Legal Document

537 U.S. 488 UNITED STATESv.NAVAJO NATION. No. 01-1375. Supreme Court of United States. Argued December 2, 2002. Decided March 4, 2003. The Indian Mineral Leasing Act 1938 (IMLA) provides that "[u]nallotted lands within any reservation," or otherwise under federal jurisdiction, "may, with the approval Secretary [of Interior (Secretary)] . ., be leased for mining purposes, by authority tribal council other authorized spokesmen such Indians." 25 U. S. C. § 396a. IMLA aims to provide tribes a profitable source revenue and foster self-determination giving Indians greater say in use disposition resources on their lands. In 1964, Navajo Nation (Tribe) permitted predecessor Peabody Coal Company (Peabody) mine coal Tribe's pursuant Lease 8580 (Lease 8580). established maximum royalty rate 37.5 cents per ton coal, but made figure subject reasonable adjustment 20-year anniversary every ten years thereafter. As 8580's approached, its yielded Tribe about 2 percent gross proceeds. This return was higher than minimum then-applicable regulations implementing IMLA. It substantially lower, however, Congress 1977 as permissible mined Act. June 1984, Area Director Bureau Affairs, acting delegated at request, sent an opinion letter raising 20 While Peabody's administrative appeal pending before Deputy Assistant Affairs John Fritz, wrote Hodel, asking him either postpone decision rule favor. representatives also met privately Hodel during period. July 1985, memorandum Fritz "suggest[ing]" he inform parties his not imminent urging them continue efforts resolve matter mutually agreeable fashion. resumed negotiations Peabody. November agreed amend provide, among things, 12½ monthly proceeds, which then-customary leases Pursuant 396a, approved amended 1987. 1993, brought this action damages against States, alleging, inter alia, Secretary's amendments constituted breach trust. Although granting summary judgment Federal Claims found had flagrantly dishonored Government's general fiduciary duties best interests rather those Tribe. court nevertheless concluded entirely failed link duty statutory regulatory obligation could fairly interpreted mandating compensation actions. Circuit reversed. Relying 399 promulgated thereunder, appeals determined measure control exercised over leasing mineral development sufficed warrant money Agreeing actions regarding violated obligations Tribe, Appeals remanded further proceedings, including determination damages. Held: States v. Mitchell, 445 535 (Mitchell I), 463 206 II), case. controversy here falls Mitchell I's domain, claim from Government fails, it does derive liability-imposing provision regulations. Pp. 502-514. (a) To state litigable claim, plaintiff must invoke rights-creating substantive law "can sustained." II, S., 218. Tucker Act, 28 1505, confers jurisdiction upon cases where requirement is met, itself rights. E. g., 216. 502-503. (b) I II are pathmarking precedents question whether statute regulation (or combination thereof) Government." I, held General Allotment 1887 (GAA) — President allot agricultural grazing land individual members residing reservation, 331, provided would hold thus allotted trust sole benefit allottee, 348 did authorize award alleged mismanagement forests located GAA created only limited relationship impose manage timber resources. 542. network statutes judicially enforceable management forested lands, 222-224, relevant prescriptions when breached duties, id., 226-227. cognizable instruct, tribe identify establishes specific allege has faithfully perform duties. See 216-217, 219. If threshold passed, then determine sustained result [the governing law] impose[s]." Id., "the undisputed existence between people" can "reinforc[e]" conclusion imposes 225, alone insufficient support Instead, analysis train duty-imposing prescriptions. Those prescriptions, need expressly damages; availability may inferred. 217, n. 16. 503-506. (c) issue cannot 506-514. (1) do requisite "substantive law" "mandat[es] They no resembling detailed responsibilities adequate simply requires Secretarial negotiated Tribes third become effective, authorizes generally promulgate operations, 396d. Unlike "elaborate" provisions "give full responsibility ... Indians," 224. neither assigned comprehensive managerial role nor, time here, invested secure needs owner heirs." Ibid. involvement more closely resembles forest 540-544. required allottees, "authoriz[e], much less requir[e], allottees." 545. Similarly assign leasing. Nor they even establish "limited relationship," 542, existing GAA; contains language respect Moreover, imposing out line one statute's principal enhancing self-determination. 543. 506-508. (2) rejects arguments case discrete whose redressable action. misplaces reliance 399, part govern 8580. Enacted almost IMLA, lease certain unallotted purposes terms she sets, input concerned. That authorization bear unavailing Development 1982 (IMDA), 2101 et seq. IMDA governs agreements through exploration like activities. standards her party, vigorously pressed headlining IMLA's prescription, fare better. Asserting 396a review approve proposed extent interests, points various reports identifying appropriate royalty, decision, after receiving ex parte communications Peabody, withhold departmental circumstances presented, maintains, Hodel's eventual two ways: improvident because allowed conveyance what knew half value, unfair intervention into process skewed bargaining depriving rate. These fail, assume first argument, nor anything bare there textual basis concluding function includes duty, damages, ensure Similarly, second argument grounded language. Nothing proscribed case, occurred largely unconstrained formal requirements. if rendered affirming Director, have set aside modified subordinate's exercise head Department. Accordingly, rejection necessarily 509-514. 263 F. 3d 1325, reversed remanded. GINSBURG, J., delivered Court, REHNQUIST, SCALIA, KENNEDY, THOMAS, BREYER, JJ., joined. SOUTER, filed dissenting opinion, STEVENS O'CONNOR, joined, post, p. 514. CERTIORARI TO THE STATES COURT OF APPEALS FOR FEDERAL CIRCUIT Solicitor Kneedler argued cause With brief were Olson, Attorney Sansonetti, Clark, Gregory G. Garre, Todd Aagaard, R. Anthony Rogers. Paul Frye respondent. Richard W. Hughes, David O. Stewart, Samuel J. Buffone, Levon B. Henry, Collins.* JUSTICE GINSBURG Court. 1 concerns (IMLA), 52 Stat. 347, seq., assigns (Secretary) executed private lessee. centers 1987 1964 entered (Tribe), federally recognized seeks recover connection Court's decisions (1980) (1983) Concluding we * A 3 aspects states "unallotted ..., Indians, exceed long thereafter minerals produced paying quantities." addition "to provid[ing] revenue," Cotton Petroleum Corp. New Mexico, 490 163, 179 (1989), aimed "giv[ing] lands," BHP Minerals Int'l Inc., 139 I. L. A. 269, 311 (1997). 4 Prior enactment grant rested Government. See, e. 30, 1919, ch. 26, 41 31, amended, 399; see infra, 509 (describing 399). consent required, sometimes granted objections. H. Rep. 1872, 75th Cong., Sess., (1938); 985, 1st (1937); 46 Fed. Cl. 230 (2000). designed advance independence, empowers negotiate themselves, and, leasing, primarily Secretary. 5 covers generally, number deals particularly oil gas leases. U.S.C. 396b (requirements public auctions leases); 396d (oil "subject cooperative unit plan prescribed [the] Secretary"); 396g ("[T]o avoid waste promote conservation natural welfare "for subsurface storage gas."). similarly leases; remits leases, common all governance rules 6 During times "Indian may, representative, purposes." CFR 211.2 (1985). itself, treated detail royalties, example, specified procedures applicable criteria employ setting rates. §§ 211.13, 211.16, 211.17. contrast, "not 10 ton." 211.15(c). No limitation placed negotiating capacity authority.1 B 7 involved occupies largest reservation Over past century, large deposits been discovered Each year, receives millions dollars payments companies. 8 mines covered principally 8580), took effect 1964. App. 188-220. 191, representative" thereafter, 194. 9 "about 2% proceeds." F.3d 1327 (CA 2001). 211.15(c) proceeds Pub. 94-377, 6, 90 1087, 30 207(a). For some starting 1970's, gain favorable return, endeavored renegotiate lessees, 138-139, 143-144. Chairman Tribal Council contractually conferred adjust On 18, Area, Secretary, 8-9. 11 Contesting Director's determination, 2.3(a) Cl., 222.2 referred both Commissioner 3d, 1328. supplement requested additional cost, revenue, investment data. 222. He appeared ready reject appeal. Ibid.; 89-97 (undated draft letter). By anticipated announcement imminent. 98-99.3 12 5, Vice Donald so seek settlement, 98-100. copy 100, submitted own request Department's prompt release favor, 119-121. 222; representative present at, received notice of, meeting, 13 17, Fritz. 117-118. "suggest[ed]" "inform th[e] urge fashion." 117. "Any imposed without concurrence," stated, "will certainly protracted costly appeals," "could well impair future contractual relationship" parties. Ibid.4 added, intended merits issues appeal." 118. 14 told learned "`someone Washington' urged table." 223; 342-344. Facing "severe economic pressure," 1328; 355-356, August 223. 15 September 23, reached tentative agreement package Ibid.5 raise make new retroactive February 1, 1984. 287. customary lands.6 acknowledged legitimacy taxation production, stipulated tax capped eight percent. 295, 299.7 addition, pay $1.5 million became $7.5 began amendments. 292-293. "also addressed ancillary matters adjustments, arbitration procedures, rights way, establishment scholarship fund, payment back bonuses, water payments." "In consideration benefits associated these amendments," move jointly vacate 1984 raised 286. 16 1987, signed final 309, 14, 337-339. Shortly parties' stipulation, vacated. 17 suit Claims, sought $600 damages.8 18 217 uncertain terms, owed which, view, Nevertheless, "be government's wrongs." 236. entitled law.9 19 1325 (2001). liability said, turned controls resources." 1329. breaches connected F.3d, 1330-1332. But 509. "suppress[ed] conceal[ed]" "thereby favor[ed] detriment interests." 1332. Based determinations, 1333. Judge Schall concurred dissented part. 1333-1341. enough, maintained, show violation stemming particular area affairs. Rather, "must contours create issue." 1341. government implicated responsibility" 1339. deficient, concluded, approving conducting independent agreement. 1339-1341. 21 denied rehearing. We certiorari, 1111 (2002), now reverse. 22 "It axiomatic sued prerequisite jurisdiction." U.S., 212. asserts subject-matter known provides: 23 "The shall accruing 13, 1946, favor whenever arising Constitution, laws treaties Executive orders President, claimant tribe, band, group."10 24 "If [Indian] presumptively consented suit." 538. Because "[t]he necessary consent" suit, ibid., contain "a waiver sovereign immunity," 218-219. 26 27 considered (GAA), 388, 331 (1976 ed.) (§§ 331-333 repealed 2000), members. will whom allotment made," 348. After examining GAA's language, history, purpose, "created allottee particular, stressed removed standard element making States,... responsible using 542-543; 543 ("Under scheme,... land."). decided `hold trust' wished prevent alienation allottees immune taxation." 544. [did] authoriz[e], allottees," 545, right left open, possibility sources might plaintiffs' claims 546, 7. 29 contrast [GAA]," observed, us clearly give managing selling timber, noted, instructed mindful heirs," 406(a), specifically take account: 31 "(1) growth maintaining productive heirs, highest land, advisability practicality devoting uses (3) financial 32 Proceeds sales paid landowners "or disposed benefit." Congress' Department regulations, "daily supervision harvesting timber" emphasized, combined place "[v]irtually stage process." 222 (internal quotation marks omitted); 222-224 thereunder). 33 Having "establish[ed] operation resources," legislative executive "fairly 226. remedy, explained, "furthe[r] require generate 34 not, ("[T]he implication." citation omitted)). C 35 consider conclude cannot. 36 contention scheme, viewed entirety, attaches each acted contravention contained Lease. Brief Respondent 20, 30-38. read differently. it, 37 damages.11 Yet dissent concludes "one obligations, level compensable damages." Post, 521. endeavor align however valiant, short mark. omitted) (quoting 406(a)).12 38 "in 541 348), 39 purposes. [would] land." Imposing oversee served purpose. So too here. enhance Tribes, Government, lead supra, 494. recognized, ideal directly odds leasing." 230. 40 argues targeted regard, relies extensively see, 22-23, 30-31, considerable weight well, 1330-1331; 501. provision, exercising authority, "perform acts proper protection purpose carrying section force effect." 399. describes 23-24, 30. party. short, outside IMDA's domain. Reply 12-13. 42 Citing 493, next "duty care basic [Tribe's] 39. assertion, 5-7, 15, action, 9-10, 15. 43 ways. First, "improvident," Tr. Oral Arg. 48, conveyed Secretary] value," 49. Second, "skewed bargaining" rate, rendering subsequent "unfair." 50. 44 better tied IMDA; provision.13 "improviden[ce]" approval, point guides circumscribing affirmation Regulations ton. exceeded floor. 495-496.14 At Lease, bears repetition, customarily issued readjusted 1976 498-499, 6.15 45 sum, royalty. Hence, pertinent pain conduct "economic analysis" reasonableness party agreed. 1340 (concurring below, finding duty).16 concentrates "skew[ing]" 1985 intervention, i. e., direction 50; 497-498. actions, intervening process, urges, based assessment issue; instead, attributable undue influence exerted 40-42. Underscoring knowledge 498, position seriously compromised 1985. 50-52. ultimate concludes, outcome fundamentally 47 Here again, ultimately determined, 501, assertions 2.20 (1985) (Commissioner rely "any information available [him] formally record not."); 496-497, 3. Either effected transfer Board. 2.19(b) (1985); Exercise option triggered character, prohibited. 4.27(b) elect Board, proscription contacts Board proceedings govern. 48 note, moreover, open modify decision. 4. Interior, "authority employee employees Department." 4.5(a)(2) cf. Michigan Citizens Independent Press Thornburgh, 868 F.2d 1285 (CADC) (upholding General's contrary conclusions judge Justice Antitrust Division, joint operating Newspaper Preservation Act), aff'd equally divided 493 (1989) (per curiam). 49 50 However appraise accordingly reversed, consistent opinion. 51 ordered. Notes: V. Thomas Lankford Terrance Reed Co. al. amici curiae reversal. Briefs affirmance Jicarilla Apache Jill Elise Grant; Mississippi Band Choctaw Charles Hobbs Christopher T. Stearns; National American Jeffrey Sutton Echohawk. 1996, events increased "12½ value production sold lease." 61 Reg. 35658 (1996); 211.43(a)(2) state, "[a] lower interest owner." 211.43(b) §2.11 (1985), file response, §2.12 "[r]ender written appeal" "[r]efer Appeals" (Board), "[w]ithin days pleadings expired." 2.19(a). elapsed 12, transferred Neither chose go route, entailed formalized (and possibly protracted) process. 2.3(c) ("Appeals manner Hearings Procedures Part Subpart D."); 4.310-4.317 (general Board); 4.330-4.340 (special officials Affairs). side reconsideration, 4.315(a), Office Appeals, 4.5(b), 4.5(a) stated ruling "is my discretionary 97. Had issued, 2.19(c)(2) (the interpretation law"); alsosupra, 496 (Deputy drafted, asked "render[ed] decision" himself, 4.5(a)(1), "direct[ed reconsider [his] decision," 4.5(a)(2). another former shared Hopi 224 8580, subjecting SecretaryId., 233. Twelve one-half 207(a), most 1976, Management Serv., Revenue Management, Terms (Jan. 2003), http://www.mrm.mms.gov/Stats/pdfdocs/lse_term.pdf (available Clerk file). identifies single 17.08 percent, 11, but, out, "part experimental policy tried time," (quotingPeabody Co., 93 317, 320 (1986)). Between 1988, Interior's practice royalties i.e., 00-5086 Fed.), A1872. late 1996 Revenues Report Receipts Leases 128 (Table 47) http://www.mrm.mms.gov/stats/ pdfdocs/mrr96fin.pdf argues, presentation "facial rate," actual 33. assertion relinquish $33 taxes $56 224, findings fact dispute. pp. A2703-A2727. "signifying non-standard method calculating royalty," 180 (Proposed Findings ¶ 314), "resulted allowable coal," 181 315). assails inconsistent then-prevailing rates below pursue point, below. 233 ("[T]here [Tribe] [Secretary's] ran afoul [federal] policy" percent.). Before inKerr-McGee 471 195 unsettled levy Interior. imposition severance tax, course, augmented amount payable lessee (royalties "would permit realize 20.5 percent"). 43-44 ("[W]e can't 60 goes [G]enerating [S]tation plant site lease."). separate claiming improper SeeNavajo Holding Civ. Action 99-469 (D.C., 24, 2002). complaint alleges violations Racketeer Influenced Corrupt Organizations 1961 related wrongdoing, contract, interference relationship, conspiracy, fraudulent concealment. 209 Supp. 2d 272 (DC 2002) (ruling pretrial motions). rejected determining Lease-specified carried so. 234-236. reference "which Claims" incorporates 1491. SeeMitchell 212, 8; 535, 539 (1980). grants "jurisdiction render founded department, express implied contract liquidated unliquidated sounding tort." 1491(a)(1). earlier recounted, seesupra, 494, address considerably Whether us. Both refer portions pt. 211 affecting owner. 27, 31;post, 516-517. referenced adopted decade 35653 (1996). "reasonable [royalty] adjustment[s]." noted above, 9, dispute, signatory binding him. perceive infusing derived "breach" contend meet effect, decide trigger ("The failure ensure, prior lease, amendments) comply specifying agree Act.") Under statutorily defined Seesupra, 6. Section applies general, apply until promulgated. 13-14. pre-1996 Tribe-private stresses greatest property,"post, 516 (1937)), suggests encompasses objective, 517. cautioned according "talismanic effect" Senate Report's "reference `the property,'" observed "overstates" aim attribute Legislature guarantee profit available." (1989). Beyond doubt, revenue." Ibid., quoted 493. concrete objective regard removal impediments applied land. Cotton, ("Congress concerned unavailability extralateral land."); ("[O]n domain discoverer deposit gets follow ore beyond lines indefinitely, while act confines survey markers 600 feet 1,500 claim. bill herewith obtaining sufficient acreage remove necessity attending controversies."); H.R. (1938) (same). impediment-removing Again, find solid lofty statements history legally command disapprove unless survive "an market study," 519, satisfy extratextual criterion profitability. O'CONNOR join, dissenting. 53 imply part, breach. recognize indicates intended, remedy explicitly; once obligation, inferred principles, amenability White Mountain ante, 472-473; 206, 226 II). majority substantial pleaded shown enough motion judgment. affirm Circuit. 54 effectiveness 396a; accepts position, 38, places save minimal assent calling whatever be. Ante, 511. Since merely standard, bargain extractable material high quality, demand much. illuminated historical reviewing conveyances ambitious signing off. 55 protective power our discussions years. Tiger Western Investment 221 286 (1911), upheld constitutionality Apr. 1906, 1876, 22, 145, citizen Interior." conferral citizenship given interest, Choteau Burnet, 283 691, 694 (1931), understood supposed Tiger, 310-311; accord, Sunderland 266 226, (1924) (restraints property enacted fulfillment [Congress's] protect Indians"). Anicker Gunsburg, 246 110 (1918), May 1908, 199, 312, "unquestionably improvidence designs who obtain inadequate compensation." 119. significant component responsibility. Clinton, Isolated Their Own Country: Defense Protection Autonomy Self-Government, Stan. Rev. 979, 1002-1003 (1981); Chambers & Price, Regulating Sovereignty: Discretion Lands, 1061, 1061-1068 (1974). 56 Congress's background, devised scheme reminiscent old legislation. changed transferring tribes, hedged augmentation leaving powers oversight, them. 396a-g. signature step "uniform Montana Blackfeet 759, 764 concern "adequate property," (1938). "basic purpose" "maximize revenues lands." Kerr-McGee 195, 200 767, 5. Consistent aim, (now effect) approvals, taken "[i]n 211.3 (2002); 211.1 (stating overarching Indians' developed maximizes interests").1 Thus, light 224-225, supports substance safeguard interest.2 57 mean suggest devising simple matter, ignore tension objectives. thought solely revenues," Kerr-McGee, 200, object responsibility, oversight hedge. Royster, Evolution Control Resources, Tulsa 541, 558-580 (1994) (noting twin IMLA). stringent scope errs opposite direction, overriding autonomy onerous one, 508, losing sight mixture congressional whole hog other. 58 essay formulation balanced reticent good reason doubt range question, know disadvantage table very acts. Restatement (Second) Trusts 170, 173, 174, 176 (1957). And modest keep court, evidence get alternative. 59 discloses serious indications fair quality coal. course deciding (BIA) several studies, recommending around rejecting "inadequate." 6-7 omitted).3 confirmed expert BIA's Energy supplemental report appealed endorsed "should 12.5% surface-mined coal" "extremely valuable." 22. study ever recommended yet little that. 134. When Circuit, sensible obligated assess circumstances, (2001) (opinion concurring part), stands shows said had. Of isolation, allegation unjustified apparently resource raises What more, powerful showing perfectly how behalf derailed proceeding probability meeting representatives, put name memorandum, drafted directing rate; mislead telling imminent, prepared Fritz's signature; encourage shift attention table, never possibility. predictable induce deep discount face feared prolonged loss uncertainty. procedure appeals, 512-513, adjustments lease. facts defaulted accepted himself intentionally imposed.4 All end up recovery day. Disputed tried; affected demand, same benefit; renegotiated (including terms). now, net changes overall despite smaller approved. try, respectfully dissent. internal providing conditions landowner." 133-134 distinguishMitchell saying gave "comprehensive role" explicitly "`the heirs.'" 507-508. comprehensiveness just described easy say, "elaborate control." 225. II's explicit "best interests" foreclose interpretive tools duty. suggesting elimination constraints peculiar 511-512, cited indicate restricted curing deficiencies law, nothing detract recognition Mines adjusted Division Resources 24.44 report. Several studies range: conducted Resource should another, consultant firm Navajo, advocated 22.77 significantly 5.57 7.16 current "restore originally contemplated parties." 16-18 suggestion,ante, 513-514, defeat initial had, considering painted plainly catering Hence cautious qualification emphasizing merits" adjustment. Given surveys unanimously unclear merits. More importantly, gravamen deceiving status resulting issue, favored appeal, perhaps evidence, dispositive.

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