The famous Cobell v Salazar class action lawsuit against the United States government is making headlines again.  For a brief refresher, Cobell v Salazar was a class action suit brought by Native American representatives against two departments of the United States government.  According to the claims of the lawsuit, the U.S. government incorrectly accounted for the income from Indian trust assets, which are legally owned by the Department of the Interior, but held in trust for individual Native Americans, who are the beneficial owners.

Filed in 1996, the case was finally settled in 2009 with a $3.4 billion decision in favor of the class members awarded in 2009.  However, although the case was settled, the dispute has been reopened regarding how the legal fees for the case should be paid, and to whom they should be paid.  While the initial settlement called for $99.1 million to be paid for the attorneys who were involved with the dispute, there is $3.6 million being held in escrowed funds that has not been released. 

U.S. District Court Judge Thomas Hogan has stated that the remaining disputed funds might find their way into trial before resolution is reached.  However, in an effort to lower expenses that would ultimately result from a trial of that nature, Judge Hogan has ordered that mediation be tried first before the case goes to court.  “This case has been pending for a while and needs to be resolved,” said Judge Hogan.  “I’m concerned about whether or not I’ll have to order a trial. … This is an historic case.  A lot of good was done for people who deserve it.  It’s a shame it’s somewhat degenerated into fighting over lawyers’ fees.”