Dauphin Island Property Owners Ass'n v. United States

90 Fed. Cl. 95, 2009 U.S. Claims LEXIS 383, 2009 WL 4263331
CourtUnited States Court of Federal Claims
DecidedNovember 24, 2009
DocketNo. 00-115L
StatusPublished
Cited by20 cases

This text of 90 Fed. Cl. 95 (Dauphin Island Property Owners Ass'n 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
Dauphin Island Property Owners Ass'n v. United States, 90 Fed. Cl. 95, 2009 U.S. Claims LEXIS 383, 2009 WL 4263331 (uscfc 2009).

Opinion

OPINION AND ORDER

FUTEY, Judge.

This case comes before the court for final approval of the Second Addendum to the Litigation Settlement Agreement between the representatives of the plaintiff class, Dauphin Island Property Owners Association, Inc. (“the Association”), and James W. Hartman, and defendant, the United States. The State of Alabama is not a named defendant in this litigation; however, as the local sponsor of the Army Corps of Engineers’ (“the Corps”) dredging activities the State agreed to be a party to any agreement and share in certain cost. In return the United States has released the State from certain indemnity claims. On September 15, 2009, a fairness hearing was conducted in Mobile, Alabama. For the reasons stated below, the settlement on behalf of the class is approved.

Factual Background

A. The History of the Case

Plaintiffs are owners of property on Dauphin Island, located in Mobile County, Alabama, on or adjacent to the Gulf of Mexico. The Association is comprised of persons, firms, or entities that own property situated [98]*98on Dauphin Island. Additionally, the Association owns certain lands on the island, including stretches of beachfront property. The Corps, a federal agency, provides construction, operation and maintenance for the Mobile Ship Bar Channel (“the Channel”), which provides a navigable waterway to the Port of Mobile. This maintenance includes dredging which is accomplished by removing, through various means, sediment from the Channel and disposing of the same in the nearshore, littoral or offshore locations in the Gulf of Mexico.

On March 6, 2000, plaintiffs filed the instant case alleging that the Corps’ dredging practices caused significant shoreline erosion of their property. Plaintiffs further claimed that this amounted to an uncompensated taking of their property contrary to the Fifth Amendment. After over five years of negotiations, a proposed settlement was signed by the parties on July 15, 2005, (“the Settlement Agreement”). A notice regarding the Settlement Agreement, which included a joint motion for certification of the class, was filed on July 19, 2005. The case was certified as an opt-in class action on January 11, 2006, and approximately 1,500 property owners, including 99% of the affected landowners on the southern shore of Dauphin Island, opted-in to the class. On July 11, 2006, a fairness hearing was conducted in Mobile, Alabama to determine the appropriateness of the Settlement Agreement and to hear any objections from the class. On September 5, 2006, an Amended Opinion and Order was issued that approved the Settlement Agreement between the plaintiffs and defendant.

1. The Settlement Agreement of July 15, 2005

The Settlement Agreement did not provide a monetary remedy to class members, rather it required a study of the causes of the erosion and, if the Corps’ construction or maintenance practices were determined to have caused erosion, to then implement measures aimed to replenish the beachfront and prevent further wearing away of the shoreline. Upon certain conditions, the Corps agreed to modify its dredging disposal practices. Instead of disposing of the dredged material from the Channel into the historically designated locations in the Gulf of Mexico south of Dauphin Island, the Corps agreed to dispose of the material in two areas nearer the shores of Dauphin Island. Naturally occurring conditions and currents of the Gulf Coast may, according to at least one theory, move or transport the material to the shores of Dauphin Island. In addition, the placement of this dredged material in areas nearer the shore may help diffuse the energy of waves, both ordinary and those produced by hurricanes, that would normally hit Dauphin Island. These new dredging practices were already in place when the Settlement Agreement was approved by the court.

The second component of the Settlement Agreement was the decision by all parties to use a team of four highly qualified engineers to perform an impact study. The study’s goal was to discover if there is a measurable impact on Dauphin Island’s shoreline which can be attributed to the Corps’ dredging practices. The study was to proceed in stages, with a Draft Impacts Study completed and presented not later than 10 months from the later of either the effective date of the Settlement Agreement or the date of the Feasibility Cost Sharing Agreement. All members of the team had 30 days to review and comment on the Draft Impacts Study, and then 30 days after the review a Final Report was submitted.

If the Final Report finding was positive, meaning that “the quantity of erosion attributable to the Corps’ construction, operation and Maintenance Dredging Practices of and at the Channel is above the Minimum Measurable Erosion of Dauphin Island’s shoreline,” then the parties would proceed to the next phase of the process — the Feasibility Study Phase. See Settlement Agreement ¶3(6). If, however, the study showed that the Corps’ dredging practices had no effect on Dauphin Island’s shoreline (a finding of negative impact), plaintiffs agreed to dismiss the litigation with prejudice, subject to a provision that allowed the parties to participate in alternative dispute resolution (“ADR”). According to the Settlement Agreement, the ADR process required a [99]*99heightened burden of proof. If the plaintiffs did not succeed in ADR, the ease would be dismissed with prejudice. Notwithstanding a study result of negative impact, the Corps could, in its own discretion, declare the results inconclusive and the process would move into the Feasibility Study Phase.

In the Settlement Agreement, defendant also reserved a statute of limitations defense. In the event that the statute of limitations defense failed and if the original finding of the impact study was positive, then the impact study’s Final Report would be binding upon the defendant and litigation would proceed to the damages phase.

2. Events After the Approval of the Settlement Agreement of July 15, 2005

After the fairness hearing on July 11, 2006, the court ordered the parties to file joint status reports regarding implementation of the Settlement Agreement every ninety days. The parties filed numerous joint status reports during 2007 and 2008. On January 10, 2008, the Final Report was submitted by the Principal Investigator (“PI”), Dr. Mark Byrnes of Applied Coastal Research and Engineering, to the members of the Independent Technical Review Team (“ITRT”)1 in accordance with the Settlement Agreement and the court’s Order of November 5, 2007. The Final Report was negative; there was “a determination that the Corps’ construction, operation and Maintenance Dredging Practices of and at the Channel have not resulted in at least Minimum Measurable Erosion of Dauphin Island’s shoreline.” See Settlement Agreement ¶ 3(f). According to the court’s order of February 5, 2008, plaintiffs’ ITRT team member Dr. Dean, had until March 10, 2008, to provide a written dissent to the Final Report.

Dr. Dean dissented and indicated that the Final Report was fundamentally flawed, not reliable and at best inconclusive. Dr. Dean’s dissent in writing triggered certain provisions in the Settlement Agreement and on May 5, 2008, defendant informed the court that it would not elect to declare the findings of the Final Report inconclusive as allowed pursuant to paragraph 3(f)(i) of the Settlement Agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
90 Fed. Cl. 95, 2009 U.S. Claims LEXIS 383, 2009 WL 4263331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dauphin-island-property-owners-assn-v-united-states-uscfc-2009.