Black Hills Institute of Geological Research v. South Dakota School of Mines & Technology

12 F.3d 737, 1993 WL 515372
CourtCourt of Appeals for the Eighth Circuit
DecidedDecember 15, 1993
DocketNos. 93-1600, 93-1602
StatusPublished
Cited by22 cases

This text of 12 F.3d 737 (Black Hills Institute of Geological Research v. South Dakota School of Mines & Technology) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Black Hills Institute of Geological Research v. South Dakota School of Mines & Technology, 12 F.3d 737, 1993 WL 515372 (8th Cir. 1993).

Opinions

MAGILL, Circuit Judge.

Black Hills Institute of Geological Research and Black Hills Museum of Natural History Foundation (collectively, “Black Hills”) appeal the district court’s1 judgment in favor of the United States. The district court found that the United States holds title to a valuable Tyrannosaurus rex skeleton (“the fossil” or “Sue”) in trust for Maurice Williams (‘Williams”), an individual Indian who is the beneficial owner of trust land on which Black Hills discovered the fossil. Joseph M. Butler appeals separately from the district court’s order imposing Rule 11 sanctions on Butler for naming an improper party as a defendant. We affirm the district court’s judgment that the United States holds trust title to the fossil and reverse its Rule 11 order.

I. BACKGROUND

This ease is before us for the third time. The factual background is uncomplicated. Black Hills collects and restores fossils for display in museums. In August 1990, Black Hills was excavating fossils in western South Dakota. Sue Hendrickson, a researcher working on the project, discovered Sue on Williams’ ranch while on break. Since 1969, the United States has held this ranch land in trust for the sole use and benefit of Williams, an Indian. Two days after the discovery, Black Hills scientists began excavating Sue, the most complete and valuable Tyrannosaurus rex skeleton known to man, from Williams’ land. At some point during the excavation, Black Hills purported to purchase from Williams the right to excavate Sue for $5000. After excavation, Black Hills moved the ten tons of bones to Hill City, South Dakota, where scientists began the laborious process of restoring the fossil..

In May 1992, however, federal officers seized Sue and moved her to the South Dakota School of Mines and Technology (“School of Mines”). The United States attorney for South Dakota ordered the seizure on the ground that Black Hills’ removal of Sue from Williams’ land violated federal criminal statutes relating to federal lands. Black Hills then brought suit in district court to quiet title to Sue. In conjunction with this action, it sought a preliminary injunction for possession of the fossil pending the outcome [740]*740of the suit. After the district court denied Black Hills a preliminary injunction, Black Hills moved under Eighth Circuit Rule 8A to this court for an order granting it custody of Sue pending appeal of the injunction denial.

In Black Hills Institute of Geological Research v. United States Department of Justice, 967 F.2d 1237, 1241 (8th Cir.1992) (Black Hills I), we found that the district court had anomalous jurisdiction over the temporary custody issue and remanded for a determination of the proper temporary custodian. The district court concluded that Sue should remain at the School of Mines pending disposition of the case on the merits. In Black Hills Institute of Geological Research v. United States Department of Justice, 978 F.2d 1043, 1045 (8th Cir.1992) (Black Hills II), we affirmed the district court’s custody order, dismissed with prejudice Black Hills’ appeal of the preliminary injunction denial, and remanded the case for proceedings on the merits. Meanwhile, Black Hills amended its complaint by abandoning the quiet title theory of its case and instead seeking only an order requiring the United States to return Sue to it.

On remand, the district court found that it still had to determine ownership of Sue despite Black Hills’ amended complaint because “[a] permanent possessory right to the fossil is subsumed within the context of ownership.” 812 F.Supp. 1015, 1018 (Feb. 3, 1993). It then concluded that it had federal question jurisdiction under-28 U.S.C. § 1331 because the case involved the application of federal statutes relating to Indian trust lands. Reaching the merits, the district court found that Sue was an interest in land under the trust land statutes. Because Williams failed to receive the Secretary of the Interior’s (“the Secretary”) approval for his attempted sale of Sue to Black Hills, the court reasoned, the transaction was void and the United States retained title to Sue in trust for Williams. Black Hills now appeals.

II. DISCUSSION

A. Subject Matter Jurisdiction

The first issue we must address is the district court’s basis for subject matter jurisdiction over this case. We find that the district court had general federal question jurisdiction under 28 U.S.C. § 1331. Black Hills’ complaint alleged facts sufficient to bring the ease within 5 U.S.C. § 702’s broad waiver of sovereign immunity. Section 702 waives the federal government’s sovereign immunity in cases challenging agency action — here, the Department of Justice’s seizure of Sue — and seeking relief other than money damages.2 See 5 U.S.C. § 702; Specter v. Garrett, 995 F.2d 404, 410 (3d Cir.) (holding that § 702’s waiver of sovereign immunity is not limited to cases brought under the Administrative Procedure Act), cert. granted, — U.S. -, 114 S.Ct. 342, 126 L.Ed.2d 307 (1993); Presbyterian Church v. United States, 870 F.2d 518, 525 (9th Cir.1989) (holding that the term “agency action” “was clearly intended to cover the full spectrum of agency conduct”). District courts have jurisdiction under § 1331 to hear cases falling within § 702’s consent to suit. See Califano v. Sanders, 430 U.S. 99, 105, 97 S.Ct. 980, 984, 51 L.Ed.2d 192 (1977) (holding that § 1331 confers jurisdiction on federal courts to review agency action “subject only to preclusion-of-review statutes created or retained by Congress”).

B. Ownership of the Fossil

We now reach the merits of the ease. We must first decide precisely what issue is before us. Initially, Black Hills sued the government to quiet title to Sue. Black Hills’ second amended complaint abandoned the quiet title action and sought an order requiring the government to return the fossil. Black Hills argues that the district court erred because it determined ownership, an issue Black Hills claims that it did not raise in the second amended complaint. According to Black Hills, the district court “only [741]*741had jurisdiction to determine whether [Black Hills] or the Department of Justice was entitled to possession of the fossil.” Appellant’s Br. at 41.

In the second amended complaint, however, Black Hills stated that it “paid Williams $5000 in exchange for Sue. [Black Hills] scientists wrote a check to Williams on August 27, 1990, which he accepted and cashed in full payment for Sue.” 2d Amended Compl., ¶ II, at 1. Thus, Black Hills alleged that it owned the fossil outright, not that it leased it or had some possessory interest that did not amount to full ownership.

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Bluebook (online)
12 F.3d 737, 1993 WL 515372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/black-hills-institute-of-geological-research-v-south-dakota-school-of-ca8-1993.