California Court of Appeals Holds Contract Breach Claim Preempted by IGRA

Here is the opinion in Sharp Image Gaming v. Shingle Springs Band of Miwok Indians (Cal. Ct. App.). An excerpt:

We conclude that IGRA preempts state contract actions based on unapproved “management contracts” and “collateral agreements to management contracts” as such agreements are defined in the IGRA regulatory scheme. Thus, the trial court erred by failing to determine whether the ELA and the Note were agreements subject to IGRA regulation, a necessary determination related to the question of preemption and the court’s subject matter jurisdiction. We further conclude that the ELA is a management contract and the Note is a collateral agreement to a management contract subject to IGRA regulation. Because these agreements were never approved by the NIGC Chairman as required by the IGRA and were thus void, Sharp Image’s action is preempted by IGRA. Consequently, the trial court did not have subject matter jurisdiction. 

Briefs here.