indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Native American Bank - Native people investing in Native communities
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Navajo Nation trust case on Supreme Court docket again
Thursday, October 2, 2008
Filed Under: Law | Trust

A long-running breach of trust case that the Bush administration claims will encourage more lawsuits was accepted by the U.S. Supreme Court on Wednesday.

The justices will determine whether the Navajo Nation can sue the federal government over a bungled coal lease. The tribe claims it lost $600 million in royalties as the result of improper lobbying during the Reagan administration over 20 years ago.

The Federal Circuit Court of Appeals, has twice sided with the tribe in holding the government liable for mismanaging the tribe's trust assets. Rulings noted that Peabody Energy, the world's largest coal company, pushed Interior Department officials to approve a lease with a less than favorable royalty rate while the tribe was under "severe economic pressure."

But after an appeal by the Bush administration, the Supreme Court reversed the first victory in the case. By a 6-3 vote in March 2003, the justices held that the tribe failed to prove that approval of the lease violated the trust relationship.

On remand, the tribe cited additional laws and regulations that once again convinced the Federal Circuit to hold the government liable. A second appeal followed earlier this year, with the Department of Justice warning about the costs of litigation involving tribes and individual Indians.

"The practical implications of the court of appeals' decision are significant," the government's petition stated. "The tribe's damages claim in this case alone totals $600 million."

"The decision below will encourage the filing of damages claims against the United States for breach of trust with respect to the Secretary's approval of Indian mineral leases," the petition continued, citing 55 pending tribal cases and lawsuits by potentially "thousands of individuals."

The Navajo Nation, the largest tribe in the U.S., filed the case in hopes of recovering the money it would have received under a more favorable lease. At the time, tribal leaders had no idea of the circumstances surrounding Interior's dealings with Peabody.

The Bureau of Indian Affairs initially backed the tribe's request for a higher royalty rate. But an appeal by Peabody drew the involvement of then-Interior secretary Don Hodel.

Without the tribe's knowledge, Hodel met privately with a Peabody lobbyist who happened to be a close friend. Shortly after the meeting, he informed the tribe that a decision on the appeal would not be coming any time soon.

The BIA, however, had written the appeal in favor of the tribe. The decision was suppressed and kept hidden from the tribe until it came to light years later as part of the litigation.

"These unrebutted facts show that the department violated the most basic trust duties of care, loyalty, and candor and that there is 'no plausible defense' for the department's actions here," the tribe's brief in opposition to the government's petition stated.

The Supreme Court, in the 2003 ruling, found no reason to hold the government liable despite the backdoor dealing. The government's briefs in the current appeal describes Hodel's actions but do not mention the lobbyist connection.

The lease with the lower royalty rate was eventually approved by Ross Swimmer, who was the assistant secretary of Indian Affairs at the time. He now serves as the Special Trustee for American Indians, a Senate-confirmed position.

Another Interior official involved in the case was J. Steven Griles, who oversaw the mining division at Interior that studied the issue and at one point supported the tribe. Griles, a former lobbyist for the coal and mining industry, recently completed a 10-month sentence in federal prison for his role in the Jack Abramoff scandal.

In addition to accepting the Navajo case, the Supreme Court yesterday agreed to hear a dispute involving Native Hawaiian lands. As of yesterday, the justices had not said whether or not they will accept two other Indian law cases -- one affecting gaming and the other involving jurisdiction and taxation.

Separate from the lawsuit against the government, the Navajo Nation is suing Peabody under federal racketeering laws. The case has proceeded despite Peabody's attempts to have it dismissed.

Supreme Court Documents:
Docket Sheet: No. 07-1410 | Petition for Certiorari | Brief in Opposition | Reply Brief

Federal Circuit Decision:
Navajo Nation v. US (September 13, 2007)

Supreme Court Decision in US v. Navajo Nation:
Syllabus | Opinion [Ginsburg] | Dissent [Souter]

Related Supreme Court Decision in US v. White Mountain Apache Tribe:
Syllabus | Opinion [Souter] | Concurrence [Ginsburg] | Dissent [Thomas]

Related Stories:
Supreme Court to hear Navajo Nation trust case (10/1)
Supreme Court considers Indian law cases (9/30)
SCOTUSBlog: Supreme Court petitions to watch (09/19)
Bush seeks review of long-running Navajo trust case (5/19)
Court: Navajo Nation owed money for bungled lease (9/14)
Peabody takes coal lease dispute to high court (12/01)
Peabody loses another round in Navajo coal lease fight (6/16)
Judge won't dismiss Navajo Nation suit against Peabody (04/27)
Peabody continues top-level access at Interior (3/17)
Court opens window for Navajo Nation trust suit (10/27)
Court appears ready to toss Peabody appeal (04/15)
Supreme Court's trust rulings criticized (4/14)
Navajo Nation back in court over Peabody lease (4/8)
Effects of Supreme Court decision debated (03/07)
High court ruling makes 'passive' trustee of U.S. (3/5)
A mixed bag for Indian trust (3/5)



Copyright © Indianz.Com
More headlines...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: North Dakota takes on impacts of energy boom (1/26)
Native Sun News: Oglala Sioux man calls on US to honor its word (1/26)
Steven Newcomb: Supreme Court decision influenced by religion (1/26)
Mateo Romero: Era of white American male rule coming to an end (1/26)
Native Sun News: Montana basketball legend gives back to youth (1/23)
Mark Trahant: Building the new digital economy in Indian Country (1/23)
James Giago Davies: Washington team insults the first Americans (1/23)
Gyasi Ross: Indian Country can't get enough of Seattle Seahawks (1/23)
Jay Daniels: A tribute to Crow basketball legend Elvis D. Old Bull (1/23)
Richard Thornton: People of One Fire exposing forgotten history (1/23)
NARF: Supreme Court decision impacts rights of Indian inmates (1/23)
Oglala Sioux medicine man dies awaiting trial in sex abuse case (1/23)
No charges filed for deaths of two people on Barona Reservation (1/23)
IRS placed $664K in tax liens on leader of Lower Brule Sioux Tribe (1/23)
Yellowstone National Park starts transferring bison for slaughter (1/23)
Fire in 1865 destroyed Smithsonian collection of Indian portraits (1/23)
Turtle Talk: Gaming compact cases are extremely difficult to win (1/23)
Governor rejects Menominee Nation off-reservation gaming plan (1/23)
Otoe-Missouria Tribe reaches agreement with city for new casino (1/23)
Chehalis Tribe to start work on $40M expansion of gaming facility (1/23)
Idaho lawmakers question gaming machines at non-Indian tracks (1/23)
State of Indian Nations as delivered by NCAI President Cladoosby (1/22)
Sen. Barrasso delivers response to NCAI's State of Indian Nations (1/22)
Native Sun News: Tribes step up with donations for cultural center (1/22)
Ivan Star: Indian Country must put more effort in public relations (1/22)
Steven Newcomb: Indian policy is unmistakenly linked to religion (1/22)
Harlan McKosato: Apache woman develops 'indispensible' guide (1/22)
Tristan Ahtone: Former Native gang member tries to start anew (1/22)
Q&A with Chemehuevi artist Cara Romero on 'Last Indian Market' (1/22)
Sainthood for founder of brutal California Indian mission system (1/22)
Native mayor promises to change city's reputation as most racist (1/22)
Deadline passes to appeal Fond du Lac Band land-into-trust case (1/22)
City rejects Citizen Potawatomi Nation land detachment petition (1/22)
Oklahoma lawmakers debate future of unfinished Indian museum (1/22)
Yocha Dehe Wintun Nation inaugurates Leland Kinter as chairman (1/22)
City to enter public transportation contract with Mississippi Band (1/22)
Officials in Idaho won't try to find a new name for 'Squaw Butte' (1/22)
Opinion: Blood Run landmark a place of reverence for area tribes (1/22)
Chukchansi Tribe set to run out of money for gaming per capitas (1/22)
Forest County Potawatomi Tribe sues BIA over rejected compact (1/22)
Menominee Nation expects fast action from BIA on new compact (1/22)
Some CSKT leaders question $27.4M expansion of gaming facility (1/22)
Narragansett Tribe wins litigation filed by former gaming partner (1/22)
Column: Tribes concerned about commercial casinos in New York (1/22)
Native Sun News: Oglala Sioux Tribe contests uranium expansion (1/21)
Clara Caufield: Run recalls days of horror for Northern Cheyenne (1/21)
Brandon Ecoffey: Officer shooting reveals anti-Indian sentiment (1/21)
Ron Allen: Jamestown S'Klallam Tribe supports bond for schools (1/21)
Erik Stegman: Setting the record straight on gaming per capitas (1/21)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.