BLT: Showdown over Cobell Fees in Congress

From the Blog of the Legal Times:

The U.S. Senate is poised to vote soon on a jobs-and-tax package that would also authorize a settlement in long-running litigation over American Indian trust accounts. Still to be decided: what the cap will be for attorneys fees in that case.

Lawyers in the case, named for lead plaintiff Elouise Cobell,agreed to cap fees at $100 million. Sen. John Barrasso (R-Wyo.) is proposing to set the cap at $50 million, and he introduced anamendment (PDF) this week to do so.

Senators could vote on the amendment as soon as next week, or they might not consider it at all. A spokeswoman for Senate Majority Leader Harry Reid (D-Nev.) said today that no agreement has been reached.

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Government Files Opposition to Cobell Cert Petition

Here: Cobell Cert Opp.

Importantly, Supreme Court nominee Elena Kagan’s name is not on this brief. Presumably, that means she wouldn’t recuse. However, it’s all academic if Congress passes the settlement….

BLT: House Passes Cobell Settlement

From BLT:

House Passes $1B Settlements for Indians, Black Farmers

The U.S. House of Representatives voted today for a jobs-and-tax package that includes approval of two $1 billion-plus settlements for American Indians and black farmers.

The 215-204 vote is a major breakthrough for the settlements, which would serve to end two long-running court cases. Supporters had been working for months to overcome objections, including over the amount to be awarded in attorney fees, without making much progress.

But the settlements still need Senate approval. That won’t happen until the week of June 7 at the earliest, because senators have left Washington for a week-long Memorial Day recess.

Senior Judge James Robertson of the U.S. District Court for the District of Columbia had been hinting at a confrontation with lawmakers if they did not act. In an April 8 hearing, Robertson extended a deadline for the $1.41 billion Cobell settlement until the end of May and said he would invite members of Congress to a hearing if they had not acted by then. That case involves lost royalty funds flowing from the use of natural resources on Indian land.

The Cobell parties have agreed to another extension, this time until June 15. Kilpatrick Stockton co-managing partner William Dorris, a lead attorney for Cobell plaintiffs, said the parties in the litigation can mutually agree to extend the settlement deadline without judicial approval, and that they are notifying Robertson.

“It’s taken some time to get this before Congress. Needless to say, we are appreciative of the House leadership and many others in the House,” Dorris said. “We start the long weekend on an upbeat note.”

D.C. solo practitioner Dennis Gingold, another lead attorney for the Cobell plaintiffs, also said he was pleased with the House vote. “They got it done,” he said.

Three weeks ago, Senate Majority Leader Harry Reid (D-Nev.) tried unsuccessfully to attach the settlements to disaster-relief legislation.

Angelique EagleWoman on the Cobell Settlement

From ICT:

As a law professor who teaches civil procedure, I want to explain the due process problems with the United State government’s proposed settlement of the Cobell lawsuit. It was originally filed as a class action on behalf of Indian owners of trust lands seeking an accounting from the U.S. Under the federal rules of civil procedure, this type of lawsuit asking for an action – the accounting – is the type of class action where you are bound by the judgment. When a class action is filed requesting money damages as a remedy, due process kicks in at the highest levels and every person has the right to “opt-out” and file their own lawsuit. Everything has been twisted up in the Cobell Proposed Settlement.

There is no incentive for Interior to use the fund if it can save the U.S. government money by simply not doing anything.

The CPS has three levels of payments to individuals for this accounting action to total $1.4 billion. First, the four named plaintiffs are set to receive $15 million. Second, the historical class is tied up with the accounting claim and not allowed to opt-out and will only receive $1,000 for all of their claims dating back to the General Allotment Act of 1887. This violates the Federal Rules of Civil Procedure Rule 23(b) which mandates money damage class actions provide opt-out provisions. This turns the tables on the original filed lawsuit and binds those with the longest claims to a payment that cannot possibly represent what is owed to them or what should be the damages for mismanagement of their lands.

Third, the Trust Administration Class gets paid last, if there is money left from the $1.4 billion, with a bottom line payment of $500 and then a formula kicks in. This last group is considered a “money damages” group, and they can decide to opt-out and file their own claim. The historical class can be counted here for an additional $500 (totaling a whopping $1,500 for 120 years of mismanagement). The formula that may add to the $500 looks to the past balances of the Individual Indian Money account over 10 years and uses that as the amount to be compensated. So, if the U.S. government really mismanaged your account and put in zero dollars, then under the formula – you get $500 plus zero dollars.

My proposal would be to put all class members into the first group – yes, everyone should get $15 million just like the four named plaintiffs if we are going to be fair about this. Secondly, the U.S. government admits no wrongdoing whatsoever in this proposed settlement. Several times the secretary of the Interior has been held in contempt by the federal district court and yet, the settlement does not acknowledge any wrongdoing on the part of the U.S. government. There isn’t one word of apology. As originally filed, the complaint estimated more than $48 billion was owed to the entire plaintiff class. The first part of the settlement amounts to a measly $1.4 billion with the majority going to the four named plaintiffs and their attorneys.

At every step, the U.S. government has used its attorneys to fight this simple action asking for an accounting.

Part two of the settlement contains a $2 billion fund administered by the Department of the Interior to purchase from individual Indians’ their fractionated land interests and transfer them to the tribal government. Under the proposed settlement, Interior has 10 years to use up the fund or it reverts back to the U.S. Treasury. Yes, you read that right – there is no incentive for Interior to use the fund if it can save the U.S. government money by simply not doing anything.

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Cobell Settlement May Be Scuttled by Lower Attorney Fee Amendment

From Law.com:

Congressional approval of one of the largest class action settlements in U.S. history is getting hung up on the issue of legal fees for plaintiffs lawyers.

The $3.4 billion Indian trusts settlement agreed to in December could be scuttled if Congress doesn’t approve the terms of the agreement by May 28, according to The Associated Press.

The tentative settlement would close the books on a class action filed in 1996 on behalf of 300,000 American Indians. The plaintiffs in the suit claimed that as trustee for 145 million acres of land under theDawes Act of 1887, the U.S. Department of the Interior mismanaged trust accounts and allowed the federal government to give the best land to white settlers. The settlement calls for plaintiffs to be paid $1.4 billion — about $1,500 per class member- — and for a $2 billion fund to be set up to buy American Indian land.

The potential snag now, as reported by sibling publication The Blog of Legal Times, is a move by Sen. John Barrasso of Wyoming to cap attorney fees in the case at $50 million. That has one of the plaintiffs lawyers who spent years litigating the matter crying foul.

Dennis Gingold — a solo practitioner in Washington, D.C., who serves as lead counsel to the plaintiffs — told the AP that he will terminate the settlement and resume litigation unless Congress approves the agreement without altering any of its terms. Gingold told The BLT that Barrasso’s sentiments fly in the face of a previous fee cap of $100 million agreed to in December, which would give Gingold and his co-counsel at Kilpatrick Stockton fees totaling between $50 million and $100 million.

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Cobell Settlement Deadline Extended until Late May

As announced today at the Fed Bar meeting at Buffalo Thunder….

Via the BLT:

A federal judge in Washington today implored Congress to pass necessary legislation approving a billion-dollar settlement in long-running Indian trust suit, saying that justice is on hold because of inactivity on Capitol Hill.

Senior Judge James Robertson of the U.S. District Court for the District of Columbia spoke today during a status conference in the suit, Cobell v. Salazar, which was filed more than a decade ago here. Justice and Interior department officials announced a $1.41 billion settlement in December in the suit, which seeks a historical accounting of billions of dollars of royalty funds flowing from the use of natural resources on Indian land.

The suit, filed in 1996, requires congressional authorization to approve the settlement amount. But since the settlement was announced, two deadlines have passed without congressional approval of the deal. The latest deadline, April 16, was extended today until the end of May. The lead plaintiff, Elouise Cobell, was skeptical the April 16 deadline would be met.

Robertson announced the extension today in court following a 45-minute meeting with Justice and Interior lawyers and the attorneys for the plaintiffs. Associate Attorney General Tom Perrelli, who was active in negotiating the settlement, participated in the meeting in chambers.

In court, Robertson called the settlement a “win-win proposition” for the plaintiffs and the government. He cautioned, however, that his remarks were not meant to be construed as a final approval of the deal. Once Congress approves the settlement amount, members of the plaintiffs’ class will have a chance in court to object to the settlement.

“The need for Congress to act is real,” Robertson said today. “Until or unless Congress acts the lawyers on both sides who have devoted themselves to this case for 15 years are on hold. More importantly, all of Indian Country is on hold.”

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Revised FBA Indian Law Conference Brochure

We’ve added a last-minute panel on Cobell, featuring Eloise Cobell, Hilary Tompkins, Michael Finley, Richard Monette, and Bill Dorris.

Here is the updated material:

indlaw-brochure10-revised

News Coverage of Cobell Hearing

From the National Law Journal (h/t to Mike):

Senior administration officials on Wednesday defended the proposed $1.4 billion settlement to resolve a long-running Indian trust dispute, telling skeptical members of a House committee that the resolution, which requires congressional authorization, is fair and appropriate.

Members of the House Natural Resources Committee questioned Thomas Perrelli, the associate attorney general, and David Hayes, deputy secretary for the Interior Department, about the settlement to resolve the lawsuit that Elouise Cobell filed in 1996 in the U.S. District Court for the District of Columbia.

Lead class member Cobell, represented by D.C. solo practitioner Dennis Gingold and a team of Kilpatrick Stockton lawyers from Washington and Atlanta, is seeking an historical accounting of billions of dollars the federal government has held in trust for American Indians. The suit alleges mismanagement in the collection and distribution of money owed to Indians stemming from the exploitation of natural resources on their land by private parties.

On Wednesday, several members of the House committee questioned whether the dollar amount of the suit is sufficient to settle the claims. The members also are trying to wrap their heads around the proposed range of attorney fees in the case — $50 million to $100 million. Obama administration officials, including Attorney General Eric Holder Jr., announced the settlement in December at a press conference at the Interior Department.

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House Resources Committee Hearing on Cobell Settlement — UPDATED with Written Testimony

From House Resources Committee:

Panel 1:

The Honorable Michael Finley
President
Intertribal Monitoring Association on Indian Trust Funds
Albuquerque, New Mexico

The Honorable Austin Nunez
Chairman
Indian Land Working Group
Tucson, Arizona

Professor Richard Monette
Madison, Wisconsin

Panel 2:

The Honorable David Hayes
Deputy Secretary
U.S. Department of the Interior
Washington, D.C.

accompanied by the Honorable Hilary Tompkins
Solicitor
U.S. Department of the Interior
Washington, D.C.

The Honorable Thomas J. Perrelli
Associate Attorney General
U.S. Department of Justice
Washington, DC

Panel 3:

Ms. Elouise C. Cobell
Lead Plaintiff in Cobell v. Salazar
Browning, Montana

Opening Statement:
Chairman Nick J. Rahall

The hearing will be webcast live on the Committee’s Web site at:http://resourcescommittee.house.gov.

NCAI Cobell Settlement Resolution Confusion

Just to be clear, the resolution posted here yesterday is a proposed resolution.

Here is the current resolution supporting the Cobell Settlement: Resolution on Cobell Settlement