Elouise Cobell v. Sally Jewell

802 F.3d 12, 419 U.S. App. D.C. 370, 2015 U.S. App. LEXIS 16625, 2015 WL 5474186
CourtCourt of Appeals for the D.C. Circuit
DecidedSeptember 18, 2015
Docket14-5119
StatusPublished
Cited by200 cases

This text of 802 F.3d 12 (Elouise Cobell v. Sally Jewell) 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
Elouise Cobell v. Sally Jewell, 802 F.3d 12, 419 U.S. App. D.C. 370, 2015 U.S. App. LEXIS 16625, 2015 WL 5474186 (D.C. Cir. 2015).

Opinion

Opinion for the Court filed by Circuit Judge MILLETT.

MILLETT, Circuit Judge:

This is the eleventh appeal to this court in nearly two decades of litigation arising out of the Department of the Interior’s misadministration of Native American trust accounts and an ensuing complex, nationwide litigation and settlement. As the case winds down, the class action representatives have appealed the district court’s denial of compensation for expenses incurred during the litigation and settlement process.

We affirm the district court’s denial of additional compensation for expenses for the lead plaintiff, Elouise Cobell, because the district court expressly wrapped those costs into an incentive award given to her earlier. We conclude, however, that the district court erred in categorically rejecting as procedurally barred the class representatives’ claim for the recovery of third-party payments, and remand for the district court to apply its accumulated expertise and discretion to the question of whether third-party compensation can and should be paid under the Settlement Agreement.

*16 I

Background

This long-running litigation saga has been documented in numerous decisions of this court over the course of multiple appeals. See Cobell v. Kempthorne, 455 F.3d 317, 330-331 (D.C.Cir.2006) (cataloging this court’s decisions in eight appeals); Cobell v. Salazar, 573 F.3d 808 (D.C.Cir.2009); Cobell v. Salazar, 679 F.3d 909 (D.C.Cir.2012).

In brief, five named plaintiffs (“Class Representatives”) initiated a class action lawsuit in 1996 seeking to compel the United States Department of the Interior to perform a historical accounting of the hundreds of millions of dollars held by the Department in trust for Native Americans. That accounting was required by the American Indian Trust Fund Management Reform Act of 1994, Pub.L. No. 103-412, 108 Stat. 4239. In 2001, we affirmed the district court’s conclusion that the Department had unreasonably and unlawfully delayed that statutorily mandated accounting. Cobell v. Norton, 240 F.3d 1081, 1105 (D.C.Cir.2001). For the next decade, the parties, the district court, and Congress all struggled to determine how the Department could feasibly discharge its legal duty to conduct an accounting of the hundreds of thousands of “Individual Indian Money” trust accounts under its control. That would have been a herculean task under the best conditions, but the difficulty of the Department’s charge was compounded by its unreliable records of the identity and location of the original account holders, more than a century of deficient bookkeeping by the Department, and decades of “fractionation” as allotment interests passed from one generation to the next. See Cobell v. Kempthorne, 569 F.Supp.2d 223, 226-227 (D.D.C.2008) (chronicling the accounting problems associated with maintaining a “121-year old perpetual trust, managed by civil servants, with rapidly multiplying beneficiaries and a variety of ever-changing assets”), vacated and remanded by Cobell v. Salazar, 573 F.3d 808 (D.C.Cir.2009). 1

We pick up the story in 2010 with the enactment of the Claims Resolution Act (“Claims Act”), Pub.L. No. 111-291, 124 Stat. 3064 (2010). The Claims Act authorized, ratified, and confirmed the parties’ comprehensive Settlement Agreement resolving the class action litigation. See id. § 101(c)(1). The Claims Act also referenced a separate agreement on attorneys’ fees, costs, and expenses that the parties had negotiated (“Fee Agreement”). Id. § 101(a).

Under the Settlement Agreement, each member of what was known as the “Historical Accounting Class” received $1,000 in lieu of an actual accounting. The money would come from the Aceounting/Trust Administration Fund, which was to be created by the government’s payment of $1,412 billion into a settlement account. See Cobell v. Salazar, 679 F.3d 909, 914 (D.C.Cir.2012). 2 A separate class, known as the “Trust Administration Class,” received a baseline payment of $500 and a *17 prorated share of any funds left over in the settlement account after specified payments were made, including attorneys’ fees and awards to the Class Representatives. Id. at 914-915. In exchange, all class members released the Department of Interior from liability arising out of prior mismanagement of their trust accounts. M 3 Plaintiffs inform us that, to date, “91% of all settlement funds have been distributed.” Cobell Supp. Br. 4.

The Settlement Agreement separately provided for the recovery of “attorneys’ fees, expenses, and costs” “for Class Counsel.” Settlement Agreement ¶ J(l). The Agreement required the Class Representatives to file a notice with the district court, prior to the preliminary hearing on approval of the Settlement Agreement, that would disclose the up-to-date amount of attorneys’ fees, expenses, and costs requested. Id. ¶ J(2). Post-settlement amounts were governed by a separate procedure. Id. ¶ J(4). The Settlement Agreement further provided that the amount ultimately to be awarded would be “within the discretion of the [District] Court in accordance with controlling law[.]” Id. ¶ J(5).

The Fee Agreement mirrored that structure, separating pre- and post-settlement requests for attorneys’ fees, expenses, and costs. Fee Agreement ¶¶ 4-5. In the Fee Agreement, the plaintiffs agreed not to seek more than $99.9 million above amounts previously paid by the government, and the government agreed that it would not argue for less than $50 million above those amounts. Id. at ¶4^)-03).

The Claims Act also authorized the district court to grant “incentive awards” to the Class Representatives. Claims Act § 101(g)(1). The Settlement Agreement that was ratified and confirmed by the Claims Act, see id. §§ 101(a)(8), (c)(1), elaborated that the “petition for incentive awards” shall “includ[e] expenses and costs[ ] of the Class Representatives.” Settlement Agreement ¶ K.2. The Settlement Agreement recorded the plaintiffs’ estimate that the total amount of the expenses and costs requested would be “in the range of $15 million above those paid by Defendants to date.” Id. ¶ K.l.

In January 2011, the plaintiffs filed both a Petition for Class Counsel’s Fees, Expenses and Costs Through Settlement, and a Petition for Class Representatives’ Incentive Awards and Expenses. In the Attorneys’ Fees Petition, the plaintiffs requested $99.9 million in attorneys’ fees “in accordance with the literal provisions” of the Fee Agreement, but argued “that a fee award of $223 million, plus expenses and costs of $1,276,598, is in accordance with controlling law and within this Court’s discretion.” J.A. 748.

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

Related

Ratliff v. Louisiana State
E.D. Louisiana, 2025
Attia v. United States
Federal Claims, 2025
Cabrera v. Mogoo, Inc.
District of Columbia, 2024
Randle v. Suntrust Bank, Inc.
District of Columbia, 2024
United States v. Dasilva
District of Columbia, 2024
Hurd, Jr. v. District of Columbia
District of Columbia, 2023
In Lux Research v. Hull McGuire Pc
District of Columbia, 2023
Trout v. Select Group LLC
District of Columbia, 2023
Leach v. Clay
District of Columbia, 2023
Givens v. Bowser
District of Columbia, 2023
United States v. Daniel
District of Columbia, 2022
Xingru Lin v. DC (PUBLIC)
D.C. Circuit, 2022

Cite This Page — Counsel Stack

Bluebook (online)
802 F.3d 12, 419 U.S. App. D.C. 370, 2015 U.S. App. LEXIS 16625, 2015 WL 5474186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elouise-cobell-v-sally-jewell-cadc-2015.