Helen L. Cooley, William O. Cooley, and the 7c Company v. United States

324 F.3d 1297, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20161, 56 ERC (BNA) 1262, 2003 U.S. App. LEXIS 6286, 2003 WL 1701436
CourtCourt of Appeals for the Federal Circuit
DecidedApril 1, 2003
Docket01-5071
StatusPublished
Cited by30 cases

This text of 324 F.3d 1297 (Helen L. Cooley, William O. Cooley, and the 7c Company v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helen L. Cooley, William O. Cooley, and the 7c Company v. United States, 324 F.3d 1297, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20161, 56 ERC (BNA) 1262, 2003 U.S. App. LEXIS 6286, 2003 WL 1701436 (Fed. Cir. 2003).

Opinions

RADER, Circuit Judge.

The United States Court of Federal Claims determined that the Army Corps of Engineers (Corps) took the property of Helen L. Cooley, William O. Cooley, and the 7C Company (collectively, Cooley) by denying a fill permit application under § 404 of the Clean Water Act, 33 U.S.C. § 1344 (1994). Cooley v. United States, 46 Fed. Cl. 538 (2000). Because the Corps’ denial of the permit application was a final decision rendering Cooley’s taking claim ripe, and because this record does not [1300]*1300show whether the Government’s later issuance of a provisional permit rendered the taking temporary, this court affirms-in-part, vacates-in-part, and remands.

I.

In 1972, Cooley purchased a thirty-three acre parcel of land at the Highway 10 and Hansen Boulevard interchange in Coon Rapids, Minnesota, intending to eventually develop a mixed-use commercial project including hotels, a car wash, restaurants, and other commercial buildings. In 1989, Cooley began developing the property and securing permits for the development. In February 1990, the Corps asserted that most of the site comprised wetlands and, thus, required a permit under the Clean Water Act before any development could occur. Cooley spent the next three years prosecuting an application for a wetlands fill permit under § 404.

To acquire a fill permit under § 404, federal regulations require an applicant to rebut a presumption that commercially feasible, less environmentally damaging alternative sites are available, or that commercially feasible minimization of the development scope will prevent damage to the wetlands. 33 C.F.R. § 320.4 (2000). Thus, during prosecution of its permit application, Cooley submitted four alternative sites and explained that each of the four sites was an inadequate alternative as “either developed or undevelopable ... already developed for commercial use ... zoned for residential use ... almost entirely wetland ... [or] too far north of [the area mall] to meet the project purpose.” The Corps found this information insufficient, and required Cooley to submit information for more alternative sites within an expanded geographic area. The Corps did not specify the limits of the expanded geographic area, but referred generally to the Highway 10 corridor. Cooley responded to this request for additional alternative sites by referring to its previous submission discussing the four inadequate sites.

On February 25, 1993, the Corps denied Cooley’s application for a § 404 fill permit to develop the property. The official denial letter, signed by Richard W. Craig, District Engineer of the Corps’ St. Paul District Office, stated: “I must deny your request.... I would suggest that if you still desire to develop the property, you may wish to substantiate more thoroughly your contentions that feasible, less environmentally-damaging alternative sites are not available and that minimization is not practicable.” Several weeks before issuing the denial letter, however, Tim Fell of the Regulatory Functions Branch for the Corps’ St. Paul District Office recommended that the Corps “proceed with the decision based on the available information and not hold a meeting” to permit Cooley to submit additional information. Later, on February 18,1993, Mr. Fell wrote in an internal memorandum: “I think Cooley has provided enough information so we can’t deny based on failure to provide adequate info.... ” By denying the permit, the Corps prohibited any commercial development on Cooley’s property, resulting in a loss of at least 98.8% of the land value.

Upon denial of its § 404 fill permit application, in July 1993, Cooley filed in the Court of Federal Claims an action for just compensation for the Government’s taking of its property. In response, the Corps’ counsel suggested to the Corps that “some type of permit could be issued ... [as] a way to avoid the takings issue.” After litigation had commenced, on December 14, 1993, Mr. Ben Wopat, Regulatory Functions Branch Chief for the Corps’ St. Paul District Office, sent Cooley a letter suggesting that the Corps might be willing to issue a permit for a narrower scope project. Cooley’s counsel responded that the Corps had already denied the permit, [1301]*1301but that Cooley would consider settlement of the case if the Corps granted the previously denied permit. The Corps did not respond to this offer.

Nonetheless, in 1995, during the litigation, the Corps, sua sponte, performed its own alternatives analysis concerning Cooley’s site. In April 1996, the Corps issued a reduced scope permit that it believed would allow Cooley reasonable use of the land. Cooley rejected this partial permit. Although Mr. Wopat doubted he could lawfully issue a permit of broader scope, both Corps headquarters and the Department of Justice urged issuance of a permit, apparently to avoid a trial. Thus, on July 26, 1996, ten days before the commencement of trial and on the same day the Government filed its brief, the Corps issued a permit that ostensibly allowed Cooley to develop the entire property. The Corps issued this permit subject to Cooley developing and submitting a mitigation plan capable of receiving Corps approval. The permit stated: “PROVISIONAL PERMIT ... NOT VALID ... DO NOT BEGIN WORK.” The permit contained three additional conditions: (1) Cooley must obtain a § 401 Water Quality Certification from the Minnesota Pollution Control Agency; (2) Cooley must sign and return the provisional permit with a $100 fee; and (3) the “Corps [would need to] sign[] the permit and returnf ] it to [Cooley].” Before issuance of this provisional permit, the Corps’ Assistant Chief Counsel, Mr. Lance Wood, had opined that the property consisted of degraded wetlands.

Cooley rejected the July 1996 provisional permit and continued litigation. Cooley doubted the validity of the provisional permit. Furthermore, many hotel and restaurant merchants had already begun to develop other projects in the same region between 1993 and 1996. Cooley was, therefore, concerned that the window of economic success for the proposed commercial development had closed. Moreover, Cooley had already invested several hundred thousand dollars in litigation costs.

In a thorough and careful opinion dated April 28, 2000, the Court of Federal Claims held that the Corps’ denial of the § 404 permit was a final decision, rendering Cooley’s taking claim ripe. Further, the court found that the denial was a permanent categorical taking of Cooley’s property, and, thus, awarded Cooley approximately $2 million in damages. The Corps timely appealed to this court, which has exclusive appellate jurisdiction. 28 U.S.C. § 1295(a)(3) (2000).

II.

‘Whether a taking compensable under the Fifth Amendment has occurred is a question of law based on factual underpinnings.” Bass Enters. Prod. Co. v. United States, 133 F.3d 893, 895 (Fed.Cir. 1998). Thus, this court reviews the Court of Federal Claims’ conclusions of law without deference. 5 U.S.C. § 706(2)(C) (2000); Mass. Bay Transp. Auth. v. United States, 254 F.3d 1367, 1372 (Fed.Cir. 2001); Kane v. United States,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fowler v. United States
Federal Claims, 2025
LOVERIDGE v. United States
Federal Claims, 2024
Davila v. United States
Federal Claims, 2022
Freeman v. United States
875 F.3d 623 (Federal Circuit, 2017)
Freeman v. United States
124 Fed. Cl. 1 (Federal Claims, 2015)
Barlow & Haun, Inc. v. United States
118 Fed. Cl. 597 (Federal Claims, 2014)
Palafox Street Associates, L.P. v. United States
117 Fed. Cl. 324 (Federal Claims, 2014)
Aaa Pharmacy, Inc. v. United States
112 Fed. Cl. 387 (Federal Claims, 2013)
Mehaffy v. United States
98 Fed. Cl. 604 (Federal Claims, 2011)
Schooner Harbor Ventures, Inc. v. United States
92 Fed. Cl. 373 (Federal Claims, 2010)
Schmidt v. United States
89 Fed. Cl. 111 (Federal Claims, 2009)
Resource Investments, Inc. v. United States
85 Fed. Cl. 447 (Federal Claims, 2009)
Smalls v. United States
298 F. App'x 994 (Federal Circuit, 2008)
Bailey v. United States
78 Fed. Cl. 239 (Federal Claims, 2007)
Van Allen v. United States
236 F. App'x 612 (Federal Circuit, 2007)
Van Allen v. United States
70 Fed. Cl. 57 (Federal Claims, 2006)
Mobley Construction Co. v. United States
68 Fed. Cl. 434 (Federal Claims, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
324 F.3d 1297, 33 Envtl. L. Rep. (Envtl. Law Inst.) 20161, 56 ERC (BNA) 1262, 2003 U.S. App. LEXIS 6286, 2003 WL 1701436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helen-l-cooley-william-o-cooley-and-the-7c-company-v-united-states-cafc-2003.