United States v. Moore Mill & Lumber Co.

The sole question presented by this appeal is whether the United States has capacity to sue as trustee on behalf of Lulu Noel as an Indian ward with respect to Indian allotment lands held by the United States under trust patent.

The District Court for the District of Oregon held that the United States had no capacity and entered its order dismissing the action. We agree with the district court. In support of this order, an opinion was filed by The Honorable Gus J. Solomon, District Judge, which We adopt as the opinion of this court. That opinion reads as follows:

The United States here contends that even though it appears that appellee was not a party to the original fraud and had no dealings with Lulu Noel prior to the issuance of the fee patent, still it is alleged that appellee took the logs with knowledge of the fraud and thus became a party to the over-all fraudulent scheme of which the sale of the logs was an essential part.

These facts may well state a claim for conversion under state law, but cannot justify extension of the trust authority of the United States to include a power to sue on behalf of one no longer its ward with respect to acts of a defendant all of which…