The U.S. Supreme Court case C & L Enterprises, Inc. v. Citizen Band Potawatomi Indian Tribe of Oklahoma in 2000 revolved around a contract dispute between the two parties and whether or not an Indian tribe could claim sovereign immunity to avoid arbitration as stipulated by their agreement with C&L Enterprises, a non-Indian company. The Citizen Band Potawatomi Tribe had contracted with C&L for roof repair on one of its commercial properties but later cancelled the contract before work began, leading to a lawsuit from C&L for breach of contract and damages incurred due to project delays. The tribe claimed sovereign immunity against this suit; however, the Supreme Court ruled that by entering into a commercial contract containing an explicit arbitration clause which was governed under state law, they had effectively waived their right to tribal sovereign immunity in this instance.

In the dissenting opinion for C & L Enterprises, Inc. v. Citizen Band Potawatomi Indian Tribe of Oklahoma, Justice Thomas disagreed with the majority's interpretation of a waiver clause in an arbitration agreement between a private corporation and an Indian tribe. He argued that the language used in this particular contract did not clearly express intent to waive tribal sovereign immunity from suit in state court as required by precedent. The majority interpreted "all disputes" to include suits brought against tribes in any forum whereas Justice Thomas believed it should be read more narrowly due to its placement within a section detailing procedures for resolving disputes through arbitration rather than litigation. Furthermore, he contended that even if there was ambiguity about whether or not such waiver was intended, doubts should be resolved favorably towards preserving tribal sovereignty because it is fundamental principle deeply rooted in history and policy.