B-150731, APR 6, 1972

B-150731, APR 6, 1972

COURT OF CLAIMS JUDGMENT - INTEREST ON PRINCIPAL - METHOD OF COMPUTATION CONCERNING THE CLAIM OF THE CONFEDERATED SALISH AND KOOTENAI TRIBES OF THE FLATHEAD RESERVATION, MONTANA, THAT INTEREST IN ACCORDANCE WITH SECTION 8 OF THE ACT OF JULY 30, 1946, 60 STAT. 716, SHOULD HAVE BEEN PAID WITH RESPECT TO THE JUDGMENT OF THE COURT OF CLAIMS IN THE PRINCIPAL SUM OF $6,066,668.78. UNDER THE CONCEPT OF JUST COMPENSATION, AS DEFINED IN THE CASE OF JACOBS V UNITED STATES, 290 U.S. 13, IT IS UNREASONABLE TO ASSUME THAT PAYMENT OF INTEREST ON THE PRINCIPAL SUM SHOULD BE PROVIDED FOR A PERIOD DURING WHICH INTEREST WOULD ALSO BE PROVIDED TO COMPENSATE FOR THE DELAY IN EFFECTING PAYMENT OF THE JUDGMENT. ACCORDINGLY, IT IS THE OPINION OF THE COMP. GEN. THAT SINCE THE PRINCIPAL SUM OF $6,066,668.78 IS CONTAINED IN THE AMOUNT OF THE JUDGMENT AS OF THE DATE OF THE JUDGMENT, $21,793,900.93, PAYMENT OF INTEREST IN ACCORDANCE WITH SECTION 8 ON THIS LATTER SUM FROM THE DATE OF THE JUDGMENT TO THE DATE THE FUNDS WERE COVERED INTO THE TREASURY SATISFIES THE JUDGMENT OF THE COURT.

TO WILKINSON, CRAGUN & BARKER:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 26, 1972, CLAIMING ON BEHALF OF THE CONFEDERATED SALISH AND KOOTENAI TRIBES OF THE FLATHEAD RESERVATION, MONTANA, THAT INTEREST IN ACCORDANCE WITH SECTION 8 OF THE ACT OF JULY 30, 1946, 60 STAT. 716, SHOULD HAVE BEEN PAID WITH RESPECT TO THE JUDGMENT OF THE COURT OF CLAIMS IN THE PRINCIPAL SUM OF $6,066,668.78 REFERRED TO IN YOUR LETTER.

THE JUDGMENT IN THIS CASE WAS ENTERED BY THE COURT OF CLAIMS ON APRIL 23, 1971, AND READS IN PERTINENT PART AS FOLLOWS:

"IT IS THEREFORE ORDERED THAT JUDGMENT BE AND THE SAME IS ENTERED FOR THE PLAINTIFFS, IN THE CLAIM SET FORTH IN PARAGRAPH 10 OF THE PETITION, AS AMENDED, IN THE AMOUNT OF SIX MILLION SIXTY-SIX THOUSAND SIX HUNDRED SIXTY -EIGHT DOLLARS AND SEVENTY-EIGHT CENTS ($6,066,668.78), PLUS INTEREST THEREON, NOT AS INTEREST BUT AS A PART OF JUST COMPENSATION, AT THE RATE OF 5 PERCENT PER ANNUM FROM JANUARY 1, 1912 TO JANUARY 1, 1934, AND AT THE RATE OF 4 PERCENT PER ANNUM THEREAFTER UNTIL PAID, *** ."

THE SETTLEMENT OF DECEMBER 17, 1971, ISSUED BY OUR CLAIMS DIVISION, PROVIDED FOR THE PAYMENT OF $21,951,368.23 COMPUTED - " *** IN THE AMOUNT OF $6,066,668.78 PLUS INTEREST THEREON AT THE RATE OF 5 PERCENT PER ANNUM FROM JANUARY 1, 1912 THROUGH JANUARY 1, 1934, $6,673,335.66, AND AT THE RATE OF 4 PERCENT PER ANNUM FROM JANUARY 2, 1934 THROUGH DECEMBER 17, 1971, $9,211,363.79."

AS INDICATED ABOVE, YOU NOW CONTEND THAT AN ADDITIONAL AMOUNT SHOULD HAVE BEEN INCLUDED IN THE CLAIMS DIVISION SETTLEMENT BY REASON OF SECTION 8 OF THE ACT OF JULY 30, 1946, WHICH READS IN PERTINENT PART AS FOLLOWS:

"THAT THE AMOUNT OF ANY JUDGMENT RECOVERED FOR SAID INDIANS *** SHALL BE PLACED TO THE CREDIT OF SAID INDIANS IN THE TREASURY OF THE UNITED STATES AND SHALL DRAW INTEREST AT THE RATE OF 4 PER CENTUM PER ANNUM FROM DATE OF JUDGMENT AND SHALL THEREAFTER BE SUBJECT TO APPROPRIATION BY CONGRESS AND USED FOR THE BENEFIT OF SAID INDIANS *** ."

IN AN EARLIER LETTER ADDRESSED TO OUR CLAIMS DIVISION ON AUGUST 26, 1971, YOU DISCUSSED THE JUDGMENT AND THE APPLICATION OF SECTION 8 THERETO A AND APPARENTLY AGREED THAT -

"BECAUSE OF THE SPECIAL JURISDICTIONAL ACT PURSUANT TO WHICH THIS ACTION WAS BROUGHT, (ACT OF JULY 30, 1946, 60 STAT. 715), THE JUDGMENT WILL DRAW INTEREST AT 4% FROM THE DATE OF JUDGMENT UNTIL THE FUNDS ARE COVERED INTO THE TREASURY. *** THE INTEREST WHICH IS PART OF THE ACTUAL JUDGMENT (JUST COMPENSATION) WILL BE CALCULATED AS OF THE DATE OF JUDGMENT, THUS FIXING THE SIZE OF THE JUDGMENT WHICH WE CALCULATE TO BE APPROXIMATELY $21,793,900.93. THEN, UNDER THE SPECIAL JURISDICTIONAL ACT, THE TRIBES WILL BE CREDITED WITH THE INTEREST ON THAT AMOUNT FROM THE DATE OF THE JUDGMENT, APRIL 23, 1971, TO THE DATE THE FUNDS ARE COVERED INTO THE TREASURY."

IN YOUR LETTER OF JANUARY 26, 1972, YOU WITHDRAW YOUR AGREEMENT TO THE EARLIER PROPOSAL AND YOU CONTEND THAT IN ADDITION TO THE AMOUNT ALLOWED BY OUR SETTLEMENT OF DECEMBER 17, 1971, THE TRIBES ARE ENTITLED TO INTEREST AT 4 PERCENT ON THE AMOUNT OF THE JUDGMENT, $21,793,900.93 FROM THE DATE OF THE JUDGMENT, APRIL 23, 1971, TO DECEMBER 17, 1971. THIS METHOD OF COMPUTATION WOULD INVOLVE THE DOUBLE PAYMENT OF INTEREST ON THE PRINCIPAL SUM OF $6,066,668.78 IN THAT SUCH SUM IS ALSO INCLUDED IN THE AMOUNT OF THE JUDGMENT COMPUTED AS OF THE DATE OF THE JUDGMENT, APRIL 23, 1971, $21,793,900.93. YOU POINT OUT, HOWEVER, THAT ONE-HALF OF SUCH AMOUNT IS PAYABLE AS JUST COMPENSATION AND NOT AS INTEREST.

AS ANOTHER ALTERNATIVE, IT HAS BEEN INFORMALLY SUGGESTED THAT UNDER SECTION 8, INTEREST SHOULD BE ALLOWED AT 4 PERCENT DURING THE ABOVE PERIOD ON THE ENTIRE AMOUNT ALLOWED BY OUR SETTLEMENT OF DECEMBER 17, 1971, $21,951,368.23.

IT IS OUR VIEW THAT THE METHOD OF COMPUTATION REFERRED TO IN YOUR LETTER OF AUGUST 26, 1971, IS THE ONE PROPERLY FOR APPLICATION HERE. DESCRIBING THE CONCEPT OF JUST COMPENSATION THE COURT IN THE CASE OF JACOBS V UNITED STATES, 290 U.S. 13, STATED THAT -

" *** THE CONCEPT OF JUST COMPENSATION IS COMPREHENSIVE AND INCLUDES ALL ELEMENTS, 'AND NO SPECIFIC COMMAND TO INCLUDE INTEREST IS NECESSARY WHEN INTEREST OR ITS EQUIVALENT IS A PART OF JUST COMPENSATION.' THE OWNER IS NOT LIMITED TO THE VALUE OF THE PROPERTY AT THE TIME OF THE TAKING; 'HE IS ENTITLED TO SUCH ADDITION AS WILL PRODUCE THE FULL EQUIVALENT OF THAT VALUE PAID CONTEMPORANEOUSLY WITH THE TAKING.' INTEREST AT A PROPER RATE 'IS A GOOD MEASURE BY WHICH TO ASCERTAIN THE AMOUNT SO TO BE ADDED. ***

UNDER SUCH CONCEPT IT CLEARLY SEEMS UNREASONABLE TO ASSUME THAT THE COURT IN THE INSTANT CASE INTENDED TO PROVIDE FOR THE PAYMENT OF INTEREST ON THE PRINCIPAL SUM AS JUST COMPENSATION FOR A PERIOD DURING WHICH INTEREST WOULD ALSO BE PROVIDED TO COMPENSATE THE TRIBES FOR THE DELAY IN EFFECTING PAYMENT OF THE JUDGMENT. SUCH SETTLEMENT, IN EFFECT, WOULD PROVIDE FOR THE PAYMENT OF INTEREST AS JUST COMPENSATION AT A RATE DURING SUCH PERIOD WHICH WOULD APPROXIMATELY DOUBLE THAT PROVIDED FOR THE PERIOD FROM THE DATE OF THE TAKING TO THE DATE OF THE JUDGMENT.

ACCORDINGLY, IT IS OUR VIEW THAT SINCE THE PRINCIPAL SUM OF $6,066,668.78 IS CONTAINED IN THE AMOUNT OF THE JUDGMENT AS OF THE DATE OF THE JUDGMENT, $21,793,900.93, PAYMENT OF INTEREST IN ACCORDANCE WITH SECTION 8 ON THIS LATTER SUM FROM THE DATE OF THE JUDGMENT TO THE DATE THE FUNDS WERE COVERED INTO THE TREASURY SATISFIES THE JUDGMENT OF THE COURT.

OUR CLAIMS DIVISION TODAY HAS BEEN DIRECTED TO ISSUE AN ADDITIONAL SETTLEMENT TO EFFECT PAYMENT OF THE JUDGMENT IN THE MANNER APPROVED HEREIN.