Johnson v. USA

CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 28, 2025
Docket24-2779
StatusPublished

This text of Johnson v. USA (Johnson v. USA) 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
Johnson v. USA, (9th Cir. 2025).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

CHARLEY JOHNSON, Trustee of No. 24-2779 the Charley E. Johnson Revocable D.C. No. Living Trust, 2:22-cv-01339- JJT Plaintiff - Appellant,

v. OPINION UNITED STATES OF AMERICA; UNITED STATES DEPARTMENT OF AGRICULTURE; BROOKE L. ROLLINS, Secretary of the U.S. Department of Agriculture; UNITED STATES FOREST SERVICE; TOM SCHULTZ, Chief of the U.S. Forest Service,

Defendants - Appellees.

Appeal from the United States District Court for the District of Arizona John Joseph Tuchi, District Judge, Presiding

Argued and Submitted April 1, 2025 Submission Vacated April 2, 2025 Resubmitted July 28, 2025 Phoenix, Arizona 2 JOHNSON V. UNITED STATES OF AMERICA

Filed July 28, 2025

Before: William A. Fletcher, D. Michael Fisher, and Ryan D. Nelson, Circuit Judges. *

Opinion by Judge R. Nelson

SUMMARY **

Small Tracts Act / Administrative Procedure Act

The panel reversed the district court’s summary judgment in favor of the United States in an action brought by Charley Johnson under the Administrative Procedure Act (“APA”) alleging that the U.S. Forest Service’s decision to exclude corrals from a Small Tracts Act (“STA”) sale was arbitrary and capricious. Under the STA, the Secretary of Agriculture may sell, exchange, or interchange ten acres or less encroached upon by improvements that a landowner built on National Forest Service land in good-faith reliance on an erroneous survey or title search. 16 U.S.C. §§ 521d(a), 521e(2). The Secretary has discretion to approve STA conveyances, provided they are “in the public interest.” 36 C.F.R. § 254.35(e).

* The Honorable D. Michael Fisher, United States Circuit Judge for the Court of Appeals, 3rd Circuit, sitting by designation. ** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. JOHNSON V. UNITED STATES OF AMERICA 3

Johnson, on behalf of his trust, bought about 21 acres bordering the Tonto National Forest in Gila County, Arizona. Johnson learned that most of the improvements on the land were not on his private property, but on National Forest Service land. To resolve the encroachment, Johnson filed an STA application, and the Forest Service sold Johnson a 0.59-acre parcel that included land under the house, barn, and well, but not the corrals. Johnson sued under the APA, alleging that the Forest Service’s decision to exclude the corrals from the STA sale was arbitrary, capricious, or not in accordance with law. The APA sets out a presumption of judicial review, which is rebutted to the extent that a challenged agency action is “committed to agency discretion by law.” 5 U.S.C. § 701(a)(2). The government argued that the Forest Service’s decision to exclude the corrals from Johnson’s STA sale fell within this exception to judicial review. The panel held that the APA’s § 701(a)(2)’s “very narrow exception” to the default rule of judicial review did not apply to discretionary conveyances under the STA. The Forest Service’s discretionary decisions under the APA are subject to judicial review. The STA and its regulations provide meaningful standards for evaluating the Forest Service’s decision whether to convey NFS land. Accordingly, the panel held that Johnson was entitled to APA review of the Forest Service’s decision to exclude the corrals from his STA sale. 4 JOHNSON V. UNITED STATES OF AMERICA

COUNSEL

Danielle R. Bettencourt (argued), Fairfield and Woods PC, Denver, Colorado; William G. Klain, Fennemore Craig PC, Phoenix, Arizona; for Plaintiff-Appellant. Neil Singh (argued), Assistant United States Attorney; Caitlin B. Noel, Appellate Chief; Gary M. Restaino, United States Attorney; Office of the United States Attorney, United States Department of Justice, Phoenix, Arizona; for Defendants-Appellees.

OPINION

R. NELSON, Circuit Judge:

Congress passed the Small Tracts Act (STA) to help the United States Forest Service resolve boundary disputes over small parcels of National Forest System (NFS) land. See Pub. L. No. 97-465, 96 Stat. 2535 (1983). Relevant here, the Secretary of Agriculture may sell, exchange, or interchange ten acres or less encroached upon by improvements that a landowner built on NFS land in good-faith reliance on an erroneous survey or title search. 16 U.S.C. §§ 521d(a), 521e(2). The Secretary has discretion to approve STA conveyances, provided they are “in the public interest.” 36 C.F.R. § 254.35(e). The question is whether STA conveyances fall within the Administrative Procedure Act’s (APA) narrow exception to judicial review for actions “committed to agency discretion by law.” 5 U.S.C. § 701(a)(2). The answer is no: the STA and its regulations provide “meaningful standards” for JOHNSON V. UNITED STATES OF AMERICA 5

reviewing the Secretary’s discretionary decisions. Heckler v. Chaney, 470 U.S. 821, 834–35 (1985). Because the district court unduly narrowed its review under the APA, we reverse and remand. I A In 2006, Charley Johnson, on behalf of his trust, bought about 21 acres bordering the Tonto National Forest in Gila County, Arizona. The parcel came with a house, barn, saddle house, well, corrals, and other ranch-related improvements that the previous landowner built in the 1950s. Based on the Bill of Sale and a professional title search, Johnson believed that he owned each improvement, and that none encroached on federal land. As it happens, Johnson was mistaken. The northern boundary of Johnson’s property was farther south than he thought. So when his neighbor commissioned a survey, Johnson learned for the first time that most of his improvements were located not on his private property, but on NFS land. To resolve the encroachment, Johnson filed an STA application with the Forest Service. 1 Johnson proposed purchasing six to eight acres of NFS land to cover the encroaching improvements. After processing the application for about a decade, the Service set survey monuments for a 4-acre sale. This proposed parcel

1 The Forest Service evaluates STA applications under authority delegated from the Secretary of Agriculture. See 7 C.F.R. §§ 2.20(a)(2)(ii), 2.60(a)(2). 6 JOHNSON V. UNITED STATES OF AMERICA

encompassed all the encroaching improvements, giving Johnson clear title to each. Later, the Forest Service reversed course. The Service offered to resolve the encroachment by selling Johnson a smaller, 0.59-acre parcel. This new proposal included the land under the house, barn, and well—but not the corrals. According to the Forest Service, the corrals were “not in trespass” because they were “authorized range improvements” owned by the United States. See 36 C.F.R. § 222.9(b)(2). The Service maintained that the federal government had authorized the corrals’ construction on NFS land to aid in range management. In other words, the Service did not view the corrals as privately held, encroaching improvements under the STA. See 16 U.S.C.

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Johnson v. USA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-usa-ca9-2025.