Land Grantors in Henderson, Union v. United States

86 Fed. Cl. 35, 2009 U.S. Claims LEXIS 44, 2009 WL 484599
CourtUnited States Court of Federal Claims
DecidedFebruary 24, 2009
DocketNo. 93-648X
StatusPublished
Cited by5 cases

This text of 86 Fed. Cl. 35 (Land Grantors in Henderson, Union 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
Land Grantors in Henderson, Union v. United States, 86 Fed. Cl. 35, 2009 U.S. Claims LEXIS 44, 2009 WL 484599 (uscfc 2009).

Opinions

REPORT OF THE REVIEW PANEL

MARGOLIS, Senior Judge,

with whom SMITH, Senior Judge, joins in the Report. LETTOW, Judge and Presiding Officer, dissents to the Report.

On September 20, 1993, the United States Senate referred Senate Bill 794, 103d Cong. (1993) entitled, “A bill [f]or the relief of land grantors in Henderson, Union, and Webster Counties, Kentucky, and their heirs,” to the Chief Judge of the United States Court of Federal Claims and instructed the Court to report back to the Senate “giving such findings of fact and conclusions that are sufficient to inform Congress of the amount, if any, legally or equitably due from the United States to the [Claimants individually” in accordance with 28 U.S.C. §§ 1492 and 2509 (2000). S. Res. 98, 103d Cong. (1993). Senate Bill 794 provides for relief to those individuals that were “promised they would be given priority to repurchase land sold by them if sold by the United States Government” and “paid less than reasonable value due in part to the refusal of the United States Government to compensate the owners for mineral, oil and gas rights.” S. 794, 103d Cong. § 2 (1993).

Judge Susan G. Braden, sitting as Hearing Officer in this case, held that “the record provides substantial evidence to support the Claimants’ entitlement to the equitable remedy of restitution, at least in the amount of $34,303,980.42.” Land Grantors v. United States, 81 Fed.Cl. 580, 583 (2008). Following the ruling of the Hearing Officer, the United States and the Claimants filed exceptions to the Hearing Officer’s report in accordance with the Rules of the United States Court of Federal Claims (“RCFC"). See RCFC App. D, ¶ 7. The Review Panel reviewed the Hearing Officer’s report, the briefs filed by both parties, and held a hearing on August 19, 2008, and finds that any payment to the Claimants would be a gratuity.

DISCUSSION

1. Background

In the summer of 1941, after the onset of World War II, the United States (“Government”) began condemning land pursuant to the War Purposes Act of 1917, 40 Stat. 241 (codified as amended at 50 U.S.C. § 171) (repealed 1956) in order to establish military training corps throughout the United States. Land Grantors v. United States, 81 Fed.Cl. at 582 (“Land Grantors VI” or “Final Report”). The Government acquired approximately 35,849.28 acres of land in Henderson, Union, and Webster counties, Kentucky to be used for an Army training facility, later named Camp Breckinridge. Id. To initiate these condemnations, the Department of War filed five Petitions in Condemnation in the United States District Court for the Western District of Kentucky between 1942 and 1944. Id. After the Petitions in Condemnation were filed, the owners of the 491 affected tracts of land had the option to voluntarily negotiate a sale price and sign an option agreement with the United States, or demand a jury trial to determine the amount of “just compensation.” Id. In total, the Government paid approximately $3.7 million for a fee simple ownership in all of the Camp Breckinridge properties, including those that were purchased under contract and those conveyed under judicial order. Id.

After the end of World War II, the United States declared certain facilities on Camp Breckinridge to be surplus property; however, on July 15, 1948, Camp Breckinridge was returned to active status because of the onset of the Korean War. Id. at 592. In December 1962, the Department of Defense (“DOD”) declared Camp Breckinridge inactive and the land was transferred to the General Services Administration (“GSA”) for disposal as surplus property. Land Grantors v. United States, 64 Fed.Cl. 661, 665 (2005) (“Land Grantors I” or “First Interim Report”); see Land Grantors VI, 81 Fed.Cl. at 593. Between 1957 and 1967, the GSA leased and sold all of the gas, oil, coal, and other mineral rights underneath the condemned properties, generating millions of dollars of revenue. Land Grantors VI, 81 Fed.Cl. at 588-97. In addition, between 1965 and 1972, the GSA [38]*38sold most of the Breckinridge properties to the public through auctions. See Land Grantors I, 64 Fed.Cl. at 682-84.

In 1965, a former landowner, Cyrus Hig-ginson, filed a lawsuit against the United States in the United States District Court for the Western District of Kentucky. Id. at 597-98. That suit was ultimately dismissed by the trial court for lack of jurisdiction: the complaint alleged a violation of the Surplus Property Act of 1944, 58 Stat. 765, which was repealed in 1949. See id. at 598. The United States Court of Appeals for the Sixth Circuit upheld the District Court’s ruling, stating that the “[Gjovemment’s title to the land acquired by negotiated purchases vested some 20-30 years ago” and holding that the fee simple title to the condemned tracts “cannot now be disputed under any accepted property theory.” Higginson v. United States, 384 F.2d 504, 506 (6th Cir.1967). Following the United States Supreme Court’s denial of certiorari in 1968, a group of landowners formed the Breckinridge Land Committee 1 and sought redress from the United States Congress. Land Grantors VI, 81 Fed.Cl. at 598. On April 19, 1993, S. 794 was introduced before the United States Congress, and on October 19, 1993, S. 794 and S. Res. 98 were successfully reported out of the United States Senate and forwarded to the Chief Judge of the United States Court of Federal Claims as a congressional reference. Id. at 599.

The current litigation began in this Court on January 12, 1994 with the filing of the initial complaint by the Claimants. Discovery disputes and settlement negotiations occurred for over a decade. See Land Grantors I, 64 Fed.Cl. at 685-695. On April 1, 2005, Judge Braden, as Hearing Officer, issued the first Interim Report and Memorandum Opinion. See generally id. That report stated that “many of the landowners entered into Contracts with the Government in 1942-1944 with the apparent understanding that they could repurchase their properties after World War II was concluded” but found that any representations by Government employees or agents regarding the Claimants’ ability to repurchase their land were unauthorized and therefore, not contractually binding on the Government. Id. at 701-03. The report further found that the contracts between the Government and the Claimants were void as they were based on a mutual mistake that “no coal, gas, oil, and other mineral deposits existed under the condemned properties that would support exploration or operation,” and noted that restitution is a remedy for contracts based on mutual mistake. Id. at 703-09. Judge Braden also found that the doctrine of equitable tolling would stay the statute of limitations because of the sui generis circumstances of the case. Id. at 711-16. Judge Braden ordered the parties to show cause why the Court should not exercise jurisdiction under 28 U.S.C. § 1491(a)(1) by entering final judgment and staying the issuance of a report on S. 794 under the congressional reference statute. Id. at 717-18.

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86 Fed. Cl. 35, 2009 U.S. Claims LEXIS 44, 2009 WL 484599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-grantors-in-henderson-union-v-united-states-uscfc-2009.