California's plan to halt payday loan services owned by Indian tribes was dealt a setback this week after a state appeals court ruled tribal sovereign immunity stands in the way.

A panel for the Second Appellate District ruled Tuesday that, while the U.S. Supreme Court has not yet analyzed the "arm of the tribe" immunity doctrine, the numerous federal and state courts that have made such inquires developed tests to determine proper application of the doctrine.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.