Iron v. Knowles

234 F. Supp. 327, 1964 U.S. Dist. LEXIS 7275
CourtDistrict Court, D. Montana
DecidedSeptember 24, 1964
DocketCiv. Nos. 259, 263, 272
StatusPublished
Cited by1 cases

This text of 234 F. Supp. 327 (Iron v. Knowles) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iron v. Knowles, 234 F. Supp. 327, 1964 U.S. Dist. LEXIS 7275 (D. Mont. 1964).

Opinion

EAST, District Judge.

In these three consolidated class' actions,1 all of the plaintiffs, actual and represented, are “competent” Crow Indians,2 and seek to recover that portion of a liquidated-damage assessment which was refunded at the direction of Fred H. Massey, the Acting Commissioner of Indian Affairs, Bureau of Indian Affairs (Bureau) to the defendants in the actions, respectively. The Court has jurisdiction by reason of the federal question involved.3

The defendant (Knowles), in cause No. 259, is a permittee under the terms and conditions of a Range Grazing Permit issued by the Superintendent of the Crow Indian Agency, under the direction of the Bureau, dated August 16, 1955, covering Range Unit No. 31, to which is attached mutually-agreed-to Range Control Stipulations;

The defendant (Soap Creek), in cause No. 263, is a permittee under a like Range Grazing Permit and attached stipulations, dated August 12, 1955, covering Range Unit No. 29; and

The defendant (Co-op), in cause No. 272, is a permittee under a like Range Grazing Permit and attached stipulations, dated August 15, 1955, covering Range Unit No. 34.

To each of these Range Permits is attached a schedule of land areas called “on-and-off lands,” which, together with “Indian Land,” aggregated and constituted the Range Unit. The “on-and-off lands” were either privately owned by or under private lease to the permittee and within his absolute control. The “Indian lands” were lands held in trust by the United States and supervised by the Bureau for the use and benefit of noncompetent Crow Indians. The “on- and-off lands” were land areas and tracts [329]*329allotted to and in turn leased by “competent” Crow Indians to the permittees, respectively, for grazing purposes.

Each of the Range Permits specified the total number of livestock to be grazed on any given unit, and the Range Control Stipulations attached thereto set out an agreed liquidated-damage formula to be applied and assessed in the event the Range Unit was overstocked.

After the decision of the Bureau, based upon an aerial count of livestock, the defendants Knowles and Soap Creek were assessed, respectively, $19,573.40 and $2,-710.04 as liquidated damages for overgrazing. These amounts were paid. Thereafter, upon the initiative of the Bureau, Knowles and Soap Creek were, respectively, refunded $14,627.10 and $1,642.29. The Bureau made these refunds avowedly because it erroneously included in the formula computation of the liquidated damages assessments the acreage or area of the “on-and-off lands” privately leased by the permittees from “competent” Crow Indians, respectively.

Defendant Co-op, in cause No. 272, following a cattle count by the Bureau, was notified to show cause why it should not be assessed liquidated damages in the amount of $6,122 for overstocking its Range Unit. At a hearing, Co-op was successful in its claim that the Bureau should allow its request to include additional acres and areas in its “on-and-off lands” schedule, thereby enlarging the allowable carrying capacity, and reduced the assessment of liquidated damages which were paid in the amount of $3,-706.56. Subsequently, the Bureau, under the same reasoning and formula utilized in fixing the Knowles and Soap Creek refunds, refunded to Co-op the sum of $2,939.30.

The plaintiffs respectively contend that:

1) The theory on which the rebates were made by the Bureau disregards the terms of the grazing contract and reaches an interpretation in conflict with Section 3 of the Range Control Stipulations to plaintiffs’ land;

2) The liquidated damages assessed and collected from the defendants, respectively, by the Bureau, were trust funds held for the benefit of all restricted Indians, and particularly the plaintiffs whose lands were a part of the Range Unit, respectively;

(a) by reason of the terms of the contracts, and .
(b) under the overriding trusteeship of the government by which it holds Indian trust lands;

3) Denial to plaintiffs of participation in the assessed liquidated-damage funds and the rebating of the amounts to the defendants, respectively, to which the plaintiffs were entitled, was collusive and improper because

(a) plaintiffs were denied notice or hearing, and
(b) the Bureau’s decision to refund by-passed the office of the solicitor, in contravention of a secretarial order, and

4) The rebates to the defendants, respectively, were based upon the false assumption by the Bureau that the “on- and-off lands” under lease from the plaintiff “competent” Crow Indians were valid and enforceable.

The plaintiff in cause 272 makes the additional contention that:

5) The “stocking credit” awarded was illegal and unauthorized

(a) for an unauthorized amendment to the schedules, j
(b) for unfair hearing by reason of lack of notice to the plaintiffs, and .i
(e) the inclusion of “on-and-off lands” created an illegal overlapping of leases.

PLAINTIFFS’ CONTENTION 1

Stipulation No. 3 of the Range Control Stipulations contained in each of the permits provides:

“* * * However, if the number of livestock authorized is exceeded, the permittee shall be liable to pay as. [330]*330liquidated damages, in addition to the regular fees for the full grazing season as provided in the permit, a sum equal to 50 per cent thereof for such excess livestock and such livestock shall be promptly removed from the unit.”

25 C.F.R. 151.5 in part provides:

“The Commissioner of Indian Affairs shall prescribe for each reservation the maximum number of livestock which may be grazed on Indian range lands * * * ” [Emphasis supplied.]

25 C.F.R. 151.10 is as follows:

“Authority to sell grazing privileges on tribal and allotted land. Grazing privileges may be sold on Indian land in range units in the following manner:
“(a) Authority to sell grazing privileges on tribal lands shall be granted pursuant to § 151.13.
“(b) Authority to sell grazing privileges on allotted land may be granted by the owners thereof, except those classes described in paragraphs (c) and (d) of this section on an approved form authorizing the superintendent to issue grazing permits at not less than the minimum fees stipulated in such instrument. * * * ”
“(c)” deals with allotments of minors.
“(d)” deals with lands owned by Indian orphan minors and incompetents.

25 C.F.R. 151.20 defines “on-and-off lands” and distinguishes them from “Indian land,” for the purposes of the grazing permits involved herein, viz:

“Sec. 151.20. On-and-off grazing permits.

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Related

United States v. Labbitt
334 F. Supp. 665 (D. Montana, 1971)

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Bluebook (online)
234 F. Supp. 327, 1964 U.S. Dist. LEXIS 7275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iron-v-knowles-mtd-1964.