Fredericks v. United States Department of the Interior
Civil Action No. 2020-2458
| D.D.C. | Jul 2, 2021Background
- John Fredericks Jr. (a Three Affiliated Tribes enrollee) died in 2006; the United States held 3,477 acres in trust and probated his trust estate under federal law.
- In 2008 Kodiak Oil & Gas entered a lease for a 160-acre allotment; the Acting Fort Berthold Superintendent signed an "Acceptance of Lessor" form that the Bureau treated as executing/approving the lease for the decedent’s estate.
- Probate proceedings (IBIA) held that Judy Fredericks, the surviving spouse, holds a life estate "without regard to waste" under AIPRA and that remaindermen (the decedent’s children) each hold remainder shares.
- The Bureau’s Regional Director and the Interior Board of Indian Appeals upheld the lease execution and concluded that, under FBMLA + AIPRA, Judy (as life tenant without regard to waste) is entitled to all lease income during her lifetime.
- Plaintiffs (five of John’s children) sued under the APA seeking review and moved for a preliminary injunction to stop distribution of lease proceeds to Judy; the District Court denied the injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the Superintendent’s signature on the "Acceptance of Lessor" execute the lease per FBMLA §1(a)(3)? | The Acceptance form only "accepted the bonus" and did not execute the lease; thus execution was improper. | The Acceptance form was commonly used to document consent and the Superintendent intended it to have the same effect as signing the lease. | Court: FBMLA silent on form; agency interpretation reasonable and entitled to deference; Plaintiffs unlikely to succeed. |
| Are holders of a life estate "without regard to waste" (AIPRA) "owners" under FBMLA for purposes of distributing lease proceeds? | "Owner" means remaindermen/mineral owners, not life tenants; life tenants should not receive mineral proceeds. | "Owner" is broad; AIPRA expressly entitles life tenants without regard to waste to all income (bonuses/royalties); agency has long treated life tenants as owners. | Court: Term "owner" ambiguous; agency reading (including life tenants) is reasonable under Chevron and will be upheld. |
| Are Plaintiffs entitled to a preliminary injunction to prevent distribution of lease proceeds pending review? | Absent injunction, proceeds may be dissipated and unrecoverable; irreparable harm. | Monetary harm is generally reparable; Plaintiffs have a pending Tucker Act claim in the Court of Federal Claims to recover funds. | Court: Plaintiffs failed to show likelihood of success, irreparable harm, or equities/public interest in their favor; injunction denied. |
Key Cases Cited
- Winter v. Natural Res. Def. Council, 555 U.S. 7 (2008) (standard for preliminary injunctions).
- Chevron U.S.A., Inc. v. Natural Res. Def. Council, 467 U.S. 837 (1984) (agency deference framework).
- Kisor v. Wilkie, 139 S. Ct. 2400 (2019) (limits and guidance on deference to agency interpretations of their regulations).
- Cobell v. Norton, 240 F.3d 1081 (D.C. Cir. 2001) (context on federal trust obligations for Indian lands).
- United States v. Jicarilla Apache Nation, 564 U.S. 162 (2011) (DOI charged with administering Indian land statutes).
- United States v. Mitchell, 463 U.S. 206 (1983) (Mitchell II) (trust duties and money-mandating sources for Tucker Act claims).
- Biestek v. Berryhill, 139 S. Ct. 1148 (2019) (substantial-evidence standard explained).
- Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290 (D.C. Cir. 2006) (purpose of preliminary injunction to preserve status quo).
