Lake Pleasant Group v. United States

40 Fed. Cl. 647, 1998 U.S. Claims LEXIS 59, 1998 WL 142153
CourtUnited States Court of Federal Claims
DecidedMarch 30, 1998
DocketNo. 92-848L
StatusPublished
Cited by1 cases

This text of 40 Fed. Cl. 647 (Lake Pleasant Group 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
Lake Pleasant Group v. United States, 40 Fed. Cl. 647, 1998 U.S. Claims LEXIS 59, 1998 WL 142153 (uscfc 1998).

Opinion

OPINION

MILLER, Judge.

This case is before the court on remand. See Lake Pleasant Group v. United States, 32 Fed.Cl. 429 (1994) (“Lake Pleasant I”), rev’d and remanded, No. 95-5061, 1996 WL 94962 (Fed.Cir. Mar. 5, 1996) (unpubl.) (“Lake Pleasant II”). This court granted defendant’s initial motion for summary judgment and dismissed plaintiffs complaint, which sought compensation for an alleged taking of its property in violation of the Takings Clause of the Fifth Amendment. On appeal the Federal Circuit reversed and remanded the matter for further proceedings. Now, before the court after argument is defendant’s second motion for summary judgment, which, while again questioning whether plaintiff holds a compensable property interest, challenges the alleged taking as unauthorized.

FACTS

The following facts are undisputed.1 In 1965 plaintiffs predecessors in interest purchased a landlocked parcel (the “LPG Property”) from the State of Arizona. Prior to this sale, the LPG property was held in trust by the State of Arizona pursuant to the New Mexico-Arizona Enabling Act, Pub.L. No. 219, ch. 310, 36 Stat. 557 (1910) (the “Enabling Act” or “Act”). The Enabling Act granted to Arizona specified lands, often referred to as “state trust lands,” to be held in trust for the use and benefit of specified public activities. Consistent with this pur[649]*649pose, the Enabling Act also sets forth a detailed procedure for the disposal of state trust lands.

Sometime after the 1965 purchase, the Arizona State Land Department (the “SLD”) granted plaintiffs predecessors legal access to the LPG Property through Right-of-Way No. 23127. Following the expiration of Right-of-Way 23127, in August 1983, plaintiffs predecessors initiated discussions with the SLD to obtain another access route, the “ROW corridor,” to the LPG Property. In April 1986 plaintiffs predecessors filed a formal application with the SLD to acquire a permanent easement across the ROW corridor.

Plaintiff purchased the LPG Property on December 31, 1986 — assuming the rights of its predecessors with regard to the pending application — and continued to seek approval from the SLD for a permanent easement over state trust lands. Plaintiff contends that employees of the SLD repeatedly stated that plaintiff would face no problems in obtaining the requested access route. While plaintiffs application was still pending, the United States Department of the Interior (“Interior”) informed the appropriate Arizona state official that certain state trust lands retained by the state, including the ROW corridor, must be relinquished to the United States pursuant to section 28 of the Enabling Act, quoted infra at pp. 649-50, for the purpose of constructing the New Waddell Dam and Tucson Aqueduct, part of the Central Arizona Project.

In November 1987 the State of Arizona complied with the Secretary of the Interior’s request to relinquish these state trust lands. However, the SLD did not notify plaintiff of the relinquishment until April 1991. Plaintiffs subsequent requests to the U.S. Bureau of Reclamation seeking access to the LPG Property across the ROW corridor were denied on the basis that the requests were incompatible with proposed government construction.

PRIOR PROCEEDINGS

Although the Federal Circuit remanded this case for a trial, defendant renewed its motion for summary judgment, urging that the appellate court’s decision does not pretermit defendant’s new legal argument. To corroborate defendant’s contention, the court must review the grounds defendant urged in the last summary judgment iteration, this court’s rulings, and the Federal Circuit’s mandate. In Lake Pleasant I, this court granted summary judgment for the United States after concluding on three grounds that plaintiffs claim to an implied easement by necessity across the ROW corridor was not a compensable property interest. Critical to the court’s analysis was its interpretation of the express language of the Enabling Act. Section 28 states in pertinent part:

No mortgage or other encumbrance of the said lands, or any thereof, shall be valid in favor of any person or for any purpose or under any circumstances whatsoever. Said lands shall not be sold or leased, in whole or in part, except to the highest and best bidder at public auction____
All lands, leaseholds, timber, and other products of land, before being offered shall be appraised at their true value, and no sale or other disposal thereof shall be made for a consideration less than the value so ascertained, nor in any case less than the minimum price hereinafter fixed, nor upon credit unless accompanied by ample security, and the legal title shall not be deemed to have passed until the consideration shall have been paid.
[The] State, at the request of the Secretary of the Interior, shall from time to time relinquish such of its lands to the United States as at any time are needed for irrigation works in connection with any such government project. And other land in lieu thereof are hereby granted to said state—
Every sale, lease, conveyance, or contract of or concerning any of the lands hereby granted or confirmed, or the use thereof or the natural products thereof, not made in substantial conformity with the provisions of this Act shall be null and [650]*650void, any provision of the constitution or laws of the said State to the contrary notwithstanding.

New Mexico-Arizona Enabling Act § 28, 36 Stat. at 574-75.

The first of the three grounds was supported by two lines of reasoning. First, the court concluded that plaintiffs purported implied easement by necessity across the ROW corridor, a right arising by operation of state law, constituted an “encumbrance” within the contemplation of section 28. See Lake Pleasant I, 32 Fed.Cl. at 435. Although recognizing that plaintiffs purported interest was not akin to a mortgage, the court concluded that the Act’s conveyancing restrictions intended to reach all modes and manner of ownership and alienation of state trust lands, including encumbrances arising by operation of state law. See id. Second, the court interpreted section 28, in conjunction with sections of the Act referenced therein, to conclude that the Enabling Act, and in particular the Act’s restrictions concerning the disposition of state trust lands, superseded common-law property rights such as plaintiffs easement by necessity. See id. at 435-36. The court considered that, if the Enabling Act were interpreted not to reach interests that pass by operation of state law, the scheme put in place by the Act would be defeated.

On appeal the Federal Circuit ruled that easements over state trust lands are not incompatible with the fundamental purposes of the Enabling Act set forth in Lassen v. Arizona, 385 U.S. 458, 87 S.Ct. 584, 17 L.Ed.2d 515 (1967), and Grossetta v. Choate, 51 Ariz. 248, 75 P.2d 1031 (1938). In Lassen

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Bluebook (online)
40 Fed. Cl. 647, 1998 U.S. Claims LEXIS 59, 1998 WL 142153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-pleasant-group-v-united-states-uscfc-1998.