Two Shields v. United States

119 Fed. Cl. 762, 2015 U.S. Claims LEXIS 76, 2015 WL 513315
CourtUnited States Court of Federal Claims
DecidedFebruary 6, 2015
Docket13-90 L
StatusPublished
Cited by2 cases

This text of 119 Fed. Cl. 762 (Two Shields v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Two Shields v. United States, 119 Fed. Cl. 762, 2015 U.S. Claims LEXIS 76, 2015 WL 513315 (uscfc 2015).

Opinion

Subject Matter Jurisdiction; Cobell v. Norton; Class Action Suit; Fiduciary Duty; Indian Tucker Act

OPINION and ORDER

Block, Judge.

This case is one of the myriad of breach of trust claims brought by Native Americans against various federal agencies. 1 Paradoxically, the parties present very little in common. Like the proverbial two ships passing in the night, 2 plaintiffs and defendant here present the court with two competing narratives that raise entirely different legal issues.

Plaintiffs 3 Ramona Two Shields and Mary Louise Defender Wilson claim that the Bureau of Indian Affairs (“BIA”) breached its fiduciary duty to prudently manage their mineral rights, which are held in trust by the United States. Plaintiffs include a detailed narration of the depredations experienced by their tribes, and characterize the BIA’s alleged breach as “the latest chapter of United States mismanagement or outright abuse regarding the members of the Three Affiliated Tribes.” Compl. ¶24. Plaintiffs seek damages on behalf of themselves and them purported class.

Defendant presents an entirely different story. Defendant does not dispute plaintiffs’ characterization of the BIA’s actions; in fact, defendant barely mentions them at all. Rather, defendant argues that the BIA’s alleged misdeeds are immaterial because plaintiffs’ claims have already been litigated and settled. Specifically, defendant argues that plaintiffs’ claims were subsumed by the Co-bell class action suit 4 against the United States Department of the Interior (“DOI”), and that plaintiffs’ claims have already been settled pursuant to the $3.4 billion settlement (“Settlement Agreement”) that brought the Cobell suit to a close in 2011, after more than a decade of litigation. 5 According to defendant, plaintiffs forfeited any right to pursue them claims by failing to opt out of the class action Settlement Agreement. Plaintiffs, in contrast, hardly mention Cobell at all in their complaint, and argue in their opposition brief that their claims are entirely unrelated to the Cobell litigation. It is the role of the court to determine which of these two narratives prevails.

This litigation has given rise to a myriad of claims and motions. Before the court are defendant’s motion for summary judgment as to plaintiffs’ breach of fiduciary claim (Count I), defendant’s motion to dismiss for lack of *767 subject matter jurisdiction plaintiffs’ alternate breach of fiduciary duty claim (Count II), and defendant’s motion to dismiss for failure to state a claim plaintiffs’ legislative takings claim (Count III). Also before the court are plaintiffs’ motion for discovery, defendant’s motion for judicial notice and plaintiffs’ motion for a sur-reply concerning defendant’s motion for judicial notice.

For the following reasons, as fully explained below, the court shall grant defendant’s motion for summary judgment regarding Count I, as well as defendant’s motion to dismiss Counts II and III. Furthermore, the court will deny plaintiffs’ motion for discovery, yet will grant them motion for sur-reply. Finally, defendant’s motion for judicial notice will be granted-in-part.

I. BACKGROUND

A. The Instant Action

Plaintiff Ramona Two Shields is a member of the Three Affiliated Tribes in North Dakota. Compl. ¶ 16. Plaintiff Mary Louise Defender Wilson is a member of the Standing Rock Sioux Tribe. Compl. ¶ 17. Plaintiffs both own allotments that are situated in the Fort Berthold Indian Reservation, which has been a “sweet spot” for development of the Bakken shale oil formation. Compl. ¶¶ 2, 6, 7-10. According to recent estimates, the Bakken formation has over 7 billion barrels of recoverable oil. 6

As intimated above, this suit concerns the BIA’s alleged mismanagement of allotments belonging to plaintiffs. An allotment is a specific parcel of land belonging to a Native American that was originally part of a common holding, such as a reservation. 7 The creation of such allotments dates back to the General Allotment Act of 1887, 24 Stat. 388 (also known as the “Dawes Act”), which sought to encourage assimilation of Native Americans by dividing communal lands located in Indian reservations into individual parcels, or allotments. See 24 Stat. 388 (repealed by Pub.L. 106-462, 114 Stat,2007 (2000)). The Act provided that Indian lands would be held in trust by the federal government for twenty-five years before being “patented” — at that point, the allotments would become freely alienable and subject to taxation. Id.; See Judith V. Royster, The Legacy of Allotment, 27 Ariz. St. L.J. 1, 8-12 (1995).

In 1934, Congress abandoned this project of assimilation by passing the Indian Reorganization Act, Pub.L. No. 73-383, 48 Stat. 984, which prohibited any further division of Indian lands into allotments. Land that had been already allotted prior to 1934 and that was still patent-free would be indefinitely held in trust and managed by the federal government. Following the 1934 Act, “individual Indians became beneficiaries of the trust lands, but lost the. right to sell, lease, or burden the property without the federal government’s approval.” Cobell v. Norton, 240 F.3d 1081, 1088 (D.C.Cir.2001). As a result of the creation of these allotments and the indefinite extension of the trust relationship, the United States is the trustee of approximately 11 million acres of individual allotments. See Cobell v. Babbitt, 91 F.Supp.2d 1, 9 (D.D.C.1999) aff'd and remanded sub nom. Cobell v. Norton, 240 F.3d 1081 (D.C.Cir.2001).

The Bureau of Indian Affairs is responsible for the management of trust lands such as plaintiffs’ allotments. Specifically, for the purpose of this case, the Indian Long-Term Leasing Act, 26 U.S.C. § 396, 112 Stat. 620 (1998), places control over the lease of allotted lands for mining purposes with the BIA. 8 *768 No oil or gas lease of allotted land may be executed unless the BIA determines that the lease is “in the best interest of the Indian owners of the Indian land.” 25 U.S.C. § 396. The BIA has a fiduciary duty to ensure that the Indians’ mineral resources “will be developed in a manner that maximizes their best economic interests and minimizes any adverse environmental impacts or cultural impacts resulting from such development.” 25 C.F.R.

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Cite This Page — Counsel Stack

Bluebook (online)
119 Fed. Cl. 762, 2015 U.S. Claims LEXIS 76, 2015 WL 513315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/two-shields-v-united-states-uscfc-2015.