Gov’t Settles Tribal Contract Class Action Lawsuit for $940M

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On Sept. 17, it was announced that a $940 million settlement agreement had been reached between the federal government and several Native American tribes and tribal groups that will resolve claims brought against the U.S. Department of the Interior, Secretary of the Interior Sally Jewell, and her office.

This Native American tribal contract class action lawsuit alleges the Department of the Interior failed to pay for the administrative costs incurred by numerous tribes in order to provide education, public safety and other services as promised under the Indian Self-Determination Act.

Based on the terms of the proposed tribal contract class action settlement filed in New Mexico federal court, the federal government has agreed to pay $940 million to resolve allegations that the United States federal government violated the Contract Disputes Act and the International Swaps and Derivatives Association by not fully funding contract support costs with various tribes and tribal entities between 1994 and 2013.

Some of the contracted Bureau of Indian Affairs program services the federal government allegedly failed to pay for include law enforcement, forest management, fire suppression, road maintenance, housing and federal education programs, according to the tribal contract class action lawsuit.

According to Jewell, this Native American tribal contract class action deal is a “landmark settlement.” In a joint statement with the U.S. Department of Justice, she states, “Tribal self-determination and self-governance will continue to be our North Star as we navigate a new chapter in this important relationship and we are committed to fully funding contract support costs so that tribal contracting can be more successful. Congress can and should make this happen.”

This tribal contract class action settlement is a long time in coming, as this class action lawsuit was originally filed in 1990, and since then won three partial settlements in 1999, 2002 and 2008, which total to about $113 million. These settlements involve related tribal contract claims occurring before 1994.

Under the most recent Native American tribal contract class action settlement, the Ramah Navajo Chapter, Oglala Sioux Tribe and Pueblo of Zuni will be awarded 20 percent larger settlement shares than other Class Members represented in this class action settlement, as they served as named class representatives.

As to the terms of the proposed Native American tribal contract class action settlement, Pueblo of Zuni Governor Val Panteah Sr. states the deal “acknowledges the great wrong done to our people and closes the book on this sad chapter.” However, in the same statement, Panteah has asked Congress to ensure that future contracts between the federal government and tribes and/or tribal agencies be honored.

The tribes are represented by Michael P. Gross of M.P. Gross Law Firm PC, co-class counsel C. Bryant Rogers of Vanamberg Rogers Yepa Abeita Gomez & Works LLP, and co-class counsel Lloyd B. Miller of Sonosky Chambers Sachse Miller & Munson LLP.

The Native American Tribal Contract Class Action Lawsuit is Ramah Navajo Chapter, et al. v. Jewell, et al., Case No. 1:90-cv-00957, in the U.S. District Court for the District of New Mexico.