Prairie Band of the Pottawatomie Tribe v. United States

564 F.2d 38, 215 Ct. Cl. 1, 1977 U.S. Ct. Cl. LEXIS 94
CourtUnited States Court of Claims
DecidedOctober 19, 1977
DocketAppeal No. 6-76 Ind. Cl. Comm. Docket Nos. 15-C, 29-A and 71 38 Ind. Cl. Comm. 128
StatusPublished
Cited by11 cases

This text of 564 F.2d 38 (Prairie Band of the Pottawatomie 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.

Bluebook
Prairie Band of the Pottawatomie Tribe v. United States, 564 F.2d 38, 215 Ct. Cl. 1, 1977 U.S. Ct. Cl. LEXIS 94 (cc 1977).

Opinions

Davis, Judge,

delivered the opinion of the court:

In Prairie Band of the Pottawatomie Tribe v. United States, 28 Ind. Cl. Comm. 454 (1972), the Indian Claims [4]*4Commission (Ind. Cl. Comm.) held that the Pottawatomi Tribe or Nation ceded to the United States (under the Treaty of September 26, 1833, 7 Stat. 431, and the Articles Supplementary of September 27, 1833, 7 Stat. 442) its recognized title to Royce Area 187 in eastern Wisconsin and northeastern Illinois, a large part of Royce Area 160 in Wisconsin, and Royce Areas 188-190 in southwestern Michigan.1 In the proceeding now under review the Commission determined the value of the ceded lands as well as the value of the consideration the Indians received from the Government, including all payments on the claim. The findings were that the Pottawatomis had ceded 5,220,868 acres with a fair market value of $6,600,000— about $1.26 per acre — 2 and that in exchange for these lands the United States gave a total of only $2,360,800 in return. Since the Commission held this consideration to be unconscionably small, the latter figure was offset against the former, and the United States found liable for $4,239,200. 38 Ind. Cl. Comm. 128, 229-30, 341-42 (1976). Both sides have appealed, each challenging selected aspects of the Commission’s determination.

I

Plaintiffs’ appeal

A. Plaintiff-appellants’ first point concerns the valuation of the timbered property. Among the more-than-5 million acres ceded by plaintiffs there were about one million of timberlands. The Indians’ expert valued these at $11 an acre, while the defendant’s witness thought them worth only $.35. The Commission did not value the timberland Separately; its determination of $1.26 per acre covered all the ceded land.3 But it is quite clear both that the Ind. Cl. [5]*5Comm. affirmatively took account of the timber as adding value, and that it considered the timbered acres to be worth more than the $1.26 average. In summing up its holding on valuation of the ceded territory, the opinion below declared that "about a million acres were in the timber-pinery region of northeastern Wisconsin, most of which were potentially valuable for commercial lumber development,” 38 Ind. Cl. Comm. at 187, and in rejecting the defense estimate it said that "the defendant’s failure to find any enhancement of the pinery lands by reason of the potential value of the timber resulted in substantially underestimating the value of these lands.” 38 Ind. Cl. Comm. at 182. The Commission also referred expressly in some detail to the growing market for timber "with the growth and development of the midwestern portions of the country.” 38 Ind. Cl. Comm. at 142-43, 182-83, 250, 252-53. It likewise observed that the timber resources of the ceded areas were an example of a feature which contributed particularly to the value of parts of the tracts and made those portions "much more valuable than $1.25 an acre, the price at which they were sold by the United States.” 38 Ind. Cl. Comm. at 186. It is plain, therefore, that timber value was affirmatively taken into account as a substantial element.

Nevertheless, plaintiffs challenge a glancing comment the Commission made in rejecting the Indian expert’s high timberland valuation of $11 an acre — a remark which recalled that at that time loggers entered public lands to cut down trees, either in flagrant trespass or under logging permits which the War Department issued without statutory authority.* **4 From this the Pottawatomis infer that the [6]*6Commission improperly reduced the value of the Indians’ pine tracts because the Federal Government wrongly permitted outsiders to remove the Indians’ timber (before the cession) without paying compensation. We think that appellants read far too much into this brief and somewhat cryptic remark of the Commission. It was offered as only one of several reasons why $11 per acre was excessive, not as a ground for choosing the over-all figure of $1.26 per acre or for disregarding the worth of the timberlands. As we have pointed out, the Commission plainly thought that, whatever depredations there may have been, the timber-lands did have superior value and it gave credit for that factor. Moreover, the Ind. Cl. Comm’s words about outsiders acquiring timber "without purchasing the land, even though the acquisition was illegal” could well have referred only to logging trespassers who commonly carried out their illegal actions on public lands generally, not Indian lands alone.5 If so, it is hard to say that the Commission had to blind itself completely to a common fact-of-life in that era, not confined to native territory. Though the United States had a special obligation to try to protect Indian timber, Oneida Tribe v. United States, 165 Ct. Cl. 487, cert. denied, 379 U.S. 946 (1964), it was severely hobbled in several ways during that period, see 165 Ct. Cl. at 496-500, and on this record there is no reason to believe that it could be expected to stop the cutting of the plaintiffs’ lumber although it was powerless to protect other federal areas.

Our conclusion on plaintiffs’ first point is that they have failed to show that the decision below permitted the Government to reduce the value of the ceded lands — in this proceeding — by reliance on its own wrong.

B. As part of the consideration for the cession, the United States agreed to pay the Pottawatomis $280,000 in annuities of $14,000 per year for 20.years. 7 Stat. at 432. The Commission’s ruling deducted the full $280,000 even [7]*7though the payments were strung out over two decades. 38 Ind. Cl. Comm. at 218-19. Plaintiffs contended below, and argue here, that only the commuted value of the $280,000 payment on the valuation date (i.e. $174,508) should have been offset against the value of the cession. They rely upon Miami Tribe v. United States, 150 Ct. Cl. 725, 281 F.2d 202, cert. denied, 366 U.S. 924 (1961), and Crow Tribe v. United States, 151 Ct. Cl. 281, 284 F.2d 361, cert. denied, 366 U.S. 924 (1961). See also United States v. Absentee Shawnee Tribe, 151 Ct. Cl. 700 (1960), cert. denied, 366 U.S. 924 (1961) (per curiam order). The Commission, however, followed the later decision in Pawnee Indian Tribe v. United States, 157 Ct. Cl. 134, 301 F.2d 667 (1962), cert. denied, 370 U.S. 918 (1962), which overruled Miami Tribe, Crow Tribe, and Absentee Shawnees on this very point, and held that the full face value of the annuities should be deducted as consideration. Pawnee Indian Tribe held that allowing commutation down to present value would be tantamount to charging the United States with interest, contrary to the established rule.

Although the Indian appellants ask us to abandon Pawnee Indian Tribe and revive Miami Tribe and Crow Tribe, we are not willing to do so. Litigation under the Indian Claims Commission Act is coming to its close. Pawnee has been the law for 15 years6 and in all probability has been relied upon in other adjudications and settlements.

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Bluebook (online)
564 F.2d 38, 215 Ct. Cl. 1, 1977 U.S. Ct. Cl. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prairie-band-of-the-pottawatomie-tribe-v-united-states-cc-1977.