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Breakthrough Management Group, Inc v. Chukchansi Gold Casino and Resort

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Before MURPHY, HOLMES, Circuit Judges, and ARMIJO, District Judge.*fn1

This appeal asks us to explore the relationship between an Indian tribe and the economic entities created by the tribe, and to determine how close that relationship must be in order for those entities to share in the tribe’s sovereign immunity. Plaintiff Breakthrough Management Group, Inc. (“BMG”), a provider of business management training and consulting services, filed suit in the United States District Court for the District of Colorado in August 2006. BMG alleged that the Chukchansi Gold Resort & Casino (“the Casino”) had paid for a single-person license for one of BMG’s online training programs and then recorded and used portions of that program without permission to train more than one employee. Because the Casino is operated for the benefit of a federally recognized Indian tribe, the Picayune Rancheria of the Chukchansi Indians (“the Tribe”), BMG brought federal and state-law claims against the Tribe, the Chukchansi Economic Development Authority (“the Authority), which owns and operates the Casino, the Casino, and several individual defendants. The defendants filed various motions to dismiss, arguing that they were protected from BMG’s suit by the doctrine of tribal sovereign immunity and that the district court should dismiss the complaint for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1).

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