indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+ indianz.com on soundcloud
phone: 202 630 8439
Health Coverage for American Indians and Alaska Natives
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:
On Facebook

On Twitter

On Google+

On SoundCloud
Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Tribes mount another fight after Trump approves another pipeline (3/24)
Native Sun News Today: Navajo elders continue long fight on land (3/24)
Editorial: Just another day of trying to keep up with the Trumps (3/24)
Elizabeth LaPensée: Video games encourage indigenous culture (3/24)
Mary Annette Pember: Native women work with youth offenders (3/24)
Tiffany Midge: Trump continues to conjure hero Andrew Jackson (3/24)
John Kane: Seneca Nation money train coming to end in New York (3/24)
Grand Ronde Tribes secure approval of school mascot agreement (3/24)
Editorial: Federal recognition for tribes in Virginia is long overdue (3/24)
Seneca Nation ends casino payments after sending $1.4B to state (3/24)
Appeals court hears slew of Indian cases amid focus on nominee (3/23)
Internal tribal disputes continue to trip up federal court system (3/23)
Mark Trahant: Indian health care gains ignored in political debate (3/23)
Native Sun News Today: Young fighters maintain Lakota tradition (3/23)
Ivan Star Comes Out: America loses its self-respect and humanity (3/23)
Rosalyn LaPier: Why water remains sacred to indigenous peoples (3/23)
Winona LaDuke: North Dakota spreads filth about water protectors (3/23)
Harold Monteau: Tribal governments are abusing their own people (3/23)
Alex Jacobs: Donald Trump in middle of the 'deep state civil war' (3/23)
Secretary Zinke announces 'doggy days' for Interior Department (3/23)
Keystone XL Pipeline route crosses Ponca Tribe's forced removal (3/23)
Indian lawmaker resigns after being charged for child prostitution (3/23)
Pinoleville Pomo Nation buys site of long-delayed casino project (3/23)
High court pick acknowledges poor treatment of 'sovereign' tribes (3/22)
Dakota Access submits another status update entirely under seal (3/22)
Court allows claim for alleged underpayment in Cobell settlement (3/22)
South Dakota tribes continue to extend Class III gaming compacts (3/22)
Cowlitz Tribe secures approval to offer liquor as casino debut nears (3/22)
Native Sun News Today: Community project continues at Pine Ridge (3/22)
Cronkite News: Copper mine on sacred site complains about delays (3/22)
Mary Annette Pember: Awareness for missing and murdered sisters (3/22)
Stacy Pratt: Visiting the gravesite of Andrew Jackson in Tennessee (3/22)
Murder charge filed for fatal shooting of Navajo Nation police officer (3/22)
Muckleshoot Tribe still seeking answers for fatal shooting by officer (3/22)
Hopland Band submits claim for county raid of marijuana operation (3/22)
Chukchansi Tribe sued for $21M by gaming development company (3/22)
Seminole Tribe accused of breaking contract with outlet at casino (3/22)
Indian Child Welfare Act survives attack from conservative groups (3/21)
Senate Committee on Indian Affairs schedules hearing on diabetes (3/21)
Ponca Tribe hosts 282-mile walk to retrace trail of forced removal (3/21)
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.