Minnesota Chippewa Tribe v. United States

21 Cl. Ct. 327, 17 Fed. R. Serv. 3d 818, 1990 U.S. Claims LEXIS 324, 1990 WL 120803
CourtUnited States Court of Claims
DecidedAugust 22, 1990
DocketNos. 19, 189-A
StatusPublished
Cited by1 cases

This text of 21 Cl. Ct. 327 (Minnesota Chippewa Tribe v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Minnesota Chippewa Tribe v. United States, 21 Cl. Ct. 327, 17 Fed. R. Serv. 3d 818, 1990 U.S. Claims LEXIS 324, 1990 WL 120803 (cc 1990).

Opinion

OPINION

BRUGGINK, Judge.

Nearly four decades ago, these consolidated cases arose. Docket 19 was filed by the Minnesota Chippewa Tribe (“Minnesota Chippewa” or “Tribe”), which consists of six Bands of the Tribe. Docket 189-A was filed on behalf of the Red Lake Band of the Minnesota Chippewa (“Red Lake” or “Band”). The cases were consolidated and both plaintiffs have continued to have the same representation for the past 39 years. That arrangement now has been called into question by defendant’s pending motion. Defendant has moved for the realignment of Minnesota Chippewa as a defendant with respect to Exception 41, a claim filed exclusively by Red Lake.1 In sum, defendant’s position is that, as to this exception, the two plaintiff groups are adverse in their [328]*328interests, that Minnesota Chippewa should be realigned as to Exception 41, and that present counsel should withdraw as to one or both entities with respect to all future litigation. The questions of realignment and withdrawal of counsel are controlled by similar considerations. Plaintiffs’ counsel need not withdraw if there is no need for realignment.

I. BACKGROUND

Familiarity with the extensive procedural and substantive history of this action will be presumed. That background is largely set out at Minnesota Chippewa Tribe v. United States, 11 Cl.Ct. 221 (1986); Minnesota Chippewa Tribe v. United States, 14 Cl.Ct. 116 (1987); and Red Lake Band v. United States, 17 Cl.Ct. 362 (1989). Critical to resolving the present issues is the background of Exception 41. That exception was filed by the Red Lake Band in 1970, in response to the 1963 Report of the General Accounting Office (“GAO Report”). The exception and portions of the 14 page statement in its support are quoted below. References to the Act of 1889 are to the Nelson Act, ch. 24, 25 Stat. 642 (1889) (“Nelson Act”). The Nelson Act is the. primary controlling document in this litigation with respect to the parties’ legal relationship.

Exception No. 41. For failure to pay the Red Lake Band a share of the proceeds under the 1889 Act proportionate to the contribution of the Band.
Statement in support of Exception No. 41. From the time of the Treaty of 1863 as supplemented by the Treaty of 1864, creating the original Red Lake Reservation, the United States recognized Royce 446 as the separate reservation of the Red Lake Band, and not the common property of all the Chippewa Indians in Minnesota. The Supreme Court and the Court of Claims both have so held. (Citation omitted.)
Immediately prior to the Act of January 14,1889, supra, the Red Lake treaty reservation (Royce 446) contained 3,569,-694.29 acres. The 1889 Act created a common pool containing 3,669,200.96 acres of ceded in trust land. The Red Lake Band was induced to contribute 2,905,921.28 acres representing 79.2% of the common pool. (Citation omitted.) On March 4, 1890, the effective date of the 1889 Act, there were 8,304 enrolled Chippewas in Minnesota of whom 1,168 or about 14% were members of the Red Lake Band. (Citation omitted.)
According to the defendant’s “accounting” report, a total of $26,708,062.20 in receipts from the common pool was disbursed on the ratio of about 15.7% to Red Lake and 84.3% to the other Chippewas in Minnesota. (Footnote omitted.)
Where an Indian tribe is induced to contribute 79.2% of the assets in a common pool, in trust, in return for 15.8% of the proceeds from the assets, that tribe has been overreached. There was no consideration for the transaction. At best it was a scheme to convert land and timber into money under which the United States used the property of one tribe, Red Lake, for the alleged benefit of other Indians. The arrangement was unconscionable, unfair and dishonorable. It cannot be justified on any standard of justice.

The Band is pursuing Exception No. 41 under clause 5, section 2 of the Indian Claims Commission Act, 25 U.S.C. § 70a et seq. (1976) (“ICC Act”). That clause recognizes claims “based upon fair and honorable dealings that are not recognized by any existing rule of law or equity.” See discussion and cases cited at 11 Cl.Ct. 221, 236-38; 17 Cl.Ct. 362, 387-90. The relief sought by Red Lake is a money recovery from the United States. No claim is made against other bands of the Minnesota Chippewa Tribe.

Exception. 41 was explained by Red Lake during discovery:

By exception 41, the Red Lake Band, based on Section 5 of the Indian Claims Commission Act, claims that it was not fair and honorable as to the Red Lake Band for the United States by the 1889 Act to obtain a cession of an estimated 2.9 million acres belonging to the Band, and pay in return less to the Band than [329]*329the fair market value of those estimated 2.9 million acres____

The position of the other bands as to Exception 41 was also recently set out in discovery responses:

Exception 41 was filed on behalf of the Red Lake Band only. In Docket 19, the six Bands other than Red Lake, based on Section 2 of the Indian Claims Commission Act, generally claim that the six Bands are entitled to their per capita share (estimated 86%) of the fair market value of all acres ceded in trust under the Nelson Act (estimated 3.67 million acres) as promised to the six Bands in the Act. (Emphasis added.)

The United States filed responses to Red Lake’s exceptions. With respect to Exception 41, it stated:

The United States denies that it was under a legal duty to account for or pay to the Red Lake Band any percentage of the proceeds of the funds generated under the [Nelson Act] other than as provided in those acts of Congress. The United States alleges that all funds generated under the acts of Congress referred to above have been paid as provided in the acts. 1963 Accounting Report. In the alternative, the United States alleges that if it has paid any funds belonging to the Red Lake Band to other bands of the Chippewa Indians of Minnesota, the United States is entitled to recoup from the other bands in these consolidated proceedings such over-payments.

(Emphasis added.)

II. DISCUSSION

A. Preliminary considerations.

In their complaints, both plaintiffs contend, pursuant to section 2, clause 3 of the ICC Act, that they received unconscionable consideration for Indian lands and timber. See 25 U.S.C. § 70a. If the court finds that there is liability based on both entities’ claims for what they say is the difference between fair market value and the amounts credited from sales for land and timber, the court would be faced with a question as to how to distribute or credit those proceeds. It bears noting that, while the Minnesota Chippewa are seeking, pursuant to the Nelson Act, “their per capita share” of the fair market value of the acres ceded, in fact the Nelson Act formula is more complex. Plaintiffs’ counsel conceded as much during oral argument when he contended that it is the actual patterns of distribution which developed over the years which dictate use of a straight per capita formula.

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21 Cl. Ct. 327, 17 Fed. R. Serv. 3d 818, 1990 U.S. Claims LEXIS 324, 1990 WL 120803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minnesota-chippewa-tribe-v-united-states-cc-1990.