Economic Development and Industrial Corporation v. United States of America, General Services Administration

720 F.2d 1, 1983 U.S. App. LEXIS 16446
CourtCourt of Appeals for the First Circuit
DecidedSeptember 28, 1983
Docket82-1845
StatusPublished
Cited by11 cases

This text of 720 F.2d 1 (Economic Development and Industrial Corporation v. United States of America, General Services Administration) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Economic Development and Industrial Corporation v. United States of America, General Services Administration, 720 F.2d 1, 1983 U.S. App. LEXIS 16446 (1st Cir. 1983).

Opinion

HAYNSWORTH, Senior Circuit Judge:

In this action involving a disputed title to real estate, the district court, 546 F.Supp. *2 1204, decided the case on the merits. It concluded that a conditional right of revert-er reserved by the Commonwealth of Massachusetts became unenforceable when the Commonwealth failed to rerecord the right pursuant to a subsequently enacted recording statute but that the right of reverter was revived by two subsequently enacted statutes which purported retrospectively to exempt the Commonwealth from the earlier recording statute. Since the land was no longer being used by the United States for naval purposes, it concluded that title to the land had reverted to the Commonwealth and to the plaintiffs, public agencies to which the interest of the Commonwealth had been assigned. It entered judgment for the plaintiffs.

On the appeal of the United States, the parties addressed themselves to the merits, the principal question being whether or not the Commonwealth could retrospectively exempt itself from the recording act after its right of reverter had become unenforceable. Subsequently, we perceived a problem under the federal Quiet Title Act of 1972, 28 U.S.C.A. § 2409a. On request, supplemental briefs were filed, and we now conclude that maintenance of the action is barred by the sovereign immunity of the United States.

I.

In 1941, Massachusetts conveyed a parcel of land to the United States for use in expanding the dry dock facilities of the South Boston Naval Annex. The deed expressly provided, however, that title to, and exclusive jurisdiction over, the property would revert to the Commonwealth “whenever said area shall cease to be used for naval purposes.” In November 1975, the United States Navy officially declared the property to be surplus, and its use for naval purposes was discontinued.

In 1956, the Commonwealth enacted a statute designed to protect the title to land against certain possibilities of reverter and rights of entry. It barred any proceeding based upon any possibility of reverter created before January 2, 1955 unless on or before January 1, 1964 1 the holder of the reversionary interest filed a written notice and description of his claim in the registry of deeds.

The Commonwealth of Massachusetts filed no such notice, though by the third paragraph of § 2 of the 1956 Act it was declared applicable whether or not the owner of the reversionary interest was “a government or governmental subdivision.”

In 1968 the Massachusetts General Court amended the 1956 Act by inserting the words “other than the Commonwealth” in the sentence stating the applicability of the 1956 Act whether or not the owner of the reversionary interest was “a government or governmental subdivision.” Mass.St.1968, c. 496. In 1974, yet another statute was enacted stating, in effect, that it never had been the intention of the General Court that the 1956 statute should apply to possibilities of reverter or rights of entry reserved to itself by the Commonwealth in deeds conveying lands to others.

After the United States had abandoned the use of the land for naval purposes and the dispute over the title had come into the open, the Economic Development and Industrial Corporation of Boston and the Governmental Land Bank, a public agency of the Commonwealth of Massachusetts, wished to acquire that and other surplus land formerly part of the Navy Yard Annex. Pursuant to a stipulation and agreement, the General Services Administration of the United States conveyed the land to Governmental Land Bank for $4,290,000, of which the United States agreed to hold in a special account $1,587,300, the agreed value of the land in dispute. It was contemplated that the acquiring agency would bring an action against the United States to quiet title to the land and disposition of the funds in the special account was to abide the outcome of such litigation.

*3 On the same day that the Governmental Land Bank purchased the property, it re-conveyed the property to the Economic Development and Industrial Corporation of Boston, receiving in payment a note secured by a mortgage.

This action was commenced in 1978, the plaintiffs alleging that title to the land reverted to the Commonwealth in 1975 pursuant to the possibility of reverter reserved to the Commonwealth in its 1941 deed. The United States contended that the right of reverter was extinguished, or became unenforceable, on January 1, 1964, and that the later attempts to revive it were unconstitutional and ineffective. As indicated, the district court held that the 1956 statute applied to reversionary interests possessed by the Commonwealth, and, though this one became unenforceable on January 1, 1964, the 1968 and 1974 statutes effectively made it enforceable.

II.

The Quiet Title Act of 1972, 28 U.S. C.A. § 2409a, is a limited waiver of the sovereign immunity of the United States. With some exceptions, it permits maintenance of actions against the United States to quiet title to lands in which the United States claims an interest, but subsection (f) provides that any civil action under that section is barred unless commenced within twelve years of the date upon which it accrued. It explicitly provides that accrual of the right of action occurs when the plaintiff, or its predecessor in interest, “knew or should have known of the claim of the United States.” Because it is a limited waiver of the sovereign immunity of the United States, the Supreme Court of the United States has recently held that it provides the exclusive remedy for one seeking to establish title in itself to lands in which the United States claims an interest. Block v. North Dakota, —U.S.—, 103 S.Ct. 1811, 75 L.Ed.2d 840 (1983). The limitation is applicable even though the claimant is a state, as the Supreme Court held in Block, and, because sovereign immunity is involved, there must be strict compliance with the requirement that any action must be commenced within twelve years of its accrual. Block v. North Dakota, supra.

The Commonwealth’s right of action accrued on January 1, 1964. It is chargeable with knowledge of its own statute, and the statute provides abundant basis for the claim by the United States that the Commonwealth’s possibility of reverter was thereafter no longer enforceable. The claimed interest of the United States, insofar as it was or might have been disputed, was that its title had become indefeasible. Since the Commonwealth was aware of the basis of the claimed interest of the United States in 1964, the cause of action then accrued under the provision of § 2409a(f).

It does not matter that the claim of the United States may have been open to some dispute. It was a reasonable claim with a substantial basis. The 1956 statute provided for its application even though the old possibility of reverter was owned by “a government or governmental subdivision.” That the district court held that it would apply here attests the substantiality of the claim of the United States. Nor did it become insubstantial upon enactment of the later amendments of 1968 and 1974. If the title of the United States, in effect, had become indefeasible in 1964, a retroactive application of subsequent statutes purporting to make it determinable, at the very least, is of questionable validity.

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Cite This Page — Counsel Stack

Bluebook (online)
720 F.2d 1, 1983 U.S. App. LEXIS 16446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/economic-development-and-industrial-corporation-v-united-states-of-ca1-1983.