Southern Utes and U.S. reach settlement in $126M lawsuit

The Southern Ute tribe and the United States have reached a settlement in the tribe’s breach of trust case, which has been ongoing since 2013, when the tribe joined nine other tribes in suing the U.S. for failing to provide an accounting of tribal trust accounts and for mismanaging trust assets and non-monetary trust resources.

A major breakthrough in the case came when the Obama administration engaged in government-to-government negotiated settlements of the tribes’ claims. The Tribe settled its claim for $126 million.

Attorneys from the Native American Rights Fund, who have brought other similar cases, represented the tribes.

“The Tribe is pleased that the United States has taken accountability for its past actions in breaking the promises it made to tribes,” the tribal council wrote in a prepared statement. “Southern Ute has long suffered the effects of the United States’ inability and unwillingness to stand behind its trust responsibility. This settlement will help the Tribe repair the damage that has occurred as a result of this neglect.”

The federal government has held funds and assets in trust accounts for tribes since at least 1820, and currently purports to hold more than $2.4 billion in about 3,000 trust accounts for more than 250 tribes.

The Obama administration inherited lawsuits by more than 100 tribes claiming historical mismanagement of trust funds and assets, and dozens of tribes have reached settlement.