Cook v. United States

85 Fed. Cl. 820, 2009 U.S. Claims LEXIS 45, 2009 WL 481658
CourtUnited States Court of Federal Claims
DecidedFebruary 23, 2009
DocketNo. 08-337L
StatusPublished
Cited by7 cases

This text of 85 Fed. Cl. 820 (Cook 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
Cook v. United States, 85 Fed. Cl. 820, 2009 U.S. Claims LEXIS 45, 2009 WL 481658 (uscfc 2009).

Opinion

OPINION

BRUGGINK, Judge.

This is an action brought by individual plaintiffs and Copar Pumice Co., to enforce a 2002 settlement agreement which resolved a previous complaint that asserted a Fifth Amendment taking of their mining claims. As a result of the agreement, the United States paid plaintiffs approximately $4 million and agreed that plaintiffs could retain certain of their unpatented mining claims. Plaintiffs now allege that the government has breached the agreement by challenging their right to exploit their remaining unpatented claims.

The case is currently before the court on defendant’s motion to dismiss for lack of jurisdiction and for failure to state a claim pursuant to Rules 12(b)(1) and 12(b)(6) of the Rules of the Court of Federal Claims (“RCFC”). Defendant argues that this court lacks jurisdiction because plaintiffs’ claim seeks primarily equitable relief. In the altemative, it argues that what the complaint alleges would not constitute a violation of the settlement agreement, and that plaintiffs complaint is barred, in any event, by principles of res judicata.

The matter is fully briefed, and oral argument was held on December 2, 2008. Because we have subject matter jurisdiction, we deny the motion brought pursuant to RCFC 12(b)(1). For the reasons which follow, however, the action must be dismissed because it fails to state a claim upon which relief can be granted.

BACKGROUND

The detailed history and procedural background of this case are set out in Cook v. United States, 42 Fed.Cl. 788 (1999); thus, a more abbreviated history is called for here. In the 1980s, plaintiffs staked claims to twenty three contiguous pumice mining claims in Sandoval County, New Mexico. These were known as the “Brown Placer claims.” In 1988, plaintiffs applied for a mining patent to the Bureau of Land Management of the Department of the Interior (“BLM”). While BLM was evaluating the Brown Placer claims, Congress passed the Jemez National Recreation Act, 16 U.S.C. § 460jjj et seq. (2006) (“JNRAA”). The legislation had the effect of prohibiting patents from being issued after 1991 for mining claims located in the Jemez National Recreation Area in Sandoval County, New Mexico. The Brown Placer mining claims were within that area and thus could not be patented.

Plaintiffs brought suit here in 1994, seeking compensation for loss of their property rights pursuant to the Fifth Amendment takings clause. In our earlier opinion on plaintiffs’ motion for partial summary judgment, we held that the Brown Placer mining claims were valid claims, that a patent should have issued, and that the JNRAA constituted a taking of plaintiffs’ property. See Cook, 42 Fed.Cl. at 792-95. As a result of our ruling, on April 4, 2002, plaintiffs and the government entered into a settlement agreement resolving the ease. Under the settlement agreement, the government paid the plaintiffs nearly $4 million. In exchange, plain[822]*822tiffs relinquished nineteen of their mining claims, but they were allowed to retain claims 9 through 12 as unpatented mining claims. Plaintiffs agreed that they would not dispose of common variety pumice.1 The parties agreed to submit to the continuing jurisdiction of this court to enforce the settlement agreement.

Approximately a year and a half after the settlement agreement, in December 2003, the United States Forest Service issued a Notice of Noneompliance (“NON”) against Copar Mining Company. The NON alleged a failure to provide verifiable evidence that pumice mined from claims 9 through 12 was sold and used by the stonewash laundry industry, pursuant to federal regulations defining locatable uncommon variety pumice.2 After challenging it administratively, plaintiffs appealed the NON to the New Mexico federal district court in Copar Pumice Co., v. Bosworth, 502 F.Supp.2d 1200 (D.N.M.2007). They argued that the Forest Service’s interpretation of the regulation was contrary to case law, inconsistent with the agency’s regulations, and arbitrary and capricious. The court affirmed the NON, holding that there was substantial evidence supporting its issuance and that it was not arbitrary or capricious. Id. at 1219-1220.

This new action is based on the government’s actions after the Bosworth decision. Plaintiffs now allege that the government, acting through the Forest Service, has breached the settlement agreement by filing an administrative complaint with BLM contesting the validity of claims 9 through 12. The Forest Service seeks to have the claims declared null and void because the pumice located within the claims is not a “valuable discovery of a valuable mineral deposit,” Cmpl. in United States v. Armstrong et al., No. NMNM 119839 (Feb. 5, 2008), within the meaning of 30 U.S.C. § 611(2000). The Forest Service has ordered that all mining operations on plaintiffs’ claims cease and that reclamation of the area should proceed. Further, the Forest Service has refused to extend plaintiffs’ existing plans of operations and has not processed new plans.

Plaintiffs argue that the Forest Service’s actions have violated paragraph three of the agreement, which stipulates that plaintiffs shall “retain Brown Placer Mining claims Nos. 9-12 as unpatented mining claims subject to all pertinent statutes and regulations____ Plaintiffs are prohibited from the disposal of the common variety pumice pursuant to 16 U.S.C. § 460jj j—2(b).” Pl.’s Ex. B at 2. Plaintiffs believe that this provision ensures their continued entitlement to the claims and the right to remove uncommon variety pumice. They also allege that the Forest Service’s actions constitute a breach of the implied covenant of good faith and fair dealing inherent in every contract. Plaintiffs ask the court to enforce the settlement agreement by ordering the government to dismiss the administrative complaint filed with the BLM, to stop challenging the validity of the Brown Placer claims 9 through 12, and to process plaintiffs’ plans of operations. They also seek an award of damages, costs, and attorneys’ fees.

DISCUSSION

I.

This court possesses jurisdiction to hear claims founded upon contracts. See 28 U.S.C. § 1491(a)(1) (2000). A settlement agreement is a contract, see Greco v. Dep’t of the Amy, 852 F.2d 558, 560 (Fed.Cir.1988) (“It is axiomatic that a settlement agreement is a contract.”), and, in this case, the court specifically retained jurisdiction to enforce the settlement agreement.

The government argues, however, that because plaintiffs’ primary goal is to obtain equitable relief, we lack jurisdiction over the entire claim. The government relies principally 3 upon the Federal Circuit’s decision in [823]*823Bobula v. United States Dep’t of Justice, 970 F.2d 854

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Cite This Page — Counsel Stack

Bluebook (online)
85 Fed. Cl. 820, 2009 U.S. Claims LEXIS 45, 2009 WL 481658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cook-v-united-states-uscfc-2009.