Keene Corp. v. United States

28 Fed. Cl. 2035
CourtCourt of Appeals for the Federal Circuit
DecidedMay 24, 1993
DocketNo. 92-166
StatusPublished

This text of 28 Fed. Cl. 2035 (Keene Corp. 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
Keene Corp. v. United States, 28 Fed. Cl. 2035 (Fed. Cir. 1993).

Opinions

Justice SOUTER

delivered the opinion of the Court.

Keene Corporation has been sued by thousands of plaintiffs alleging injury from exposure to asbestos fibers and dust released from products made by Keene and by a company it acquired. In trying to recoup some of the money it was paying to litigate and settle the cases, Keene filed two complaints against the United States in the Court of Federal Claims.1 When it filed each complaint, however, Keene had a similar claim pending against the Government in another court. We hold that 28 U.S.C. § 1500 consequently precludes Court of Federal Claims jurisdiction over Keene’s actions and affirm the dismissal of its complaints.

I

Through its subsidiary Keene Building Products Corporation, Keene manufactured and sold thermal insulation and acoustical products containing asbestos, as did a company it acquired in 1968, Baldwin-Ehret-Hill, Inc. In the mid-1970’s, plaintiffs be[2038]*2038gan suing Keene in tort, alleging injury or death from exposure to asbestos fibers. In a typical case filed against Keene and other defendants in the District Court for the Western District of Pennsylvania, Miller v. Johns-Manville Products Corp., No. 78-1283E, the plaintiff alleged, on behalf of the estate of one Dzon, that the decedent had died of lung cancer caused by asbestos fibers and dust inhaled during employment in 1943 and 1944. In June 1979, Keene filed a third-party complaint against the United States, alleging that any asbestos products to which Dzon was exposed had been supplied to the Government in accordance with specifications set out in Government contracts, and seeking indemnification or contribution from the Government for any damages Keene might have to pay the plaintiff. This third-party action ended, however, in May 1980, when the District Court granted Keene’s motion for voluntary dismissal of its complaint.

In the meantime, in December 1979, with the Miller third-party action still pending, Keene filed the first of its two complaints in issue here, seeking damages from the United States in the Court of Federal Claims “for any amounts which have been, or which may be recovered from Keene by the claimants, by settlement or judgment.” Keene Corp. v. United States, No. 579-79C (Keene I), App. to Pet. for Cert. H15. The “claimants” are defined as the plaintiffs in the more than 2,500 lawsuits filed against Keene “by persons alleging personal injury or death from inhalation of asbestos fibers contained in thermal insulation products” manufactured or sold by Keene or its subsidiaries. Id., at H3. Keene alleges conformance with Government specifications in the inclusion of asbestos within the thermal insulation products Keene supplied to Government shipyards and other projects funded or controlled by the Government, and Keene further claims that the Government even sold it some of the asbestos fiber used .in its products. Keene’s theory of recovery is breach by the United States of implied warranties in contracts between the Government and Keene, a theory only the Court of Federal Claims may entertain, given the amount of damages requested, under the Tucker Act, 28 U.S.C. § 1491(a)(1).

Keene’s next move against the Government came the following month when it filed a 23-count complaint in the District Court for the Southern District of New York. Keene Corp. v. United States, No. 80-CIV-0401(GLG). The pleadings tracked, almost verbatim, the lengthy factual allegations of Keene I, but the action was recast in terms of various tort theories, again seeking damages for any amounts paid by Keene to asbestos claimants. Keene also added a takings claim for the Government’s allegedly improper re-coupment, under the Federal Employees’ Compensation Act (FECA), 5 U.S.C. § 8132, of money paid by Keene to claimants covered by the Act. For this, Keene sought restitution of “the amounts of money which have been, or which may be, recouped by [the United States] from claimants from judgments and settlements paid by Keene,” App. 37, as well as an injunction against the Government’s collection of FECA refunds thereafter. This suit suffered dismissal in September 1981, on the basis of sovereign immunity, which the court held unaffected by any waiver found in the Federal Tort Claims Act, the Suits in Admiralty Act, and the Public Vessels Act. The Court of Appeals affirmed, Keene Corp. v. United States, 700 F.2d 836 (CA2 1983), and we denied certiorari, 464 U.S. 864, 104 S.Ct. 195, 78 L.Ed.2d 171 (1983).

Only five days before the Southern District’s dismissal of that omnibus action, Keene returned to the Court of Federal Claims with the second of the complaints in issue here. Keene Corp. v. United States, No. 585-81C (Keene II). Although this one, too, repeats many of the factual allegations of Keene I, it adopts one of the theories raised in the Southern District case, seeking payment for “the amounts of money that [the United States] has recouped” under FECA from asbestos claim[2039]*2039ants paid by Keene. App. to Pet. for Cert. F10-F11. Again, the recoupments are said to be takings of Keene’s property without due process and just compensation, contrary to the Fifth Amendment. See 28 U.S.C. § 1491(a)(1) (covering, inter alia, certain claims “founded ... upon the Constitution”).

After the Court of Federal Claims raised the present jurisdictional issue sua sponte in similar actions brought by Johns-Man-ville, the Government invoked 28 U.S.C. § 1500 in moving to dismiss both Keene I and Keene II, as well as like actions by five other asbestos product manufacturers. With trial imminent in the Johns-Manville cases, the Court of Federal Claims initially granted the motion to dismiss only as to them. Keene Corp. v. United States, 12 Cl.Ct. 197 (1987). That decision was affirmed on appeal, Johns-Manville Corp. v. United States, 855 F.2d 1556 (CA Fed. 1988) (per curiam), cert. denied, 489 U.S. 1066, 109 S.Ct. 1342, 103 L.Ed.2d 811 (1989), and the Court of Federal Claims then entered dismissals in Keene I and Keene II, among other cases, finding that when Keene had filed both Keene I and Keene II, it had the same claims pending in other courts. 17 Cl.Ct. 146 (1989). While a panel of the Court of Appeals for the Federal Circuit reversed on the ground that § 1500 was inapplicable because no other claim had been pending elsewhere when the Court of Federal Claims entertained and acted upon the Government’s motion to dismiss, UNR Industries, Inc. v. United States, 911 F.2d 654 (1990), the Court of Appeals, en banc, subsequently vacated the panel opinion, 926 F.2d 1109 (1990), and affirmed the trial court’s dismissals, 962 F.2d 1013 (1992). We granted certiorari. 506 U.S. -, 113 S.Ct. 373, 121 L.Ed.2d 285 (1992).

II

The authority cited for dismissing Keene’s complaints for want of jurisdiction was 28 U.S.C.A. § 1500 (Supp.1993):

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28 Fed. Cl. 2035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keene-corp-v-united-states-cafc-1993.