Showdown Set Over Fees in Cobell Settlement

The U.S. Senate is poised to vote soon on a jobs-and-tax package that would also authorize a settlement in long-running litigation over American Indian trust accounts. Still to be decided: what the cap will be for attorneys fees in that case.

Lawyers in the case, named for lead plaintiff Elouise Cobell, agreed to cap fees at $100 million. Sen. John Barrasso (R-Wyo.) is proposing to set the cap at $50 million, and he introduced an amendment (PDF) this week to do so.

Senators could vote on the amendment as soon as next week, or they might not consider it at all. A spokeswoman for Senate Majority Leader Harry Reid (D-Nev.) said today that no agreement has been reached.

In a statement, Barrasso said his amendment would benefit the plaintiffs, who lost royalty funds they were entitled to from the use of natural resources on Indian land. “After hearing from both sides to the lawsuit and Indian country, I believe the agreement can be strengthened in a way that benefits individuals, Indian Country, and taxpayers,” he said.

Cobell, of the Blackfeet tribe in Montana, supports the $100 million cap. No plaintiffs have opposed that cap in court. Representing the plaintiffs are D.C. solo practitioner Dennis Gingold and a team from Kilpatrick Stockton.

Attorney General Eric Holder Jr. and Interior Secretary Ken Salazar have written to senators in opposition to the Barrasso amendment, saying it would threaten the entire settlement. They note that the case has stretched on for 14 years, involving hundreds of thousands of plaintiffs.

“The nature of any settlement agreement is that no one gets everything they asked for,” they wrote in letters (PDF) dated June 9. “In the lead-up to the agreement, issues were resolved through difficult, arm’s length negotiations, and the parties contemplated that the legislation would be passed as proposed.”

The settlement, signed in December but requiring congressional authorization, includes $1.41 billion in payouts. Legislation would also authorize $2 billion in land transactions.

Barrasso, in his statement, said that the plaintiffs’ lawyers and the government “have the power to accept the changes on behalf of all the individuals who will be impacted by the settlement. They should do so.”

The House approved its version of the jobs-and-tax package May 28.

Comments

[toni lacroix]

I think that the lawyers to worked on this case should be paid 100 milion, after all if it were not for them, nobody would be getting any money, the govermant would continue to screw the indians for hundreds of years to come, the lawyers have spent 14 years working on this settlemant, give them whats coming to them! and as for congress SIGN THE FREAKING BILL!

[redweezil]

Exactly how much has been mismanaged over the years? I don't think the settlement comes close to that, and it should. The lawyers should be paid an honest rate for their work if it does get settled. But nothing will ever change. The indinz will always get the short end of the stick. So don't count on the gov or anyone else. Count on yourself & get a job!

[Maggie Aukoy]

You know there have been two or three different amounts that Native Americans are to receive and the most I've heard of is fifteen hundred dollars. Is that going to solve a monthly social security problem? No. Not to burst anyone's bubble but this case is a dangerous piece of litigation for all Native American's. People are forgetting about the fact that as of this case, we will never be able to go back and file suit forever, ever! That was my understanding when I first read about it. As for the lawyers walking off with 100 million, forget that, the cap should be fifty million and up our pay-outs if it does get passed.

[Bernice Riggers]

I know for a fact many Native Americans have died waiting on this settlement to be over with,now many more will probably die. You can thank senator barrasso for that along with others who do not agree. I dislike seeing my people living in poverty. They shouldn't have to. Where is Mr. Obama now. He's the one who said "to hurry and get this settled".

[Marilyn Nuttle, Pawnee, OK]

Just when we, as Native Americans, thought we were finally being shown a little respect by the government for all the years of running our lives, managing our land... they still cannot let go, because this Case, when finalized once and for all, will make it “Official” that we have been wronged! Come on Congress... do your job - and if it makes you feel better, you’re still winning, because we will never get what is truly owed to us.

[marlene cournoyer]

Isn't it too bad, my parents have been waiting for this all of their lives. They have both been gone now, for 50 yrs. Now we are on social sevurity and we don't get a raise for a couple of yrs. Obama promised this cobell settlement, "immediately". Imediately has long passed. Obama wanted to give social security recipients a $250 stimulus, but congress knocked that down too. Thanks alot to the congress , who got how much in raises ?

[Kimberly Craven]

The National Congress of American Indians sent a letter to the Chairman of the Senate Indian Affairs Committee yesterday endorsing Senator Barrasso's amendments. This comes on the heels of Sec. Salazar and Attorney General Holder's admonishment not to change the settlement terms. I have a copy of the letter if you'd like to see it - email me.

[Not Surprised]

Thus far, Barrraso is the only one concerned about the cap on attorney fees. Surely he realizes that any proposed changes will halt settlement of the case. Many plaintiffs have died waiting for settlement of the case. This is just one more bureaucrat who thinks their input will be an improvement. Oh well, back to square one, meanwhile native beneficiaries continue to live on third world reservations...suffering in abject poverty.