Peoria Tribe of Indians of Oklahoma v. United States

Petitioner Indian Tribe and the United States entered into a treaty in 1854, pursuant to which certain tribal lands were to be sold at public auction by the United States for the Tribe's benefit. The President could at any time pay to the Tribe any or all of the proceeds, with the balance to be invested in bonds, "the interest to be annually paid" to the Tribe. The Indian Claims Commission found that the United States violated the treaty by selling most of the lands in 1857 by private sales at prices lower than would have prevailed at public auction, and found the difference to be $172,726. Petitioner sought review in the Court of Claims on the issue of the measure of its damage for the treaty's violation, contending that the United States is liable for that sum plus the amount it would have produced if invested and the income "annually paid." The Court of Claims rejected this contention.

Held: The Government's obligation under the treaty was to invest the sum and to pay its annual income to the Tribe "until the money is paid over," and the case is remanded to the Court of Claims for further remand to the Indian Claims Commission to determine, not interest on the claim, but the measure of damages resulting from the Government's failure to invest the proceeds that would have been received had the treaty not been violated. Pp. 471-473.

177 Ct. Cl. 762, 369 F. 2d 1001, reversed and remanded.

Jack Joseph argued the cause for petitioners. With him on the briefs was Louis L. Rochmes.

Robert S. Rifkind argued the cause for the United States. With him on the brief were Solicitor General Griswold, Acting Assistant Attorney General Harrison and Roger P. Marquis.