Cully Corporation v. United States

United States Court of Federal Claims·Decided December 28, 2022·No. 19-339·Published

Opinion

In the United States Court of Federal Claims No. 19-339C Filed: December 28, 2022

CULLY CORPORATION, Plaintiff, v.

THE UNITED STATES, Defendant.

Samuel J. Fortier, Fortier & Mikko, P.C., Anchorage, AK, for Plaintiff.

Joseph A. Pixley and Bret R. Vallacher, Trial Attorneys, L. Misha Preheim, Assistant Director, Patricia M. McCarthy, Director, and Brian M. Boynton, Acting Assistant Attorney General, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., with Robin M. Richardson, Senior Environmental Litigation Attorney for AF/JA- Operations and International Law, Environmental Law and Litigation Division, for Defendant.

POST-TRIAL OPINION AND ORDER

TAPP, Judge.

The challenges of living on the Chukchi Sea cannot be overstated. Aside from extreme isolation, climate affects everything in native villages adjacent to the Chukchi’s shallow waters between northwest Alaska and the eastern Siberian coastline. Relentless weather hampers the delivery of subsistent materials, accelerates the decay of manmade structures, and limits financial opportunities for residents. Each challenge is an indirect factor in this takings case involving the Native Village of Point Lay, Alaska. The disinterest of outsiders imposes additional unnecessary hardships on those American citizens whose homes border these waters. Relevant here, the reverberations of such indifference engendered this litigation and delayed resolution.

After a tumultuous journey, the Court eventually tried this takings case in Fairbanks, Alaska in the summer of 2022. Subsequent to an Amended Summary Judgment Opinion finding that Plaintiff, Cully Corporation (“Cully”), possessed an interest in the properties at issue and that a temporary taking had indeed occurred, the remaining triable issues were limited: (1) what, if any, compensation was owed to Cully; and (2) whether Cully was entitled to relief under a quantum meruit theory. The United States’ behavior toward Cully is bewildering, radiating a cavalier attitude that also seems to have shaped its behavior during the events inciting this litigation. While reasonable individuals could not help but be sympathetic to Cully’s plight, sympathy provides no basis for judgment. Cully’s claims are tethered to some finding of wrongdoing on the part of the United States; damages stemming from wrongdoing are generally not redressable by a takings claim. “The United States Court of Federal Claims has no general power to provide equitable relief against the Government or its officers.” United States v. Tohono O’Odham Nation, 563 U.S. 307, 313 (2011); see also Massie v. United States, 226 F.3d 1318, 1321 (Fed. Cir. 2000) (“Except in strictly limited circumstances, see 28 U.S.C. § 1491(b)(2), there is no provision in the Tucker Act authorizing the Court of Federal Claims to order equitable relief.”). Because of this limitation, the Court cannot afford Cully redress.

Despite its misgivings about the United States’ conduct, the Court concludes that the United States is entitled to judgment. Further, the United States moves for the Court to reconsider its Amended Summary Judgment Opinion from June 2022. (ECF No. 180). The Court declines to do so.

I. Findings of Fact

Cully Corporation is the Village Corporation for the Native Village of Point Lay and owns approximately 90,000 acres of land. (Joint Stipulations of Fact (“JSOF”) ⁋ 1, ECF No. 201- 1). The Native Village of Point Lay is a federally recognized tribe. (Id. ⁋ 2). Point Lay is an unincorporated village located in the Arctic Coastal Plain, near the shore of Kasegaluk Lagoon and the Chukchi Sea; it has a population of approximately 269 residents. (Id. ⁋ 3–4). The Native Village of Point Lay and the adjacent Long Range Radar Site (“LRRS”) are inaccessible by road and can only be reached by air or water transportation. (Id. ⁋ 5). The Point Lay LRRS facilities are located within 900 feet of the Chukchi’s shore. (Id.). The Point Lay LRRS and the Native Village of Point Lay are within the bounds of the North Slope Borough 1 (“NSB” or “the Borough”), the Alaskan municipal body for the North Slope. (Id. ⁋ 7).

Under several public land orders, the United States withdrew public lands in and near Point Lay for military purposes in support of national defense requirements. (JSOF ⁋ 8). The Point Lay LRRS was previously used as a Distant Early Warning (“DEW”) location, which is a network of radar and communication installations in, among other places, Alaska; it lies immediately adjacent to the Native Village of Point Lay. (Id. ⁋ 6). The DEW Site was constructed in 1955 and 1956 and activated by the United States Air Force (“the Air Force”) in 1957. (Id. ⁋ 9). In 1990, long-range radar was installed and operated as a Minimally Attended Radar Installation; it was then deactivated ten years later. (Id.). In 1993, due to contamination caused by the DEW site, the Air Force conducted a remedial investigation/feasibility study. (Id. ⁋ 10). Upon further investigation in 2002, the Air Force identified various areas of concern for environmental restoration of the Point Lay LRRS. (Id.).

Since the 1980s, the Air Force and NSB have executed multiple agreements for the Borough’s use of the LRRS facilities at Point Lay. (JSOF ⁋ 11). In 1996, the Borough entered a five-year lease for the airstrip at the DEW Site. (Id. ⁋ 11). The airstrip is unpaved, built on gravel and slurry; it is an essential facility of Point Lay due to its isolation and accessibility limitations.

1 An Alaskan borough is a governmental unit akin to a county. (JSOF ⁋ 7).

2 (Trial Transcript 2 (“Tr.”) Awalin, 126:23–25; Tr. Cully Counsel, 21:10–11). In 2000, the NSB and Cully collectively pursued funding through the Federal Aviation Administration (“FAA”) for runway improvements at the Point Lay airstrip as it was their understanding that the FAA required a minimum twenty-year lease of the airstrip to a non-federal entity before authorizing funds for airfield improvements. (JSOF ⁋ 12). The Air Force and the NSB ultimately executed3 Lease Number 611CES/LE05-02 (“the Lease”) for a period of twenty-five years, with an effective date beginning on November 1, 2004, and ending on October 31, 2029. (PX3.004 ¶ 1; JSOF ¶ 13).

In addition to various other provisions and structures, the Lease included the three buildings subject to Cully’s claims—the Vehicle Maintenance Shop (garage), Air Freight Terminal (hangar), and Warehouse Supply and Equipment Base (warehouse) (collectively referred to here as “the Buildings”). (PX3.024 (Lease Description of Premises); PX41 (Map of Buildings)). Cully passed a resolution to support the lease from the Air Force to the Borough in order to secure FAA funding to upgrade the gravel airstrip. (Sec. Am. Compl. at 5).

In approximately January 2005, the Air Force made known its plans to demolish these three Buildings as part of a decommissioning project called “Operation Clean Sweep.” (Tr. Longtin, 134:6–13; Tr. Longtin, 135:15–19; Tr. Longtin, 160:24–25; Tr. Longtin, 161:1–8). In accordance with efforts necessitated by Operation Clean Sweep, the Air Force planned to demolish the garage to remove the contaminated soil beneath it. (Tr. Longtin, 144:21–25). With the ultimate goal to take possession of those Buildings, Cully wished to maintain rather than demolish them and learned that any potential transfer would be dependent on the cleanup of the garage and remediation of the soil thereunder. (Sec. Am. Compl. at 4).

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