Cobell v. Salazar

679 F.3d 909, 400 U.S. App. D.C. 428, 82 Fed. R. Serv. 3d 758, 2012 WL 1843982, 2012 U.S. App. LEXIS 10230
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 22, 2012
Docket11-5205
StatusPublished
Cited by31 cases

This text of 679 F.3d 909 (Cobell v. Salazar) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cobell v. Salazar, 679 F.3d 909, 400 U.S. App. D.C. 428, 82 Fed. R. Serv. 3d 758, 2012 WL 1843982, 2012 U.S. App. LEXIS 10230 (D.C. Cir. 2012).

Opinion

Opinion for the Court by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

This is an appeal from the approval of a class action settlement agreement related to the Secretary of the Interior’s breach of duty to account for funds held in trust for individual Native Americans. Class member Kimberly Craven challenges the fairness of the settlement, contending principally that an impermissible intra-class conflict permeates the scheme to compensate class members for surrendering their established right to injunctive relief and that this conflict undermines the commonality, cohesiveness, and fairness required by Federal Rule of Civil Procedure 23 and due process. The record, however, fails to confirm either the existence of the purported intra-class conflict or a violation of due process. Rather, the record confirms that the two plaintiff classes possess the necessary commonality and adequate rep- *913 reservation to warrant certification, and that the district court, therefore, did not abuse its discretion in certifying the two plaintiff classes in the settlement or in approving the terms of the settlement as fair, reasonable, and adequate pursuant to Rule 23(e). Accordingly, we affirm the judgment approving the class settlement agreement.

I.

In 1996, Eloise Cobell and four other Native Americans filed a class action alleging a breach of fiduciary duties by the Secretary in managing the class members’ “Individual Indian Money” (“IIM”) trust accounts. “The bulk of the trust assets ‘are the proceeds of various transactions in land allotted to individual Indians under the General Allotment Act of 1887, known as the Dawes Act.’” Cobell v. Salazar (“Cobell XXII”), 573 F.3d 808, 809 (D.C.Cir.2009) (citation omitted). The class, certified pursuant to Federal Rule of Civil Procedure 23(b)(1)(A) and (b)(2), sought injunctive and declaratory relief in the form of an historical accounting. Id. 1 Their right to an historical accounting arose under the American Indian Trust Fund Management Reform Act of 1994 (“the 1994 Act”), 25 U.S.C. § 162a et seq. (2006); id, §§ 4001-4061. Cobell XXII, 573 F.3d at 810. The Act did not specify, however, the proper scope of such an accounting or the methodology by which it could be accomplished. Id. at 813; Cobell XX, 532 F.Supp.2d at 42. During the initial stages of the litigation, the Secretary proposed several plans for accomplishing an accounting. See Cobell XX, 532 F.Supp.2d at 47-56. For example, in a 2002 report to Congress, the Secretary described plans “to conduct a transaction-by-transaction reconciliation of all funds in the IIM accounts through December 31, 2000,” and to provide historical statements of account for each account. Id. at 48. The estimated cost was $2,425 billion. Id. Congress “requestl'ed] that the Secretary ‘promptly consider ways to reduce the costs and the length of time necessary for an accounting ... [including] alternative accounting methods.’ ” Id. The Secretary then developed a plan in 2003, which was to rely on statistical sampling and use only limited transaction-by-transaction reconciliation, at an estimated cost of $335 million. Id. at 48-49. “Between 2003-2007, however, not only did Interior receive only $127.1 million in appropriations for its IIM historical accounting work, but it also discovered that the accounting process it had envisioned would be both more costly and more time-consuming than it had anticipated.” Id. at 56. Consequently, as the litigation entered its eleventh year, the issue of the proper scope and methodology of an historical accounting had yet to be resolved. In October 2007, the district court held a trial to address these and other questions.

At trial, the Secretary offered evidence regarding the latest plan (“the 2007 Plan”) for accomplishing an historical accounting in compliance with the 1994 Act. The 2007 Plan relied on statistical sampling for account and transaction reconciliation to an even greater extent than the 2003 Plan. In addition, the total number of transactions to be reconciled was significantly reduced, and the provision of asset statements to account beneficiaries was eliminated. See id. at 56-58. The Secretary’s explanation for these changes to the scope and methodology of the proposed accounting echoed those offered in 2003 for tailoring the 2002 proposal: “Original cost and time esti *914 mates were off by several multiples, and Congress failed to appropriate the funds Interior had requested and expected.” Id. at 58. The 2003 Plan was now estimated to cost $1,675 billion to complete, with an average cost of $3,000 to $3,500 for reconciliation of a single transaction. Id. In contrast, the Secretary estimated completion of the 2007 Plan would cost $271 million. Id. at 81. Despite the reduced ambitions of the 2007 Plan, the average cost of the accounting for a single transaction still would likely exceed the average value of that transaction, id. at 92, and, more significantly, the 2007 Plan would “not provide beneficiaries with information about the assets from which IIM funds ha[d] been derived,” id. at 98.

Given this state of affairs and the likelihood of many more years of litigation, the parties entered into settlement negotiations in the summer of 2009. On December 7, 2009, the parties entered into a class settlement agreement. See Class Action Settlement Agreement, Ex. 2 to Joint Mot. for Prelim. Approval of Settlement, Cobell v. Salazar (No. 1:96-cv-01285) (Dec. 10, 2010). We describe its basic parts:

First, an amended complaint would be filed setting forth two classes:

(1) the Historical Accounting Class, consisting of individual beneficiaries who had an IIM account (with at least one cash transaction) between October 25, 1994 (the date on which the 1994 Act became law) and September 30, 2009 (the “record date” of the parties’ agreement), 2 id. § A11 16, and
(2) the Trust Administration Class, consisting of the beneficiaries 3 who had IIM accounts between 1985 and the date of the proposed amended complaint as well as individuals who, as of September 30, 2009, “had a recorded or other demonstrable ownership interest in land held in trust or restricted status, regardless of the existence of an IIM [ajccount and regardless of the proceeds, if any, generated from the [l]and,” id. § A ¶ 35.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nvlsp v. United States
Federal Circuit, 2026
Gur-Ravantab v. Georgetown University
District of Columbia, 2025
Quintin Scott v. Thomas Dart
99 F.4th 1076 (Seventh Circuit, 2024)
Birdbear v. United States
Federal Claims, 2022
Jenna Dickenson v. NPAS Solutions, LLC
43 F.4th 1138 (Eleventh Circuit, 2022)
Charles T. Johnson v. NPAS Solutions, LLC
975 F.3d 1244 (Eleventh Circuit, 2020)
Dl v. District of Columbia
267 F. Supp. 3d 55 (District of Columbia, 2017)
Cobell Ex Rel. Cobell v. Jewell
234 F. Supp. 3d 126 (District of Columbia, 2017)
Two Shields v. United States
820 F.3d 1324 (Federal Circuit, 2016)
Elouise Cobell v. Sally Jewell
802 F.3d 12 (D.C. Circuit, 2015)
Marshall v. National Football League
787 F.3d 502 (Eighth Circuit, 2015)
Ramona Two Shields v. Spencer Wilkinson, Jr.
790 F.3d 791 (Eighth Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
679 F.3d 909, 400 U.S. App. D.C. 428, 82 Fed. R. Serv. 3d 758, 2012 WL 1843982, 2012 U.S. App. LEXIS 10230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cobell-v-salazar-cadc-2012.