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Judge dismisses reservation lawsuit

By DAWN SLADE
Mille Lacs County Times
and LUTHER DORR
Princeton Union-Eagle
Posted 5/15/03

On Tuesday, May 6 Judge James Rosenbaum of the U.S. District Court dismissed a lawsuit filed by Mille Lacs County and the First National Bank of Milaca against the Mille Lacs Band of Ojibwe regarding the status of the Mille Lacs Reservation.

Rosenbaum said in his 23-page opinion that the county failed to show a real dispute between the county and the band.

The county has spent about $1 million in attorney fees since it filed the lawsuit Feb. 19, 2002.

The county feels the reservation is little more than 4,000 acres, while the band says the reservation is 61,000 acres.

³I was very surprised and disappointed,² county commissioner and board chairman Bob Hoefert, Isle, said Monday of the judgeıs decision to dismiss the case.

³We knew it was a possibility, but I didnıt expect it. After reading his summary, Iım just having a hard time. I donıt think he decided on what we asked for. I donıt think he took it into account.²

Mille Lacs Band Chief Executive Melanie Benjamin wasnıt surprised.

³The Mille Lacs Band has always stated that we have not harmed the county or the bank, and the judgeıs dismissal supports our position,² she said last Friday.

³In fact, the band has worked cooperatively with the federal, state and county governments on a wide range of issues ­ including law enforcement, taxation, hunting and fishing, and water quality ­ in an effort to address real problems and to avoid or settle costly litigation.

³I urge the county and the bank to join the Mille Lacs Band in future efforts that will make this area better, not tear it apart, and improve life for all county residents.²

Dick Satterstrom of Princeton, commissioner of the newly-created District 1 that includes just the city of Princeton, said Monday it appeared ³the judge just didnıt feel anyone was threatened.²

Satterstrom plans to vote this month against paying legal fees to the Tobin Law Office of Winner, S.D., saying although ³itıs just sort of a protest vote,² he thinks the work of that office should be over.

³What worries me is itıs just starting [if there is an appeal],² Satterstrom said.

Commissioner Phil Peterson, Milaca, said he was frustrated and disappointed with the judgeıs decision.

³I donıt know how he could dismiss it,² Peterson said. ³It was pretty clear-cut that the tribe doesnıt have jurisdiction on that 61,000 acres.²

He admitted $1 million is a substantial amount of money, but added, ³If that was your property line, what would you be doing?

³It affects everyone in the county and people all over the country. This whole issue is not settled. The people at Mille Lacs Lake are pretty frustrated. They want to get on with their life. You canıt blame these people for wanting a definition on this boundary issue.²

Peterson believes that if the band gets its way, it will affect the countyıs budget dramatically.

³I havenıt got anything against the tribe,² Peterson said, adding that his nephew is Indian. ³Itıs a boundary thing. Thereıs a pretty dramatic difference in government.²

Don Wedll, former commissioner of natural resources for the band for 19 years and now a special assistant to the chief executive, said the judgeıs decision bears out what the band has been saying.

³Lots of people have been saying weıve been doing things to them Š and weıre not,² he
On Tuesday, May 6 Judge James Rosenbaum of the U.S. District Court dismissed a lawsuit filed by Mille Lacs County and the First National Bank of Milaca against the Mille Lacs Band of Ojibwe regarding the status of the Mille Lacs Reservation.

Rosenbaum said in his 23-page opinion that the county failed to show a real dispute between the county and the band.

The county has spent about $1 million in attorney fees since it filed the lawsuit Feb. 19, 2002.

The county feels the reservation is little more than 4,000 acres, while the band says the reservation is 61,000 acres.

³I was very surprised and disappointed,² county commissioner and board chairman Bob Hoefert, Isle, said Monday of the judgeıs decision to dismiss the case.

³We knew it was a possibility, but I didnıt expect it. After reading his summary, Iım just having a hard time. I donıt think he decided on what we asked for. I donıt think he took it into account.²

Mille Lacs Band Chief Executive Melanie Benjamin wasnıt surprised.

³The Mille Lacs Band has always stated that we have not harmed the county or the bank, and the judgeıs dismissal supports our position,² she said last Friday.

³In fact, the band has worked cooperatively with the federal, state and county governments on a wide range of issues ­ including law enforcement, taxation, hunting and fishing, and water quality ­ in an effort to address real problems and to avoid or settle costly litigation.

³I urge the county and the bank to join the Mille Lacs Band in future efforts that will make this area better, not tear it apart, and improve life for all county residents.²

Dick Satterstrom of Princeton, commissioner of the newly-created District 1 that includes just the city of Princeton, said Monday it appeared ³the judge just didnıt feel anyone was threatened.²

Satterstrom plans to vote this month against paying legal fees to the Tobin Law Office of Winner, S.D., saying although ³itıs just sort of a protest vote,² he thinks the work of that office should be over.

³What worries me is itıs just starting [if there is an appeal],² Satterstrom said.

Commissioner Phil Peterson, Milaca, said he was frustrated and disappointed with the judgeıs decision.

³I donıt know how he could dismiss it,² Peterson said. ³It was pretty clear-cut that the tribe doesnıt have jurisdiction on that 61,000 acres.²

He admitted $1 million is a substantial amount of money, but added, ³If that was your property line, what would you be doing?

³It affects everyone in the county and people all over the country. This whole issue is not settled. The people at Mille Lacs Lake are pretty frustrated. They want to get on with their life. You canıt blame these people for wanting a definition on this boundary issue.²

Peterson believes that if the band gets its way, it will affect the countyıs budget dramatically.

³I havenıt got anything against the tribe,² Peterson said, adding that his nephew is Indian. ³Itıs a boundary thing. Thereıs a pretty dramatic difference in government.²

Don Wedll, former commissioner of natural resources for the band for 19 years and now a special assistant to the chief executive, said the judgeıs decision bears out what the band has been saying.

³Lots of people have been saying weıve been doing things to them Š and weıre not,² he said Tuesday. Trial was set for June

The trial for the lawsuit had been scheduled for next month before Rosenbaumıs ruling.

Instead, a special county board meeting was scheduled Tuesday, May 13, with the commissioners, the bank and their lawyers to determine if the county will appeal the judgeıs decision.

Following that three-hour meeting, commissioners referred all comments to Mille Lacs County Attorney Jan Kolb. Commissioner Frank Courteau would not comment on the judgeıs decision other to say that the county would appeal the ruling.

Kolb said of the decision to appeal, ³Part of it is simply because weıve invested this much into it, we canıt quit now.²

As far as investment into the lawsuit, Kolb cited money, time and effort.

³As a whole, weıve all reviewed the opinion and we disagree. It doesnıt undermine what weıve been arguing all along.

³The opinion didnıt take into account that the state supports our position, but hasnıt taken an active role thus far.

³I, personally, still believe thereıs a liability concern for the county within the 61,000 disputed acres with regards to law enforcement and prosecution of crimes.²

First National Bank of Milacaıs attorney, Scott Knudson of Briggs and Morgan, said, ³Weıre obviously disappointed with the judgeıs ruling and donıt agree with the courtıs analysis of the case law to conclude that there is no case or controversy over the continued existence of the reservation.

³The bank is currently considering its options with respect to an appeal to the Eighth Circuit Court of Appeals. The decision does not mean that the reservation continues to exist, for that question remains to be decided. But one thing that emerged from this lawsuit so far is that the band has stated that it does not intend to regulate businesses or property owners unless they do business directly with the band or on trust property. If the band changes its position on that point, then this order doesnıt apply and the case can be restarted.²

Rep. Sondra Erickson, R-Princeton, who is very involved in the case, said Tuesday itıs questionable if the county should continue the lawsuit.

³I think the county should really assess whether or not going forward is the best at this time,² she said. ³Do they have enough facts to proceed?²

Kendall not surprised

Janelle Kendall, county attorney in Mille Lacs until January and now the country attorney in Stearns County, said she wasnıt surprised by the verdict.

ŒThe federal judgeıs decision is consistent with my advice [not to pursue a lawsuit] to the county board in January of 2000,² she said Monday.

³The band has not, to my knowledge, attempted to assert any jurisdiction, and courts just donıt give advisory opinions.

³They [county commissioners] have to wait until they have a real legal issue. Legal issues have to be based on more than fear.²

Kendall was also critical of Tom Tobin, the attorney representing the county.

³I have had a long-standing concern with any attorney willing to spend the taxpayersı money without a real legal issue to fight,² she said.

Tough questions by judge

Judge Rosenbaum presided over a hearing last Jan. 24 on a motion by the Mille Lacs Band of Ojibwe to dismiss the lawsuit the Mille Lacs County Board filed.

³Whatıs your problem?² Rosenbaum repeatedly asked attorneys Tobin and Knudson.

³What needs fixinı?² Rosenbaum asked Tobin after Tobin said the county was injured because of the dispute about the reservation.

When Tobin replied that what needed fixing was for the band to comply with federal law, Rosenbaum responded, ³Why? Whatıs the problem, counsel?²

Rosenbaum continued to press Tobin, asking if lakefront property is less expensive in Mille Lacs County because of the reservation dispute.

Tobin didnıt have any examples of that happening, saying lakeshore owners at Mille Lacs Lake had been fortunate during the dispute.

Rosenbaum continued to ask similar questions of Knudson.

³Whatıs the problem?² Rosenbaum asked.

After Knudson said the bank holds real estate security in the disputed area, and is worried that the dispute would decrease the value of real estate, Rosenbaum countered:

³Is real estate not getting transferred in Mille Lacs County?² And, ³Is there evidence showing the per-square value is cheaper in Mille Lacs where the tribe has jurisdiction?²

Joe Karpen, owner of Karpenıs Sunset Bay Resort near Isle, organized getting a bus to transport about 45 people to the hearing.

He said he was disappointed that Judge Rosenbaum didnıt talk about the question of whether or not some of those attending were living on a reservation, or not living on a reservation.

Kolb added, ³No matter how the court of appeals ends up ruling, it will solidify everything thatıs been done and said so far.

³The court of appeals sets precedence, whereas an individual judge at the federal district court level does not set precedence.

³It only makes sense to appeal.²

Kolb added that the county is still within budget.


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