Navajo Business Owner Prevails When Lawsuit is Dismissed: “Like David Slaying Goliath”
FLAGSTAFF, ARIZONA — Navajo business-owner, Jerome Tsosie, received a nice present courtesy of a district court judge one week before Christmas when the judge signed on December 18, 2013 an order dismissing a lawsuit against his company.
A lawsuit was brought against Tsosie, one of his employees and his company by a competitor, CamNet, a non-Native company which does business on the Navajo Nation.
For Tsosie, the lawsuit dismissal was comparable to David slaying Goliath.
“It comes down to a large company not wanting a Native-owned business getting business they had,” said Tsosie, who claims CamNet set out to attempt to shut out his company on the Navajo Nation.
Tsosie co-owns Native Innovation, Inc. with Chris Muhlenfeld, a disadvantaged Native American-owned and veteran-owned small business.
Native Innovations provides education and cultural preservation services to customers on American Indian reservations. Native Innovations partners with Unity Technology Services LLC to provide enterprise computer network sales and services.
Based in Flagstaff, the company provides computer services to numerous schools on the Navajo Nation.
Native Innovation gained respect in Indian country by developing the free Diné Keyboard. In late 2012, Native Innovation, Inc. introduced the Diné Keyboard application for Apple products, such as iPhones and iPads. Last August a free Diné Keyboard application for Android device was released. The Diné Keyboard makes it possible for users to type in and removes many of the frustrations that users have with typing the Navajo language using the default iPhone and iPad keyboard.
Native Innovation and CamNet compete to install computer networking equipment and IT support to schools in Arizona and New Mexico.
CamNet brought the lawsuit after Native Innovation, Inc. hired one of CamNet’s salesmen away last May. The company alleged the employee signed a Non-Solicitation Agreement that prevented him to work for a competitor for 24 months after he left CamNet’s employment.
Prior to filing its lawsuit, CamNet sent a “cease-and-desist” letter to the employee and Native Innovation telling both the employee and Native Innovation: “Please immediately cease and desist from contracting, visiting or soliciting any CamNet customers.”
Soon thereafter, CamNet filed its lawsuit in Second District Court in Bernalillo County, New Mexico.
Both companies attended a hearing heard by District Court Judge Alan M. Malott.
Native Innovation’s attorney, Lorena Olmos, of the Modrall, Sperling, Roehl, Harris & Sisk law firm, based in Albuquerque, New Mexico argued:
“This is not a typical non-solicitation contract case. These companies, CamNet and Native Innovation, both provide services to schools. Native Innovation serves schools on the Navajo reservation. Specifically, they work with Bureau of Indian Education and Navajo Nation operated schools to implement smart boards, Promethean boards…This background is important because it informs our analysis of the subject matter jurisdiction questions.”
After hearing arguments of both parties, Judge Alan Malott dismissed the case without prejudice and deferred the case to Navajo Tribal Courts to hear the claims through the doctrine of comity, which is a legal mechanism that allows one court to recognize the authority of the other court. In this case, the county district court recognizes the authority of the Navajo tribal courts.
The judge gave CamNet ten business days to amend its lawsuit. Given the holidays that are not considered business days, CamNet has until today, January 6, 2014 to act.
“We’re really hoping that they will drop this insanity now, but we have no idea what they’re planning on doing. It’s all very frustrating,” Muhlenfeld commented to the Native News Online.
In the meantime, Tsosie and Muhlenfeld feel confident they can prevail in Navajo tribal court if the case gets that far.
UPDATED: Monday, January 6, 2014 at 1:17 pm – EST
God I hope the Navajo’s win this case! I am so sick and tired of seeing Native business’s having to fight just to open any business. This is a very special tribe and close knit. I am very old and have seen Native fight to be independent of the government with everything stacked against them. This isn’t the only tribe with problems. I will be praying that the tribal court rules with the right decision for Natives! Am sure big business will try and appeal or buy some judge to get what they want
Sandy the case was dismissed in NM courts but they might still file another amendment.
I join you in your prayer for the right decision for Natives. The tribal court should recognize natives have a paramount right to establish businesses on their own reservations to serve their memberships as authorized through legislative acts of the Congress.
I totally ageee. Natives serving Natives. Supporting our own people within our own lands. Its time for a change since the Navajo Treaty of 1868.
Jerome I am standing with you in prayer also. We, the Navajo Nation as a whole, have and have had many Goliath, but they are blind to the fact that we are supernaturally equipped and protected by our prayers. Just like David of old, keep running towards the Goliath till he is utterly defeated. You will prevail in your endeavor for your business is a must and needed for our Navajo children and youth.
Yes we have to support our own people to come even more successful! We have educated people out there who come back and give back to the people.
This is insane on the part of CamNet when you consider this country is supposed to be based on free enterprise, which involves competing against other businesses!! Tell me what is illegal about Native Innovations?
They think we are unethical. Go figure. It comes to us servicing our people on the Navajo Nation.
We just want to serve our customers. This lawsuit has put a nasty financial strain on our small business, and it’s hurt our employees and their families. We had to reduce our holiday bonuses because we had to spend so much money on legal fees. We love our attorney, and she is worth every penny that we pay her (and more) but when a lawsuit like this is filed, as a business, we have no choice but to defend ourselves.
While we’re hopeful that CamNet will not pursue this ridiculousness any further, we hope that that they first consider the implications as related to the Navajo concept of “K’e” and the universal concept of “karma.” http://www4.nau.edu/nativescience/Background.htm
Agreed.