WASHINGTON - An appeals court has approved a settlement on how to deal with $380 million in unclaimed funds from a discrimination case against the U.S. Department of Agriculture.
The settlement is the result of a class action lawsuit filed by a group of Native American farmers and ranchers over claims the USDA discriminated against them in farm loans and loan servicing from 1981 through 1999. Of $680 million paid to settle the case, $380 million was not claimed.
The settlement required that any unclaimed funds be paid to a not-for-profit groups other than law firms and legal services providers who provide assistance to Native American farmers, but given the unexpectedly large remainder, involved groups decided to renegotiate the settlement.
U.S. Court of Appeals for the D.C. Circuit on Tuesday, May 16, agreed with a district court ruling which provides for additional payments to each prevailing claimant, with the balance of the funds to be distributed to not-for-profit organizations serving Native American farmers and ranchers.
Two claimants - Keith Mandan and Donivon Craig Tingle - had appealed, claiming that the settlement was unreasonable, that can't be approved without their consent, that giving the proceeds to the not-for-profit organizations is unconstitutional and that attorneys for the class had breached their fiduciary responsibilities. They contended that the entire $380 million should be distributed to the successful claimants.
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Circuit Judges Robert Wilkins and Harry Edwards held up the District Court's ruling, finding the claims either were without merit or should have been raised at an earlier proceeding. Circuit Judge Janice Brown dissented, calling it "a slush fund disguised as a settlement."
