Klamath Irrigation District v. United States

64 Fed. Cl. 328, 2005 U.S. Claims LEXIS 54, 2005 WL 503726
CourtUnited States Court of Federal Claims
DecidedFebruary 28, 2005
DocketNo. 01-591 L
StatusPublished
Cited by23 cases

This text of 64 Fed. Cl. 328 (Klamath Irrigation District v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klamath Irrigation District v. United States, 64 Fed. Cl. 328, 2005 U.S. Claims LEXIS 54, 2005 WL 503726 (uscfc 2005).

Opinion

ORDER

ALLEGRA, Judge.

In the case sub judice, a group of water districts and individual farmers seek just compensation under the Fifth Amendment, as well as damages for breach of contract, owing to restrictions placed by the U.S. Bureau of Reclamation on the use, for irrigation purposes, of the water resources of the Klamath Basin of southern Oregon and northern California. Eight organizations — Pacific Coast Federation of Fishermen’s Associations, Institute for Fisheries Resources, The Wilderness Society, Klamath Forest Alliance, Oregon Natural Resources Council, Water-Watch of Oregon, Northcoast Environmental Center, and the Sierra Club — have moved for leave to intervene in this action under RCFC 24(a)(2). These organizations all have been involved in recent disputes involving the waters of the Hamath Basin, see, e.g., Kandra v. United States, 145 F.Supp.2d 1192 (D.Or. 2001); Pacific Coast Federation of Fishermen’s Ass’ns v. Bureau of Reclamation, 138 F.Supp.2d 1228 (N.D.Cal.2001). They assert varying interests relating to the allocation and ownership of that water, which interests, they contend, may be impacted by this litigation. Defendant takes no position on this motion, but plaintiffs vigorously oppose it, asseverating that intervention of any of these organizations, either as of right or via permission, is not authorized by RCFC 24.

As originally adopted in 1937, Rule 24(a) of the Federal Rules of Civil Procedure provided for intervention of right only in two limited circumstances: when “the applicant is or may be bound by a judgment in the action” or “is so situated as to be adversely affected by a distribution or other disposition of property in the custody of the court or an officer thereof.” Fed. Rule Civ. Proc. 24(a)(2) and (3) (1937). In 1966, the scope of the rule was substantially expanded. In explaining this change, the Advisory Committee noted that the earlier wording of the rule was “unduly restricted” and prone to “poor results,” finding instead that “[i]f an absentee would be substantially affected in a practical sense by the determination made in an action, he should, as a general rule, be entitled to intervene.” Advisory Committee’s Notes on 1966 Amendments to Fed. Rule Civ. Proc. 24, 28 U.S.C.App., p. 756. Toward that end, it deleted the “bound by a judgment” language to “free[] the rule from undue preoccupation with strict construction of res judicata,” and “imported practical considerations” into the rule by no longer requiring that the property at issue be held in the custody of the court or an officer thereof. Id.1 The version of Rule 24(a)(2) that emerged from this amendatory process has, with minor modifications not pertinent herein, survived to this day and forms the basis, haec verba, for RCFC 24(a)(2). The latter rule reads:

Upon timely application anyone shall be permitted to intervene in an action ... when the applicant claims an interest relating to the property or transaction which is the subject of the action and the applicant is so situated that the disposition of the action may as a practical matter impair or impede the applicant’s ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.

By way of further analogy to the Federal Rules, the findings required by RCFC 24(a)(2) are identical to those required by RCFC 19(a)(2), dealing with joinder of persons needed for just adjudications, revealing [330]*330an obvious symmetry between these two gatekeeper provisions.2

Reflecting the breadth of the 1966 amendments, courts interpreting the newer version of Rule 24(a)(2) generally have concluded that “the requirements for intervention are to be construed in favor of intervention.” Am. Maritime Transp., Inc. v. United States, 870 F.2d 1559, 1561 (Fed.Cir.1989).3 These and other courts, often noting that the rule was modified to divorce it from strict res judicata considerations, have repeatedly concluded that the potential for generating adverse precedent, applicable in other related cases under the doctrine of stare decisis, may “as a practical matter impair or impede” an applicant’s ability to protect an interest relating to the property or transaction which is the subject of the action. See Freeman v. United States, 50 Fed.Cl. 305, 309 (2001) (“When analyzing this element, the court has considered the impact of stare decisis.”); Anderson Columbia Envtl., Inc. v. United States, 42 Fed.Cl. 880, 882 (1999) (“The potential stare decisis effect of a decision often supplies the ‘practical impairment’ required by Rule 24(a).”); see also Stone v. First Union Corp., 371 F.3d 1305, 1309-10 (11th Cir.2004) (“the potential for a negative stare decisis effect ‘may supply that practical disadvantage which warrants intervention of right’” (quoting Chiles v. Thornburgh, 865 F.2d 1197, 1214 (11th Cir.1989))); Coalition of Arizona/New Mexico Counties for Stable Econ. Growth v. Dept. of Interior, 100 F.3d 837, 844 (10th Cir.1996) (“the stare decisis effect of the district court’s judgment is sufficient impairment for intervention under Rule 24(a)(2)”); Oneida Indian Nation of Wise. v. State of New York, 732 F.2d 261, 265 (2d Cir.1984). In assessing the practical impact of stare decisis, court have looked not only to the likely ultimate disposition of a case, but also to potential subsidiary factual and legal findings. See, e.g., FDIC v. Jennings, 816 F.2d 1488, 1492 (10th Cir.1987) (noting that under Rule 24(a), stare decisis considerations apply to rulings on a “legal point” or “factual issues”).

This court must also focus on the nature of the “interest relating to the property or transaction which is the subject of action” that is required for intervention of right under RCFC 24(a)(2). Several decisions of the Supreme Court shed light on what is a qualifying “interest.” In Cascade Natural Gas Corp. v. El Paso Natural Gas Co., 386 U.S. 129, 87 S.Ct. 932, 17 L.Ed.2d 814 (1967), the Court, citing the Advisory Committee Notes as evidence that “some elasticity was injected” into the new rule, id. at 134 n. 3, 87 S.Ct. 932, held that a private business with an interest in the solvency of a corporation to be formed pursuant to a consent decree could intervene in the antitrust suit considering that decree, thereby suggesting that the term “interest” is not limited to particular property interests, but includes economic interests threatened by a ruling. Five years later, in Donaldson v. United States, 400 U.S. 517, 531, 91 S.Ct. 534, 27 L.Ed.2d 580 (1971), the Court held that a taxpayer could not intervene of right in a proceeding to enforce a summons against a third party, concluding that the phrase “interest” “obviously” means “a significantly protectable interest.” More recently, Justice O’Connor, in her concurring opinion in Diamond v. Charles, 476 U.S. 54, 75, 106 S.Ct.

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Bluebook (online)
64 Fed. Cl. 328, 2005 U.S. Claims LEXIS 54, 2005 WL 503726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klamath-irrigation-district-v-united-states-uscfc-2005.