Cobell Settlement Land Consolidations to Require New Appraisal Tracking System

From the NYTimes on July 29 (link here).

Here’s an excerpt:

The Interior Department’s inspector general released audits yesterday that shed light on two long-standing problems: divided Indian lands and interagency contracting.

The department faces a difficult task in consolidating tribal ownership of lands as part of a $3.4 billion settlement over federal mismanagement of American Indian trust accounts. More than 21,000 parcels of land have 50 or more owners, and Interior now must spend $1.9 billion to buy back such parcels and consolidate them for redistribution to tribes.

A federal judge approved the Cobell v. Salazar settlement last month, but Interior’s inspector general found that the department has work to do to ensure it can keep up with appraisal requests. A previous IG audit found that 1,000 appraisal reports were past due; now the agency is hoping to replace its old appraisal system to clear the backlog, according to the IG report.

When complete, the Office of Appraisal Services Information System will track appraisal requests and be a one-stop shop for information on tribal land.

DOI OIG Report on Appraisal Tracking System needs

Cobell Settlement Fairness Hearing Transcript

Here.

Cobell Settlement Approved

Here is the story.

Press release here.

Regional Tribal Consultations on Cobell to Start in Billings on July 15th

From the DOI press release:

First Regional Tribal Consultation on Cobell Trust Land Consolidation Program Announced

WASHINGTON, D.C.-Deputy Secretary of the Interior David J. Hayes today announced Billings, Montana as the location for the first of six regional government-to-government tribal consultations regarding the Trust Land Consolidation component of the Cobell Settlement.

“These regional consultations will provide valuable input in developing an implementation strategy that will benefit tribal communities and help free up trust lands,” said Deputy Secretary Hayes. “The consultation process is fundamental to respecting our government-to-government relationship with the tribes and I look forward to meeting with Tribal Leaders from the Rocky Mountain and Great Plains regions.”

On May 27, 2011, U.S. Senior District Judge Thomas F. Hogan granted communication between representatives of the United States and Cobell class members only in regards to the Trust Land Consolidation component of the Settlement.

The dates and locations for the remaining five regional tribal consultations will be announced in the coming weeks. For additional information on the First Tribal Consultation, please click
here.

BACKGROUND:

The Cobell settlement was approved by Congress on November 30, 2010 (Claims Resolution Act of 2010) and signed by President Obama on December 8, 2010. The $3.4 billion Cobell Settlement will address the Federal Government’s responsibility for trust accounts and trust assets maintained by the United States on behalf of more than 300,000 individual Indians. A fund of $1.5 billion will be used to compensate class members for their historical accounting, trust fund and asset mismanagement claims.

In addition, to address the continued proliferation of thousands of new trust accounts caused by the “fractionation” of land interests through succeeding generations, the Settlement establishes a $1.9 billion fund for the voluntary buy-back and consolidation of fractionated land interests. The land consolidation program will provide individual American Indians with an opportunity to obtain cash payments for divided land interests and free up the land for the benefit of tribal communities.

Furthermore, up to $60 million will be set aside to provide scholarships for higher education for American Indians and Alaska Natives.

More information can be found at http://www.doi.gov/cobell

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Jerilyn DeCoteau on Opting Out of the Cobell Settlement

Here.

An excerpt:

I feel cheated because my grandmother was cheated and her heirs were cheated and cowed by the very lack of information, by the lack of answers when questions were asked, cowed into believing we had little or no right to ask about our interest in her allotment. This is one of reasons I opted out: I still don’t know what resources are on the allotments (there are 3) that I have interests in. To say on quarterly statement, which have miraculously appeared in recent years, that the land is leased for “business purpose” or “agriculture” tells me very little. The point is, these leased lands are the source of the trust accounts that are the subject of Cobell and I still don’t know enough about the value of my interests to make an informed decision about whether to agree to settle.

I do know that I continue to feel cheated. My family has never benefited in any meaningful way from our allotments. Now some 110 years later, I have the offer of another paltry piece of paper with a few small numbers typed on it. What am I supposed to do with $500? What would you do? What would you do if you didn’t feel so powerless and like you deserved at least something, even if it is this silly amount called a “settlement”? My daughter pointed out the plain reality, “There are poor people who would gladly take $500, a month’s worth of fuel oil [in a cold North Dakota winter], or a couple of week’s groceries in exchange for a piece of land they will never see and have no money to ever see.”

The fact is, the settlement will make no real difference in the lives of most account holders and can hardly be considered justice in any real sense of the word. It is just a way to put an ugly chapter in American history to rest for the perpetrators, while conveniently ignoring that it is largely a meaningless act for most Indians.

It is not a meaningless exercise, however, for those few who stand to reap large benefits despite the very fact that the suit failed in it essential mission: most trust account holders still don’t know any more about how our lands were mismanaged. Even after 12 years of litigation and hundreds of millions of dollars spent, we still don’t know. But when the few get their big money, the rest are expected to walk away happy with the equivalent of a peanut.

I am not complaining about the named plaintiffs or lawyers in this case. They undertook a noble and heroic mission, though it proved impossible. They went forward, I believe in good faith, with the vision and strength of the best warriors of any Indian nation. They did what they could, but like Red Bear, like Chief Joseph, like Sitting Bull, like Geronimo, like Black Hawk, like Red Cloud, like Louis Riel, like Ira Hayes, like so many good warriors (men and women) trying to make a living and a life on our reservations and from our allotments, it wasn’t enough, it is not enough. They could not turn the tide of history or turn aside the bands of thieves wanting to hand Indians trinkets for their eternal treasures. Still, I honor them, although I can’t help begrudge the real money they will get. And I can’t help but wonder if the large amounts didn’t entice them to “opt in” for all of us.

But again, that is not why I opted out. With the Cobell settlement, I feel like I am standing between “eternity” and a hard place. Some things you just have to hold on to no matter what. Five hundred dollars, on the other hand, is meant to be let go of. Like my grandfather waiting for his allotment, I will likely die waiting to know the truth, but better to wait than to give up on what is right.

Jerilyn Monette DeCoteau is a member of the Turtle Mountain Chippewa. She is on hiatus in her 27 year practice of Indian law. She has three children, six grandchildren and two great grandchildren. She lives in Eldorado Springs, Colorado with her husband, Tod Smith, and son.

Interior to Talk with Class Members About Land Trust Consolidation

From the Department of the Interior:

WASHINGTON – A federal judge, in response to a motion on behalf of the Department of the Interior, has granted permission for Interior officials to begin communicating with class members on land trust consolidation provisions of the Cobell Settlement agreement.  The Department will soon publish a Federal Register notice announcing its intent to begin formal government-to-government consultations with tribal leaders.  Interior expects the land consolidation consultations to begin by late-summer.

Judge Thomas F. Hogan of the U.S. District Court for the District of Columbia granted the motion to communicate with class members on May 27, 2011.  At Interior’s request, the Department of Justice filed the motion with Judge Hogan on April 6, 2011 for permission to communicate with class members regarding trust land consolidation.

The Cobell settlement was approved by Congress on November 30, 2010 (Claims Settlement Act of 2010) and signed by President Obama on December 8, 2010. Interior officials have been under a longstanding court imposed prohibition from communicating with Cobell class members while the litigation continues.  Judge Hogan’s order allowing for communication between the parties states that, “This case has materially changed since the date of any other order that may have prohibited such communication. The case’s posture now compels the Court to grant the motion.”

The $3.4 billion Cobell Settlement will address the Federal Government’s responsibility for trust accounts and trust assets maintained by the United States on behalf of more than 300,000 individual Indians.  A fund of $1.5 billion will be used to compensate class members for their historical accounting, trust fund and asset mismanagement claims.

In addition, to address the continued proliferation of thousands of new trust accounts caused by the “fractionation” of land interests through succeeding generations, the Settlement establishes a $1.9 billion fund for the voluntary buy-back and consolidation of fractionated land interests. The land consolidation program will provide individual American Indians with an opportunity to obtain cash payments for divided land interests and free up the land for the benefit of tribal communities. Individual Indians will receive cash payments for these transfers and, as an additional incentive, transfers will trigger government payments into a $60 million Indian scholarship fund.

The court documents filed by DOJ are at http://www.doi.gov/tribes/special-trustee.cfm.

More information on the Cobell Settlement, including resources for Indian Trust Beneficiaries, is available at http://www.doi.gov/ost/cobell/index.html or http://www.indiantrust.com/index

 

Is Cobell Being Used as a Test Case to Challenge Class Actions by Tort Reform Interests?

The Center for Class Action Fairness now represents at least one IIM account holder, filing an objection to the settlement (link here).

Here is an ABA Journal article on the Center.

And the Indianz article.

Federal Court Approves Cobell Settlement; Fairness Hearing in June 2011

From BLT:

A federal judge in Washington this afternoon preliminarily approved a landmark $3.4 billion settlement in a longstanding class action litigation over the mismanagement of trust fund assets for hundreds of thousands of Native Americans.

Lawyers for lead plaintiff Elouise Cobell and a team of Justice and Interior Department attorneys urged Senior Judge Thomas Hogan to approve the deal. Hogan’s order kicks off a comprehensive notice plan to inform potentially 600,000 beneficiaries of the deal between the plaintiffs and the government.

Hogan and the opposing lawyers today in court recounted what they described as arms-length negotiations that produced a settlement in December 2009 to compensate individual Indians with trust assets held by the federal government. Cobell’s suit, filed in 1996 in Washington’s federal trial court, alleged decades of mismanagement of trust fund assets stemming from the use of land for oil, minerals, gas, timber and other resources.

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BLT: Cobell Lawyers “Object” to Fee Cap in Cobell Settlement

From the BLT:

The nearly $100 million legal fee cap in a landmark class action in Washington is less than half of the amount the plaintiffs’ attorneys could have received through a contingency fee arrangement, the attorneys for lead class member Elouise Cobell said in court papers.

The plaintiffs’ lawyers representing a class of Native Americans agreed in the settlement to a range of fees between $50 million and $99.9 million—money that will be cut from the roughly $1.5 billion in compensation for potentially hundreds of thousands of beneficiaries. The suit, filed in 1996, challenged the government’s mismanagement of billions of dollars of trust fund assets stemming from private use of Indian land.

The fee cap is a far cry from what the plaintiffs’ attorneys call “fair compensation” for a complex civil case that has dragged on in Washington’s federal trial court with no end in sight. The attorneys, including Washington solo practitioner Dennis Gingold and Kilpatrick Stockton partner Keith Harper, argue that more than $223 million is appropriate for legal fees. Click here for a copy of the plaintiffs’ fee notice.

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Obama Signs Cobell Settlement

From BLT:

Obama Signs Indian Trust Legislation: President Barack Obama said legislation he was signing Thursday to implement settlements with American Indians and black farmers was about American principles of “fairness and equality and opportunity.” TPMMuckraker has the story of the signing.