Here’s a headline that shouldn’t be buried in lame duck Congress folderol nor holiday news doldrums: The U.S. Department of Interior (DOI) and plaintiffs in the Cobell case reached a settlement that the court has approved. This is the end of litigation — parties hope — on the long-running saga of government mismanagement of trust accounts held by the Bureau of Indian Affairs (BIA) for the benefit of Native Americans, over the last century.
Billions of dollars went missing to bad accounting.
Wikipedia has a concise, but thorough enough description of the case and its predecessors:
Cobell v. Salazar (previously Cobell v. Kemp- thorne and Cobell v. Norton and Cobell v. Babbitt) is a class-action lawsuit brought by Native American representatives against two departments of the United States government. The plaintiffs claim that the U.S. government has incorrectly accounted for the income from Indian trust assets, which belong to individual Native Americans (as beneficial owners) but are managed by the Department of the Interior (as the legal owner and fiduciary trustee). The case was filed in the United States District Court for the District of Columbia. The original complaint asserted no claims for mismanagement of the trust assets, since such claims could only properly be asserted in the United States Court of Federal Claims.
Arguments, appeals and deeper investigation strung the case out; lead plaintiff Elouise Cobell, a member of the Blackfoot Tribe, did not live to see the end of the case (she died in 2011).
It’s difficult to judge whether justice has been served in this case, and that judgment may not be ripe for many years. Ending the litigation should create some hope for better conditions on Indian Reservations, and for Native Americans across the nation. Especially the education benefits of the law required to settle the case, could provide a foundation for future prosperity of the affected tribes and people.
Salazar Announces Final Steps on Cobell Litigation and Implementation of Settlement
Settlement includes land consolidation program to help promote tribal self-determination and strengthen economic development
WASHINGTON, D.C. – Secretary of the Interior Ken Salazar today lauded the final approval of the Cobell settlement and outlined steps that Interior will take to help implement the historic $3.4 billion settlement. The settlement resolves a long-running class action lawsuit regarding the U.S. government’s trust management and historical accounting of individual American Indian trust accounts. It became final on November 24, 2012, following action by the Supreme Court and expiration of the appeal period.
“With the settlement now final, we can put years of discord behind us and start a new chapter in our nation-to-nation relationship,” said Salazar. “Today marks another historic step forward in President Obama’s agenda of reconciliation and empowerment for Indian Country and begins a new era of trust administration.”
The settlement includes a $1.5 billion fund to be distributed to class members for accounting and potential trust fund and asset mismanagement claims. The settlement also includes a $1.9 billion fund for a land consolidation program that allows for the voluntary sale of individual land interests that have “fractionated,” or split among owners, over successive generations. Fractionated land can have many owners – sometimes hundreds or more – diminishing the land’s value and making it difficult for individuals to use the land for agriculture, business development, or housing from which tribes can benefit. Up to $60 million of the $1.9 billion fund may be set aside to provide scholarships for American Indians and Alaska Natives to attend college or vocational school.
“This marks the historic conclusion of a contentious and long running period of litigation,” said Hilary Tompkins, Solicitor for the Department of the Interior. “Through the hard work and good will of plaintiffs, Interior and Treasury officials and Department of Justice counsel, we are turning a new page and look forward to collaboratively working with Indian country to manage these important funds and assets.”
Payments to Claimants
The Claims Administrator will now begin overseeing disbursement of the $1.5 billion to nearly 500,000 class members. The court previously approved GCG, Inc., as the Claims Administrator. The Department of the Treasury will transfer the $1.5 billion to an account at JP Morgan Chase, a bank approved by the court. Per the terms of the settlement agreement, Interior’s Office of the Special Trustee (OST) has assisted GCG with its database by supplying contact information of individual class members from its records.
“We will continue to work with GCG to ensure it has the information it needs to make expeditious and accurate payments,” Deputy Secretary of the Interior David J. Hayes said. “At the same time, we’re focused on making meaningful improvements to our trust administration so that we’re more transparent, responsive and accountable in managing these substantial funds and assets.”
Trust Land Consolidation Program
The Department of the Interior will use $1.9 billion from the Trust Land Consolidation Fund to acquire interests in trust and restricted lands that have “fractionated” over successive generations since the 1880s.
Individual owners will be paid fair market value for such interests with the understanding that the acquired interests will remain in trust and be consolidated for beneficial use by tribal communities. Interested sellers may convey their fractional interests on a voluntary basis. Currently, there are over 2.9 million fractional interests owned by approximately 260,000 individuals.
While the settlement was pending, Interior held a series of consultation meetings with tribes in 2011 to ensure that this landmark program incorporates tribal priorities and promotes tribal participation in reducing land fractionation in a timely and efficient way. These discussions informed a draft land consolidation plan released in February of 2012. Interior is incorporating public comments and expects to release an updated plan by the end of the year for additional consultation.
“The land consolidation program is our chance to begin to solve a fractionation problem that has plagued Indian country for decades,” said Interior Assistant Secretary of Indian Affairs Kevin K. Washburn. “We are anxious to get started. We know that Interior’s continued outreach through consultations with Indian Country is a crucial component to accomplishing truly open government-to-government communication”
Congress approved the Cobell settlement on November 30, 2010 as part of the Claims Resolution Act of 2010. President Obama signed the legislation on December 8, 2010. The district court approved the Cobell settlement on August 4, 2011 and it has been upheld through the appeals process.
For additional information about the individual class-action payments, please contact GCG, Inc. at 1-800-961-6109 or via email at Info@IndianTrust.com
For additional information on the Trust Land Consolidation Program, please visit http://www.doi.gov/cobell/index.cfm
- Page in memory of Elouise Cobell, the lead plaintiff in the case — who died in 2011; President Obama described Ms. Cobell, and the litigation, in remembering her: ¶”As treasurer of the Blackfeet Nation, Elouise spoke out when she saw that the federal government had failed to account for billions of dollars that it owed to hundreds of thousands of her fellow Native Americans. In 1996, she filed suit, and for 15 years, tirelessly led a legal battle, with seven trials, 10 appeals, and dozens of published decisions. She fought her battle not just in the courts, but in the halls of Congress before finally securing justice for more than 300,000 American Indians and Alaska Natives in the form of a $3.4 billion settlement. ¶”The agreement reached in Cobell v. Salazar marked the largest government class-action settlement in our nation’s history. The scholarship fund this settlement established will give more Native Americans access to higher education. Tribes will have more control over their own lands. Elouise’s tireless efforts strengthened the government-to-government relationship with Indian country, and a generation of Native Americans and all Americans has seen the promise of justice realized. ¶”Last December, I had the privilege to meet with Elouise in the Oval Office prior to signing into law a bill to make things right. The Claims Resolution Act of 2010 is a direct result of the settlement that bears her name. It is proof of an enduring American idea – that change is always possible.”
- Key documents and history at IndianTrust.com
- FAQ on the settlement, from IndianTrust.com
- Historic Native American Class Action ‘Finally Has Ended’ (legaltimes.typepad.com)
- First checks from Cobell lawsuit settlement to be mailed soon (missoulian.com)
- $3.4B Indian lawsuit ends, disbursements to begin (seattletimes.com)
- $3.4 billion Indian land royalty lawsuit ends after nearly 17 years, checks to be disbursed (theprovince.com)
- $3.4B Indian lawsuit ends, disbursements to begin (utsandiego.com)
- US finalizes $3.4 billion settlement with American Indians in class-action suit – CNN International (edition.cnn.com)
- U.S. finalizes $3.4 billion settlement with American Indians (cnn.com)
- “Cobell case: $3.4 billion Native land royalty case settlement upheld,” The Missoulian, May 22, 2012