PROVIDENCE R.I.
Rhode Island authorities lost a lawsuit Friday disputing the federal government's ability to take land into trust for American Indian tribes, a case Indian rights groups fear could undermine tribal land across the country.

In a 4-2 decision, the 1st U.S. Circuit Court of Appeals in Boston rejected the state's view that the 1934 Indian Reorganization Act prevents the federal government from taking land into trust for tribes recognized after the law took effect, unless Congress specifically authorized it.

"This case affirms the tribe's federal rights and federal recognition, which have been a matter of debate between the tribe and state for far too long," said Jack Killoy, an attorney for the Narragansett Indian Tribe.

Attorney General Patrick Lynch plans an appeal to the U.S. Supreme Court, said his spokesman, Michael Healey.

At question is whether a 31-acre lot in Charlestown purchased by the Narragansetts should be subject to Rhode Island law, including a prohibition on casino gambling, or whether the parcel should be governed by tribal and federal law.

The dispute began in 1991 when the Narragansetts purchased the land to build an elderly housing complex, which remains incomplete. Acting on the tribe's request, the U.S. Department of the Interior moved to take the land into federal trust, which would place it largely under tribal and federal control.

Gov. Don Carcieri's administration objected, arguing the federal government lacked the authority to create an autonomous tribal enclave in this small state. His lawyers claimed the federal government couldn't set up a trust because the Narragansetts weren't recognized until 49 years after the 1934 law took effect.

Judge Sandra Lynch said the state's interpretation was too narrow because the 1934 law attempted to remedy past wrongs and strengthen tribes.

"Based on this view, it would make no sense to distinguish among tribes based on the happenstance of their federal recognition in 1934," she wrote in the majority opinion.