United States v. Jicarilla Apache Nation
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Full Opinion
delivered the opinion of the Court.
The attorney-client privilege ranks among the oldest and most established evidentiary privileges known to our law. The common law, however, has recognized an exception to the privilege when a trustee obtains legal advice related to the exercise of fiduciary duties. In such cases, courts have held, the trustee cannot withhold attorney-client communications from the beneficiary of the trust.
In this case, we consider whether the fiduciary exception applies to the general trust relationship between the United States and the Indian tribes. We hold that it does not. Although the Governmentâs responsibilities with respect to the management of funds belonging to Indian tribes bear some resemblance to those of a private trustee, this analogy cannot be taken too far. The trust obligations of the United States to the Indian tribes are established and governed by statute rather than the common law, and in fulfilling its statutory duties, the Government acts not as a private trustee but pursuant to its sovereign interest in the execution of federal law. The reasons for the fiduciary exception â that
I
The Jicarilla Apache Nation (Tribe) occupies a 900,000-acre reservation in northern New Mexico that was established by Executive Order in 1887. The land contains timber, gravel, and oil and gas reserves, which are developed pursuant to statutes administered by the Department of the Interior. Proceeds derived from these natural resources are held by the United States in trust for the Tribe pursuant to the American Indian Trust Fund Management Reform Act of 1994, 108 Stat. 4239, and other statutes.
In 2002, the Tribe commenced a breach-of-trust action against the United States in the Court of Federal Claims (CFC). The Tribe sued under the Tucker Act, 28 U. S. C. § 1491 (2006 ed. and Supp. Ill), and the Indian Tucker Act, §1505, which vest the CFC with jurisdiction over claims against the Government that are founded on the Constitution, laws, treaties, or contracts of the United States. The complaint seeks monetary damages for the Governmentâs alleged mismanagement of funds held in trust for the Tribe. The Tribe argues that the Government violated various laws, including 25 U. S. C. §§ 161a and 162a, that govern the management of funds held in trust for Indian tribes. See 88 Fed. Cl. 1, 3 (2009).
From December 2002 to June 2008, the Government and the Tribe participated in alternative dispute resolution in order to resolve the claim. During that time, the Government turned over thousands of documents but withheld 226 potentially relevant documents as protected by the attorney-client privilege, the attorney work-product doctrine, or the deliberative-process privilege.
In 2008, at the request of the Tribe, the case was restored to the active litigation docket. The CFC divided the case
The CFC granted the Tribeâs motion to compel in part. The CFC held that communications relating to the management of trust funds fall within a âfiduciary exceptionâ to the attorney-client privilege. Under that exception, which courts have applied in the context of common-law trusts, a trustee who obtains legal advice related to the execution of fiduciary obligations is precluded from asserting the attorney-client privilege against beneficiaries of the trust. The CFC concluded that the trust relationship between the United States and the Indian tribes is sufficiently analogous
The CFC ordered disclosure of almost all documents in the first two categories because those documents âinvolve matters regarding the administration of tribal trusts, either directly or indirectly implicating the investments that benefit Jicarillaâ and contain âlegal advice relating to trust administration.â Id., at 14-15. The CFC allowed the Government to withhold most of the documents in the remaining categories as attorney work product,
The Government sought to prevent disclosure of the documents by petitioning the Court of Appeals for the Federal Circuit for a writ of mandamus directing the CFC to vacate its production order. The Court of Appeals denied the petition because, in its view, the CFC correctly applied the fiduciary exception. The court held that âthe United States cannot deny an Indian tribeâs request to discover communications between the United States and its attorneys based on the attorney-client privilege when those communications concern management of an Indian trust and the United States has not claimed that the government or its attorneys considered a specific competing interest in those communications.â In re United States, 590 F. 3d 1305, 1313 (CA Fed. 2009). In qualifying its holding, the court recognized that sometimes the Government may have other statutory obligations that clash with its fiduciary duties to the Indian tribes. But because the Government had not alleged that the legal advice in this case related to such conflicting interests, the
We granted certiorari, 562 U. S. 1128 (2011),
II
The Federal Rules of Evidence provide that evidentiary-privileges âshall be governed by the principles of the common law ... in the light of reason and experience.â Fed. Rule Evid. 501. The attorney-client privilege âis the oldest of the privileges for confidential communications known to the common law.â Upjohn Co. v. United States, 449 U. S. 383, 389 (1981) (citing 8 J. Wigmore, Evidence § 2290 (J. Me-Naughton rev. 1961)). Its aim is âto encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observance of law and administration of justice. â 449 U. S., at 389; Hunt v. Blackburn, 128 U. S. 464, 470 (1888).
The objectives of the attorney-client privilege apply to governmental clients. âThe privilege aids government en
A
English courts first developed the fiduciary exception as a principle of trust law in the 19th century. The rule was that when a trustee obtained legal advice to guide the administration of the trust, and not for the trusteeâs own defense in litigation, the beneficiaries were entitled to the production of documents related to that advice. Wynne v. Humberston, 27 Beav. 421, 423-424, 54 Eng. Rep. 165,166 (1858); Talbot v. Marshfield, 2 Dr. & Sm. 549, 550-551, 62 Eng. Rep. 728, 729 (1865). The courts reasoned that the normal attorney-client privilege did not apply in this situation because the legal advice was sought for the beneficiariesâ benefit and was obtained at the beneficiariesâ expense by using trust funds to pay the attorneyâs fees. Ibid.; Wynne, supra, at 423-424, 54 Eng. Rep., at 166.
The fiduciary exception quickly became an established feature of English common law, see, e. g., In re Mason, 22 Ch. D. 609 (1883), but it did not appear in this country until the following century. American courts seem first to have ex
The leading American case on the fiduciary exception is Riggs Nat. Bank of Washington, D. C. v. Zimmer, 355 A. 2d 709 (Del. Ch. 1976). In that case, the beneficiaries of a trust estate sought to compel the trustees to reimburse the estate for alleged breaches of trust. The beneficiaries moved to compel the trustees to produce a legal memorandum related to the administration of the trust that the trustees withheld on the basis of attorney-client privilege. The Delaware Chancery Court, observing that âAmerican case law is practically nonexistent on the duty of a trustee in this context,â looked to the English eases. Id., at 712. Applying the common-law fiduciary exception, the court held that the
First, the court explained, the trustees had obtained the legal advice as âmere representative^]â of the beneficiaries because the trustees had a fiduciary obligation to act in the beneficiariesâ interest when administering the trust. Ibid. For that reason, the beneficiaries were the âreal clientsâ of the attorney who had advised the trustee on trust-related matters, and therefore the attorney-client privilege properly belonged to the beneficiaries rather than the trustees. Id., at 711-712. The court based its âreal clientâ determination on several factors: (1) When the advice was sought, no adversarial proceedings between the trustees and beneficiaries had been pending, and therefore there was no reason for the trustees to seek legal advice in a, personal rather than a, fiduciary capacity; (2) the court saw no indication that the memorandum was intended for any purpose other than to benefit the trust; and (B) the law firm had been paid out of trust assets. That the advice was obtained at the beneficiariesâ expense was not only a âsignificant factorâ entitling the beneficiaries to see the document but also âa strong indication of precisely who the real clients were.â Id., at 712. The court distinguished between âlegal advice procured at the trusteeâs own expense and for his own protection,â which would remain privileged, âand the situation where the trust itself is assessed for obtaining opinions of counsel where interests of the beneficiaries are presently at stake.â Ibid. In the latter case, the fiduciary exception applied, and the trustees could not withhold those attorney-client communications from the beneficiaries.
Second, the court concluded that the trusteesâ fiduciary duty to furnish trust-related information to the beneficiaries outweighed their interest in the attorney-client privilege. âThe policy of preserving the full disclosure necessary in the trustee-beneficiary relationship,â the court explained, âis here ultimately more important than the protection of the
The Federal Courts of Appeals apply the fiduciary exception based on the same two criteria. See, e. g., In re Long Island Lighting Co., 129 F. 3d 268, 272 (CA2 1997); Wachtel v. Health Net, Inc., 482 F. 3d 225, 233-234 (CA3 2007); Solis v. Food Employers Labor Relations Assn., 644 F. 3d 221, 227-228 (CA4 2011); Wildbur v. ARCO Chemical Co., 974 F. 2d 631, 645 (CA5 1992); United States v. Evans, 796 F. 2d 264, 265-266 (CA9 1986) (per curiam). Not until the decision below had a federal appellate court held the exception to apply to the United States as trustee for the Indian tribes.
B
In order to apply the fiduciary exception in this case, the Court of Appeals analogized the Government to a private trustee. 590 F. 3d, at 1313. We have applied that analogy in limited contexts, see, e. g., United States v. Mitchell, 463 U. S. 206, 226 (1983) (Mitchell II), but that does not mean the Government resembles a private trustee in every respect. On the contrary, this Court has previously noted that the relationship between the United States and the Indian tribes is distinctive, âdifferent from that existing between individuals whether dealing at armâs length, as trustees and beneficiaries, or otherwise.â Klamath and Moadoc Tribes v. United States, 296 U. S. 244, 254 (1935) (emphasis added). âThe general relationship between the United States and the Indian tribes is not comparable to a private trust relationship.â Cherokee Nation of Okla. v. United States, 21 Cl. Ct. 565, 573 (1990) (emphasis added).
The Government, of course, is not a private trustee. Though the relevant statutes denominate the relationship
The difference between a private common-law trust and the statutory Indian trust follows from the unique position of the Government as sovereign. The distinction between âpublic rightsâ against the Government and âprivate rightsâ between private parties is well established. The Government consents to be liable to private parties âand may yield this consent upon such terms and under such restrictions as it may think just.â Murrayâs Lessee v. Hoboken Land & Improvement Co., 18 How. 272, 283 (1856). This creates an important distinction âbetween eases of private right and those which arise between the Government and persons subject to its authority in connection with the performance of the constitutional functions of the executive or legislative departments.â Crowell v. Benson, 285 U. S. 22, 50 (1932).
Because the Indian trust relationship represents an exercise of that authority, we have explained that the Government âhas a real and direct interestâ in the guardianship it exercises over the Indian tribes; âthe interest is one which is vested in it as a sovereign.â United States v. Minnesota, 270 U. S. 181, 194 (1926). This is especially so because the Government has often structured the trust relationship to pursue its own policy goals. Thus, while trust administration ârelat[es] to the welfare of the Indians, the maintenance of the limitations which Congress has prescribed as a part of its plan of distribution is distinctly an interest of the United
In Heckman, the Government brought suit to caneel certain conveyances of allotted lands by members of an Indian tribe because the conveyances violated restrictions on alienation imposed by Congress. This Court explained that the Government brought suit as the representative of the very Indian grantors whose conveyances it sought to cancel, and those Indians were thereby bound by the judgment. 224 U. S., at 445-446. But while it was formally acting as a trustee, the Government was in fact asserting its own sovereign interest in the disposition of Indian lands, and the Indians were precluded from intervening in the litigation to advance a position contrary to that of the Government. Id., at 445. Such a result was possible because the Government assumed a fiduciary role over the Indians not as a common-law trustee but as the governing authority enforcing statutory law.
We do not question âthe undisputed existence of a general trust relationship between the United States and the Indian people.â Mitchell II, 463 U. S., at 225. The Government, following âa humane and self imposed policy..., has charged itself with moral obligations of the highest responsibility and trust,â Seminole Nation v. United States, 316 U. S. 286, 296-297 (1942), obligations âto the fulfillment of which the national honor has been committed,â Heckman, supra, at 437. Congress has expressed this policy in a series of statutes that have defined and redefined the trust relationship between the United States and the Indian tribes. In some cases, Congress established only a limited trust relationship to serve a narrow purpose. See Mitchell I, supra, at 544 (Congress intended the United States to hold land â'in trustâ â under the General Allotment Act âsimply because it wished to prevent alienation of the land and to ensure that allottees would be immune from state taxationâ); Navajo I, supra, at 507-508 (Indian Mineral Leasing Act imposes no
In other cases, we have found that particular âstatutes and regulations . . . clearly establish fiduciary obligations of the Governmentâ in some areas. Mitchell II, supra, at 226; see also United States v. White Mountain Apache Tribe, 537 U. S. 465, 475 (2003). Once federal law imposes such duties, the common law âcould play a role.â United States v. Navajo Nation, 556 U. S. 287, 301 (2009) (Navajo II). We have looked to common-law principles to inform our interpretation of statutes and to determine the scope of liability that Congress has imposed. See White Mountain Apache Tribe, supra, at 475-476. But the applicable statutes and regulations âestablish [the] fiduciary relationship and define the contours of the United Statesâ fiduciary responsibilities.â Mitchell II, supra, at 224. When âthe Tribe cannot identify a specific, applicable, trust-creating statute or regulation that the Government violated,... neither the Governmentâs âcontrolâ over [Indian assets] nor common-law trust principles matter.â Navajo II, supra, at 302.
Over the years, we have described the federal relationship with the Indian tribes using various formulations. The Indian tribes have been called âdomestic dependent nations,â Cherokee Nation v. Georgia, 5 Pet. 1, 17 (1831), under the âtutelageâ of the United States, Heckman, supra, at 444, and subject to âthe exercise of the Governmentâs guardianship over . . . their affairs,â United States v. Sandoval, 231 U. S. 28, 48 (1913). These concepts do not necessarily correspond
Ill
In this ease, the Tribeâs claim arises from 25 U. S. C. §§ 161a-162a and the American Indian Trust Fund Management Reform Act of 1994, §4001 et seq. These provisions define âthe trust responsibilities of the United Statesâ with respect to tribal funds. §162a(d). The Court of Appeals concluded that the trust relationship between the United States and the Indian tribes, outlined in these and other statutes, is âsufficiently similar to a private trust to justify applying the fiduciary exception.â 590 F. Bd, at 1313. We disagree.
As we have discussed, the Government exercises its carefully delimited trust responsibilities in a sovereign capacity to implement national policy respecting the Indian tribes. The two features justifying the fiduciary exception â the beneficiaryâs status as the âreal clientâ and the trusteeâs common-law duty to disclose information about the trustâ are notably absent in the trust relationship Congress has established between the United States and the Tribe.
A
The Court of Appeals applied the fiduciary exception based on its determination that the Tribe rather than the Government was the âreal clientâ with respect to the Government attorneysâ advice. Ibid. In cases applying the fiduciary exception, courts identify the âreal clientâ based on whether the advice was bought by the trust corpus, whether
Here, the Government attorneys are paid out of congressional appropriations at no cost to the Tribe. Courts look to the source of funds as a âstrong indication of precisely who the real clients wereâ and a âsignificant factorâ in determining who ought to have access to the legal advice. Id., at 712. We similarly find it significant that the attorneys were paid by the Government for advice regarding the Governmentâs statutory obligations.
The payment structure confirms our view that the Government seeks legal advice in its sovereign capacity rather than as a conventional fiduciary of the Tribe. Undoubtedly, Congress intends the Indian tribes to benefit from the Governmentâs management of tribal trusts. That intention represents âa humane and self imposed policyâ based on felt âmoral obligations.â Seminole Nation, 316 U. S., at 296-297. This statutory purpose does not imply a full common-law trust, however. Cf. Restatement 2d, §25, Comment b, at 69 (âNo trust is created if the settlor manifests an intention to impose merely a moral obligationâ). Congress makes such policy judgments pursuant to its sovereign governing authority, and the implementation of federal policy remains âdistinctly an interest of the United States.â Heckman, 224 U. S., at 437.
In some prior cases, we have found that the Government had established the trust relationship in order to impose its own policy on Indian lands. See Mitchell I, 445 U. S., at 544 (Congress âintended that the United States 'hold the land ... in trust' . . . because it wished to prevent alienation of the landâ). In other cases, the Government has invoked its trust relationship to prevent state interference with its policy toward the Indian tribes. See Minnesota v. United States, 305 U. S. 382, 386 (1939); Candelaria, 271 U. S., at 442-444; United States v. Kagama, 118 U. S. 375, 382-384 (1886). And the exercise of federal authority thereby established has often been âleft under the acts of Congress to the discretion of the Executive Department.â Heckman, supra, at 446. In this way, Congress has designed the trust relationship to serve the interests of the United States as well as to benefit the Indian tribes. See United States v. Rickert, 188 U. S. 432, 443 (1903) (trust relationship â âauthorizes the adoption on the part of the United States of such policy as their own public interests may dictate'â (quoting Choctaw Nation v. United States, 119 U. S. 1, 28 (1886))).
Moreover, the Government has too many competing legal concerns to allow a case-by-case inquiry into the purpose of each communication. When âmultiple interestsâ are involved in a trust relationship, the equivalence between the interests of the beneficiary and the trustee breaks down. Id., at 714. That principle applies with particular force to the Government. Because of the multiple interests it must represent, âthe Government cannot follow the fastidious standards of a private fiduciary, who would breach his duties to his single beneficiary solely by representing potentially conflicting interests without the beneficiaryâs consent.â Nevada v. United States, 463 U. S. 110, 128 (1983).
As the Court of Appeals acknowledged, the Government may be obliged âto balance competing interestsâ when it administers a tribal trust. 590 F. 3d, at 1315. The Government may need to comply with other statutory duties, such as the environmental and conservation obligations that the Court of Appeals discussed. See id., at 1314-1315. The Government may also face conflicting obligations to different tribes or individual Indians. See, e. g., Nance v. EPA, 645 F. 2d 701, 711 (CA9 1981) (Federal Government has âconflicting fiduciary responsibilitiesâ to the Northern Cheyenne and Crow Tribes); Hoopa Valley Tribe v. Christie, 812 F. 2d 1097, 1102 (CA9 1986) (âNo trust relation exists which can be discharged to the plaintiff here at the expense of other Indiansâ). Within the bounds of its âgeneral trust relationshipâ with the Indian people, we have recognized that the Government has âdiscretion to reorder its priorities from serving a subgroup of beneficiaries to serving the broader class of all Indians nationwide.â Lincoln v. Vigil, 508 U. S. 182, 195 (1993); see also ibid. (âFederal Government âdoes have a fiduciary obligation to the Indians; but it is a fiduciary obligation that is owed to all Indian tribesâ â (quoting Hoopa
The Court of Appeals sought to accommodate the Governmentâs multiple obligations by suggesting that the Government may invoke the attorney-client privilege if it identifies âa specific competing interestâ that was considered in the particular communications it seeks to withhold. 590 F. 3d, at 1313. But