McGuire v. United States

707 F.3d 1351, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20037, 2013 WL 616919, 2013 U.S. App. LEXIS 3608
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 20, 2013
Docket2012-5073
StatusPublished
Cited by16 cases

This text of 707 F.3d 1351 (McGuire 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
McGuire v. United States, 707 F.3d 1351, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20037, 2013 WL 616919, 2013 U.S. App. LEXIS 3608 (Fed. Cir. 2013).

Opinions

Opinion for the court filed by Circuit Judge DYK. Circuit Judge REYNA concurs in the judgment.

DYK, Circuit Judge.

Jerry McGuire leased a plot of farmland in Arizona from the Colorado River Indian Tribes (“CRIT”) with the approval of the Bureau of Indian Affairs (“BIA”). He filed this Fifth Amendment regulatory takings claim after the BIA removed a bridge that he used to access portions of the leased property. McGuire does not claim that removal of the bridge was itself a taking, but rather that the BIA’s alleged refusal to authorize replacement of the bridge was a taking of his property rights. After trial the Court of Federal Claims (the “Claims Court”) denied McGuire’s regulatory takings claim. McGuire appeals. Because we hold that McGuire’s regulatory takings claim never ripened and that, even if McGuire’s claim had ripened, he had no cognizable property interest, we affirm.

Background

On January 1, 1995, McGuire signed a ten-year lease with CRIT for a parcel of farmland in Parker, Arizona in order to raise alfalfa. The lease was approved on behalf of the BIA by Allen Anspach, superintendent of the BIA’s Colorado River Agency, because the United States held the land in trust for CRIT. A BIA canal (Lateral 19-R) divided the leased property into two sections of approximately equal size.

Three bridges enabled farmers such as McGuire to cross the canal. Two bridges were not on McGuire’s leased property, and McGuire claimed no property interest relating to those bridges. These were the Tenth Avenue bridge, which was slightly southwest of the property; and the FFA bridge, which was slightly northeast of the property. The third bridge was involved in the claimed regulatory taking. This was the Eighth Avenue Bridge. It was located between the northern and southern halves of the leased property. It was not located on the leased property, but inside a right-of-way owned by the BIA. Though it is not known who constructed the bridge or when it was built, the bridge had been in existence since at least the 1960’s or 1970’s.

Approximately three years into the lease, in 1998, the BIA became concerned that the Eighth Avenue Bridge was unsafe, and the BIA informed McGuire that the bridge would be removed. McGuire in turn informed CRIT (the lessor of his property) that the BIA intended to remove the bridge, and CRIT wrote to Anspach on December 9 and December 23, 1998 “requesting [that] removal of the bridge be delayed” and noting that “removal of th[e] bridge would place a hardship on Mr. McGuire.” J.A. PX 18; PX 20. Anspach responded on December 24, 1998, noting that the Eighth Avenue Bridge “was not built or authorized by the [BIA], ... was put in at an undetermined time without any construction specifications or without [BIA] approval ... [i]n direct violation of 25 CFR 171.9 [which requires a permit to build such structures],” and posed “a potential hazard to anyone that uses it.” J.A. PX 20. The letter indicated that “[the BIA] will remove this bridge during dry up 2000.” Id. It reasoned that “[t]his w[ould] give [McGuire] time to comply with 25 CFR 171.9,” a regulation that, as will be described in more detail below, [1355]*1355required an application for a permit to build a new bridge that encroached on the BIA right-of-way over the canal. Id.

Soon thereafter, the BIA formally notified McGuire of the impending bridge closure and removal and of his duty to apply for a permit to replace the bridge. On February 5, 1999, Anspach wrote McGuire to “inform [him] of [the BIA’s] intent to remove the unsafe and unauthorized wooden bridge across canal 19R which runs to [his] leased lands.” J.A. PX 21. The letter stated that the bridge would be closed during dry up 2000 and, referencing 25 C.F.R. § 171.9, advised McGuire that “[i]f [he] should decide that [he] need[s] to bridge the canal in order to operate [his] farm [he] may submit to ... Agency Superintendent [Anspach] plans, with specifications, for a new bridge and apply for a crossing permit.” Id. Anspach sent McGuire a similar letter on August 25, 1999, explaining that it “remain[ed] [the BIA’s] intent” to remove the bridge while reiterating that McGuire would need “to submit the required documentation” under 25 C.F.R. § 171.9. J.A. PX 22.

Rather than apply for a permit under § 171.9, McGuire filed suit against the BIA in tribal court on October 12, 1999, where he alleged breach of contract and condemnation claims; specifically, he alleged that the BIA failed to abide by certain requirements under § 171.9 (that it failed to issue permits and supply proper forms); and that the BIA “cut-off reasonable ingress and egress to over half of the leased premises in violation of section 17” of the lease. J.A. PX 23, Compl. ¶ 11. McGuire further alleged that “the demand made by the [BIA] would require that a new bridge be installed at [McGuire’s] expense,” and that this would constitute a breach of the lease. Id. ¶ 12-13. There is no record of any judgment issued by the tribal court.

Around the same time McGuire pursued his claim in tribal court, McGuire also engaged in correspondence with the BIA regarding possible replacement of the bridge. Specifically, McGuire discussed a replacement bridge with both Jeffrey Hin-kins (Supervisory General Engineer) and Ted Henry (Irrigation Systems Manager). During these conversations, McGuire may have produced an informal handwritten sketch of a proposed bridge design, but copies of these plans apparently no longer exist. McGuire testified that these conversations, which occurred in the “summer to late summer” of 1999, J.A. 141, were sufficient to apply for a permit under § 171.9 to build a new bridge. The BIA deemed these efforts insufficient, as Anspach again wrote McGuire on November 12, 1999, stating that “[w]e again encourage you to apply for a permit to replace the current structure with one that meets our design and safety requirements,” referencing 25 C.F.R. § 171.9. J.A. PX 24. The BIA barricaded the bridge in November 1999 and removed it in January 2000.

McGuire, after attempting to farm the property for several months without access to the Eighth Avenue Bridge, refused to make his January 2000 lease payment to CRIT. Eventually the lease was cancelled by CRIT because of McGuire’s failure to make lease payments. A new tenant, William Alcaida, began leasing the property in January 2001. Alcaida submitted a written request to the BIA for a permit to replace the bridge which detailed the design and materials for the bridge. After the submission was revised to provide additional information, Alcaida’s application was deemed sufficient by the BIA. Alcai-da received a permit to replace the Eighth Avenue Bridge in January 2002, and built a replacement bridge immediately thereafter.

[1356]*1356After McGuire’s lease was cancelled, McGuire began to pursue his remedies in federal court, filing for Chapter 11 bankruptcy relief in the District Court for the District of Arizona on June 15, 2001. This initiated a complex procedural history.

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Bluebook (online)
707 F.3d 1351, 43 Envtl. L. Rep. (Envtl. Law Inst.) 20037, 2013 WL 616919, 2013 U.S. App. LEXIS 3608, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcguire-v-united-states-cafc-2013.