BILOXI MARSH LANDS CORPORATION v. United States

United States Court of Federal Claims·Decided August 10, 2026·No. 12-382·Published

Opinion

In the United States Court of Federal Claims No. 12-382

(Filed: 10 August 2026)

*************************************** BILOXI MARSH LANDS * CORPORATION, et.al., *

*

Plaintiffs, *

*

v. *

*

THE UNITED STATES, *

*

Defendant. *

*

***************************************

Camilo K. Salas, III, Salas & Co., L.C., with whom were Michael G. Stag, Ashley M.

Liuzza, and Matthew D. Rogenes, Stag Liuzza L.L.C., all of New Orleans, Louisiana, for plaintiffs.

Erik Van de Stouwe, Trial Attorney, with whom were Young Kang, Trial Attorney, and Adam R. F. Gustafson, Principal Deputy Assistant Attorney General, Environment & Natural Resources Division, Department of Justice, all of Washinton, DC, for defendant.

OPINION AND ORDER

HOLTE, Judge.

Plaintiffs Biloxi Marsh Lands Corporation (“Biloxi”), Lake Eugenie Land & Development, Inc. (“Lake Eugenie”), Borgnemouth Realty Co., Limited (“Borgnemouth”), The Livaudais Company, LLC (“Livaudais”), Terre Aux Boeufs Land Co., Inc. (“Terre Aux Boeufs”), and Vincent Marshlands, LLC (“Vincent Marshlands” or “Vincent”) (collectively, “plaintiffs”), allege the United States permanently took their properties for public use through inverse condemnation, without providing them just compensation, in violation of the United States Constitution, federal statutes, and certain servitudes granted by plaintiffs and assigned to the United States. Further, plaintiffs alleged the United States was liable for damage to plaintiffs’ estates under the contracts granting a servitude to construct an outlet canal on their properties. The government filed its Motion for Summary Judgment on 22 November 2024 arguing plaintiffs’ takings and contract claims are barred by this court’s six-year statute of limitations and lack merit regardless. After revisions, plaintiffs filed their Cross-Motion for Partial Summary Judgment on the issue of liability on 22 April 2025 addressing the same issues. The Court held oral argument on the Cross-Motions for Summary Judgment on 4 November 2025 in New Orleans, Louisiana. For the following reasons, the Court grants in part and denies in part the government’s Motion for Summary Judgment, and denies plaintiffs’ Cross-Motion for Partial Summary Judgment on the Issue of Liability.

I. Factual Background

The factual background of this case was previously outlined in the Court’s 19 January 2021 Opinion and Order: 1

A. The Mississippi River Gulf Outlet

In the 1940s there were three primary water navigation routes in southeast Louisiana: the Inner Harbor Navigation Canal (“IHNC”), the Gulf Intracoastal Waterway (“GIWW”), and the Mississippi River. Pls.’ Corrected Mem. Submitted (1) in Opp. to the U.S.’ Mot. for Summary Judgment on the Issue of the Timeliness of Pls.’ Takings Claims; and (2) in Supp. of Pls.’ Cross-Mot. for Summary Judgment on the Same Issue, ECF No. 110, (“Pls.’ Mot. for Partial Summ. J.”), Ex. 39 at 3-40 (Mississippi River Gulf Outlet (MGRO) Ecosystem Restoration Plan, Final Environmental Impact Statement (June 2012)). In 1956, Congress authorized construction of a fourth route—the Mississippi River Gulf Outlet (“MRGO”). Pls.’ Mot. for Partial Summ. J., Ex. 2 at 1 (U.S. Army Corps of Engineers, MRGO Design Memorandum No. 1-B). The 76-mile-long, 36-foot-deep, 650-foot surface width, and 500-foot bottom width channel would soon connect the INHC and the 38-foot depth contour in the Gulf of Mexico. Id. at 1–3. The purpose of the MRGO “was to increase commerce by providing a direct connection between the port of New Orleans and the Gulf of Mexico.” St. Bernard Parish Gov. v. United States, 887 F.3d 1354, 1357 (Fed. Cir. 2018).

In March of 1956, the Port of New Orleans (“the Port”) became the designated non-federal sponsor of the MRGO. Pls.’ Mot. for Partial Summ. J., Ex. 2 at 1 (U.S. Army Corps of Engineers, MRGO Design Memorandum No. 1-B). As such, Port Commissioners pursued acquisition of lands and obtained acts of assurance of local cooperation, which included the furnishing of all lands, easements, rights-of-way, and spoil disposal areas by the State of Louisiana. Id. at 6.

In April of 1958, the Department of the Interior, in a draft preliminary report prepared for the Army Corps of Engineers (“USACE” or “the Corps”), predicted ecological damage would result from the construction and operation of the MRGO. See United States Mot. for Summary Judgment and Supporting Mem., ECF No. 99, (“Gov. Mot. Summ. J.”), Ex. 1, at 8 (citing U.S. Department of the Interior, An Interim Report on Fish and Wildlife Resources as Related to Mississippi River-Gulf

1 At oral argument, the Court invited the parties to note any disputes they may have with the facts as the Court described them in its 2021 Order. In a JSR following oral argument, the government noted two disputes with the Court’s recitation of the facts related to the 1958 Department of the Interior Draft Preliminary Report and the 1986 Water Resources Development Act (“WRDA”). See 22 January Joint Status Report at 1–5, ECF No. 293. Plaintiffs disagreed with the government’s disputes. See id. at 5–9. Neither the Draft Preliminary Report nor the 1986 WRDA impact the Court’s decision on the parties’ cross-motions for summary judgment in this opinion. While the Court does not address these disputes today, the parties remain free to raise these factual issues if they become relevant in a future proceeding.

Outlet Project, Louisiana and an Outline of Proposed Fish and Wildlife Studies (1958)). In the report, the Secretary of the Department of the Interior wrote the Secretary of the Army, noting “the project is of great concern to fish and wildlife conservationists” and “the project plans had not been investigated by fish and wildlife conservation agencies, as contemplated in Wildlife Coordination Act of August 14, 1946.” Id. (emphasis added in the government’s brief).

Without further agency investigation, the Corps began construction of the outlet in 1958, dredging shallow bays, coastal marshes, and cypress swamps. Pls.’ Mot. for Partial Summ. J., Ex. 51 at 2 (U.S. Army Corps of Engineers, MRGO Deep Draft De-authorization Study: Executive Summary). Construction of the MRGO cut through Bayous Bienvenue, Dupre, La Loutre, and the Bayou La Loutre Ridge and resulted in the direct connection of Lake Borgne to the Gulf of Mexico through Breton Sound. Pls.’ Mot. for Partial Summ. J., Ex. 39 at 3-40 (Mississippi River Gulf Outlet (MGRO) Ecosystem Restoration Plan, Final Environmental Impact Statement (June 2012)). In 1965, Congress authorized construction of a hurricane protection levee along the south bank of the MRGO. Pub. L. No. 89-298, 79 Stat. 1073 (Oct. 27, 1965).

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