Officials defend Indian trust settlement
By LEDYARD KING • Great Falls Tribune, Washington Bureau • March 11, 2010
WASHINGTON — Obama administration officials Wednesday vigorously defended the $3.4 billion settlement of a class-action lawsuit over the long-standing federal mismanagement of Indian tribal trusts, countering criticisms of exorbitant lawyers' fees, meager payouts to victims and a lack of overall transparency.
"We feel this settlement is fair and appropriate," David Hayes, deputy Interior secretary, told members of the House Natural Resources Committee. "We want to close the book and look ahead."
Many lawmakers and much of Indian Country applauded the announcement in December that the federal government had reached a resolution with Blackfeet tribal member Elouise Cobell from Montana. She sued in 1996, alleging that the Interior Department for more than a century had mismanaged billions in payments due to Indians for leases and rights from grazing, oil, timber and other resources on their lands.
The settlement would provide $1.4 billion to more than 300,000 Indians scattered mostly west of the Mississippi River. Each would receive at least $1,000.
The government also would spend up to $2 billion voluntarily buying up small parcels of reservation land held by multiple owners that are expensive to manage and do not generate much income. The land then would be turned over to the tribe. In addition, the agreement calls for the creation of a committee to evaluate ongoing tribal trust issues.
Although both sides have signed off, the settlement cannot be finalized unless Congress approves a bill authorizing the payout. But legislation has yet to be introduced, and Cobell said Wednesday she’s disappointed the procedure is taking so long.
“You can do the right thing,” she told the committee. “You can act and act quickly and get this approved so we can get money to individual Indians that have been abused for so many years.”
The court has given Congress until April 16 to act, but that deadline already has been extended once and could be again.
Several lawmakers voiced concerns about the size of the legal fees, which could reach $100 million and would be taken out of the $3.4 billion.
“When every dollar that goes into the pocket of a lawyer comes out of the pocket of an individual Indian, I think it’s our responsibility as members of Congress to look at this very closely,” said Rep. Doc Hastings of Washington state, the senior Republican on the committee.
Cobell called the legal fees, which would be about 3 percent of the entire settlement, a “bargain-basement amount” considering law firms typically command as much as 30 percent of a class-action award.
Committee members weren’t exactly thrilled with the overall payout, either. Eni F.H. Faleomavaega, a Democrat who represents American Samoa, called it “a pittance” to right a century-old wrong. Cobell defended the amount, pointing out that a federal judge last year wanted to hold the government responsible for only about $450 million.
Not all Indians are on board with the plan.
Richard Monette, a University of Wisconsin law professor and former chairman of the North Dakota-based Turtle Mountain Band of Chippewa, told the committee that the deal between Cobell and the administration improperly seeks to settle claims it has no authority to resolve and could take away the rights of some Indians to sue in the future. He accused the government and Cobell of “collusion” and for not doing nearly enough to tell Indians what their legal rights are and what’s at stake for them.
“This legislation will dangle (money) in front of my tribal members, where there’s 80 percent unemployment, and say: ‘Will you take this in exchange for whatever has happened in the past?’ ” Monette said. “And I’m afraid they’re going to say ‘Yes.’ ”