High court rules against Navajo tribe in coal fight

WASHINGTON —  The Supreme Court has ruled against the Navajo Nation for a second time in its battle with the federal government over whether the tribe should have received more money for coal on its land.

The high court, in an unanimous opinion Monday, reversed a decision by the U.S. Court of Appeals for the Federal Circuit, ending the tribe’s fight with the government.

“Today we hold, once again, that the tribe’s claim for compensation fails,” Justice Antonin Scalia wrote for the court. “This matter should now be regarded as closed.”

The sprawling Navajo reservation, which is the nation’s largest, covers part of New Mexico, Arizona and Utah. The Peabody Coal Co. has mined coal on tribal lands for decades, paying the tribe taxes and mineral royalties.

In 1985, the tribe alleged that Peabody conspired with then-Interior Secretary Donald Hodel to persuade the tribe to accept a lower royalty than other government officials believed the tribe should be paid.

The Navajos contend the government’s breach of trust cost them as much as $600 million in lost coal royalties. They said the Interior Department failed in its duty under the Indian Mineral Lease Act to protect the tribe’s interest.

This case has taken many twists and turns through the legal system. It came before the Supreme Court once before, in 2003, when the tribe relied upon a different legal theory. The tribe lost that time too.

This time, though, it’s over, the court made clear.

“This case is at an end,” Scalia said.