In early January, the U.S. Supreme Court rejected a request to hear the appeal of a case filed by plaintiffs Emil Notti, James Grotha, Glen Kerr, Sam Pedro and Ella Ring challenging CIRI’s Elders’ Benefit Program. That ruling makes final the Federal District Court ruling that the program is legal.

“This makes clear once and for all that this program is legal and permissible under ANCSA, and we are extremely pleased with the U.S. Supreme Court’s decision,” said CIRI President and Chief Executive Officer Carl Marrs.

In February 2000, the CIRI board of directors voted to establish the Elders’ Benefit Program to pay quarterly distributions to original CIRI enrollees age 65 and older. The corporation made its first payment of $450 to CIRI elders in May 2000. The following month, a group of shareholders (including long-time Robert Rude supporters) filed a lawsuit trying to stop the payments to elders.

In May 2001, the Federal District Court for the District of Alaska dismissed the lawsuit, ruling that the program was legally valid. Following the ruling, the board voted to release elders’ payments under the program, which had been suspended during the pendency of the District Court proceeding and deposited into a separate interest-bearing account. Each eligible CIRI elder received approximately $1,800 plus the interest collected while the program was suspended pending the court’s decision. The plaintiffs then appealed the ruling to the Ninth Circuit Court of Appeals.

On March 26, 2002, the Ninth Circuit Court of Appeals affirmed the Federal District Court decision ruling CIRI’s Elders’ Benefit Program legal. In affirming the Federal District Court’s order in favor of CIRI, the Ninth Circuit Court of Appeals stated in part, “The plain language of (ANCSA) allows CIRI to make the distributions ... . Moreover, the legislative history of (ANCSA) confirms that Congress intended that ANCSA corporations provide the type of benefits provided by CIRI in this case.”

In late March 2002, CIRI resumed its Elders’ Benefit Program by distributing the three quarterly payments that had been held in an interest-bearing account during the litigation. More than 550 eligible CIRI elders were mailed a distribution of $1,350 plus interest. Regular quarterly payments of $450 were also distributed in May, August and November 2002.

The next elders’ distribution was made the second Friday of February 2003.