indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Kill The Tobacco Master Settlement Agreement
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Judge limits Utah's role in managing Navajo trust
Tuesday, March 18, 2008
Filed Under: Law | Trust

The state of Utah is not a "co-trustee" of Navajo trust funds, a federal judge ruled last Friday.

In a 28-page decision, Judge Tena Campbell agreed that Utah plays a role in managing oil and gas royalties on behalf of Navajos who live in San Juan County. But she rejected arguments that the state has a duty to verify whether tribal members are receiving the right amount of money for use of their land.

"[C]ontrary to the plaintiffs' assertion, the state is not a co-trustee with the United States," Campbell wrote.

As a result, the Navajo plaintiffs can only force Utah to account for the money "actually received" into the Navajo Trust Fund, Campbell said. Under a 1933 act of Congress, the state manages 37.5 percent of oil and gas royalties, but only after the royalties are first collected by the Interior Department.

"The court finds that the 1933 Act creates distinct, rather than overlapping, responsibilities for the United States and for the state of Utah," Campbell wrote. "The federal government collects the income due the NTF and sends it to Utah for deposit into the NTF. Utah manages the trust monies once they are received from the United States government."

Campbell didn't leave the state off the hook entirely. She said the Navajo plaintiffs can challenge whether Utah properly invested their royalties -- but she determined the proper standard is found in state law rather than federal law.

"At this point, the state has already invested the money as it saw fit," Campbell wrote. "So the question of whether such investment satisfied the state's trust duty is a matter for the liability phase of this case."

The judge also left open the question of whether Utah violated its duty to exercise "reasonable care" in managing the NTF She said this issue can be resolved in the liability phase as well.

The decision comes amid efforts by the state to relinquish its role in managing the NTF. Lawmakers have passed bills to put more control on the hands of the Navajo Nation, which receives the majority of the oil and gas royalties.

But some tribal members in San Juan County and Navajo Nation President Joe Shirley Jr. have raised concerns about the legislation. They have been waiting on Campbell's ruling and on an historical accounting report from the state that is due in court on June 30.

The Navajo plaintiffs want the state to account for the trust, which they say has been mismanaged since its inception. They point to a 1991 legislative report that said at least $150 million went unaccounted between 1993 and 1990. Some people were convicted of embezzlement in connection with the fund.

Court Decision:
Pelt v. Utah (March 14, 2008)

Navajo Trust Fund Bills:
Amendments Related to Monies Derived from Navajo Nation Reservation Lands in Utah (HB 352) | Encouraging Congressional Action to Designate a New Recipient of Royalties from Navajo Reservation Lands in Utah (HCR 4)

Related Stories:
Navajos concerned about Utah trust legislation (03/04)
Utah Navajo trust fund accounting report due (02/01)
Utah House passes bill to relinquish Navajo trust (01/24)
Utah Navajos seek extension for state trust fund (12/04)
Editorial: Utah should pull out of Navajo trust (11/16)
Utah seeks to pull out of Navajo trust fund (11/14)
Navajos in Utah fight state over trust mismanagement (3/6)
Federal judge advances Navajo trust fund lawsuit (1/12)
Navajo trust fund case moves forward (6/11)

Copyright © Indianz.Com
More headlines...
Stay Connected:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Businesses show support for LNI tournament (3/27)
Lakota Country Times: Oglala Sioux fighter climbing in the ranks (3/27)
Mark Trahant: Alaska Natives look 10,000 years into the future (3/27)
Ivan Star: The influences of boarding school and Vietnam War (3/27)
Gyasi Ross: Funerals become family reunions in Indian Country (3/27)
Tim Giago hands over the reins as publisher of Native Sun News (3/27)
House committee passes Native American Children's Safety Act (3/27)
Bill to benefit Miami Nation moves forward in House and Senate (3/27)
City extended contract to send treated sewage to sacred peaks (3/27)
Oneida Nation welcomes ruling backing land-into-trust request (3/27)
Lawmakers want BIA to delay new federal recognition reforms (3/27)
Another conviction from Chippewa Cree Tribe corruption probe (3/27)
Editorial: Shakopee Tribe contributes $5M for health initiative (3/27)
Opinion: Navajo Nation enacts 'sin tax' on unhealthy products (3/27)
Editorial: Opposition to Pamunkey Tribe recognition 'revolting' (3/27)
Dennis Jenkins: Hypocrisy for new tribal casinos in Connecticut (3/27)
Supreme Court asked to hear Kialegee Tribal Town gaming case (3/27)
Ho-Chunk Nation extends agreement for off-reservation casino (3/27)
Indiana lawmakers seek role in Pokagon Band gaming compact (3/27)
Native Sun News: Oglala Sioux leader not pleased with boycott (3/26)
Lakota Country Times: Lakota Nation Invitational stays in Rapid (3/26)
Native Sun News: Mayor of Rapid City addresses race relations (3/26)
Jane Daugherty: Tribal e-commerce continues to draw scrutiny (3/26)
Witness list for Senate Indian Affairs Committee's field hearing (3/26)
Richard Iron Cloud: Remove murderer's name from sacred peak (3/26)
Native Youth: Bring dental therapy providers to Indian Country (3/26)
Steven Newcomb: Tribal nations still under dominating process (3/26)
Law firm hosts tribes for session on marijuana in Indian Country (3/26)
Judge upholds BIA decision on Oneida Nation land-into-trust bid (3/26)
Appeals court rules against Crow Tribe in housing grant dispute (3/26)
Ho-Chunk Nation raises minimum wage to $2.75 above federal (3/26)
Mishewal Wappo Tribe to appeal decision in recognition lawsuit (3/26)
Racist emails of former Montana federal judge to be preserved (3/26)
Shingle Springs Band considered but rejected indoor gun range (3/26)
House panel backs bill to block Tohono O'odham Nation casino (3/26)
Quapaw Tribe did not include casino on land-into-trust request (3/26)
Chumash Tribe never got apology for diplomat's casino remark (3/26)
Governor won't sign casino compact with Fort Sill Apache Tribe (3/26)
Cherokee Nation approves $6.9M renovation project for casino (3/26)
Native Sun News: Oglala Sioux veteran training for Paralympics (3/25)
Alaska Native musher Chuck Schaeffer completes 2015 Iditarod (3/25)
LTBB News: Michigan tribes come together for historic meeting (3/25)
Lecture focuses on repatriation of tribal intellectual properties (3/25)
Board still working on delivering money for Cobell scholarships (3/25)
Sen. Barrasso to chair field hearing on drugs in Indian Country (3/25)
Bill for tribal marijuana compacts up for hearing in Washington (3/25)
Choctaw Nation chief hopes to travel to Ireland for monument (3/25)
HHS urged to do more to help tribes with foster care programs (3/25)
Eastern Cherokees work to teach language to new generations (3/25)
Another suggestion for Indian woman on $20 bill -- Sakakawea (3/25)
Man from Crow Tribe cites self-defense in fatal casino shooting (3/25)
Shawnee Tribe sees opposition to off-reservation gaming plan (3/25)
Navajo Nation signs Class III casino compact with New Mexico (3/25)
Quapaw Tribe insists a casino isn't focus of Arkansas land plan (3/25)
Suquamish Tribe reaches deal to allow highway work at casino (3/25)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.