Lebeau v. United States

474 F.3d 1334, 2007 U.S. App. LEXIS 1471, 2007 WL 163071
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 24, 2007
Docket2006-1072
StatusPublished
Cited by8 cases

This text of 474 F.3d 1334 (Lebeau v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lebeau v. United States, 474 F.3d 1334, 2007 U.S. App. LEXIS 1471, 2007 WL 163071 (Fed. Cir. 2007).

Opinion

SCHALL, Circuit Judge.

The United States appeals from the final judgment of the United States District Court for the District of South Dakota in LeBeau v. United States, 334 F.Supp.2d 1200 (D.S.D.2004) (“Barry LeBeau”). The district court granted summary judgment against the United States in favor of plaintiff Barry LeBeau and a class of similarly situated individuals (collectively “the LeBeau plaintiffs” or “plaintiffs”). The LeBeau plaintiffs sought money damages under the Little Tucker Act, 28 U.S.C. § 1364(a)(2), for the United States’ alleged breach of trust, based on what they asserted was the Secretary of the Interior’s unreasonable delay in distributing to them their share of the Mississippi Sioux Tribes Judgment Fund (“Judgment Fund”). The district court determined that the Secretary of the Interior (“the Secretary”) had breached his trust duties owed to the Le-Beau plaintiffs. Consequently, the court awarded money damages to the plaintiffs in the total amount of $1,827,985.80 and entered judgment accordingly. We hold, however, that the district court erred in its determination that the LeBeau plaintiffs were entitled to money damages as a result of the Secretary’s breach of trust. We therefore reverse the court’s judgment in favor of the plaintiffs and remand the case to the district court for entry of judgment in favor of the United States.

BACKGROUND

I.

The LeBeau plaintiffs constitute a class of Sisseton-Wahpeton Sioux Tribe lineal descendants who were determined eligible, by applications filed on or before November 1, 1973, to share in the Judgment Fund. The Judgment Fund stems from the United States’ breach of treaty obligations under the Treaty of Prairie du Chien, July 15, 1830, 7 Stat. 328, and under the Treaty of Traverse des Sioux, July 23, 1851, 10 Stat. 949 (collectively “the Treaties”). In the Treaties, the Sisseton-Wahpeton Sioux Tribe of the Mississippi and other Indian tribes agreed to cede their lands in exchange for the United States’ commitment to make various payments to the tribes and to provide the tribes with other benefits. Subsequently, these tribes claimed that the United States had breached its obligations under the Treaties. In 1967, the Indian Claims Commission approved a settlement of the tribes’ claims in the amount of nearly $6 million. The settlement was between the United States and three successors to the signatory Sisseton-Wahpeton Sioux Tribe of the Mississippi (the Devils Lake Sioux Tribe of North Dakota, the Sisseton-Wahpeton Sioux Tribe of South Dakota, and the Assino- *1337 boine and Sioux Tribe of the Fort Peck Reservation in Montana) (“the Tribes”). Sisseton and Wahpeton Bands v. United States, 18 Ind. Cl. Comm. 477 (1967). In order to satisfy this judgment, in 1968 Congress appropriated $5,874,039.50 and deposited the money into an interest-bearing trust account in the U.S. Treasury. Act of June 19, 1968, ch. 2, Pub.L. No. 90-351, 82 Stat. 239.

In 1972, Congress enacted the Act of October 25, 1972 (“1972 Distribution Act” or “Act”) establishing a formula for the distribution of the Judgment Fund. Under this formula, the lineal descendants of the original Sisseton-Wahpeton Tribe of the Mississippi who were not enrolled in any of the Tribes (the “lineal descendants”) were allotted 25.0225% of the Judgment Fund. 1 Pub.L. No. 92-555, 86 Stat. 1168 (codified as amended at 25 U.S.C. § 1300d-22 (2000)). The 1972 Distribution Act specified that each of the Tribes should prepare membership rolls, subject to approval of the Secretary, and that the Secretary should prepare a roll of lineal descendants of the Sisseton-Wahpeton Mississippi Sioux Tribe who were not members of any of the Tribes and distribute funds on a per capita basis to individuals listed on this roll. In 1973, the Secretary issued regulations that established an application procedure for enrollment as a lineal descendant and set a deadline of November 1, 1973, for enrollment applications. 38 Fed.Reg. 13,737 (May 25, 1973) (codified at 25 C.F.R. § 41.1 (1973) and recodified at 25 C.F.R. § 61.4(b) (1995)).

By March of 1982, the Bureau of Indian Affairs (“BIA”) had processed all lineal descendant applications and, based on initial eligibility determinations, had determined that there were approximately 1,900 eligible lineal descendants. At the same time, appeals were pending for 500 additional applicants. The Aberdeen Area Office of the BIA requested authority in both March and October of 1982 to make a partial distribution of $1,700 to each eligible lineal descendant, but the Secretary denied these requests. In 1987, the BIA, after resolving the 500 appeals, completed the roll of 1,969 eligible lineal descendants and scheduled payment for May 7, 1987. By this time, each of the Tribes had received payment of its share of the Judgment Fund.

Payment to the lineal descendants of their share of the Judgment Fund was blocked by legal action, however. On May 8, 1987, the Tribes succeeded in obtaining a preliminary injunction from the United States District Court for the District of Montana, enjoining the distribution based on the Tribes’ action to eliminate the lineal descendants’ share of the Judgment Fund. Sisseton-Wahpeton Sioux Tribe v. United States, 686 F.Supp. 831, 832 (D.Mont.1988), aff 'd 895 F.2d 588 (9th Cir.1990). The May 8, 1987 preliminary injunction was vacated in September 1994, but the United States District Court for the District of South Dakota again enjoined distribution to the lineal descendants in January of 1995 when fourteen individuals claimed they had never been notified of the opportunity to apply for enrollment as lineal descendents. See Loudner v. United States, 905 F.Supp. 747 (D.S.D.1995), rev’d 108 F.3d 896 (8th Cir.1997).

In 1998, Congress amended the 1972 Distribution Act through its enactment of the Mississippi Sioux Tribes Judgment Fund Distribution Act of 1998 (“1998 Amendments”). The 1998 Amendments *1338 applied to any portion of the Judgment Fund not yet distributed. 25 U.S.C. § 1300d (2000). In the 1998 Amendments, Congress reallocated 28.3995% of the undistributed Judgment Fund for the benefit of the governing bodies of the Tribes, see 25 U.S.C. § 1300d-23, in an attempt “to ensure that the number of people enrolled as lineal descendants does not result in a per capita windfall of judgment funds being allocated to individuals, when those resources are needed to supply needed capital to assist reservation economies,” S.Rep. No. 105-379, at 7 (1998). Congress’s action had the effect, of course, of reducing the amount of undistributed funds in the Judgment Fund available for the lineal descendants.

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474 F.3d 1334, 2007 U.S. App. LEXIS 1471, 2007 WL 163071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lebeau-v-united-states-cafc-2007.