Winter 1998


judge

Native American Legal Briefs 


New Brunswick timber harvesting case

South Dakota lending discrimination case

How can I tell if I am a victim of lending discrimination?


New Brunswick Court upholds Micmac rights to harvest timber on Crown land

In a landmark decision, the Court of Queen's Bench in Bathurst, N.B. ruled that present day Indians have the right to cut trees on Crown land. Justice Turnbull of that Court decided that Dummer's Treaty of 1725 recognized that Indians in New Brunswick have land rights that include the harvesting of any and all trees on Crown land.

The case began when Thomas Paul, a Micmac Indian, and several other Indians cut three logs of bird's eye maple. The maple was on Crown land that had been licensed to Stone Consolidated (Canada) Inc. to cut timber. Mr. Paul was charged with harvesting the logs illegally.

In his decision, the judge stated, "Indians have a legal right to occupy and possess certain lands, the ultimate title to which is in the Crown." He also found that there is "a distinctive fiduciary obligation on the part of the Crown to deal with the land for the benefit of the surrendering Indians."

Since New Brunswick had originally been part of the Massachusetts Bay Colony, Justice Turnbull examined the early law of Massachusetts Bay.

Forestry companies in New Brunswick are concerned about the decision since it may be read to require companies to account for what they have taken off and used from Indian lands in the past and the present.

It is expected that the decision will be appealed.


Lending discrimination case settled; South Dakota Native Americans benefit

A recent Justice Department settlement with a Nebraska bank will benefit Native Americans in South Dakota living on or near the Pine Ridge Reservation. The settlement is designed to make sure that Native Americans are treated fairly when they ask for a loan and to compensate those who were treated unfairly in the past.

The Justice Department claimed that loan officers for the First National Bank of Gordon refused to make secured loans if the collateral was located on a Native American reservation. The Department also claimed that the bank had credit requirements for Native Americans which were not used for white applicants.

Under the settlement, the bank agreed to a number of conditions. Among these were the creation of a $175,000 fund to be used to compensate those harmed by the bank; setting up a money management education program to show Native Americans how to establish and maintain credit with the bank; and taking steps to increase the pool of qualified Native Americans to be considered for employment as loan officers at the bank.


How can I tell if I am a victim of lending discrimination?

You probably won't hear anyone say, "We don't make loans to Native Americans." What you will hear is:

red bullet  Your debt-to-income ratios are too high.
red bullet  The appraisal said "inadequate collateral."
red bullet  You need more money down.

Any time you're denied a loan, or the terms and conditions are changed, you could be a victim of lending discrimination. Call and find out. Contact HUD at 1-800-669-9777. TDD 1-800-927-9275.

Or, if you are a Maine client, call the Pine Tree Legal Assistance Native American Office.