Judge dismisses Nisqually cigarette sale lawsuit

A federal court judge has upheld an arrangement between Washington state and the Squaxin Island Tribe that allows cigarette sales at Frank’s Landing, a small Indian community between Fort Lewis and Olympia.

For years a smoke shop at Frank’s Landing illegally sold untaxed cigarettes. But after federal agents raided it in 2007, the community agreed to lease the shop to the Squaxins, who had authority to tax cigarette sales and use the money for local projects.

Gov. Chris Gregoire formalized the arrangement by amending the state’s tobacco compact with the Sqauxins. That upset the nearby Nisqually Tribe, which argued that Frank’s Landing was undercutting its own cigarette sales.

The Nisquallys sued, arguing that Frank’s Landing didn’t have authority to enter into the agreement. U.S. District Judge Ronald B. Leighton disagreed in a ruling issued Wednesday, saying the arrangement broke no laws.

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