A federal judge has referred a dispute over millions of dollars of attorneys’ fees related to the $3.4 billion settlement of the Cobell class action lawsuit to a special magistrate for mediation.  The Cobell suit was filed in 1996 and challenged the federal government’s mismanagement of billions of dollars of funds it held in trust for more than half million American Indians.  Although the suit was settled in 2009, a bitter dispute over divvying up the almost $100 million in legal fees lingers on.

The Cobell settlement called for $99.1 million to be paid to all lawyers involved in the case.  The firm Kilpatrick, Kilpatrick Townsend & Stockton and solo practitioner Dennis Gingold have reportedly been paid $85.3 million, although it is not clear how the payment was split between the two parties.  The remaining $13.6 million is claimed for legal services rendered by the Native American Rights Fund (NARF), which seeks $8.1 million, and attorney Mark Brown, who seeks $5,500,000, according to court documents.  But Kilpatrick Townsend and Gingold argue that NARF left the case in 2006 and had a conflict of interest and that Brown abandoned the case in 2007 and therefore should not get paid.

On March 18, Judge Thomas Hogan of the U.S. District Court for the District of Columbia said the fee dispute ultimately may have to go to trial for resolution, but in order to spare the expense of a trial, he ordered the fee dispute to go before a special magistrate in hope that it will be settled in mediation.  “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,” Hogan said.

For more information on this case, visit http://www.indiantrust.com/