Lawsuit against Whiteclay beer stores dismissed
The Associated Press / LINCOLN JOURNAL STAR / October 1, 2012
A federal judge on Monday dismissed the Oglala Sioux Tribe’s lawsuit that blamed beer makers and stores in Whiteclay for chronic alcoholism on the nearby Pine Ridge Indian Reservation in South Dakota, saying the case belonged in state court and giving a subtle nod to the tribe’s claims.
The four beer stores named in the suit sold the equivalent of 4.3 million 12-ounce cans last year in Whiteclay, which has about a dozen residents. Alcohol is prohibited on the reservation.
“There is, in fact, little question that alcohol sold in Whiteclay contributes significantly to tragic conditions on the reservation,” U.S. District Judge John M. Gerrard wrote in his ruling. “And it may well be that the defendants could, or should, do more to try to improve those conditions for members of the tribe.
“But that is not the same as saying that a federal court has jurisdiction to order them to do so.”
He dismissed the case without prejudice, meaning the tribe could take its claims to state court.
A tribal spokeswoman had no immediate comment.
An attorney for the tribe has said his clients were seeking $500 million from the beer stores, their distributors and Anheuser-Busch, Molson Coors Brewing Co., MillerCoors LLC and Pabst Brewing Co.
The reservation has struggled with alcoholism for generations, despite an alcohol ban in place since 1832.
An attorney for Pabst declined to comment. Messages left with attorneys for the other companies and the four stores weren’t immediately returned. Some of the stores’ owners have said their insurers told them not to speak with the media.
The lawsuit alleges the stores and beer makers allowed alcohol sales to Pine Ridge residents knowing they would smuggle it onto the reservation to drink or resell. The beer makers supplied the stores with “volumes of beer far in excess of an amount that could be sold in compliance with the laws of the state of Nebraska” and the tribe, the suit says.
The vast majority of Whiteclay’s beer store customers have no legal place to consume alcohol because it’s banned on Pine Ridge, which is just north, and state law prohibits drinking outside the stores. The nearest town that allows alcohol is more than 20 miles south.
The reservation includes South Dakota’s Shannon County, which U.S. census statistics place as the third-poorest in the nation. It has a median household income of $27,300, and nearly half of the population falls below federal poverty standards.
One in four children born on the reservation suffers from fetal alcohol syndrome or fetal alcohol spectrum disorder, and the average life expectancy is estimated between 45 and 52 — the shortest in the Northern Hemisphere except for Haiti, according to a lawsuit. The average American life expectancy is 77.5 years.
Vic Clarke, a Whiteclay grocery store owner and a town spokesman, said Monday that the lawsuit renewed media attention on the town and has triggered a wave of protests from outside groups.
But he said the same focus hasn’t come to bars in other nearby towns — including Swett and Oelrichs, S.D., and Gordon, Neb. — that also serve Natives, noting that a protester last week threw a makeshift stink bomb at one of the town’s beer stores. He also suggested the tribe could legalize alcohol.
Pine Ridge legalized alcohol in 1970 but restored the ban two months later, and an attempt to allow it in 2004 died after a public outcry.