McMurray v. Choctaw Nation of Indians
Opinion of the Court
delivered the opinion of the court:
This is a suit for a large amount asserted as due the plaintiff for services rendered the defendant Indians as an attorney. The plaintiff was formerly a member of the law firm of Mansfield, McMurray & Cornish, of South McAlester, Oklahoma. On May 5,1909, this firm was dissolved. During the existence of the firm it had almost continuously been engaged in representing the Choctaw and Chickasaw Indians, and claimed to have at the date of dissolution a number of outstanding and unpaid fees due from either one or both of said Indian tribes. On May 5, 1909, the date of dissolution, Messrs. Mansfield and Cornish assigned in writing all of said outstanding demands to the plaintiff, and by that instrument vested in him the ownership and right to collect the same. The plaintiff thereafter made an effort to settle with the Secretary of the Interior respecting the claims of the partnership, but it failed of consummation. He then went to Congress, where on May 25, 1918, by section 18 of the Indian appropriation act (40 Stat. 561), he secured the enactment of the special jurisdictional act set out in Finding IV. The act is lengthy and somewhat involved. It does, however, confer on the court jurisdiction to consider and adjudicate three claims for which the plaintiff was contending, viz, for services rendered in the case of the Choctaw and Chickasaw Indians v. United States and Chichasaw Freedmen; for expenses incurred under sections 31, 32, and 33 of the act of July 1, 1902, the act which created the citizenship court and authorized the retrial of what is known as “ court claimant ” cases, and lastly for the payment of two unpaid Chickasaw warrants. With reference to the last item, the two unpaid warrants, the record shows that after the institution of this suit they were paid to the plaintiff, and hence are no longer in issue.
The plaintiff filed his first petition in this court September 23, 1918. This petition followed the jurisdictional act
We have set forth these facts in tedious detail. Their recitation discloses the wide and acute disputation between the parties, a contest so vigorous that the record in this case is of immense proportions and required an extended time in preparation.
The most perplexing question, the one which engenders the gravest doubt, and extremely vital in its consequences, is the one as to whether the court, in arriving at its conclusions as to sums due pro and con, is authorized under the jurisdictional acts to exercise its judgment independently of section 2103, Eevised Statutes, and the other special acts of Congress regulating and prescribing the exelusive method of dealing and contracting with tribal Indians. Section 2103, Eevised Statutes, is a most stringent and protective enactment. The section points out in precise terms the method of contracting with Indian tribes and individual Indians not citizens of the United States. If this method is not followed, any proceeding contrary thereto is absolutely void. Any money paid upon contracts not executed according to its terms and approved by the Secretary of the Interior and Commissioner of Indian Affairs may be recovered back by the Indians. With the possible exception of two of the plaintiff’s claims, no written contracts •of employment conforming to section 2103, Eevised Statutes, and existing special laws, obtain. All the items of defendants’ counterclaim are predicated upon a right to recover the same because of funds paid without compliance with the law. So that if Congress intended to restrict the court to observance of Indian laws relating to dealings with ■ the Indians the case would be freed of the many difficulties it otherwise presents.
The plaintiff of course contends that the jurisdictional . acts send the case to this court with jurisdiction granted to
The court in arriving at a conclusion is relegated to an application of the usual rules of statutory construction. What was the legislative intent? Taking the transaction as it took shape before Congress and the Interior Department before the acts were passed, it is manifest that the plaintiff was seeking to collect what he believed he was entitled to receive, but without the right to assert his claims in a court. The controversy between him and the defendant Indians was an old and prolonged one, the Indians disavowing any indebtedness at all, and refusing until this suit was brought to pay a single one of his many claims. The Secretary of the Interior declined to intervene and attempt an adjustment of the differences. Congress with plenary authority over Indian tribal lands and funds, with full knowledge of the status of affairs, sends the controversy to this court to adjudicate upon the basis of “ such amount or amounts as may be found to be due thereon.” The Indians may defend, notwithstanding any statutes of limitations. Whatever may be due from the plaintiff to the defendants upon coal-mining leases is to be ascertained upon a “ fair and equitable basis.” Additional claims are authorized under the amendatory act “ to the end,” the act recites, “ that a complete and final adjustment may be had between said parties as to outstanding matters of controversy or account between them.” Such expressions we believe are susceptible to a construction that Congress intended a reference of the case to this court in all its aspects, and from the record render such a judgment as a complete settlement of the disputation warrants upon the basis of service rendered and results accomplished, service which the Indians accepted, and, if beneficial, for which they should pay, taking into account, of course, what the Indians have paid and the circumstances
The Ghichasaw Freedmen Case
Subsequent to the adoption of the policy of alloting certain Indian tribal lands in severalty to the members of the tribes, the matter of a proper and legitimate enrollment of those entitled to participate therein became acute. Among others to claim the right of enrollment were the Chickasaw freedmen, a considerable number of the descendants of former slaves of the Indians. On April 23, 1866, the Choc
While it may appear somewhat technical, nevertheless it is manifest from the record that the Indians were not under the contracts liable for the fee until funds were available as a result of the service rendered. It is true that when the Supreme Court announced its opinion affirming the decision of this court, the., case of the Indians so far as controverted questions of law were involved terminated, but no funds as a result thereof were available. However, much remained to be done, the lands were to be appraised, and the value thereof appropriated for by Congress. Until this was accomplished, liability for the fee did not attach. As a matter of fact, the contract itself expressly provided for payment of the fee at the Treasury of the United States. The plaintiff seems to have acted upon this view of the matter, for the record discloses the absence of any effort upon his part to collect the fee until June 25, 1910.
We believe the findings of the court are correct, and the claim will be allowed for $27,500, with interest thereon at the rate of 6 per centum per annum from July 1, 1910.
Expenses Incident to “Court Claimant” Oases
On June 10, 1896, 29 Stat. 321, 339, Congress, with reference to the Five Civilized Tribes of Indians, inaugurated its policy of dissolving tribal government and allotting the Indian lands to the members of the tribes. This legislation
The Citizenship Court was by the first act required to terminate its existence by December 31, 1903, the subsequent legislation heretofore cited extended the time until December 31, 1904. Section 33 of the act of July 1, 1902 (32 Stat. 649), provided as follows: “All expenses necessary to the proper conduct, on behalf of the nations, of the suits and proceedings provided for in this and the two preceding sections shall be incurred under the direction of the two nations, and the Secretary of the Interior is hereby authorized, upon certificate of said executives, to pay such expenses as in his judgment are reasonable and necessary out of any of the joint funds of said nations in the Treasury of the United States.” The Secretary of the Interior, upon whom the final
We have reproduced the items of expense contended for by plaintiff in Finding XVII. The plaintiff, in view of this expense account, apparently assumes the attitude that all incidental expense growing out of the litigation was to be borne by the defendant Indians, and that all that was to be done by the lawyers was to analyze the testimony and try the cases. This position is untenable. The plaintiff hazarded a right of compensation under the contract upon success in the undertaking and manifestly the legitimate expenses under the law were to be paid by the defendants; but this obligation of the defendants in nowise extended to the point of saving the plaintiff from all character of expense. The plaintiff was familiar with Indian litigation and the course of proceeding in contested enrollment cases; he knew the burdens to be assumed by the contestants and the difficulties to be encountered in procuring proper evidence. The magnitude of the undertaking and the risk of loss which he assumed was entirely familiar to him and his associates. What the statute intended as a charge by way of expense was the expense indispensably necessary to set in motion the machinery of the court, such as proper court charges and the fees fixed by law. It would seemingly constitute a most unusual allowance to charge against the defendants the cost of usual and clearly to be anticipated expense of maintaining a law office, sufficient clerks to properly prepare and conduct the case, as well as all other overhead expense. The plaintiff knew of the necessity for all that was done, and as to most of the items claimed — they come within the compensation paid. Of the items claimed we believe but two are allowable, i. e., items one for $2,218.53, and two for $85.88.
The defendant Indians challenge the right of the court to allow the claimed expense account. The contention is predicated upon a lack of jurisdiction and a plea of res adjudicatei. It is true that the statute authorizing the expenditure pointed out the precise way of securing payment
The Citizenship Court, in fixing plaintiff’s compensation in the “ court claimant ” cases arrived at the sum allowed by reference to the contract of January 17, 1901, and in the order of allowance provided that the same should be “in lieu of all expenses save and except such as are provided by law, as set out in section 33 of the act of July 1, 1902.” There would have been no occasion for an order of this character if all expenses incident to the prosecution of the litigation were to be charged against the defendants. Clearly it was in the mind of the court in fixing reasonable
The J. Hale Sypher Case
Congress recognized by the act of March 3, 1891 (26 Stat. 989, 1025), a governmental obligation to pay the Choctaw Indians for what is commonly designated as the ■“ leased district.” We need not discuss the controversy in detail. It is sufficient for present purposes to say that $2,991,500 was duly appropriated for the intended purpose. Subsequent to the passage of the above act, and prior to the payment and disbursement of the funds appropriated, protest was made by leading governmental officials against the payment of the appropriation to the Indians. The Indians, fearful of losing the funds, employed Mr. J. Hale Sypher to aid them in frustrating the opposition and securing the payment of the appropriation. The appropriation was finally, on June 2, 1893, paid to the Indians, and immediately thereafter Mr. Sypher preferred a claim against the Indians for the sum of $220,000 for having brought ■about the above result. In fact, a bill was introduced in Congress, Sypher having at the time no other jurisdiction or forum to which to appeal for the payment to him of this amount. The bill did not pass. Instead, the claim was referred to this court under section 151 of the Judicial Code. The firm of Mansfield, McMurray & Cornish had been verbally requested to take charge of this matter by the principal chief of the Choctaw Indians. They did appear before ■committees of Congress, and in this court when the case was tried. This court found from the findings returned to Congress that Sypher’s service to the Indians was reasonably worth $5,000. The plaintiff now contends for a fee •of $25,000 for professional sendees rendered in this case.
The petition in the Sypher case was filed in this court April 28, 1904. On this date the firm of Mansfield, McMur-ray & Cornish was under contract to render professional .services to the Choctaw Indians, and whatever may have
The EU Ayres Claim,
What has been said as to the J. Hale Sypher claim applies with equal force to this item. The jurisdictional act precludes its allowance.
In reconciling the record with reference to this item we believe Finding XX to be correct. On June 28, 1898 (80 Stat. 495), Congress appropriated $216,679.48 and placed it to the credit of the Chickasaw Nation in the Federal Treasury. This appropriation was supplemental to a former one made in 1889, amounting to $99,000, and originated in a claim made by the incompetents of sums due this particular class of Indians. After the lapse of nine years and the availability of a substantial sum of money for distribution among the Indians, the usual contest to procure its distribution by certain classes to their advantage arose. The heirs of the incompetents contended that they were entitled to the fund exclusively. The tribe insisted that it should be distributed per capita among the tribe. Congress very wisely settled the controversy by legislation. The act of May 31, 1900 (31 Stat. 221), provided for per capita payments of Indian funds under the direction of the Secretary of the Interior, and this fund for all practical purposes was so disbursed. Happily for the Indians it was not litigated. The plaintiff’s assignors were requested to represent the Indians with respect to the contention and they did so. At the time they were under a general contract of employment to represent the tribe. They received for this service $2,500 in 1901. There is nothing in the record disclosing a further attempt to collect additional fees until after the filing of the defendants’ counterclaim in this case. A claim is now made for $15,000 for this service. The proof fails to sustain it. The proof of an entry of account made contemporaneously with the transaction is cogent evidence of what the plaintiff and his assignors at the time regarded as due them; but it is not sufficient to establish a contract to pay the amount charged in the face of positive evidence to the contrary. The court from the record, and the facts and circumstances surrounding the transaction, believe the amount paid, in view of what is to be held hereafter was sufficient to discharge the Indians’ liability for the service rendered.
Findings XXI. The amendatory jurisdictional act of July 19, 1919, contained the following proviso: “That the said J. F. McMurray shall be limited in presenting such additional claims to such matters as may have or shall hereafter be set up by way of set-off or counterclaim by the defendants.” The intent of this limitation appears upon its face. There is nothing to obscure its meaning or engender doubt. The plaintiff, we repeat, had procured a jurisdictional act covering the prosecution of three, and only three, claims. The Indians presented counterclaims in accord with the statute which, if allowable, would not only absorb all that the plaintiff might recover, but leave him indebted to the Indians in a very large amount. Congress by the amend-atory statute granted the plaintiff the additional privilege to meet the alleged claims plead by way of set-off. To this extent, and to this only, does the right extend. As in the Sypher and Ayres eases, no set-off is preferred with reference to this item, and we are without jurisdiction to consider it.
The Bonaparte Opinion
Finding XXII. This claim is governed by what was said with reference to tribal taxes. No warrants for expenses were issued and paid by the tribes with reference thereto, and it is not a part of defendant’s counterclaim.
Coal-Mining Leases
The defendants assert under this item a counterclaim of a large amount. The original jurisdictional act contains the following provision: “That any amount found to be owing, calculated upon a fair and equitable basis, by the said J. F. McMurray to the said Choctaw and Chickasaw Nations upon coal-mining leases held by him may be offset against any judgment that may be rendered in his favor upon such claims.” The plaintiff is not contending for a judgment in his favor as incident to the coal-mining leases. The determination of the question is limited exclusively to
The act of June 28,1898, 30 Stat. 495, was a comprehensive Congressional conception, intended to ultimately dissolve the tribal existence of the Indians, and eventually put them upon their individual responsibility. The vast landed estate recognized as belonging to the Indians was made up in part of coal lands, regarded at the time as of great value and promising prospects. Congress provided in the statute for the leasing of the lands by mining trustees of the two Nations, who should act under rules and regulations to be prescribed by the Secretary of the Interior. On March 15, 1899, approved by the Secretary of the Interior April 27, 1899, the plaintiff entered into eight mining leases, numbered from one to eight, and embracing in each lease a tract of about 960 acres. The term of each lease was 30 years. The leases provided a dual system of royalties, the plaintiff being obligated to pay as advance royalties $100 the first and second years, $200 the third and fourth years, and $500 per annum for the fifth and each succeeding year. Upon the actual production of coal a royalty of 8 cents a ton was finally fixed by the Secretary of the Interior, the latter to be credited upon the advanced royalties as productions materialized, and reach a point in excess of the annual advanced royalties exacted under the leases. Each lease contained a strict forfeiture clause enabling the Indians to nullify the leases in the event of a failure to pay the royalties within sixty days after they became due and payable. The plaintiff might assign his interest in the leases if the Secretary of the Interior approved the transaction, otherwise not. In 1906 and 1914 the plaintiff did assign, with the approval of the Secretary, his interest in leases four, five, and six, and they are eliminated from this controversy. He attempted to assign lease number eight, but the Secretary declined his approval. The plaintiff met the exacting obligations of the leases by paying the advance royalties due on leases one, two, three, seven, and eight, up to April 27, 1905. Since that time he has paid nothing. If under the jurisdictional act the plaintiff is to respond to the payment of advanced royalties provided in the leases, the defendants
That Congress was cognizant of the coal-mining leases and the situation of the parties with respect thereto is apparent from the provision of the jurisdictional act directing the court to adjudicate the issue upon a fair and equitable basis. Not only are we to proceed as thus directed, but leases found by the court “ not to be underlaid with merchantable coal and all of said leases upon which royalties are not paid within thirty days after the final settlement of these matters, the same shall be cancelled.” The evidence establishes the fact that the plaintiff has not mined any coal on leases one, two, three, seven, and eight. It further appears beyond the possibility of contradiction that while on large portions of the leases involved there exists an underlying vein of coal sufficient in extent to mine, nevertheless, on account of the depth of the veins, and the inferior quality of the deposit, the expense of operation and the market value of the coal when mined renders the venture prohibitive. We say this advisedly, being confirmed by the fact that notwithstanding the positive right of forfeiture upon the part of the Indians, and in the face of a default in payment of royalties that had existed for over twenty years, neither the Indians nor the Government have ever contemplated taking such action. If a contrary situation prevailed, offering great profits from the lands, it is inconceivable that the parties primarily concerned in realizing gains would stand idly by and content themselves with accumulation of enormous unpaid royalties under circumstances when their ultimate collection was, to say the least, extremely precarious. Within the strict letter of the law the royalties are due. Equitably, with the one exception hereinafter discussed, they are not. Manifestly Congress considered this phase of the matter and was unwilling to hold the plaintiff responsible for the payments exacted under the leases if the same were commercially valueless. The leases should of course be canceled.
While we believe that as to the major portions of the advanced royalties due and unpaid on leases one, two, three,
Taking into consideration the mutual equities of the parties, we have no doubt that the amount of this judgment for $14,238, with interest thereon, should be charged against the plaintiff’s claims. It has not been paid and no legal reason assigned for failure to satisfy the same. The sum represents, with substantial exactness, the amount of the advanced royalties due at the time; if not so, proper legal proceedings should have been pursued to correct the error. The amount with interest to date totals $25,668.74.
The facts as set forth in Finding XXVII set up a counterclaim predicated upon a legal right to recover so-called tonnage royalties. The leases themselves contained no covenant to pay tonnage duties based upon minimum production of coal. This alleged liability grows out of a regulation promulgated by the Secretary of the Interior, wherein it is provided that the lessee is to pay a tonnage royalty of eight cents per ton upon a minimum production of 3,000 tons the first year, 4,000 tons the second year, 7,000 tons the third year, 8,000 tons the fourth year, and 15,000 tons the fifth and each succeeding year during the full thirty-year period. The question of the validity of the regulation cited was determined adversely to the contention of the defendant Indians in the case of United, States for use of Choctaw and Chickasaw Nations v. McMurray, 181 Fed. 723. The leases provided in terms what the lessee should pay, and the court held in its opinion that the Secretary was without lawful authority to interpolate covenants contrary to the provisions of the act of Congress fixing the terms of and authorizing the execution of the leases. The defendants in the case accepted this ruling.
The final items of the defendants’ counterclaim are embraced in Findings XXX and XXXI. Defendants’ contention respecting these items is the repetition of an old but persistent conflict of interests which has made its appearance upon more than one occasion, both inside the courts of Oklahoma and the halls of Congress. The pertinent provisions of section 29 of the act of June 28, 1898, 30 Stat. 512, is as follows:
*513 “ It is further agreed that no act, ordinance, or resolution of the council of either the Choctaw or Chickasaw tribes, in any manner affecting the land of the tribe, or the individuals, after allotment, or the moneys or other property of the tribe or citizens thereof (except appropriations for the regular and necessary expenses pf the government of the respective tribes), * * * shall be of any validity until approved by the President of the United States.”
The above findings disclose that during the course of the employment of the firm of Mansfield, McMurray & Cornish as attorneys for the defendant Indians, there was paid to them for services and expenses incurred by both tribes the sum of $89,866.70 under acts of the general council of the two nations which did not receive the approval of the President. The amount is not in dispute. The defendants seek judgment by way of counterclaim for this amount with interest and rest the right upon the single contention that the acts of the general council appropriating the various sums at various times were not approved by the President as the law required. The effect which the defendants ascribe to the exception in the law extends only to the payment of salaries of officials of the nation and incidental expense inseparably attached to governmental administration. The employment of attorneys and payment of expenses connected with controversies between the tribes and outsiders, it is said, is governed by section 2103 of the Revised Statutes, or in any event must be in pursuance of an act of the general council approved as required. The argument is not for the first time preferred in this.case. Its origin may have antedated the year 1904 and doubtless did, but the acute agitation of supposed irregularities and unlawful practices seems to have followed the allowance to the firm of Mansfield, McMurray & Cornish of a fee of $750,000 in December, 1904, by the Citizenship Court, created by the act of July 1, 1902. This event, following a protracted and acrimonious contest for the right of enrollment and participation in the allotment of the Indians’ vast and rich estate, which the attorneys mentioned had most successfully defended, seems to have furnished an occasion for an attack upon the lawyers from almost every angle of their activity. First, agents of the
If we are correct in our analysis of the jurisdictional acts in attaching significance to the words “any other claim where the services were not actually rendered and finished and resulted to the benefit of said people,” the items covered by this count of the defendants’ counterclaim are not allowable. The record sustains a contention that the services rendered in connection with which the expenses set up as a counterclaim were incurred were completed and resulted in benefit to the Indians. The greater portion of the amounts paid out was disbursed as incidental to the attorneys’ efforts in enforcing the collection of tribal taxes, expelling intruders from Indian country, protecting the tribes in granting rights of way to railroads, town sites, sale of surplus lands, and guarding the Indian rolls, assuredly part and inseparably connected with the regular and necessary administration of the tribal government. In addition to this it is asserted by the plaintiff, and not contradicted by the defendants, that the funds from which the same were paid were accumulated by the tribes as income from the very sources the attorneys were called upon to protect. It is comparatively easy to minimize the importance of services rendered twenty years after the event, and point to a substantial aggregate made up of innumerable items paid out at different dates for a period of eight years as a weighty reason for ascribing illegality and irregularity. The Indian Nations knew what was going on. Government officials were fully cognizant of the attorneys’ activities, and recognized and dealt and cooperated with them during the whole period of time. The Indian officer never once challenged the proceedings during their continuance. As to the sums disbursed under tribal acts, approved by the President, we feel certain they were authorized. The contracts of the law firm as general counsel of the tribes certainly may not be considered
The counterclaim of the defendants, except as to the one item, the judgment for $14,238, with 6 per cent interest thereon from date of rendition to date of judgment in this case, is dismissed.
Judgment should be rendered in favor of the plaintiff under Finding XIII for $53,900, and under Finding XVII, sections 1 and 2, for $5,277.09, less the sum of $25,668.74 under Finding XXYI, leaving a final judgment in favor of the plaintiff of $33,508.35. As to all other claims the plaintiff’s petition is dismissed. It is so ordered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.