As a judge considers a request to double fees given to attorneys who helped negotiate the landmark $3.4 billion Indian trust mismanagement suit settled just months ago, Congress is considering a bill to cap the fees at $50 million.

The suit was spearheaded by Elouise Cobell (Blackfeet), whose camp seems to be standing behind the fee increase request. The suit took nearly 15 years to settle.

The Washington Post covered the hearing, where no action was taken.

    Rep. Don Young, R-Alaska, is co-sponsoring legislation to cap the attorneys’ fees at $50 million.

    He said in a hearing before the House Subcommittee on Indians and Alaska Native Affairs, which he chairs, that “it smells” for the plaintiffs’ lawyers to now make the argument that they deserve $223 million, after the settlement limited their fee request to $99.9 million.

    Young said both the plaintiffs’ attorneys and the Obama administration officials who negotiated the settlement refused to testify Tuesday on the proposal and have stymied previous attempts to gather information about how the fees were structured.

    “Today, the Plaintiffs are stonewalling the efforts of this Committee to get to the bottom of the fee controversy in their refusal to testify or to respond to numerous written inquiries over the last year seeking information about their fees,” Young said.

Here is the full statement released by Cobell legal team, via media contact Bill McAllister, after the hearing:

    After 15 years of intense litigation against the federal government, plaintiffs and Class Counsel have achieved an historic settlement. It is the largest settlement with the government in American history. In addition to $3.4 billion in this settlement, $5 billion was spent by the government to rehabilitate its broken trust management systems solely because of this litigation. Further, Congress confirmed that all funds received by Indians in this settlement are tax free.

    The settlement terms were vetted for 12 months by members of Congress and their staffs. Each member of Congress who was involved in that extraordinary vetting process understood the terms. Congress, in its overwhelming ratification of the settlement, confirmed that the presiding U.S. District Judge should determine appropriate legal fees in accordance with controlling law.

    The matter is now before a distinguished federal judge and it is within the authority of the Court to decide that and any other fairness issue on the legal merits without partisan influence. Political interference in the judicial process would harm 500,000 individual Indians, undermine our system of government and jeopardize the settlement in its entirety.

Jenna Cederberg

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This entry was posted on Tuesday, April 5th, 2011 at 5:30 pm and is filed under Cobell vs. Salazar, Elouise Cobell. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 comments so far

Jackie Trotchie
 1 

Please explain why $5 billion of the fund is used to fix the “governments” broken system. They should be paying all the fees including the attorneys fees over and above the amount distributed to the people. The government didn’t seem to mind paying a roomful of people in their attempt to win the case but they whine like smashed cats when the have to pay Eloise, her attorneys and the people

April 6th, 2011 at 3:36 am
Thomas M. Wabnum
 2 

In 1998, Congress started investigations in to BIA mismanagement of Indian trust funds. These trust funds was created by the Dawes Allotment Act of 1887 which is the money coming from Indian allotments and deposited into government trust accounts for Indian Allottees and their heirs.
In 1992, Congress released a report called “Misplaced Trust: The BIA’s Mismangement of Indian Trust Funds.”
Then in 1994, Congress approved the “American Indian Trust Fund Management Reform Act” that created the Office of the Special Trustee for American Indians” to fix BIA’s forever mismanagement problems.
In 1996, Ms. Elouise Cobell filed a lawsuit on behalf of the Individual Indians. There was two basic issues: fix the broken BIA system and conduct an accounting of all IIM money no matter when desposited. So soon after the Dawes allotment and Indians were forced to become farmers, govt solution to fix Indian problem, money from leasing, forced land sales, sales of natural resources; oil and gas, etc. this money was the govt responsibility and the accurate accounting of it. The govt failed in these two issues so a forced and unfair settlement was agreed upon and the distribution of $3.4 billion.
During trust reform starting in 1997, OST alone received about $100 million per fiscal year to fix the broken trust and still does today. There are other trust reform funded activities of outsourcing but unclear of total amount. But Cobell documents say that is about $5 billion today. This amount exceeds what the settlement amount is and many wonder why?
BIA was also receiving about $2.5 billion annually but OST never fixed their system and OST was also under investigations for mismanagement of their appropriated funds.
What many don’t understand is that the Indian funding to fix the broken system fixed nothing. It was also used to defend the govts mismanagement of Indian trust and appropriated funds. Congress sat by the sidelines acting like the good guy wanting to fix and spank the govt when it was just a public show of corruptees making the Indians and Indian Affairs look bad to the American public. Why? If Indian Affairs can’t fix their broken systems and spend billions of tax payers money trying to do it, then why have them? Just abolish them and end the Indian problem forever. In essence, the U.S. was appropriating their own funds to fight themselves and prove how corrupt their own system are and always have been to the whole world.
Without Cobell, the govt would have paid us nothing. They already said they paid us our money so don’t expect nothing. And also, they would have said the broken system was fixed and its not. They lied in federal court and also got away with that.
The broken trust is not even a trust at least not according to public standards. That is what the Cobell legal team proved in federal court. They proved so much how evil the government is and it is recorded in U.S. Courts forever. I also believe that we will have a broken Court system after this settlement is complete. The Cobell took on and fought the most powerful Nation in the world. The Cobell paid for their own legal services while the U.S. had an endless taxpayer budget to fight this forever. Who do you think was going to win?
If there ever is another Cobell type lawsuit in the future and we don’t pay our attorneys what they are worth, then what kind of attorneys would we get in the future? Who would want to take on a lawsuit for Indians if they are not going to get paid properly and fight the U.S. in Court? Will Indians ever see any justice in this Country?
I was not in the courtroom when this was going on but I was in BIA and OST and witnessed their legal weaseling.

Thomas M. Wabnum
BIA/OST, Budget Analyst (retired)
IIMAccountholder
Prairie Band Potawatomi

April 6th, 2011 at 7:19 pm
Jeremy Standwell
 3 

There isn’t enough money in the world to pay the 500,000 indians what they deserve. But for the attorneys to want a total of $233 million that will be taken away from the indians for which they fought for, is insane. What in the world do you need that kind of money for? Rob from the poor and give to the rich. May you all rot in hell.

April 7th, 2011 at 1:31 pm
Thomas M. Wabnum
 4 

Congress and Govt pretended to provide centuries of injustice and find out how much the U.S. owed the Individual Indian. Rough guestimates that Indian money deposited into Treasury starting from 1887 to 2009 was $187 billionish. D.C. Judge Lamberth ordered acctg to prove how much was dispersed to Indians and what they cant prove is what they owed. Thats why trust reform was a planned failure to keep from lets say paying us $90 billion plus interest. This money was not protected by Trust principles meaning we should have received top dollar for sale of all products, highest interest rate obtainable, best govt employees, highest standards of a Trustee to take care of the beneficiary. that didn’t happen. U.S. was homeless and needed land n someone elses money and it was political power for politicians.
Treaties and Trust promises were great but they had no intentions of honoring them because they were going to kill us off anyway and their debt to us and our land would be free and clear to them.
So the 120 yrs of collecting trust fund money from Treasury was never recovered. Instead a cheaper payout from some other Treasury account was used to pay the $3.4 settlement.
Many Individual Indians and Tribes don’t understand how much it will cost to fight the most powerful country in the world and of all times in Court lets say to payout the $90 billion. If legally forced, wouldn’t you rather pay $3.4 billion instead of $90 billion?
During Cobell court, our Attorneys were kicking Govt butt everyday exposing their planned evil corruption against us and U.S. citizens. When fighting the U.S. you need multimillions because the U.S. will purposely delay court proceedings just to run up the court tab.
What citizens should be asking is how much the govt spent on the legal fruitless actions and I bet, I know, it is way over the $233 million the Cobell legal is asking for.
My Tribes has the most Treaties with the U.S. once had the largest land base (over 25 million acres) and population with all the natural resources to go with it. Were we forced on a Bataan Death March now called the Trail of Death to other lands that we bought with our own money. That was used by govt until gone as we were also killed off. I am an IIMAccountholder and I say pay the Cobell attorneys their request from money we never had if it was not for this lawsuit. At least we are gettn something, its better than the govts lies.

Thomas M. Wabnum
BIA/OST retired
Prairie Band Potawatomi

April 8th, 2011 at 8:42 am
Misty Ferrandini
 5 

It is true that this money is a drop in the bucket, however as Mr. Wabnum stated it is better than nothing. Time for the United States Government to pay up, and large.

May 8th, 2011 at 7:48 am

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