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United States v. Navajo Nation December 2, 2002 (01-1375) return to case listing Case Summary The Indian Mineral Leasing Act of 1938 (IMLA) authorizes an Indian Tribe, with the approval of the Secretary of the Interior, to lease tribal lands for mining activities. In 1964, the Navajo Nation ("the Navajo") entered into a lease agreement with Peabody Coal that provided for an adjustment of the royalty rate in twenty years by the Secretary of the Interior. Twenty years later, the Navajo asked the Department of the Interior to set a new royalty according the fair market pursuant with IMLA. The rate was increased to 20% and Peabody appealed to the Commissioner of Indian Affairs. The increase was later withdrawn at the instruction of the Secretary of the Interior. The Navajo were never notified of the Bureau of Indian Affairs' decision in their favor, and they eventually agreed to a royalty rate of 12.5%. The Navajo brought suit in the Court of Federal Claims claiming that the Secretary of Interior breached fiduciary duties owed to the Navajo in the context of coal mining royalties. The Court dismissed the complaint and the Navajo appealed to the U.S. Court of Appeals for the Federal Circuit. The Court of Appeals reversed and stated that both IMLA and common law create fiduciary obligations with respect to coal resources. The Federal Circuit held that because the government failed to act in the best interest of the tribe, the government breached its fiduciary duty to the Navajo and monetary relief was appropriate. The opinion of the Federal Circuit is found at 263 F.3d 1325. To see the opinion of the lower court, click here. PREDICTED OUTCOME ACTUAL OUTCOME Forecasting Model Expert One Expert Two Expert Three 5-4 to Reverse 5-4 to Reverse 5-4 to Affirm 8-1 to Reverse 6-3 to Reverse VOTING TO REVERSE Rehnquist O'Connor Scalia Kennedy Thomas Rehnquist O'Connor Scalia Kennedy Thomas Rehnquist Scalia Kennedy Thomas Rehnquist Scalia Thomas (O'Connor Kennedy Souter Ginsburg Breyer Affirm in Part Reverse in Part) Rehnquist Scalia Kennedy Thomas Ginsburg Breyer VOTING TO AFFIRM Stevens Souter Ginsburg Breyer Stevens Souter Ginsburg Breyer Stevens O'Connor Souter Ginsburg Breyer Stevens Stevens O'Connor Souter return to case listing