A tribal member has filed a lawsuit against the United States government, alleging a failure to uphold fiduciary duties under the Federal Trust Doctrine.
According to the complaint filed by plaintiff Kim McKenzie, also known as “Yellow Lilly,” the government failed to protect her tribal property from state taxation and foreclosure. McKenzie, a member of the Guale Yamassee Tribal Republic, asserts that her home should have been protected under federal mortgage insurance programs administered by the United States Department of Agriculture and designated for tribal lands. She alleges that these protections were not maintained, leading to state actions against her property.
McKenzie contends that Wilmington Savings Fund Society, FSB, continued foreclosure proceedings despite receiving full payment through private mortgage insurance. She accuses the institution of proceeding without proper legal standing, continuing debt collection, and failing to issue a satisfaction of mortgage after receiving insurance payouts. The complaint alleges that these actions contributed to the loss of her home due to improper state taxation.
The lawsuit seeks injunctive relief to halt ongoing state proceedings and requests specific performance requiring the U.S. government to fulfill its fiduciary obligations by intervening and restoring the property. McKenzie also seeks monetary damages equal to the market value of her home and reimbursement for taxes allegedly imposed and collected unlawfully.
The plaintiff is representing herself in this matter. The case was filed in the United States District Court for the Eastern District of New York under Case No. 2:25-cv-02663 and is presided over by Judge Gary R. Brown.