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Cobell v. Norton

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Argued September 5, 2000

This case involves a class action suit by beneficiaries of Individual Indian Money (“IIM”) trust accounts against Interior Secretary Gale A. Norton and other federal officials who serve, in their official capacities, as trustee-delegates on behalf of the federal government. IIM trust beneficiaries filed suit alleging breach of fiduciary duties. Specifically, plaintiffs sought a declaratory judgment delineating appellants’ trust obligations to IIM trust beneficiaries and injunctive relief to ensure that such trust obligations are carried out. After a lengthy trial, the district court concluded that the federal government and its officers have been derelict in their duties, and issued a remand to the Interior and Treasury Departments so that appellants could discharge their fiduciary obligations. The district court further retained jurisdiction and ordered appellants to file quarterly reports detailing steps taken in fulfillment of their duties. Although the decision did not resolve every issue raised by plaintiffs, the district court certified the order for interlocutory appeal.

Appellants challenge the district court’s delineation of their trust obligations and assert that the district court exceeded its authority in ordering equitable relief for plaintiffs. We find that the district court had before it ample evidence to support its finding of ongoing material breaches of appellants’ fiduciary obligations. Notwithstanding the fact that appellants have taken significant steps towards the discharge of the federal government’s fiduciary obligations, appellants clearly have yet to fulfill their trust duties. The relief ordered was well within the district court’s equitable powers. While we order the district court to modify the characterization of some of its findings, we generally affirm its judgment and order.

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