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
The University of Tulsa College of Law - Master's in Indian Law
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:
Quinault Nation prepares for journey to Standing Rock encampment (12/2)
Doug George-Kanentiio: Iroquois prophecies warn of grave dangers (12/2)
Brandon Ecoffey: Media gets it wrong on Dakota Access frontlines (12/2)
Bronson Koenig: What I found during my journey to Standing Rock (12/2)
Timothy Egan: Fake cowboys cheered while the real Indians suffer (12/2)
Lakota Country Times: Laced marijuana finds its way to Pine Ridge (12/2)
Native Sun News Today: Owner of Wounded Knee site lowers price (12/2)
David Ganje: An opportunity for tribes to clean up their homelands (12/2)
Mary Annette Pember: Tribal member arrested for string of arsons (12/2)
Tiffany Midge: The women are here and we have a message for you (12/2)
Standing Rock Sioux Tribe calls for safety as veterans head to camp (12/1)
North Dakota sheriff scrubs Facebook of incriminating information (12/1)
Sen. Heidi Heitkamp considers role in Donald Trump administration (12/1)
Daniel Brown: Ho-Chunk Nation celebrates a new day in Wisconsin (12/1)
Lakota Country Times: #NoDAPL kitchen in need of more supplies (12/1)
Native Sun News Today: Standing Rock Sioux Tribe summons allies (12/1)
Vi Waln: Sacred fire burns at Oceti Sakowin camp in North Dakota (12/1)
Ivan Star Comes Out: Veterans at Standing Rock for the good fight (12/1)
Native Sun News Today: Duane Big Crow relishes role in coaching (12/1)
Clara Caufield: Community at Northern Cheyenne stays connected (12/1)
Steven Newcomb: A message to the Donald Trump administration (12/1)
Alaska Native designer brings subsistence fashion to new audience (12/1)
Tohono O'odham Nation and state remain at odds in casino dispute (12/1)
United Keetoowah Band won't talk about plans for potential casino (12/1)
Wilton Rancheria continues to face mysterious opposition to casino (12/1)
Non-Indian firm set to open $1.3B casino outside of nation's capital (12/1)
Native youth remain hopeful as nation transitions to new president (11/30)
Sioux Nation to President Obama: Stop the Dakota Access Pipeline (11/30)
Mark Trahant: Indian health care at risk with Trump administration (11/30)
Lakota Country Times: Herbalist brings medicine to Standing Rock (11/30)
Dana Lone Hill: A big 'wopila' to all the #NoDAPL water protectors (11/30)
Kelly Hayes: My whole heart is with the #NoDAPL water protectors (11/30)
Large veterans group heads to #NoDAPL frontline in North Dakota (11/30)
Native Sun News Today: Northern Cheyenne college hosts summit (11/30)
James Giago Davies: Mixed-race Indians forced to choose identity (11/30)
Cronkite News: Navajo chef takes helm at NMAI in nation's capitol (11/30)
Billy Stratton: The soldiers who refused the Sand Creek Massacre (11/30)
Gabriel Ray: Scotts Valley Band working to re-establish homeland (11/30)
Steve Russell: Resisting apartheid and genocide in the Trump era (11/30)
Charges filed after two children found malnourished at Pine Ridge (11/30)
Four Alaska Natives dead amid state outbreak of strep bacteria (11/30)
Pokagon Band breaks ground on housing project on Indiana land (11/30)
Ancestral remains found in Washington are about 2300 years old (11/30)
Former casino worker took $23K from Northern Cheyenne Tribe (11/30)
Sheriff hit with lawsuit as governor moves in on #NoDAPL camp (11/29)
Dakota Access Pipeline almost finished except at Lake Oahe site (11/29)
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.