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Cobell v. Kempthorne, D.C. Dist. Ct. (a.k.a. "Indian Trust Litigation")

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by Brad Jolly, Partner

July 14, 2006

On July 11, 2006, the D.C. Circuit removed Judge Royce C. Lamberth from the case, claiming that he had shown too much bias against the Department of Interior.

Unfortunately, the Senate Committee on Indian Affairs also decided not to let the Indian Trust Reform Act of 2005 out of committee. This legislation is designed to settle the Cobell litigation. It seems the administration expressed concern about the multi-billion dollar cost of returning money owed to individual Indians with Individual Indian Money accounts ("IIM accounts"). However, the money would come from a special Judgment Fund. Supposedly, the bill will may be considered after the August recess, but that will probably make passage unlikely since the Trust Reform Act will have to compete with "top priority" legislation that Congress will want to complete prior to the November elections.

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