Facts of the Case

United States v. Navajo Nation
Facts of the Case
·In 1964, the Navajo Nation entered into a lease with the Peabody Coal Company for the mining rights to some of their land.
·The agreement was 37.5 cents for every ton of coal that was mined.
·The agreement was subject for renegotiation after 20 years.
·After the 20 years was up the tribe’s royalty was only worth 2% of Peabody’s gross.
·The tribe requested for the Secretary of the Interior to set a new rate.
·Peabody’s representatives asked the Secretary to delay the decision, he agreed.
·The Navajo Nation and Peabody ended up settling with a rate of 12.5%
·In 1993, the tribe sued the government alleging a breach of trust and claimed $600 million in damages.
·The Court of Federal Claims ruled for the government saying that although the secretary betrayed the tribes trust and acted in Peabody’s interest it didn’t violate any obligation.
·The tribe came back on appeal saying that under the Indian Mineral Leasing Act the government has an obligation to look after the well being of the tribe.
·The Court of Appeals agreed with the tribe and reversed the decision stating that “the Secretary must act in the best interests of the Indian tribes.” http://www.oyez.org/cases/2000-2009/2002/2002_01_1375/