_418"},{"text":"tribe. This factor asks who is really in charge. It examines the","paragraph_id":"para_419"},{"text":"entity’s governance, management, and ownership. Williams,","paragraph_id":"para_420"},{"text":"929 F.3d at 182. It also asks whether the entity’s leaders come","paragraph_id":"para_421"},{"text":"from the tribal government, are tribal members, or are at least","paragraph_id":"para_422"},{"text":"tribal appointees. Breakthrough, 629 F.3d at 1193; White, 765","paragraph_id":"para_423"},{"text":"F.3d at 1025. At root, the question is: Who calls the shots?","paragraph_id":"para_424"},{"text":"The answer is mixed. On one hand, GreatPlains is wholly","paragraph_id":"para_425"},{"text":"owned by the tribe and solely managed by Island Mountain,","paragraph_id":"para_426"},{"text":"which in turn is wholly owned and run by the tribe. Island","paragraph_id":"para_427"},{"text":"Mountain’s board serves as the board of GreatPlains. All board","paragraph_id":"para_428"},{"text":"16","paragraph_id":"para_429"},{"text":"members are appointed and removable by the tribal council,","paragraph_id":"para_430","court_paragraph":16},{"text":"and all board members are members of the tribal council. In","paragraph_id":"para_431"},{"text":"turn, the board hires and can fire Island Mountain’s CEO, who","paragraph_id":"para_432"},{"text":"is a tribal member.","paragraph_id":"para_433"},{"text":"But the loan agreement limits the tribe’s control. If the tribe","paragraph_id":"para_434"},{"text":"threatens GreatPlains’ ability to pay back the loan, taxes Great-","paragraph_id":"para_435"},{"text":"Plains, or regulates it in a way that is adverse to Newport’s inter-","paragraph_id":"para_436"},{"text":"ests, then GreatPlains falls into default. That limits the tribe’s","paragraph_id":"para_437"},{"text":"freedom to direct GreatPlains to pursue goals other than earn-","paragraph_id":"para_438"},{"text":"ing money to repay Newport—say, forgoing usurious interest","paragraph_id":"para_439"},{"text":"rates because they are inconsistent with tribal values, or hiring","paragraph_id":"para_440"},{"text":"more tribal workers at higher wages because the tribe wants to","paragraph_id":"para_441"},{"text":"create jobs for its members. It also forces the tribe to treat","paragraph_id":"para_442"},{"text":"GreatPlains as an independent entity beyond the tribe’s full","paragraph_id":"para_443"},{"text":"control.","paragraph_id":"para_444"},{"text":"Of course, we understand why a lender would insist on","paragraph_id":"para_445"},{"text":"those terms. And a tribal business does not stop being tribal","paragraph_id":"para_446"},{"text":"just because it borrows money and puts up collateral. But when","paragraph_id":"para_447"},{"text":"that funding restricts the tribe’s freedom of action, forcing it to","paragraph_id":"para_448"},{"text":"put the lender’s interests ahead of all else, the conclusion is","paragraph_id":"para_449"},{"text":"inescapable: The tribe controls the business less.","paragraph_id":"para_450"},{"text":"“Less” is key. The Breakthrough factors are not binaries","paragraph_id":"para_451"},{"text":"but matters of degree. See Mestek, 72 F.4th at 260. Here, the","paragraph_id":"para_452"},{"text":"tribe still controls GreatPlains’ day-to-day management and","paragraph_id":"para_453"},{"text":"strategic direction, and this factor favors immunity. But its","paragraph_id":"para_454"},{"text":"weight is reduced by GreatPlains’ incomplete control.","paragraph_id":"para_455"},{"text":"4. The tribe’s intent favors immunity. The fourth factor asks","paragraph_id":"para_456"},{"text":"whether the tribe intended to confer its sovereign immunity on","paragraph_id":"para_457"},{"text":"GreatPlains. Breakthrough, 629 F.3d at 1193–94. It did.","paragraph_id":"para_458"},{"text":"17","paragraph_id":"para_459"},{"text":"GreatPlains’ articles of organization declare that it “is to enjoy","paragraph_id":"para_460","court_paragraph":17},{"text":"the Tribe’s sovereign immunity” and that “the Tribe hereby","paragraph_id":"para_461"},{"text":"confers on [GreatPlains] sovereign immunity from suit to the","paragraph_id":"para_462"},{"text":"same extent that the Tribe would have such sovereign immun-","paragraph_id":"para_463"},{"text":"ity if it engaged directly in the activities undertaken by” Great-","paragraph_id":"para_464"},{"text":"Plains. App. 99 ¶ 7. This factor favors immunity. Yet here, it is","paragraph_id":"para_465"},{"text":"so easy to meet that we mostly discount it.","paragraph_id":"para_466"},{"text":"5. The financial relationship between the tribe and Great-","paragraph_id":"para_467"},{"text":"Plains weighs heavily against immunity. The last factor asks","paragraph_id":"para_468"},{"text":"how a judgment against the firm would affect the tribe’s finances.","paragraph_id":"para_469"},{"text":"It favors immunity if the tribe would be directly liable for a","paragraph_id":"para_470"},{"text":"judgment. Miami Nation, 386 P.3d at 373. But it is enough if","paragraph_id":"para_471"},{"text":"the judgment would cut into tribal revenue indirectly—say, by","paragraph_id":"para_472"},{"text":"taking damages out of the profits the business would otherwise","paragraph_id":"para_473"},{"text":"send the tribe. Id.","paragraph_id":"para_474"},{"text":"GreatPlains’ finances do not affect the tribe’s. It is a sepa-","paragraph_id":"para_475"},{"text":"rate limited liability corporation, insulating the tribe from its","paragraph_id":"para_476"},{"text":"liability. And the record nowhere suggests that it has ever","paragraph_id":"para_477"},{"text":"returned a profit to Island Mountain. So if GreatPlains must","paragraph_id":"para_478"},{"text":"pay a judgment, that likely will not reduce the tribe’s immedi-","paragraph_id":"para_479"},{"text":"ate revenue by even a penny. GreatPlains responds that, instead","paragraph_id":"para_480"},{"text":"of returning money to the tribe directly, it reinvests all its","paragraph_id":"para_481"},{"text":"profits—if any are left after Newport gets paid—in the busi-","paragraph_id":"para_482"},{"text":"ness. But unlike the tribe’s other lending businesses, Great-","paragraph_id":"para_483"},{"text":"Plains offers us no proof of its profitability at all. It has given","paragraph_id":"para_484"},{"text":"us no ledgers, budgets, or projections showing that it retains","paragraph_id":"para_485"},{"text":"any profit after paying interest to Newport, nor has it shown","paragraph_id":"para_486"},{"text":"that it reinvests money in tribal businesses. It has not borne its","paragraph_id":"para_487"},{"text":"burden of showing that an adverse judgment would harm the","paragraph_id":"para_488"},{"text":"tribe. That cuts decisively against immunity.","paragraph_id":"para_489"},{"text":"18","paragraph_id":"para_490"},{"text":"* * * * *","paragraph_id":"para_491","court_paragraph":18},{"text":"GreatPlains’ method of incorporation and the tribe’s intent","paragraph_id":"para_492"},{"text":"favor immunity, but that shows very little. The same goes for","paragraph_id":"para_493"},{"text":"GreatPlains’ stated purpose. And though GreatPlains seems","paragraph_id":"para_494"},{"text":"mostly designed to achieve that purpose, the consistent lack of","paragraph_id":"para_495"},{"text":"profitability means that this factor helps GreatPlains only mar-","paragraph_id":"para_496"},{"text":"ginally. That leaves the two most important factors: control and","paragraph_id":"para_497"},{"text":"financial relationship. Control favors immunity, but only","paragraph_id":"para_498"},{"text":"somewhat. By contrast, here GreatPlains’ financial relation-","paragraph_id":"para_499"},{"text":"ship with the tribe cuts decisively against immunity. And it is","paragraph_id":"para_500"},{"text":"the more important factor.","paragraph_id":"para_501"},{"text":"Breakthrough is a five-factor test, not a one-factor test. But","paragraph_id":"para_502"},{"text":"at least here, factor (5) is the most important. When the other","paragraph_id":"para_503"},{"text":"factors are qualified and this one is resounding, it may some-","paragraph_id":"para_504"},{"text":"times tip the balance all on its own. That is true here: A judg-","paragraph_id":"para_505"},{"text":"ment against GreatPlains will not immediately eat into tribal","paragraph_id":"para_506"},{"text":"revenues, which GreatPlains’ more modest showings on the","paragraph_id":"para_507"},{"text":"other factors cannot overcome.","paragraph_id":"para_508"},{"text":"GreatPlains is not an arm of the tribe and so lacks the tribe’s","paragraph_id":"para_509"},{"text":"sovereign immunity. 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