Jan's Helicopter Service, Inc. v. Federal Aviation Administration

525 F.3d 1299, 2008 U.S. App. LEXIS 8377
CourtCourt of Appeals for the Federal Circuit
DecidedApril 14, 2008
Docket20-1963
StatusPublished
Cited by624 cases

This text of 525 F.3d 1299 (Jan's Helicopter Service, Inc. v. Federal Aviation Administration) 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
Jan's Helicopter Service, Inc. v. Federal Aviation Administration, 525 F.3d 1299, 2008 U.S. App. LEXIS 8377 (Fed. Cir. 2008).

Opinions

Opinion for the court filed by Circuit Judge DYK. Circuit Judge PROST dissents in part.

DYK, Circuit Judge.

Appellants Jan’s Helicopter Service, Inc. (“Jan’s”) and Americopters, LLC (“Ameri-copters”), appeal from decisions of the District Court of Guam transferring their claims against appellee Federal Aviation Administration (“FAA”) to the United States Court of Federal Claims under 28 U.S.C. § 1631 (2000). Appellants are seeking money damages against the United States in excess of $10,000 for alleged regulatory takings. Therefore under the Tucker Act, 28 U.S.C. § 1491(a)(1), the only court that could have subject matter jurisdiction over their claims is the Court of Federal Claims. We affirm the order of the District Court of Guam transferring appellants’ claims to that court.

BACKGROUND

Jan’s and Americopters both were engaged in helicopter-related businesses in Guam until 2002. Jan’s was in the business of transporting helicopters by airplane from Guam International Airport to rental and lease customers in Micronesia. Americopters provided sightseeing helicopter rides to tourists in Guam, using the roof of a restaurant as a takeoff and landing site. Appellants allege that actions by the FAA in 2002 forced them to cease operations. Jan’s alleges that on July 31, 2002, Lewis I. Zeigler, an FAA employee in San Francisco, sent an e-mail message to the Guam International Airport authorities directing the airport to halt Jan’s flight operations because its transport aircraft did not have authority to operate. On August 9, 2002, airport authorities denied Jan’s transport aircraft access to the [1302]*1302airport taxiway, allegedly as a result of Zeigler’s email. A second FAA employee, Monroe P. Balton, subsequently informed Jan’s that, as “a preliminary finding,” “it appears that Mr. Zeigler’s conclusion was accurate.” Jan’s J.A. at 67. Guam airport authorities issued a notice on September 13, 2002, stating that, based on Balton’s preliminary finding, the airport would restrict Jan’s from using its transport aircraft “for commercial air activity at or out of our Airport.” Id. at 70.

Americopters alleges that on June 24, 2002, Clarence Kanae, an FAA employee in Honolulu, issued a formal written statement directing Americopters to cease its flight operations because its rooftop helicopter-pad was unsafe and did not meet applicable design requirements.

Both Jan’s and Americopters responded to the FAA’s actions by seeking various forms of administrative review, including requesting hearings and filing formal complaints with the FAA. The FAA denied or failed to respond to each of these requests. On September 19, 2002, in a letter sent to appellants’ counsel, the FAA explained that appellants were not entitled to hearings under 14 C.F.R. § 13.20(b), because that regulation “sets forth the procedures for requesting hearings where the FAA has issued orders of compliance, cease and desist orders, orders of denial, and other orders,” and “[n]o such orders were issued with respect to the operations of [appellants].” Americopters J.A. at 85; Jan’s J.A. at 79. This letter also stated that appellants “should be aware that [14 C.F.R. § 13.5] does not apply to complaints against the Administrator or complaints against FAA employees acting within the scope of their employment,” id., and suggested that formal complaints filed under that regulation would therefore be unsuccessful. Appellants nonetheless filed formal complaints with the agency under 14 C.F.R. § 13.5 after receiving this letter; appellants allege that these complaints went unanswered.

In February 2003, Jan’s and Americop-ters each filed separate but similar complaints in the District Court of Guam, alleging that the FAA’s actions violated its own regulations and “constituted a violation of due process under Amendment V to the United States Constitution and therefore, an illegal taking of [appellants’] property,” and seeking restoration of their operating authority, “civil penalties pursuant to [14 C.F.R. §§ 13.15 — .16],” and money damages for the alleged constitutional violations. Complaint at 5, Americopters, LLC v. FAA, No. 03-00005 (D.Guam filed Feb. 18, 2003); see also Complaint at 6-7, Jan’s Helicopter Serv., Inc. v. FAA, No. 03-00002 (D.Guam filed Feb. 4, 2003). On motion by the FAA, the district court dismissed the complaints for lack of subject matter jurisdiction. The court held that the claims relating to the FAA’s alleged violations of its regulations could only be filed as petitions for review of agency orders with the Ninth Circuit Court of Appeals, pursuant to 49 U.S.C. § 46110(a), and that the constitutional claims were “inescapably intertwined with” the review of the agency orders.

Jan’s and Americopters filed original petitions for review of the FAA’s orders under section 46110(a) in the Ninth Circuit and also appealed the dismissal of their claims to the Ninth Circuit. The Ninth Circuit criticized both appellants and the government for the procedural confusion. The court stated that Jan’s and Americop-ters “now find themselves in a sort of procedural limbo or netherworld, largely the making of the FAA,” because of the agency’s inconsistent legal positions as to the availability of review of the administrative actions, but also noted that appellants “contributed to this mess by taking their own wrong turns in litigating this case.” [1303]*1303Americopters, LLC v. FAA, 441 F.3d 726, 730 (9th Cir.2006). Addressing the petitions for review, the court held that because the petitions were filed much more than sixty days after the purported final orders were issued, they were therefore untimely. Id. at 733 (finding no reasonable grounds for delay). The Ninth Circuit affirmed the district court’s dismissal of the administrative review claims, explaining that “if the Zeigler Email and Kanae Letter are final orders ... § 46110 [providing the petition for review procedure] preempts the district court from considering these claims. But if they are not final, then the Administrative Procedure Act (‘APA’) bars the district court from hearing the case for lack of jurisdiction.” Id. at 735 (citing 5 U.S.C. § 704). As to the district court’s dismissal of the constitutional claims, however, the court held that the “inescapably intertwined” doctrine, designed to prevent collateral attacks on agency orders and to preserve the jurisdictional limitation of section 46110(a), did not apply in this case. The court explained that “[b]ecause there is no pending FAA order and because there were no previous agency determinations on the merits, no foundation supports the notion of ‘intertwining.’ ” Id. at 738. The Ninth Circuit therefore reversed the dismissal of the constitutional claims and remanded those claims to the district court. Id.

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525 F.3d 1299, 2008 U.S. App. LEXIS 8377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jans-helicopter-service-inc-v-federal-aviation-administration-cafc-2008.