Lawyers from the Native American Rights
Fund today will ask a federal judge in Washington, D.C., to
grant class-action certification on behalf of 250 tribes
whose tribal trust fund accounts are managed by the U.S.
Interior Department.
Twelve tribes named as lead plaintiffs in the Nez Perce vs.
Interior Secretary Dirk Kempthorne suit are seeking a
complete and historical accounting of their tribal trust
fund accounts managed by the Interior Department for the
past 188 years.
"The situation is so bad on how the government continues to
manage the trust accounts that it's not an easy task to
bring these claims," said Melody McCoy, a NARF attorney.
"The government just resists at every step of the way,
resists turning over the information so tribes can make
their claim. The government knows how bad it is. And they
are terrified of liability."
The Interior Department manages more than 1,800 trust fund
accounts for more than 250 tribes. As of 2007, account
balances for tribal trust funds totaled $2.9 billion. A
restitution award on behalf of tribes could exceed $500
billion, said McCoy, who will present oral arguments
Thursday before U.S. District Judge James Robertson. McCoy
is one of five lawyers who will argue the tribal trust case
on behalf of NARF, a Native legal advocacy organization
based in Boulder, Colo.
Interior Department lawyers filed a motion in June to
dismiss the Nez Perce vs. Kempthorne tribal trust fund case.
They argue tribes have "no legal footing" for claims of
breach of trust and the demand for an accounting because
tribes received account statements, a requirement of the
Trust Fund Management Reform Act of 1994.
NARF lawyers are saying the account statements done by the
Arthur Anderson accounting firm in 1996 were incomplete.
Congress required all tribes to meet a
December 2006 deadline if they wanted to challenge the 1996
Arthur Anderson tribal trust fund reports prepared for the
Bureau of Indian Affairs. Tribes who did not file suit
risked their right to challenge the reports.
At least 47 tribes have filed separate suits in district
court or land claims court for full and complete
accountings.
The Nez Perce vs. Kempthore suit names 12 tribes as lead
plaintiffs, including the Mescalero Apache, Tule River,
Hualapai, Tlingit and Haida, Yakama, Klamath Tribes,
Yurok, Santee Sioux, Cheyenne-Arapaho, Pawnee, Sac
and Fox. If certified, the class-action suit will include
all the tribes that have not filed their own case.
All class members will be notified if and when the suit is
certified by the federal court.
The Interior Department has been assigned the role of
managing money earned from Indian lands, a job that has been
historically wrought with systemic accounting blunders,
according to dozens of Congressional and government reports
over the last century.
Federal bureaucrats have been managing tribal trust lands
since 1820.
It began managing lands for Native individuals in 1887.
Judge Robertson is currently overseeing a similar case.
Cobell vs. Kempthorne, a class-action suit, was filed 12
years ago by Elouise Cobell, a community economic developer
from the Blackfeet Nation in Montana. The Cobell case sought
an historical accounting on behalf of more than 500,000
Native landowners. Robertson has said he will likely
announce a landmark multibillion-dollar cash settlement in
that suit in August.
"He just had the Cobell trial," said McCoy. "He's probably
thinking, 'Oh, my God, look what happened in Cobell. Now, I
have hundreds of tribes coming in."