U.S. settlement with Navajo Nation is largest ever for a tribe

The Navajo Nation will receive $554 million from the U.S. to settle claims of mismanaged funds. Navajo Nation President Ben Shelly, left, talks with tribal presidential candidate Kenneth Maryboy this year. (Ross D. Franklin / Associated Press)
The Navajo Nation will receive $554 million from the U.S. to settle claims of mismanaged funds. Navajo Nation President Ben Shelly, left, talks with tribal presidential candidate Kenneth Maryboy this year. (Ross D. Franklin / Associated Press)

By Cindy Carcamo, Los Angeles Times

In a historic settlement, the federal government will pay the Navajo Nation more than half a billion dollars to settle claims that it mismanaged reservation funds for more than 60 years, the tribe and the government announced Wednesday.

At $554 million, the settlement is the largest obtained by a single American Indian tribe against the U.S. It caps a drawn-out dispute filed in 2006 with the U.S. Court of Federal Claims.

The settlement goes a long way toward repairing some of the “wrongs that have been done against the Navajo people,” said Rick Abasta, a spokesman for the Navajo Nation.

But it also serves a more practical purpose, he said.

“It’s a great opportunity to address some of the disparities that exist in the [Navajo] Nation,” he said. “This $554 million is like a much-needed cash infusion for the nation.”

The Navajo Nation is the largest Native American tribe, with more than 300,000 members and a reservation that spans 27,000 square miles in three states, Utah, Arizona and New Mexico. But some tribal members who live in remote areas lack modern amenities — even electricity and running water.

“This landmark resolution ends protracted and burdensome litigation. It will provide important resources to the Navajo Nation. And it fairly and honorably resolves a legal conflict over the accounting and management of tribal resources,” U.S. Atty. Gen. Eric H. Holder Jr. said in a statement.

Abasta said Navajo Nation President Ben Shelly planned to hold a series of town hall meetings to hear from tribal members as to what should be done with the money.

The lawsuit alleged that from 1946 to 2012, the U.S. government, which served as trustee for the tribe’s natural resources, did not negotiate appropriate deals with entities that were extracting natural resources such as coal, uranium, oil and gas from the Navajo reservation.

In addition, the tribe contended that the U.S. did not properly monitor royalties to ensure that the tribe was appropriately paid. It also contended that the U.S. did not properly invest the proceeds to ensure that the tribe would receive an appropriate return on its money.

The lawsuit, which sought $900 million, did not go to trial. Instead the Obama administration decided to settle out of court, said Andrew L. Sandler, who represented the tribe with partner Samuel J. Buffone.

“There was a lot of government misconduct for a very long time, but the Obama administration and Justice Department stepped up and did the right thing in this case,” Sandler said.

The settlement was negotiated in June and finalized by senior Navajo and U.S. officials in early August, Sandler said. The U.S. has agreed to pay the settlement in the next 30 to 60 days.

About 100 similar cases have been filed by other tribes, Sandler said; many have been settled, but a few remain in litigation. The second-largest single settlement was for $380 million, with the Osage tribe in Oklahoma. The 2011 deal ended 11 years of litigation over claims of mismanagement of tribal assets.

The Navajo Nation plans to host a signing ceremony in Window Rock, Ariz., where administration officials will join tribal members to complete the settlement Friday.

“The trust litigation has been a protracted battle and, in the end, it was a victory for tribal sovereignty,” Shelly, the Navajo Nation president, said in a statement. “After a long, hard-won process, I am pleased that we have finally come to a resolution on this matter to receive fair and just compensation for Navajo Nation.”

Tribes resist elver bill that limits access

By Blake Davis, The Associated Press

The lucrative fishery for tiny glass eels, or elvers, has led to a clash between the state and Indian tribes over sovereignty and federal fishing regulations.2012 Reuters file photo
The lucrative fishery for tiny glass eels, or elvers, has led to a clash between the state and Indian tribes over sovereignty and federal fishing regulations.
2012 Reuters file photo

Officials with an American Indian tribe in Maine are resisting an initiative to impose the same restrictions on all elver fishermen, saying a cap on individual catches would force them to abandon tradition by limiting who has access to natural resources.

Members of the Passamaquoddy tribe say a bill to be considered by the House today is against their tribal values because it could prevent some of its fishermen from gaining access to the fishery.

Under the bill, elver fishermen would be subject to the same individual catch limits as other Maine fishermen. But the Passamaquoddy contend the tribe has made numerous other concessions, limiting itself to just one type of gear and agreeing to a decrease in its overall share of the elver harvest.

Passamaquoddy officials say choosing who can fish is cultural, not just a matter of conservation.

“The issue here is who gets to decide tribal culture,” said Fred Moore, the fisheries specialist with the Passamaquoddy who drafted its elver management plan. He said the tribe supported the bill as part of the state’s conservation plan.

The tribe, he said, enacted its own conservation measures years ago, including weekly catch reports from its elver fishermen.

Elvers are baby eels that have ballooned in value in recent years to become the second most valuable fishery in the state behind lobster.

As the state considers the bill, Moore said the tribe would continue to press the state to honor an earlier agreement. That agreement was the result of months of negotiations and had the approval of the Atlantic States Marine Fisheries Commission but state officials abandoned it after the attorney general voiced concern it would not be constitutional to apply two sets of rules in the same fishery.

That move also shed doubt on the authority of tribes in regulating marine resources.

The sponsor of the bill says the tribe’s position is understandable.

“The tribes have a valid point,” said Rep. Walter Kumiega, D-Deer Isle, who also co-chairs the joint Standing Committee on Marine Resources. “They have said that they have been treated differently over the years many times and maybe we should take that” into consideration, he said.

Still, Kumiega said, lawmakers would continue to take into account the concerns raised by the attorney general.

Both state and tribal officials have said they would like to avoid the types of disputes that arose last year when the commissioner of the Department of Marine Resource invalidated all Passamaquoddy elver fishing licenses.

The commissioner has said he would take similar steps this year if the tribe did not follow state law.