UNITED STATES v. NAVAJO NATION
No. 01-1375
Supreme Court of the United States
Argued December 2, 2002—Decided March 4, 2003
537 U.S. 488
Deputy Solicitor General Kneedler argued the cause for the United States. With him on the brief were Solicitor General Olson, Assistant Attorney General Sansonetti, Deputy Assistant Attorney General Clark, Gregory G. Garre, Todd S. Aagaard, and R. Anthony Rogers.
Paul E. Frye argued the cause for respondent. With him on the brief were Richard W. Hughes, David O. Stewart, Samuel J. Buffone, Levon B. Henry, and Richard B. Collins.*
*V. Thomas Lankford and Terrance G. Reed filed a brief for the Peabody Coal Co. et al. as amici curiae urging reversal.
Briefs of amici curiae urging affirmance were filed for the Jicarilla Apache Nation et al. by Jill Elise Grant; for the Mississippi Band of Choc-
JUSTICE GINSBURG delivered the opinion of the Court.
This case concerns the Indian Mineral Leasing Act of 1938 (IMLA),
I
A
The IMLA, which governs aspects of mineral leasing on Indian tribal lands, states that “unallotted lands within any Indian reservation,” or otherwise under federal jurisdiction, “may, with the approval of the Secretary . . . , be leased for mining purposes, by authority of the tribal council or other authorized spokesmen for such Indians, for terms not to exceed ten years and as long thereafter as minerals are produced in paying quantities.”
Prior to enactment of the IMLA, decisions whether to grant mineral leases on Indian land generally rested with the Government. See, e. g., Act of June 30, 1919, ch. 4, §26,
Although the IMLA covers mineral leasing generally, in a number of discrete provisions it deals particularly with oil and gas leases. See
During all times relevant here, the IMLA regulations provided that “Indian tribes . . . may, with the approval of the Secretary . . . or his authorized representative, lease their land for mining purposes.”
B
The Tribe involved in this case occupies the largest Indian reservation in the United States. Over the past century, large deposits of coal have been discovered on the Tribe‘s reservation lands, which are held for it in trust by the United States. Each year, the Tribe receives millions of dollars in royalty payments pursuant to mineral leases with private companies.
Peabody mines coal on the Tribe‘s lands pursuant to leases covered by the IMLA. This case principally concerns Lease 8580 (Lease or Lease 8580), which took effect upon approval by the Secretary in 1964. App. 188-220. The Lease established a maximum royalty rate of 37.5 cents per ton of coal, id., at 191, but made that figure “subject to reasonable adjustment by the Secretary of the Interior or his authorized representative” on the 20-year anniversary of the Lease and every ten years thereafter, id., at 194.
As the 20-year anniversary of Lease 8580 approached, its royalty rate of 37.5 cents per ton yielded for the Tribe only “about 2% of gross proceeds.” 263 F. 3d 1325, 1327 (CA Fed. 2001). This return was higher than the ten cents per ton minimum established by the then-applicable IMLA regula-
In March 1984, the Chairman of the Navajo Tribal Council wrote to the Secretary asking him to exercise his contractually conferred authority to adjust the royalty rate under Lease 8580. On June 18, 1984, the Director of the Bureau of Indian Affairs for the Navajo Area, acting pursuant to authority delegated by the Secretary, sent Peabody an opinion letter raising the rate to 20 percent of gross proceeds. Id., at 8-9.
Contesting the Area Director‘s rate determination, Peabody filed an administrative appeal in July 1984, pursuant to
On July 17, 1985, Secretary Hodel sent a memorandum to Deputy Assistant Secretary Fritz. App. 117-118. The memorandum “suggest[ed]” that Fritz “inform the involved parties that a decision on th[e] appeal is not imminent and urge them to continue with efforts to resolve this matter in a mutually agreeable fashion.” Id., at 117. “Any royalty adjustment which is imposed on those parties without their concurrence,” the memorandum stated, “will almost certainly be the subject of protracted and costly appeals,” and “could well impair the future of the contractual relationship”
The Tribe was not told of the Secretary‘s memorandum to Fritz, but learned that ” ‘someone from Washington’ had urged a return to the bargaining table.” 46 Fed. Cl., at 223; see App. 342-344. Facing “severe economic pressure,” 263 F. 3d, at 1328; App. 355-356, the Tribe resumed negotiations with Peabody in August 1985, 46 Fed. Cl., at 223.
On September 23, 1985, the parties reached a tentative agreement on a package of amendments to Lease 8580. Ibid.5 They agreed to raise the royalty rate to 12 1/2 percent of monthly gross proceeds, and to make the new rate retroactive to February 1, 1984. App. 287. The 12 1/2 percent rate was at the time customary for leases to mine coal on federal lands and on Indian lands.6 The amendments acknowledged
Tribe $1.5 million when the amendments became effective, and $7.5 million more when Peabody began mining additional coal, as authorized by the Lease amendments. Id., at 292-293. The agreement “also addressed ancillary matters such as provisions for future royalty adjustments, arbitration procedures, rights of way, the establishment of a tribal scholarship fund, and the payment by Peabody of back royalties, bonuses, and water payments.” 46 Fed. Cl., at 224. “In consideration of the benefits associated with these lease amendments,” the parties agreed to move jointly to vacate the Area Director‘s June 1984 decision, which had raised the royalty to 20 percent. App. 286.
In August 1987, the Navajo Tribal Council approved the amendments. 46 Fed. Cl., at 224. The parties signed a final agreement in November 1987, App. 309, and Secretary Hodel approved it on December 14, 1987, id., at 337-339. Shortly thereafter, pursuant to the parties’ stipulation, the Area Director‘s decision was vacated. 46 Fed. Cl., at 224.
In 1993, the Tribe brought suit against the United States in the Court of Federal Claims, alleging, inter alia, that the Secretary‘s approval of the amendments to the Lease constituted a breach of trust. The Tribe sought $600 million in damages.8
The Court of Appeals for the Federal Circuit reversed. 263 F. 3d 1325 (2001). The Government‘s liability to the Tribe, it said, turned on whether “the United States controls the Indian resources.” Id., at 1329. Relying on
Judge Schall concurred in part and dissented in part. Id., at 1333-1341. It was not enough, he maintained, for the Tribe to show a violation of a general fiduciary relationship stemming from federal involvement in a particular area of Indian affairs. Rather, a Tribe “must show the breach of a specific fiduciary obligation that falls within the contours of the statutes and regulations that create the general fiduciary relationship at issue.” Id., at 1341. In his view, “the only government action in this case that implicated a specific fiduciary responsibility” was the Secretary‘s 1987 approval of the Lease amendments. Id., at 1339. The Secretary had been deficient, Judge Schall concluded, in approving the amendments without first conducting an independent economic analysis of the amended agreement. Id., at 1339-1341.
The Court of Appeals denied rehearing. We granted certiorari, 535 U. S. 1111 (2002), and now reverse.
II
A
“It is axiomatic that the United States may not be sued without its consent and that the existence of consent is a prerequisite for jurisdiction.” Mitchell II, 463 U. S., at 212. The Tribe asserts federal subject-matter jurisdiction under
“The United States Court of Federal Claims shall have jurisdiction of any claim against the United States accruing after August 13, 1946, in favor of any tribe . . . whenever such claim is one arising under the Constitution, laws or treaties of the United States, or Executive orders of the President, or is one which otherwise would
be cognizable in the Court of Federal Claims if the claimant were not an Indian tribe, band, or group.”10
“If a claim falls within the terms of the [Indian] Tucker Act, the United States has presumptively consented to suit.” Mitchell II, 463 U. S., at 216.
Although the Indian Tucker Act confers jurisdiction upon the Court of Federal Claims, it is not itself a source of substantive rights. Ibid.; see Mitchell I, 445 U. S., at 538. To state a litigable claim, a tribal plaintiff must invoke a rights-creating source of substantive law that “can fairly be interpreted as mandating compensation by the Federal Government for the damages sustained.” Mitchell II, 463 U. S., at 218. Because “[t]he [Indian] Tucker Act itself provides the necessary consent” to suit, ibid., however, the rights-creating statute or regulation need not contain “a second waiver of sovereign immunity,” id., at 218-219.
B
Mitchell I and Mitchell II are the pathmarking precedents on the question whether a statute or regulation (or combination thereof) “can fairly be interpreted as mandating compensation by the Federal Government.” Mitchell II, 463 U. S., at 218.
In Mitchell I, we considered whether the Indian General Allotment Act of 1887 (GAA),
We held that the GAA did not create private rights enforceable in a suit for money damages under the Indian Tucker Act. After examining the GAA‘s language, history, and purpose, we concluded that it “created only a limited trust relationship between the United States and the allottee that does not impose any duty upon the Government to manage timber resources.” Mitchell I, 445 U. S., at 542. In particular, we stressed that
In Mitchell II, we held that a network of other statutes and regulations did impose judicially enforceable fiduciary
As to managing the forests and selling timber, we noted, Congress instructed the Secretary to be mindful of “the needs and best interests of the Indian owner and his heirs,”
“(1) the state of growth of the timber and the need for maintaining the productive capacity of the land for the benefit of the owner and his heirs, (2) the highest and best use of the land, including the advisability and practicality of devoting it to other uses for the benefit of the owner and his heirs, and (3) the present and future financial needs of the owner and his heirs.” Ibid.
Proceeds from timber sales were to be paid to landowners “or disposed of for their benefit.” Ibid. Congress’ prescriptions, Interior Department regulations, and “daily supervision over the harvesting and management of tribal timber” by the Department‘s Bureau of Indian Affairs, we emphasized, combined to place under federal control “[v]irtually every stage of the process.” Mitchell II, 463 U. S., at 222 (internal quotation marks omitted); see id., at 222-224 (describing comprehensive timber management statutes and regulations promulgated thereunder).
Having determined that the statutes and regulations “establish[ed] fiduciary obligations of the Government in the management and operation of Indian lands and resources,” we concluded that the relevant legislative and executive prescriptions could “fairly be interpreted as mandating compensation by the Federal Government for damages sustained.” Id., at 226. A damages remedy, we explained, would “furthe[r] the purposes of the statutes and regulations, which
To state a claim cognizable under the Indian Tucker Act, Mitchell I and Mitchell II thus instruct, a Tribe must identify a substantive source of law that establishes specific fiduciary or other duties, and allege that the Government has failed faithfully to perform those duties. See 463 U. S., at 216-217, 219. If that threshold is passed, the court must then determine whether the relevant source of substantive law “can fairly be interpreted as mandating compensation for damages sustained as a result of a breach of the duties [the governing law] impose[s].” Id., at 219. Although “the undisputed existence of a general trust relationship between the United States and the Indian people” can “reinforc[e]” the conclusion that the relevant statute or regulation imposes fiduciary duties, id., at 225, that relationship alone is insufficient to support jurisdiction under the Indian Tucker Act. Instead, the analysis must train on specific rights-creating or duty-imposing statutory or regulatory prescriptions. Those prescriptions need not, however, expressly provide for money damages; the availability of such damages may be inferred. See id., at 217, n. 16 (“[T]he substantive source of law may grant the claimant a right to recover damages either expressly or by implication.” (internal quotation marks and citation omitted)).
C
We now consider whether the IMLA and its implementing regulations can fairly be interpreted as mandating compensation for the Government‘s alleged breach of trust in this case. We conclude that they cannot.
1
The Tribe‘s principal contention is that the IMLA‘s statutory and regulatory scheme, viewed in its entirety, attaches
The IMLA and its implementing regulations impose no obligations resembling the detailed fiduciary responsibilities that Mitchell II found adequate to support a claim for money damages.11 The IMLA simply requires Secretarial approval before coal mining leases negotiated between Tribes and third parties become effective,
Instead, the Secretary‘s involvement in coal leasing under the IMLA more closely resembles the role provided for the Government by the GAA regarding allotted forest lands. See Mitchell I, 445 U. S., at 540-544. Although the GAA required the Government to hold allotted land “in trust for the sole use and benefit of the Indian to whom such allotment shall have been made,” id., at 541 (quoting
Moreover, as in Mitchell I, imposing fiduciary duties on the Government here would be out of line with one of the statute‘s principal purposes. The GAA was designed so that “the allottee, and not the United States, [would] manage the land.” Id., at 543. Imposing upon the Government a fiduciary duty to oversee the management of allotted lands would not have served that purpose. So too here. The IMLA aims to enhance tribal self-determination by giving Tribes, not the Government, the lead role in negotiating mining leases with third parties. See supra, at 494. As the Court of Federal Claims recognized, “[t]he ideal of Indian self-determination is directly at odds with Secretarial control over leasing.” 46 Fed. Cl., at 230.
2
The Tribe nevertheless argues that the actions of the Secretary targeted in this case violated discrete statutory and regulatory provisions whose breach is redressable in an action for damages. In this regard, the Tribe relies extensively on
Similarly unavailing is the Tribe‘s reliance on the Indian Mineral Development Act of 1982 (IMDA),
Citing
In the circumstances presented, the Tribe maintains, the Secretary‘s eventual approval of the 12 1/2 percent royalty violated his duties under
The Tribe‘s vigorously pressed arguments headlining
In sum, neither the IMLA nor any of its regulations establishes anything more than a bare minimum royalty. Hence, there is no textual basis for concluding that the Secretary‘s approval function includes a duty, enforceable in an action for money damages, to ensure a higher rate of return for the Tribe concerned. Similarly, no pertinent statutory or regulatory provision requires the Secretary, on pain of damages, to conduct an independent “economic analysis” of the reasonableness of the royalty to which a Tribe and third party have agreed. 263 F. 3d, at 1340 (concurring opinion below, finding such a duty).16
The Tribe‘s second argument under
Here again, as the Court of Federal Claims ultimately determined, see supra, at 501, the Tribe‘s assertions are not grounded in a specific statutory or regulatory provision that can fairly be interpreted as mandating money damages. Nothing in
We note, moreover, that even if Deputy Assistant Secretary Fritz had rendered an opinion affirming the 20 percent royalty approved by the Area Director, it would have been open to the Secretary to set aside or modify his subordinate‘s decision. See supra, at 498, n. 4. As head of the Department of the Interior, the Secretary had “authority to review any decision of any employee or employees of the Department.”
*
*
*
However one might appraise the Secretary‘s intervention in this case, we have no warrant from any relevant statute or regulation to conclude that his conduct implicated a duty enforceable in an action for damages under the Indian Tucker Act. The judgment of the United States Court of Appeals for the Federal Circuit is accordingly reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
JUSTICE SOUTER, with whom JUSTICE STEVENS and JUSTICE O‘CONNOR join, dissenting.
The issue in this case is whether the Indian Mineral Leasing Act (IMLA) and its regulations imply a specific duty on the Secretary of the Interior‘s part, with a cause of action for damages in case of breach. The Court and I recognize that if IMLA indicates that a fiduciary duty was intended, it need not provide a damages remedy explicitly; once a statutory or regulatory provision is found to create a specific fiduciary obligation, the right to damages can be inferred from general trust principles, and amenability to suit under the Indian Tucker Act. See United States v. White Mountain Apache Tribe, ante, at 472-473; United States v. Mitchell, 463 U. S. 206, 226 (1983) (Mitchell II). I part from the majority because I take the Secretary‘s obligation to approve mineral leases under
The protective purpose of the Secretary‘s approval power has appeared in our discussions of other statutes governing Indian lands over the years. In Tiger v. Western Investment Co., 221 U. S. 286 (1911), for example, we upheld the constitutionality of the Act of Apr. 26, 1906, ch. 1876, § 22, 34 Stat. 145, which made alienation of certain allotted lands by citizen Indians “subject to the approval of the Secretary of the Interior.” Although allotment and conferral of citizenship had given tribal members greater responsibility for their own interest, see, e. g., Choteau v. Burnet, 283 U. S. 691, 694 (1931), we nevertheless understood that the requirement of prior approval was supposed to satisfy the National Government‘s trust responsibility to the Indians, Tiger, supra, at 310-311; accord, Sunderland v. United States, 266 U. S. 226, 233 (1924) (restraints on alienation of Indian property are enacted “in fulfillment of [Congress‘s] duty to protect the Indians“). Shortly after Tiger, in Anicker v. Gunsburg, 246 U. S. 110 (1918), we held that the Secretary‘s authority to approve leases of allotted lands under the Act of May 27,
Congress‘s decision in IMLA to give the Secretary an approval authority is well understood in terms of this background, for in the enactment of IMLA, Congress devised a scheme of divided responsibility reminiscent of the old allotment legislation. While it changed the prior law by transferring negotiating authority from the Government to the tribes, it hedged that augmentation of tribal authority in leaving the Secretary with certain powers of oversight, including the authority to approve or reject leases once the tribes negotiated them.
I do not mean to suggest that devising a specific standard of responsibility is any simple matter, for we cannot ignore the tension between IMLA‘s two objectives. If we thought solely in terms of the aim to ensure that negotiated leases “maximize tribal revenues,” Kerr-McGee, supra, at 200, we would ignore the object of IMLA to provide greater tribal responsibility, against which the Secretary‘s oversight is act
While this is not the case to essay any ultimate formulation of a balanced standard, even a reticent formulation of the fiduciary obligation would require the Secretary to withhold approval if he had good reason to doubt that the negotiated rate was within the range of reasonable market rates for the coal in question, or if he had reason to know that the Tribe had been placed under an unfair disadvantage at the negotiating table by his very own acts. See Restatement (Second) of Trusts §§ 170, 173, 174, 176 (1957). And those modest standards are enough to keep the present suit in court, for the Tribe has pleaded a breach of trust in each respect and has submitted evidence to get past summary judgment on either alternative.
The record discloses serious indications that the 12 1/2 percent royalty rate in the lease amendments was substantially less than fair market value for the Tribe‘s high quality coal. In the course of deciding that 20 percent would be a reasonable adjustment under the terms of the lease, the Area Director of the Board of Indian Affairs (BIA) considered several independent economic studies, each one of them recommending rates around 20 percent, and one specifically rejecting 12 1/2 percent as “inadequate.” App. 6-7 (internal
All of this is not to say that the Tribe would end up with a recovery at the end of the day. Disputed facts have not been tried; the negotiations affected not only the 1964 lease that was subject to adjustment on demand, but also other leases apparently not subject to the same option for the Tribe‘s benefit; and the renegotiated terms affected lease provisions other than royalties (including tax terms). For all we can say now, the net of all these changes may have been an overall bargain in the Tribe‘s interest, despite the smaller royalty figure in the lease as approved. But the only issue here is whether the Tribe‘s claims address one or more specific statutory obligations, as in Mitchell II, at the level of fiduciary duty whose breach is compensable in damages. The Tribe has pleaded such duty, the record shows that the Tribe has a case to try, and I respectfully dissent.
Notes
The Tribe argues, in its presentation to this Court, that the 12 1/2 percent provided in amended Lease 8580 is only a “facial royalty rate,” Brief for Respondent 11, and that the actual rate is lower, see Tr. of Oral Arg. 33. That assertion is based in part on the Tribe‘s agreement under the amended Lease to relinquish its claim for $33 million in back taxes and $56 million in back royalties, see 46 Fed. Cl., at 224, and in part on proposed findings of fact the Tribe submitted to the Court of Federal Claims, which the Government did not specifically dispute. See App. in No. 00-5086 (CA Fed.), pp. A2703-A2727. The proposed findings stated that a provision in the amended Lease “signifying a non-standard method of calculating the royalty,” App. 180 (Proposed Findings ¶ 314), “resulted in royalty payments lower than the minimum allowable for federal coal,” id., at 181 (Proposed Findings ¶ 315). To the extent the Tribe here assails the Secretary‘s approval of Lease 8580 as inconsistent with the then-prevailing federal policy not to approve rates below 12 1/2 percent, we do not pursue the point, for the Tribe failed to rely on it below. See 46 Fed. Cl., at 233 (“[T]here is no claim by the [Tribe] that the [Secretary‘s] 1987 approval of Lease 8580 . . . ran afoul of th[e] [federal] policy” of not approving IMLA leases with royalty rates of less than 12 1/2 percent.).
