Haggart v. United States

131 Fed. Cl. 628, 2017 U.S. Claims LEXIS 445, 2017 WL 1739208
CourtUnited States Court of Federal Claims
DecidedMay 4, 2017
Docket09-103L
StatusPublished
Cited by9 cases

This text of 131 Fed. Cl. 628 (Haggart 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
Haggart v. United States, 131 Fed. Cl. 628, 2017 U.S. Claims LEXIS 445, 2017 WL 1739208 (uscfc 2017).

Opinion

Rails-to-trails class action; settlement; appeal of approval of settlement agreement; remand; application of the mandate rule to remanded case; enforceability of settlement agreement as binding contract

OPINION AND ORDER

LETTOW, Judge.

This rails-to-trails class action concerns land previously held as a right-of-way by Burlington Northern and Santa Fe Railway *631 Company (“Burlington Northern”) in King County, Washington, and converted into a recreational trail under Section 208 of the National Trails System Act Amendments of 1983, Pub. L. No. 98-11, § 208, 97 Stat. 42, 48 (codified at 16 U.S.C. § 1247(d)) (“Trails Act”). Plaintiffs have alleged that this conversion resulted in a taking of their land without just compensation in contravention of the Fifth Amendment. Plaintiffs’ takings claim has been the subject of four reported decisions from this court and another from the court of appeals. See Haggart v. United States, 89 Fed.Cl. 523 (2009) (“Haggart /”); Haggart v. United States, 104 Fed.Cl. 484 (2012) (“Haggart IF’); Haggart v. United States, 108 Fed.Cl. 70 (2012) (“Haggart III”); Haggart v. United States, 116 Fed.Cl. 131 (2014) (“Haggart IV”), vacated and remanded sub nom. Haggart v. Woodley, 809 F.3d 1336 (Fed. Cir. 2016) (“Haggart P’). After certifying a relatively large class, see Haggart I, 89 Fed. Cl. 523, and splitting the 522 class members into six subclasses, see Haggart II, 104 Fed.Cl. 484, in 2012, the court considered cross-motions for partial summary judgment and found the government liable to certain class members within Subclass Two and Categories A through D of Subclass Four, and granted the government summary judgment as to class claimants in Subclass Four, Category E. See generally Haggart III, 108 Fed.Cl. 70. The court otherwise denied summary judgment, reserving for trial ownership issues for particular parcels within Subclasses Two and Four and not addressing liability for Subclasses One, Three, Five, or Six. Id. No valuation issues were addressed on summary judgment. Id.

The parties thereafter reached a settlement after an extensive mediation before Senior Judge John Weise, and the court subsequently approved the parties’ settlement agreement and an award of attorneys’ fees under a common fund. Haggart IV, 116 Fed. Cl. at 149. “Of the 253 prevailing class members, class counsel received two objections to the settlement and requests to participate in the fairness hearing and one additional request to participate in the fairness hearing.” Id. at 138. The two objectors challenged the contingent attorneys’ fees being sought by class counsel and contended that they were “denied the details as to how individual claimants’ properties were valued and, in turn, assigned a compensation amount.” Id. In the ensuing fairness hearing, the court addressed the disclosures made by class counsel to individual class claimants, particularly those made to the objectors, and concluded that the disclosures were sufficient even though they were made on an oral basis. Id. at 142-43. Given the- large number of properties at issue, the parties’ appraisers had classified the parcels into unique properties, each of which was individually appraised, and 22 sets of properties that shared common characteristics. Id. at 136. The latter properties were not all individually appraised, but rather at least one representative property in a grouping was appraised and the other properties in the pertinent grouping were valued from the assessment of the representative property. Id. The objectors’ properties were valued based on an appraisal of a representative property. In acting to approve the settlement, the court also dismissed the “claims of those class members respecting which the government ha[d] previously been granted summary judgment on liability,” as well as the claims of class members who were not included among the compensation awards in the settlement agreement. Id at 149.

Mr. and Mrs. Woodley, who were objecting class claimants, appealed “the settlement approval and award of attorney fees.” Haggart V, 809 F.3d at 1343. The government supported the Woodleys on their appeal, changing its positions from those it had taken in the fairness hearing, but it did not file an appeal and did not expand or supplement the grounds raised by the Woodleys in their appeal. See id. The Federal Circuit reversed the court’s approval of the settlement agreement and the award of attorneys’ fees under the common fund doctrine, and remanded the case for further proceedings. Id. at 1359. In overturning the settlement, the court of appeals ruled that “[f]ull disclosure of the precise methodology employed in arriving at the value of non-representative properties is especially important in this context because of the various inputs used in calculating the fair market value of unappraised properties and *632 the significant discrepancy in the allocation of the final property values.” Id. at 1349.

Following the remand from the court of appeals, the court initially sought to ensure that all information pertinent to the appraisal process was made available to class members in written form. As counsel for the objecting Woodleys stated at a hearing held after the remand:

The Woodleys have not received — the electronic website [posted by class counsel] does not provide access to the kinds of spreadsheets that I’m talking about here. Our reading of the Federal Circuit’s order is that it required enough information so that a class member, including the Wood-leys, could go on and essentially re-engineer the way the valuations were done. The information on the [class] website, as it is being done, does not allow that to happen.

Hr’g Tr. 9:11-19 (Aug. 15, 2016). At that point, counsel for the government advised that the settlement amount for the class, $110 million plus interest, remained in effect but a reallocation of that amount among class members was possible:

The Court: You want to reopen settlement negotiations?
[Counsel]: ... I wouldn’t call it reopening settlement negotiations. I think we have a settlement number. I think that class counsel needs to provide the information that will enable the individual class members to determine whether the split of that money is fair, and we need to go from there.

Hr’g Tr. 17:20 to 18:5 (Aug. 15, 2016).

Counsel for the class and for the government had previously advised that there were 22 representative valuation categories and that the appraisers for the class and for the government had appraised representative parcels within each category. Haggart V, 809 F.3d at 1342 n.5; Haggart IV, 116 Fed.Cl. at 136. Post-remand, class counsel indicated that the appraisals had been made available physically to any class member who wanted them, but the appraisals had not been posted electronically. Hr’g Tr.

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Cite This Page — Counsel Stack

Bluebook (online)
131 Fed. Cl. 628, 2017 U.S. Claims LEXIS 445, 2017 WL 1739208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haggart-v-united-states-uscfc-2017.