Sampson v. United States Department of Interior

CourtDistrict Court, D. South Dakota
DecidedDecember 7, 2020
Docket1:20-cv-01016
StatusUnknown

This text of Sampson v. United States Department of Interior (Sampson v. United States Department of Interior) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sampson v. United States Department of Interior, (D.S.D. 2020).

Opinion

UNITED STATES DISTRICT COURT DEC 07 2020 DISTRICT OF SOUTH DAKOTA Mille □□□ NORTHERN DIVISION

LORINDA SAMPSON and TINA 1:20-CV-01016-CBK BERNARD, Personal Representatives of the . Estate of Maynard Bernard, | □ Plaintiffs, MEMORANDUM OPINION ORDER VS. AND . UNITED STATES DEPARTMENT OF DECLARATORY JUDGMENT INTERIOR, BUREAU OF INDIAN . AFFAIRS, TIMOTHY LAPOINTE, Great . Plains Regional Director, and GRADY RENVILLE, Defendants.

Plaintiffs filed a complaint for a declaratory judgment that a settlement agreement entered into on June 23, 2011, in 1:08-cv-01019-CBK, is valid and enforceable and for an order summarily enforcing the terms and conditions of the settlement. Plaintiffs further seek a writ of mandamus directing the Bureau of Indian Affairs to distribute $637,500 plus interest to the estate of Maynard Bernard. This matter came on for a hearing on an. order to show cause on November 24, 2020. An evidentiary hearing was conducted with all parties present. The background of this case is fully set forth in the pleadings herein and in. 1:08- cv-01019-CBK. Maynard Bernard. and his wife Florine Bernard filed suit against the United States Department of the Interior and Grady Renville alleging that, on April 15, _ 2004, Renville, with the help of the Bureau of Indian Affairs Realty Officer, secured a gift deed for 45.5 acres of Indian trust land from Maynard Bernard to Maynard Bernard and Grady Renville as joint tenants through undue influence, fraud, and

misrepresentation, at a time when Bernard was 76 years old and incompetent. Florine Bernard was required to sign the gift deed because she was the spouse of Maynard Bernard. In June 2004, the Bernards received a copy of the gift deed to Renville and, in July 2004, the Bernards sought an administrative declaration from the Superintendent of the Sisseton Agency of the Bureau of Indian Affairs that the gift deed was void. The Superintendent denied the request, stating he lacked authority to set aside the deed. The Bernards appealed to the Regional Director and on February 3, 2005, the Regional Director declined to declare the gift deed void. The Bernards thereafter appealed to the Interior Board of Indian Appeals. On October 16, 2007, over three years after the _ Bernards initially challenged the gift deed, the Board affirmed the Director’s decision. The Bernards thereafter filed an administrative appeal under the Administrative Appeals Act, 5 U.S.C.§§ 701-706, together with claims of breach of fiduciary duty and trust responsibility against the Department of the Interior and claims of fraud and misrepresentation against Renville. The land in question was and is very valuable land at Pickerel Lake in Day County, South Dakota. The parties apparently intended to develop the 17.3 acres of the shoreline portion of the land and make a large profit on the sale of lake lots. Renville contended in his answer to the 2008 federal complaint that, between April and June 2004, he had expended $188,000 developing the land, making it unfair to set aside the gift deed. His claimed work included removing brush and trees and contouring the land. There were many factual and legal issues, including a possible remand back to the Interior Board of Indian Appeals, which would have further delayed the resolution of the parties’ claims. Given the age of the parties to the gift deed, and the fact that the death of either party would have resulted in vesting the entire interest in the land in the surviving joint tenant without compensation to the heirs of the other joint tenant, in February 2011, this Court ordered the parties to engage in mediation in an attempt to settle their claims. The Bernards, Renville, and the United States Department of Interior participated in mediation before the Hon. John E. Simko, then United States Magistrate Judge, on

March 10, 2011. Renville was represented at the mediation by three of his adult children who had power of attorney for Renville. Renville agreed in writing prior to mediation that his representative(s) would have the authority to bind him to a settlement. Following a full day mediation session, the Bernards and Renville reached an agreement as to the Bernards’ claims against Renville. No agreement was made with the Department of the Interior as to the Bernards’ breach of fiduciary claims against the Department or as to the appeal. Judge Simko orally set forth the agreement reached and that was recorded by a court reporter. The parties agreed that 28.2 acres of the land subject to the gift deed would be deeded back to the Bernards. The parties agreed that 17.3 acres of the property would be sold and that the Bernards would receive 51% of the proceeds of the sale and Renville would receive 49 % of the proceeds. The parties agreed to reduce their settlement to writing. Both parties agreed on the record to the settlement read into the record by Judge Simko. Following the settlement conference, the parties entered into a written settlement agreement which was signed by Renville on June 13, 2011, and by the Bernards on June 28, 2011. The written settlement agreement provided that 28.2 acres would be deeded back to the Bernards, that 17.3 acres would be sold and the proceeds of the sale would be divided 51% to the Bernards and 49% to Renville. Renville agreed that the $197,000 in bills and expenses he claimed during the mediation session that he had incurred in developing the land would be his sole responsibility and that no part of the Bernards’ 51% interest in the sale would be used to pay any of Renville’s claimed previous expenses in developing the land. The Bernards agreed to be solely responsible for payment of their administrative and litigation fees and costs. Only those expenses necessary in preparing the 17.3 acres for sale would be paid from the joint sale proceeds prior to distribution to the parties. The written agreement twice states that the only money that Renville shall be entitled to under the agreement is 49% of the sale proceeds of the 17.3 acres of land. The written agreement provides that the death of any party shall not invalidate the agreement and that the heirs and estate of any deceased party shall be bound by the agreement. In consideration of the agreement, the Bernards agreed to

release their claims against Renville and agreed that Renville would be dismissed from the pending federal lawsuit. Based upon the transcription of the oral record of the settlement agreement and all the briefs that had been filed in connection with the administrative appeal, this Court affirmed the agency action and dismissed all other claims for relief with prejudice, . including the claims against Renville. In February 2012, Renville deeded back 28.2 acres to Bernard. Bernard and Renville worked for several years to try to sell the 17.3 acres of lake front property but were unable to obtain their asking price. Florine Bernard died on March 25, 2012. Maynard Bernard died on March 2, 2017, and his estate remains in probate. On June 8, 2018, the Sisseton Wahpeton Oyate Tribe purchased the 17.3 acres for the sum of $1,250,000. Renville received $612,500 as agreed to in the settlement agreement, The remaining $637,500 was deposited in a special escrow account with the Bureau of Indian Affairs for the benefit of the heirs pending the final order of distribution of the estate of Maynard Bernard. The Tribe entered into a written memorandum that Renville claimed he was entitled to the entire proceeds of the sale and thus claimed ownership of the $637,500 portion of the sale proceeds placed in the special account. Renville deeded the 17.3 acres to the Tribe and acknowledged that the $637,500 was to be placed in escrow with the BIA.

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Sampson v. United States Department of Interior, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sampson-v-united-states-department-of-interior-sdd-2020.