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TAHLEQUAH, OKLAHOMA - The United States Supreme Court unanimously ruled that the federal government owes the Cherokee Nation millions of dollars in damages for failing to pay support costs included in contracts the tribe had with the government.

The case resolved a dispute that stretches back more than 10 years. The Cherokee Nation has contracted with the federal government to operate health care facilities, but since 1994 the government has failed to pay costs it agreed to cover in those contracts.

"This was a case where the Cherokee Nation agreed to perform work for the federal government, performed the work, and was denied payment for the contracted services," said Chad Smith, Principal Chief of the Cherokee Nation. "Through the years, thousands of Native American families were denied health care because the government refused to meet their contracted obligations. This ruling is vindication for them most of all."

The Cherokee Nation will receive $8.5 million, plus interest, in damage awards and the effects of the ruling extend to other tribes in similar situations.

"This is also a victory that affects Indian Nations across the country who may find themselves in similar situations in which the government refuses to pay them contracted money owed," Smith said. "Today’s decision resolves years of unproductive litigation and sets the framework for cooperative agreements between tribes and the federal government in the future."

The court also ruled that contracts with tribes are just as valid as agreements with non-Indian contractors.

"We are pleased that the Supreme Court understands that government contracts with Indian tribes must be honored, just as government contracts with private businesses must be honored," Smith said. "The U.S. government can no longer expect to renege on contracts and agreements with Native Americans."

Related Cherokee Nation contact information:

Mike Miller, Cherokee Nation Director of Communications Phone: 918-456-0671 (ext.2210) Fax: 918-458-5580 E-mail: Communications@cherokee.org Larry Daugherty, Advertising Manager Cherokee Nation - Public Affairs Phone 918-456-0671 (Ex.2324) E-mail: ldaugherty@cherokee.org

Steven Swogger, Agriculture Liaison Natural Resources Department Phone: 918-456-0671 (ext.2546) FAX: 918-458-7673 E-mail: sswogger@cherokee.org Bradley D. Peak, Cherokee Nation Natural Resources Specialist Phone: 918-456-0671 (ex.2843) E-mail: bpeak@cherokee.org