High Court Says Gov't Can't Skip Out On Payment Promises

Law360, New York (June 18, 2012, 10:06 PM EDT) -- The U.S. Supreme Court ruled Monday that the U.S. government must reimburse Indian tribes for payments promised under contracts to take over federal services such as education, rejecting a government argument that observers said would have allowed the government more leeway to renege on its deals if faced with funding shortfalls.

In Salazar v. Ramah Navajo Chapter, several tribes sought payment under the Contract Disputes Act after the U.S. Department of the Interior failed to pay all costs under tribal contracts to provide services that would...
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