CRV Enterprises, Inc. v. United States

626 F.3d 1241, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20033, 71 ERC (BNA) 1961, 2010 U.S. App. LEXIS 23617, 2010 WL 4629049
Court of Appeals for the Federal Circuit·Decided November 17, 2010·No. 20-1596·Published·Cited by 48 cases

Opinion

DYK, Circuit Judge.

CRV Enterprises, Inc. and C. Ryan Voorhees (“plaintiffs”) filed a claim against the United States in the Court of Federal Claims (“Claims Court”), alleging that the United States had taken plaintiffs’ private property without just compensation by erecting a log boom that prevented plaintiffs from utilizing a slough adjacent to their property. The Claims Court held that plaintiffs failed to state a physical takings claim and that any regulatory takings claim was barred by the statute of limitations. CRV Enters., Inc. v. United States, 86 Fed.Cl. 758, 764-69 (2009). Alternatively, the court held that plaintiffs had no standing to assert a regulatory takings claim because they did not own the property when the regulatory takings claim accrued. Id. at 770. We agree that plaintiffs did not state a physical takings claim and that their regulatory takings claim was barred because they did not own the property at the time of the governmental action. Accordingly, we affirm.

Background

The following are either facts alleged in the complaint or established by state law. The property is a nine acre piece of land, located on the northern shore of the Old Mormon Slough (“Slough”). The Slough is a man-made waterway in Stockton, California connected to the Stockton Deep Water Channel, which in turn flows into the San Joaquin River and then the San Francisco Bay. As landowners adjacent to the Slough, plaintiffs are riparian property owners under California law and have a “riparian right of access to the navigable part of waters.” See id. at 765 (citing San Francisco Sav. Union v. R.G.R. Petroleum & Mining Co., 144 Cal. 134, 77 P. 823, 824 (1904)). 1

In general, riparian rights include the right “(i) of access to the water; (ii) to build a wharf or pier into the water, (iii) to use the water without transforming it, (iv) to consume the water, [and] (v) to accretions.” 2 Robert E. Beck, Waters & Water Rights § 6.01(a) (3d ed.2009). The right to access “means the right of ingress *1244 and egress to one’s land by way of the water, or to the water from the land.” Id. § 6.01(a)(1). Plaintiffs also assert littoral rights, which historically applied only to landowners adjacent to lakes but, more recently, have frequently been seen as indistinguishable from riparian rights. See id. § 6.02(b). According to California law, littoral rights protect “a right to build a pier out to the line of navigability; a right to accretion; a right to navigation (the latter right being held in common with the general public) ...; and a right of access from every part of his frontage across the foreshore.” 3 Marks v. Whitney, 6 Cal.3d 251, 98 Cal.Rptr. 790, 491 P.2d 374, 382 (1971) (in bank).

Before plaintiffs acquired the property in 2002, between 1942 and 1990, wood-preserving operations at the McCormick and Baxter Creosoting Company (“McCormick and Baxter”), located on the southern shore of the Slough across from plaintiffs’ property, resulted in the release of hazardous chemicals, including carcinogens, into the soil, Slough, and sediment at the bottom of the Slough. As a result, in 1992, the Environmental Protection Agency (“EPA”) added the McCormick and Baxter site to its Superfund National Priorities List. The Superfund site included the contaminated sediment in the Slough. After studying the extent of the contamination of the Slough, EPA determined it posed unacceptable risks to humans and fish. It then, in March 1993, issued a draft report evaluating different remedial alternatives, including “Alternative SD-2,” which involved installation of a two-foot thick sand cap over three-fourths of the Slough’s bed and “institutional controls” to prevent navigation and dredging in the capped portion of the Slough that would expose the contaminated sediment. The final report, issued in January 1999, reiterated that, under “Alternative SD-2,” “institutional controls would be implemented for the capped portion of [the Slough].” J.A. 731. Both the draft report and the final report defined “institutional controls” in a prior section, which explained that “institutional controls ... include[d] the installation of a log boom.” J.A. 595, 725. In fact, the final report included a diagram of “Alternative SD-2,” which explicitly marked the site of the log boom. J.A. 740. 4 In March 1999, EPA finally issued its Record of Decision (“ROD”). The ROD explicitly adopted “Alternative SD-2” from the final report and provided for the sand cap and “institutional controls to limit navigational access,” i.e., the log boom. J.A. 830-31.

During the time that EPA was determining the necessary steps, Bill Dutra (“Dutra”) owned the property, situated across the Slough from the McCormick and Baxter site. The EPA’s installation of the log boom threatened to deprive Dutra of use of the portion of the Slough located behind the log boom. In October 1999, Dutra objected to the EPA’s action and submitted an alternative proposal, which the EPA rejected on November 20, 2000. In August 2000, after the issuance of the ROD, CRV signed an option agreement with Dutra to acquire the property. CRV, which owned other land adjacent to the *1245 property, hoped to develop the property as “part of a mixed use master plan development” that included a marina, boat slips, dry boat storage facilities, marine sales and service facilities, restaurants, and lodging. J.A. 102-03. In November 2001 and August 2002, Dutra and Voorhees both met with EPA to discuss the remediation plans, and EPA reiterated that its plan included installing a sand cap on three-fourths of the Slough and placing a log boom across the Slough to block boat traffic. As a result, CRV and Dutra entered into an amended option agreement in October 2002, acknowledging Dutra had failed to reach a “mutually acceptable agreement” with EPA. J.A. 946. Finally, in November 2002, CRV exercised its option and acquired the property from Dutra, who also assigned his rights to CRV. The property was transferred to Voorhees on October 20, 2004.

CRV filed an inverse condemnation claim against the United States on April 30, 2003 (“the CRV I case”), alleging that EPA’s planned implementation of the remediation project was a taking. The United States, denying a taking had occurred, also argued CRV’s takings claim was not ripe because the remedy had not yet been implemented. When work on the remedy was delayed for over a year, CRV and the United States filed a Stipulation for Dismissal without prejudice, agreeing the claim was not yet ripe. The joint motion stated that “CRV acknowledges (and Defendant concurs) that unless and until the EPA undertakes activities that Plaintiff believes blocks its navigational access, in part or in whole, to the Old Mormon Slough and the Stockton Channel, Plaintiffs claims as pled in this action are not ripe.” J.A. at 1141.

In September 2006, EPA finally completed installation of the sand cap and log boom.

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CRV Enterprises, Inc. v. United States, 626 F.3d 1241, 41 Envtl. L. Rep. (Envtl. Law Inst.) 20033, 71 ERC (BNA) 1961, 2010 U.S. App. LEXIS 23617, 2010 WL 4629049 (Fed. Cir. 2010).

626 F.3d 1241 (CRV Enterprises, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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