The Interior Department breached its trust to the Navajo Nation and must pay damages for mishandling a coal mining lease, a federal appeals court ruled on Thursday.
In a unanimous decision, the Federal Circuit Court of Appeals said the "undisputed facts" prove Interior breached its fiduciary duties to the largest tribe in the country. Swayed by a lobbyist, the Reagan administration approved a coal mining lease for a less than a "reasonable" royalty rate, the three-judge panel concluded.
That action violated common trust law, as well as a "network" of federal laws and regulations aimed at protecting the tribe's coal resources and keeping the tribe informed about its assets, the court said.
"Accordingly, this court holds that the nation has a cognizable money-mandating claim against the United States for the alleged breaches of trust and that the government breached its trust duties," Judge Arthur J. Gajarsa, a Reagan nominee, wrote in the 39-page ruling.
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Friday, September 14, 2007
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