Bankruptcy: Assignments; Automatic Stay Indian Oil and Gas Leases: Assignments; Overriding Royalty Interests

摘要

For an overview of the facts of this case see the case summaries for both the Bankruptcy Court and District Court opinions, reported at 179 0.&G.R. 237 and 179 0.&G.R. 293, respectively. The bankruptcy Trustee appeals the decision of the District Court that affirmed the Bankruptcy Court decision. Held: affirmed. As with the District Court, the Court of Appeals reviews the bankruptcy court's findings of fact for clear error and its conclusions of law de novo. The only issue appealed by the Trustee relates to his claim that without approval of the Navajo Nation the defendants' ORRIs are void. The Court of Appeals affirms the exclusion of the letter because it is untrustworthy given the Trustee's drafting of the letter. As to the "requirement" of Navajo Nation approval, the court finds that the approval is not a condition precedent to contract formation. The consent requirement is designed to protect the interests of the Navajo Nation and not the parties to the assignment. The Trustee cannot argue that the ORRI assignments are illegal under the Navajo Nation since he was neither a party to those assignments nor within those who are protected by the consent requirement.