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Gabe Galanda: Amerind should waive immunity in tribal court
Wednesday, February 16, 2011
Filed Under: Opinion

"AMERIND is a federally-chartered Section 17 corporation, owned by a consortium of tribes, which operates a self-insurance risk pool and is the biggest insurer of tribal homes in Indian Country. According to AMERIND’s web-site, its “IHBG Protection Program currently serves over 275 housing authorities and tribal designated housing entities in the United States.”

While the court’s holding that AMERIND “serves as an arm of the [Charter Tribes] and not as a mere business and is thus entitled to sovereign immunity” is a resounding affirmation of tribal immunity, especially for Section 17 entities and multi-tribal consortia, the ruling could potentially render the various AMERIND property insurance policies unenforceable. As such, on a go forward basis AMERIND should include in all of its policies, language that would operate to clearly and unequivocally waive its immunity, in limited fashion, with regard to claims by tribal insureds for insurance coverage.

There are many ways to craft limited immunity waiver language that will insulate the company from undue litigation attack, e.g., the direct action lawsuit underlying Malaterre, yet assure tribal insureds that their covered losses will be paid. I hope AMERIND will allow, or continue to allow, due recourse against its tribal policies notwithstanding its momentous court victory today."

Get the Story:
Gabe Galanda: AMERIND Should Clearly Waive Its Immunity in Insurance Contracts (Galanda Broadman 2/15)

8th Circuit Decision:
Amerind Risk Management Corporation v. Malaterre (February 15, 2011)

Related Stories:
Court backs sovereign immunity of Amerind Risk Management (2/15)

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