United States v. Nez Perce Tribe of Indians

194 Ct. Cl. 490, 1971 U.S. Ct. Cl. LEXIS 114, 1971 WL 17821
CourtUnited States Court of Claims
DecidedMarch 19, 1971
DocketAppeal No. 2-70; Ind. Cl. Comm. Docket No. 175-B
StatusPublished
Cited by6 cases

This text of 194 Ct. Cl. 490 (United States v. Nez Perce Tribe of Indians) 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
United States v. Nez Perce Tribe of Indians, 194 Ct. Cl. 490, 1971 U.S. Ct. Cl. LEXIS 114, 1971 WL 17821 (cc 1971).

Opinion

Laramore, Judge,

delivered the opinion of the court:

This case comes before us on a second appeal, this time by defendant, from a decision of the Indian Claims Commission.1 The Commission found, after remand (which is discussed later), (1) that the average value of plaintiff’s (hereinafter referred to as the Tribe) land was $5.50 per acre; (2) that the difference between such value and what was actually paid ($2.97) was so gross as to be unconscionable; and (3) that, therefore, pursuant to clause (3) of 25 U.S.C. § 70a (1964)2 the Tribe is entitled to recover additional consideration in the principal amount of $1,387,911. The Commission also found that the Tribe was entitled to recover interest on the aforementioned principal amount at the rate of five percent per annum from August 15,1894, the date the lands were originally ceded by the Tribe to the defendant. The defendant appeals not only the question last noted involving interest but also appeals the Commission’s method of determining that the ceded land had a fair market value of $5.50 per acre. Furthermore, the defendant questions the validity of our remand of the case to the Commission after the case was first heard by this court. There is no cross-appeal by the Tribe.

[494]*494The history of this case shows that the initial decision by the Commission, IS Ind. Cl. Comm. 184 (1964), found the fair market value of the ceded land3 to be $4.00 per acre and the discrepancy between such value and the price originally paid not to be so gross as to be unconscionable and, therefore, the Tribe could not recover under the Act. Following that decision, the Tribe appealed to this court. Nez Perce Tribe of Indians v. United States, 176 Ct. Cl. 815 (1966), cert. denied, 386 U.S. 984 (1967).

On said appeal by the Tribe we concluded that the case should be remanded to the Commission pursuant to 25 TJ.S.C. § 70s(b). We pointed out in our decision, supra, that it was the considered opinion of the court that after reviewing the record it was possible that the lands in question had a fair market value greater than $4.00 per acre. The specifics of that determination will be discussed below.4 We also decided that even if the Commission had found in favor of the Tribe on the unconscionability of consideration issue, the Tribe still could not recover interest on any additional amount awarded them. Our reasons for that holding are set forth not only at 176 Ct. Cl. 817, 829-830, supra, but we shall also set forth again those reasons hereafter.

We shall now deal with the case for the second time and do so in relation to those points raised on appeal by the defendant as noted earlier. In addition, we shall discuss a question concerning a portion of the original amount paid which was not heretofore dealt with in particular. In the end we will again remand the case to the Indian Claims Commission.

I. The Question of Interest

As noted above, the Indian Claims Commission, in their second opinion, awarded the Tribe interest on the principal recovery at five percent per annum from the date of ratifi[495]*495cation of the original agreement, August 15,1894, to the date of payment.5 This amounts to $5,222,015.14 since computation is based upon the additional recovery of $1,387,911, over and above the amount originally paid, $1,626,222. From the opinion of the Commission, 22 Ind. Cl. Comm. 53, swpra, it appears that the decision to award the additional interest was based on a combination of several factors. One of those factors is the Commission’s interpretation of that portion of the original agreement wherein the government agreed to pay interest on the monies due the Tribe.

That original agreement noted above provided, in addition to the total consideration to be paid, that the government would also pay interest on the amount which remained on deposit at the Treasury after the initial principal payment of $626,222. Because this agreement is significant in relation to the interest on the additional sum found to be due the Tribe by the Commission, we shall quote that part which specified the interest payment:

* * * the sum of six hundred and twenty-six thousand two hundred and twenty-two dollars shall be paid to said Indians per capita as soon as practicable after the ratification of this agreement. The remainder of said sum of one million six hundred and twenty-six thousand two hundred and twenty-two dollars shall be deposited in the Treasury of the United States to the credit of the “Nes Perces Indians, of Idaho,” and shall bear interest at the rate of five per centum per annum, which principal and interest shall be paid to said Indians per capita as follows, to wit: * * *.

It is from this part of the original agreement, together with the Commission’s interpretation of the Supreme Court’s decision in The Peoria Tribe of Oklahoma, et al. v. United States, 390 U.S. 468 (1968), r'vg, 177 Ct. Cl. 762, 369 F. 2d 1001 (1966), that we feel the Commission decided the Tribe in this case is entitled to interest. With this decision we cannot agree.

The Commission below acknowledged that we dealt adversely with the interest question in our first opinion but felt [496]*496that the Peoria case, supra, which was decided after our first Nez Perce case, supra, provided a basis upon which interest could be awarded notwithstanding what was called “judicial dictum” to the contrary.6

In Peoria, the Supreme Court reversed our earlier opinion (177 Ct. Cl. 762, 369 F. 2d 1001 (1966)) wherein we concluded that the Peoria Tribe was not entitled to interest on the amount awarded in addition to that amount provided by the Treaty of May 30,1854,10 Stat. 1082. The details of that decision can be found at the above-noted citation (390 TJ.S. 468). The pertinent facts in relation to this case are that in the case of the Peoria Tribe a treaty originally provided that the lands taken should be sold at auction and the proceeds turned over to the Tribe. (Art. 4, Treaty of May 30, 1854, 10 Stat. 1082.) Article 7 of the same treaty also provided that if any amounts were not paid over to the Peoria Tribe, those amounts would be invested for the benefit of the Peoria Tribe and the interest paid annually.

Notwithstanding the provisions of the above-noted Treaty of 1854, the government sold most of the lands at private sale which brought lower prices than could have been received if the sales were by auction. Therefore, both the Indian Claims Commission, at 15 Ind. Cl. Comm. 123 (1965), and this court, 177 Ct. Cl. 762, supra, found that the Peoria Tribe was entitled to recover money damages for a breach of the obligation to sell at public auction. It was also decided by this court, Judges Durfee and Davis dissenting, that the Peoria Tribe was not entitled to recover interest on the recovery. To this latter decision the Tribe sought a writ of certiorari, and the same was granted.

The Supreme Court decided, 390 U.S. 468

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194 Ct. Cl. 490, 1971 U.S. Ct. Cl. LEXIS 114, 1971 WL 17821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-nez-perce-tribe-of-indians-cc-1971.