Ute Indian Tribe of the Uintah v. Ute Distribution Corp., No. 10-4213 (10th Cir. 2012)
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Plaintiff-Appellant Ute Indian Tribe challenged three amendments to the articles of incorporation of Defendant Ute Distribution Corporation (UDC). UDC represents former members of the tribe and jointly manages assets with the Tribe's leadership. Perceiving a takeover threat from the Tribe, the UDC board of directors proposed (and the shareholders adopted) the amendments in question, which prohibited persons affiliated with the Tribe from serving on the board. The Tribe sued, arguing the amendments violated Utah state law. The district court granted summary judgment to the UDC. Upon review, the Tenth Circuit held that the amendments were reasonable as a matter of law, and that the UDC board of directors did not violate the covenant of good faith and fair dealing in proposing the amendments or adopting them. Accordingly, the Court affirmed the district court's grant of UDC's motion for summary judgment.
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