Seminole Nation v. United States

492 F.2d 811, 203 Ct. Cl. 637, 1974 U.S. Ct. Cl. LEXIS 96
CourtUnited States Court of Claims
DecidedFebruary 20, 1974
DocketAppeal No. 3-73; Ind. Cl. Comm. Docket No. 247; 27 Ind. Cl. Comm. 141 (1972); 29 Ind. Cl. Comm. 422 (1973)
StatusPublished
Cited by10 cases

This text of 492 F.2d 811 (Seminole Nation 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
Seminole Nation v. United States, 492 F.2d 811, 203 Ct. Cl. 637, 1974 U.S. Ct. Cl. LEXIS 96 (cc 1974).

Opinion

Davis, Judge,

delivered the opinion of the court:

After its removal from the east during the first part of the 19th century, the Seminole Nation became the owner in fee of a large area which is now Seminole County, Oklahoma, but was then within Indian Territory. Cf. Choctaw Nation v. Oklahoma, 397 U.S. 620, 622-26 (1970). By Article V of the Treaty of March 21, 1866, 14 Stat. 755, 757-58, the Nation granted a railroad right-of-way over this land, plus the right to buy strips up to three miles on each side of the tracks, “to any company which shall be duly authorized by Congress.” [642]*642In '1888 Congress gave such authorization to the Choctaw-Coal and Railway Company (now part of the Rock Island system); construction took place during 1889 and 1890. In 1896 a second authorization went to the St. Louis, Oklahoma and Southern Railway 'Company (later part of the Frisco), and the line was built in 1900 and 1901. Another permission was given in 1902 to the Enid and Anadarko Railway Company (which became a segment of the Santa Fe) for track laid in 1905 and 1906.

Under the authorizing statutes 'as supplemented, the three railroads obtained, among other things, a relatively narrow right-of-way and also the right to certain lands outside of the right-of-way for station purposes (called “station reservations”) . In partial return, the company was to pay for the Indians’ benefit a stated sum per mile of rail constructed (a payment not now involved), together with fifteen dollars per mile per year for so long as the territory was owned and occupied by the Nation.

In the 1920’s the Seminóles brought suit in this court against the United States, under a special jurisdictional act, asserting that the railroads had failed to comply with the treaty and statutes in that they had taken and held for their own unlawful benefit “station reservations” unnecessary for railroad purposes and had received rents and profits from these lands, and also that they failed to pay the annual mileage charge after Oklahoma entered the Union in 1907. The Government was charged with breaching its obligations by allowing the roads to commit these acts; the relief sought was that the United States indemnify the claimant for the value of the lands allegedly wrongfully taken, for rents and profits accruing from the companies’ use of such land, and for the unpaid mileage charge. This court decided for the Government, 97 Ct. Cl. 591, 723 (1942), and in 1943 the Supreme Court affirmed. Creek Nation v. United States, together with Seminole Nation v. United States, 318 U.S. 629.1

After the passage of the Indian Claims Commission Act in 1946, the Seminole Nation presented the very same sets of facts to the Commission under the “fair and honorable dealings” clause (§2, clause 5, 25 U.S.C. § 70a). That tribunal, [643]*643with two members dissenting, rejected the. claim after trial.2 27 Ind. Cl. Comm. 141 (1972), rehearing denied, 29 Ind. Cl. Comm. 422 (1973). The Seminóles have appealed, asking us to reverse the Commission and hold in their favor. The appeal is expressly limited to the $15 per mile annual charge and to the “station reservations.”

A. The $15 per mile annual charge: With respect to the Government’s refusal to collect the $15 per mile charge after Oklahoma became a state in 1907, the Commission correctly held that appellant was foreclosed by the Supreme Court’s 1943 decision.

In that litigation, the Court rejected the Seminóles’ then argument that the Secretary of the Interior had breached the 1866 treaty and the various railroad statutes in taking the position that the $15 charge was no longer payable once the state was created, and in refusing to sue the railroads for those sums. Mr. Justice Black’s opinion for the majority said, first, that “[t]he $15.00 charge was considered a tax, approximately equal to the taxes charged by neighboring states,” and, second, that there was nothing to indicate “that the United States, acting as a voluntary tax collector for the tribes, meant to guarantee to the tribes that the taxpayers would make their payments when due.” 318 U.S. at 637.

Accepting as we must the Supreme Court’s opinion and decision, we cannot see how the Nation can now prevail on its claim that the Government treated it less than fairly and honorably on this very same matter. The high court’s ruling tells us authoritatively that the Government did not go counter to any relevant treaty or legislation. Cf. Suquamish Tribe v. United States, 197 Ct. Cl. 775, 779 (1972). The contention is advanced, however, that, even if there was no breach of agreement or statute, the United States nevertheless failed to live up to its common law fiduciary obligation as guardian of its Indian wards. One difficulty with this position is that the 1943 opinion seems infused with the view that the Government was free from any such legal, equitable [644]*644or moral obligation to go against the railroads if it decided not to; the Court said, for instance, that there was “no mandatory duty on the Secretary to do the work of collecting” (318 U.S. at 637), that the Secretary had very wide discretion in determining when to institute legal proceedings (318 U.S. at 639), that “the government did not mean to assume an insurer’s responsibility” (318 U.S. at 640), that the Indians had power to sue for themselves (318 U.S. at 640), and while “[appreciating the desire of Congress to recognize the ‘full obligation of this nation to protect the interests of a dependent people’ [citing case], we are unable to find in the words of the treaties or statutes upon which this action rests any such prodigal assumption by the government of other people’s liabilities as that for which the petitioners [the Indians] contend here.” 318 U.S. at 640 (emphasis added). The basic postulates underlying and coloring these words are very hard to reconcile with the possibility that the Government may have breached some non-statutory (or non-treaty) fiduciary duty.

More dispositive is the square substantive holding that the $15 charge was “a tax, approximately equal to the taxes charged by neighboring states.” 318 U.S. at 637. In this connection the Court cited (318 U.S. at 632, n. 5, and 637, n. 15), seemingly with approval, an opinion of the Secretary of the Interior holding that the railroads’ obligation to make this payment terminated upon the admission of Oklahoma as a state in 1907. This administrative ruling (38 Pub. Land Dec. 414 (1910)) explained that (a) the mileage charge was not part of the compensation payable to the Indians for use of their land, nor was it a property tax upon the land, but was instead “in the nature of a franchise tax or charge upon the business of the corporation constructing the road”; (b) at the time the tax was imposed “there was no State or Territorial government except that of the Indian tribes or nations, and the payment of the annual charge of fifteen dollars per mile was exacted by Congress for the benefit of the tribal governments”; (c) although the tribes continued to exist for certain purposes after Oklahoma became a state, “they no longer exercise the functions of a political govern[645]

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492 F.2d 811, 203 Ct. Cl. 637, 1974 U.S. Ct. Cl. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seminole-nation-v-united-states-cc-1974.