Cobell Settlement - How Much Should The Lawyers Be Paid?
With the Cobell litigation settlement still awaiting ratification by the US Congress, another question has arisen – how much of the settlement funds should be paid out to lawyers?
The Cobell class-action lawsuit represents up to as many as 500,000 Native Americans who own property held in trust by the US government. The Department of Interior leases that land to others to farm or develop resources, and the Native landholders are supposed to have money generated by the land deposited into Individual Indian Money trust accounts, or IIMs. A federal District Court ruled in 1999 that the government had breached its trust duties, a ruling that was affirmed in 2001. The fight went on over whether the government had to provide an accounting to the IIM holders - the District Court ruled in 2008 that it did, which the appeals court reaffirmed last year.
The plaintiffs had originally sought $47 billion to compensate the affected Native Americans. The settlement signed in December 2009 allocates $1.4 billion to IIM holders; $2 billion is allocated to buy up fractionated lands from individual owners willing to sell; and $60 million will endow a scholarship fund for Native students.
The lead attorney for the plaintiffs is Dennis Gingold, a banking attorney who has been involved dating back to a 1992 meeting called by the first Bush administration in an attempt to sort out the trust money dispute. Gingold teamed up with lead plaintiff Eloise Cobell in bringing suit, and promised he would stick with her, even if there was no money to pay him. "Nobody in his right mind would want to do this," he told The Associated Press. "I thought it was important for my kids to understand that there are things worth fighting for." The14-year legal fight has included more than 3,600 court filings; 220 days of trial; 80 published court decisions; and 10 interlocutory appeals.
Some have questioned how much Gingold and his team of lawyers would receive in this settlement. Republican Sen. John Barrasso of Wyoming has proposed capping lawyer's fees at $50 million. Republican Rep. Doc Hastings of Washington sent a letter to Gingold saying it was reasonable to limit those fees so the Native Americans would receive more. Gingold and Cobell both say Congress doesn't have the authority to change the agreement, and that the proposed fee of just under $100 million would represent just 3 percent of the total settlement. "He has really uncovered the entire behavior of the United States government when it comes to managing Indian Trust assets," Cobell said of Gingold.
In addition to the legal fees, the Blackfeet Reservation Development Fund must repay at least $11 million in grants and loans from various foundations that helped fund the lawsuit. The settlement allows up to $15 million to repay those debts. The deadline for Congress to authorize the settlement and allocate the funds has been extended twice by the court. Cobell and Gingold are hopeful the settlement will be approved this time, but they say if the May 28 deadline passes without a vote, the deal could be terminated and years of additional litigation could ensue.
