Americopters, LLC v. United States

95 Fed. Cl. 224, 2010 U.S. Claims LEXIS 827, 2010 WL 4262279
CourtUnited States Court of Federal Claims
DecidedOctober 28, 2010
DocketNo. 08-676
StatusPublished
Cited by6 cases

This text of 95 Fed. Cl. 224 (Americopters, LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Americopters, LLC v. United States, 95 Fed. Cl. 224, 2010 U.S. Claims LEXIS 827, 2010 WL 4262279 (uscfc 2010).

Opinion

OPINION

BRUGGINK, Judge.

Plaintiff seeks compensation under the Fifth Amendment of the United States Constitution for the alleged taking of its business due to the actions of the Federal Aviation Administration (“FAA”). Currently before the court are defendant’s motion for summary judgment and plaintiffs cross-motion for partial summary judgment on liability, both pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). These motions present the question of whether a Fifth Amendment taking occurs when the action allegedly causing the taking is within the agency’s authority but where, as here, the individual employees performing the action were not authorized to act. For the reasons explained below, we hold that as a matter of law, the undisputed facts do not give rise to a compensable taking. Accordingly, we grant the government’s motion for summary judgment.

FACTUAL BACKGROUND1

In the years leading up to 2002, Americop-ters, LLC (“Amerieopters”) operated a heli[226]*226copter tour business in Guam. Americopters’ helipad was located on the roof of a restaurant. In February of 2002, Mr. Clarence Kanae, the Principal Operations Inspector for the FAA’s Flight Standards District Office in Honolulu, Hawaii, conducted an inspection of Americopters’ facility. During the course of his inspection, he orally identified a number of deficiencies in Americop-ters’ operation.

Following this visit, Americopters wrote to Mr. Kanae, listing the improvements Ameri-copters planned to make and asking him to confirm and clarify the deficiencies he had noted. After several weeks passed without any response, Americopters faxed the letter to Mr. Kanae’s Honolulu office. Americop-ters subsequently re-faxed the letter several times, but received no response. Four months after the inspection, on July 24, 2002, Americopters received a letter from Mr. Ka-nae requiring Americopters to immediately cease use of its rooftop heliport:

This letter is to inform you that the use of the rooftop as a helicopter-pad, at Chuck’s Steak House, is considered unsafe, and does not meet the Federal Aviation Administration Advisory Circular 150-5390-2A Heliport Design requirements. This [Advisory Circular] is Advisory in nature; however, this office feels that FAR[2] 91.13 will apply to this operation if the AC is not followed. Therefore, this office is requiring that your company immediately cease use of the Chuck’s Steak House rooftop for all flight operations.

Def.’s Mot. for Summ. J. Ex. 1. Although written by Mr. Kanae, this letter was edited and approved by his supervisor, Don Hamilton, who signed it because Mi*. Kanae was out of the office. It was Mr. Hamilton, in fact, who added the final sentence requiring Americopters to cease operating. Although the FAA is statutorily authorized to promulgate and enforce air safety regulations, under the FAA’s internal organization and policies, neither Mr. Kanae nor Mr. Hamilton were authorized to issue an order such as this.

Upon receipt of the letter, Americopters relocated its business to what it characterizes as a less favorable location where the volume of customers declined dramatically. As a result of the relocation, Americopters alleges that it was forced to sell one of its helicopters at a loss and ultimately to shutter its operation entirely.

In response to Mr. Kanae’s letter, Ameri-copters’ counsel wrote the FAA on August 13, 2002, requesting a rescission of the “cease operations” order, confirmation that improvements it proposed would rectify the helipad’s deficiencies, and 90 days to perform these improvements. In the alternative, the letter requested a hearing under 14 C.F.R. § 13.20(c). The FAA’s Regional Counsel, Monroe Balton, replied on September 19, 2002, denying Americopters’ request for a hearing because no legal enforcement action had been taken against Americopters. The regional office, in effect, disavowed Mr. Ka-nae’s letter, noting that under FAA regulations only certain FAA attorneys have authority to issue “orders of compliance, cease and desist orders, orders of denials, and other orders.” Def.’s Mot. for Summ. J., Ex. 4. “No such orders were issued with respect to ... Americoptersf] flights using the Chuck’s Steakhouse heliport.” Id. Because Mr. Ka-nae’s letter was not “an order as that term is contemplated by the [FAR] ... your requests are denied.” Id.

Its administrative remedy thus denied, Americopters filed suit in the United States District Coui’t for the District of Guam in February of 2003, seeking rescission of the alleged FAA orders and arguing that Mr. Kanae’s purported order dated June 24, 2002, was a taking of Americopters’ property. The FAA moved to dismiss the complaint, relying on 49 U.S.C. § 46110 (2006), which vests jurisdiction to hear challenges to FAA orders in the circuit courts of appeal.3 The [227]*227district court determined that Mr. Kanae’s letter was an order and that § 46110 thus deprived the court of jurisdiction. The district court also dismissed Americopters’ constitutional claim, holding that, although not directly preempted by § 46110, it was “inescapably intertwined” with the claims being dismissed.

Americopters appealed the dismissal to the Court of Appeals for the Ninth Circuit, which dismissed its petition for review of the order as untimely because it was not filed within the 60-day statutory period.4 The Ninth Circuit determined that Americopters’ constitutional claims, however, were not so intertwined with the challenged FAA order to defeat the district court’s jurisdiction. Accordingly, it reversed the dismissal of those claims and remanded them to the district court for further proceedings.

On remand to the district court, the FAA moved to dismiss or, in the alternative, to transfer the case to this court. The district court transferred the case here, and Ameri-copters appealed the transfer to the Court of Appeals for the Federal Circuit. The Federal Circuit upheld the transfer, and on November 18, 2008, Americopters filed an amended complaint alleging that the FAA’s actions had caused the loss of its business. Early in 2009, the government moved to dismiss the case, arguing that Mr. Kanae was not authorized to issue cease-and-desist orders and that an unauthorized government action cannot constitute a taking. We denied the motion and directed the parties to conduct limited discovery concerning the scope of Mr. Kanae’s authority. On March 3, 2010, the government again moved for summary judgment, arguing that Mr. Kanae’s shutdown order was unauthorized and thus no basis for a takings claim. Americopters cross-moved for summary judgment as to liability.

REGULATORY BACKGROUND

By statute, the FAA Administrator has power to promulgate regulations dealing with aviation safety, 40 U.S.C. § 106 (2006), and to conduct investigations and issue orders necessary to carry out this power, 49 U.S.C. § 40113 (2006). The administrator can delegate the authority to carry out these powers. 49 U.S.C.

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Bluebook (online)
95 Fed. Cl. 224, 2010 U.S. Claims LEXIS 827, 2010 WL 4262279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/americopters-llc-v-united-states-uscfc-2010.