In late May, the Connecticut Supreme Court
held
1 that the tribal lending entity Great Plains
Lending (Great Plains) is protected by tribal sovereign immunity as
an “arm of the tribe,” adopting a test first
established by the Tenth Circuit in
Breakthrough
Management Group, Inc. v. Chukchansi Gold Casino &
Resort.
2 The case represents a major victory
for the tribe and for tribal lending entities overall, and serves
as further guidance to other courts faced with similar claims as
tribes continue to establish a strong presence in e-commerce
lending activities.
The case concerned two lending entities, Great Plains and
American Web Loan, Inc. d/b/a Clear Creek Lending (Clear Creek)