Hampton Tree Farms, Inc. v. Yeutter

956 F.2d 869, 1992 WL 24100
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 14, 1992
DocketNos. 90-35443, 90-35509
StatusPublished
Cited by11 cases

This text of 956 F.2d 869 (Hampton Tree Farms, Inc. v. Yeutter) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hampton Tree Farms, Inc. v. Yeutter, 956 F.2d 869, 1992 WL 24100 (9th Cir. 1992).

Opinion

ORDER

The appellants’ request for publication is GRANTED. The memorandum disposition filed December 2, 1991, is redesignated as an authored opinion by Judge Goodwin.

OPINION

GOODWIN, Circuit Judge:

The Forest Service appeals summary judgment for two timber companies seek[870]*870ing extensions of defaulted contracts to purchase Forest Service timber. The Forest Service had denied their applications as untimely. We reverse.

These actions arise out of difficulties experienced by appellees Hampton Tree Farms, Inc. (“Hampton”) and Suntip Co. (“Suntip”) in fulfilling their contracts with the Forest Service to purchase timber. In the late 1970s, purchasers bid up the price of government timber for future cutting. Many, including Hampton and Suntip, entered into purchasing contracts which locked them into high prices. After the economic downturn of the early 1980s, many of these companies faced substantial losses in meeting their contractual obligations.

In response to Congressional pressure, the Forest Service adopted the “Multi-Sale Extension Policy” (MSEP). The MSEP granted those timber companies which chose to participate a five-year extension for completing their contracts. In return, the companies forfeited eligibility for any additional contract extensions and accepted certain modifications of their contracts. The final version of the MSEP was published in the Federal Register on December 7, 1983. It required the companies wishing to participate in the program to submit a plan to the Forest Service by February 15, 1984. 48 Fed.Reg. 54,812, 54814 (1983).

Hampton and Suntip chose not to submit MSEP plans in accordance with the February 15, 1984 deadline. Instead, they chose to rely on a district court injunction then on appeal. North Side Lumber Co. v. Block, No. 83-490, slip op. (D.Or. Feb. 15, 1984). In North Side, the plaintiff class of timber companies was seeking a judicial remedy for the economic problem addressed by the MSEP. The timber companies claimed that it had become commercially impracticable to perform their contracts. They requested that the district court allow them to rescind the contracts and enjoin the Forest Service from enforcing them.

On February 15, 1984, the North Side district court issued a preliminary injunction which ordered the Forest Service not to enforce its contracts with members of the plaintiff class. It also enjoined enforcement of the February 15, 1984 deadline for submitting MSEP plans. The injunction required the Forest Service to allow class members 30 days following dissolution of the preliminary injunction “to submit and have considered by the Forest Service” MSEP plans. North Side, slip op. at 2.

On February 20, 1985, this court reversed that injunction, holding that the district court lacked jurisdiction over the plaintiffs’ contract claims. North Side Lumber Co. v. Block, 753 F.2d 1482 (9th Cir.1985). Due to delays related to petitions for rehearing and for certiorari, this court’s mandate in North Side did not issue until November 28, 1985. The district court received the mandate on December 2, 1985. The parties agree that the injunction was dissolved upon the district court’s receipt of the mandate.

In May 1985, while the injunction was still in effect, both Hampton and Suntip submitted MSEP plans for Forest Service approval. Both re-submitted their plans in December, within 30 days of the injunction’s dissolution.

In 1986 and 1987, the Forest Service informed Hampton and Suntip that they had not met the performance deadlines in their contracts and that the contracts were terminated. The Forest Service refused to accept their MSEP plans, because the plans were filed after the original February 15, 1984 deadline. Hampton and Suntip then filed the suits which are the subject of the present appeals.

In each of their cases, the district court granted Hampton and Suntip summary judgment, ordering the Forest Service to approve their MSEP plans. Hampton Tree Farms, Inc. v. Block, No. 85-1085, 1987 WL 115596 (D.Or. April 20, 1987); Suntip Co. v. Yeutter, No. 87-1360 (D.Or. May 10, 1990). Because Hampton and Suntip had filed their MSEP plans while the injunction was still in effect, the court ruled that the filings had been timely.

In Hampton’s case, the court also ruled that the Forest Service’s rejection of its [871]*871‘seemingly arbitrary.” application was Hampton, slip op. at 2.

In Suntip’s case, the court ruled that, in refusing to consider late-filed MSEP applications, the Forest Service had changed, without proper administrative procedure, the rule it had adopted in compliance with the North Side injunction. In that case, the court also ruled that the Forest Service was estopped from denying the “full force and effectiveness” of the injunction. Sun-tip, slip op. at 2-3.

The Forest Service appeals these rulings.

I. Retroactive Enforcement of the Void Injunction

The Forest Service argues that in issuing judgment for Hampton and Suntip, the district court was retroactively enforcing a void injunction. Hampton and Suntip argue that while the injunction was valid, they had acquired and exercised the right to file their MSEP plans late. In granting them summary judgment, they argue, the district court was merely enforcing these existing rights.

In Scott & Fetzer Co. v. Dile, 643 F.2d 670 (9th Cir.1981), the district court imposed civil contempt sanctions against a party who had disobeyed an injunction. At the time the court imposed the sanctions, the injunction was in full force. On appeal, this court overturned the injunction. In addition, we reversed the award of sanctions.

In reaching this conclusion, this court relied on United States v. United Mine Workers of America, 330 U.S. 258, 67 S.Ct. 677, 91 L.Ed. 884 (1947). Scott & Fetzer, 643 F.2d at 675. In United Mine Workers, the Supreme Court held that “[t]he right to remedial relief falls with an injunction which events prove was erroneously issued.” 330 U.S. at 295, 67 S.Ct. at 696.

The lesson of these cases is that once an injunction in a civil case has been invalidated, rights granted under the injunction no longer exist and cannot be enforced.1 See also Latrobe Steel Co. v. United Steelworkers of America, AFL-CIO, 545 F.2d 1336, 1346 (3d Cir.1976) (“The United Mine Workers doctrine ... recognizes that a private party should not profit as a result of an order to which a court determines, in retrospect, he was never entitled.”); Sandler v. Tarr, 345 F.Supp. 612, 621-22 (D.Md.1971) (“An order issued without jurisdiction is null and void — it never existed.... [RJelief may [not] be based on the fact that the order had existed at an earlier time.”) aff'd, 463 F.2d 1096 (4th Cir.1972).

Hampton and Suntip argue that Littell v. Morton,

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