Haggart v. United States

133 Fed. Cl. 568, 2017 WL 3530125
United States Court of Federal Claims·Decided August 17, 2017·No. 09-103L·Published·Cited by 12 cases

Opinion

OPINION AND ORDER

LETTOW, Judge.

This rails-to-trails takings class action is in a very unusual, perhaps even unique, procedural posture. A total of 520 class members brought claims. After resolution of a number of motions for partial summary judgment, 1 extensive discovery, and lengthy, detailed settlement negotiations assisted by a senior judge of this court, 253 class members and the government reached a settlement calling for payment of $110 million to class members, plus interest, attorneys’ fees, and litigation costs. 2 Under the settlement, the claims of another 267 class members were to be dismissed without compensation. 3 The court held a fairness hearing, approved the settlement, and entered final judgment. 4 The court also awarded attorneys’ fees to class counsel through a common fund, thus requiring a reduction in the amount awarded to class members, but the attachment to the Settlement Agreement provided to the court detailing the compensation to be received by each prevailing class member did not include the specific reduction for common-fund fees applicable to each member. 5

One class member, a married couple, Mr. and Mrs. Woodley, owning property that would receive just compensation under the settlement, appealed the court’s approval of the settlement and award of common-fund attorneys’ fees on the ground that class counsel had not provided sufficient information in written form (oral explanations had been provided) to class members that would enable cross-checking calculations of the settlement amount to be received by them. 6 In the appeal, the government changed position from that it had taken at the fairness hearing and supported the Woodleys, but it did not itself file an appeal or raise any additional issues on appeal. 7 The court of appeals ruled that approval of the Settlement Agreement vjras improper on the ground that written information had to have been provided to enable class members to comparatively calculate their amounts to be awarded, and it also reversed this court’s award of attorneys’ fees *572 under a common fund. 8 In short, the court of appeals vacated the court’s approval of the Settlement Agreement and remanded the case for further action by this court. 9 The court of appeals did not, however, consider or address the terms of the Settlement Agreement itself. 10 The Settlement Agreement was therefore neither set aside nor vacated, but the court of appeals’ disposition and mandate necessarily contemplated that an adjustment might have to be made to the attachment to the Settlement Agreement that allocated the overall settlement amount to individual class members, and class members’ ultimate compensation amounts would change due to the removal of the award of common-fund attorneys’ fees. 11

Both in the court of appeals and initially before this court on remand, the parties considered that the settlement was in place, excepting potentially the allocation of individual amounts. 12 Subsequently, however, the government did a further volte face. Relying on a decision by the United States District Court for the Western District of Washington in a case that involved some of the properties at issue here, 13 the government has taken the position “that the vast majority of [c]lass- Members own no property interest in the railroad corridor ... [and] are entitled to nothing.” 14 With this further change of position, the government seeks to negate the unconditional, comprehensive Settlement Agreement that the government executed with the class.

Previously, after examining the scope of this court’s 2014 judgment and the Federal Circuit’s subsequent mandate, this court determined that its earlier “liability decisions for Subclasses Two and Four, both for and against the government, as well as its dismissal of claims excluded from the Settlement Agreement, are subject to the mandate rule,” and “[t]he specific decisions made by the court in determining liability for Subclasses Two and Four are the law of the case.” 15 Further, because “the Federal Circuit did .not consider or address the terms of the Settlement Agreement itself, .., [t]he amount of the settlement, interest rate, plaintiffs entitled to "compensation, and plaintiffs subject to dismissal were not disturbed on appeal.” 16 The court therefore held that “the Settlement Agreement was and remains a binding and enforceable contract.” 17 The court also considered the district court’s decision in the Western District of Washington that addressed some of the properties at issue here, concluding that the decision “is not binding on this court and cannot and does not affect the enforceability of the Settlement Agreement.” 18

The government has moved for reconsideration of this court’s decision, and class counsel and the Woodleys have opposed that motion. 19 The government’s motion was addressed at a hearing held on August 15, 2017. For the reasons stated, the government’s motion for reconsideration is denied.

*573 STANDARDS FOR DECISION

Because on remand this case is in an interlocutory posture, the government’s motion for reconsideration falls under Rules 54(b) and 59(a) of the Rules of the Court of Federal Claims (“RCFC”). RCFC 54(b) provides that a non-final order “may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.” Under RCFC 59(a)(1), the court may grant a motion for reconsideration under the following circumstances:

(A) for any reason for which a new trial has heretofore been granted in an action at law in federal court;
(B) for any reason for which a rehearing has heretofore been granted in a suit in equity in federal court; or
(C) upon the showing of satisfactory evidence, cumulative or otherwise, that any fraud, wrong, or injustice has been done to the United States.

RCFC 59(a)(1)(A)-(C).

The determination of whether to grant a motion for reconsideration generally falls within the discretion of the court. Yuba Nat. Res., Inc. v. United States, 904 F.2d 1577, 1583 (Fed. Cir. 1990) (citations omitted).

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Haggart v. United States, 133 Fed. Cl. 568, 2017 WL 3530125 (uscfc 2017).

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