Osi, Inc. v. United States

73 Fed. Cl. 39, 63 ERC (BNA) 1793, 2006 U.S. Claims LEXIS 272, 2006 WL 2615847
CourtUnited States Court of Federal Claims
DecidedSeptember 8, 2006
DocketNo. 04-1210C
StatusPublished
Cited by4 cases

This text of 73 Fed. Cl. 39 (Osi, Inc. 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
Osi, Inc. v. United States, 73 Fed. Cl. 39, 63 ERC (BNA) 1793, 2006 U.S. Claims LEXIS 272, 2006 WL 2615847 (uscfc 2006).

Opinion

MEMORANDUM OPINION

WILLIAMS, Judge.

In this takings case, Plaintiff, OSI, Inc., seeks compensation from the United States for contaminating its property. Plaintiff claims that the Government’s actions in depositing hazardous waste on and around Plaintiffs property and fencing Plaintiffs property to contain the waste constitute a taking proscribed by the Fifth Amendment.

Plaintiff previously filed an action in the United States District Court for the Middle District of Alabama, challenging the contamination and seeking injunctive relief under the Resource Conservation and Recovery Act (RCRA) and reimbursement of costs it expended to clean up the contamination under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA) OSI, Inc. v. United States, No. 98-T-920-N (M.D.Ala. Mar. 26, 2001), vacated in part, 285 F.3d 947 (11th Cir.2002).1 These claims are still pending before the District Court.2

At issue is whether the instant takings claim stemming from the contamination must be dismissed under 28 U.S.C. § 1500, which bars this Court from hearing a claim that was pending in another court at the time suit was filed here.3 Because Plaintiff seeks dif[41]*41ferent monetary relief in the District Court action and the instant action, the District Court cannot grant Plaintiff the requested amount of damages sought in this court, § 1500 does not divest this Court of jurisdiction over Plaintiffs contamination claim.

Background4

In July 1997, the Government informed Plaintiff that the groundwater beneath Plaintiffs property was contaminated with “trichlorochene” 5 (TCE), benzine, and other hazardous wastes. Compl. ¶¶ 1, 2, 5, 6. The contamination was likely the result of Defendant’s solid waste disposal activities at a 12-acre landfill site, Landfill 04 (LF04), which is part of a larger 25-acre tract of land owned by Plaintiff. Id. Defendant also engaged in disposal activities at two other landfill sites— Landfill 05 (LF05) and Landfill 06 (LF06)— located adjacent to Plaintiff’s property. Def.’s Mot., Ex. 7 at 103 (Third Amended Compl. ¶¶ 4-5). Defendant engaged in disposal activities beginning in the 1950’s and continuing until August 10, 1993, pursuant to a lease agreement between Maxwell Air Force Base (MAFB) and Plaintiffs predecessor in title. Compl. ¶ 1.

On January 22,1998, Plaintiff filed a claim pursuant to the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346(b), 2671-2680 (2000), with the United States Air Force (USAF) claiming, inter alia, property damage and diminution of Plaintiffs corporate worth. Def.’s Mot., Ex. 2. Specifically, Plaintiff alleged: “As a direct and proximate result of [the Government’s] extra hazardous activity ... OSI’s property has been polluted and contaminated with toxic and hazardous substances.” Def.’s Mot., Ex. 2 at 36. Plaintiff further claimed that the “[valuation of [its] real property and improvements — exclusive of the value of the business enterprise— was $842,500 as of December 14, 1994” and that as a “direct and proximate result of the illegal governmental activity ... this value has been reduced to zero.” Id. at 37. Plaintiffs claim included a valuation report dated November 4, 1997, which stated that the “value of [OSI, Inc.’s] corporate enterprise has been reduced from $1,975,000 to $360,-000 — [resulting in] damages in the amount of $1,615,000.” Id.

Plaintiff’s District Court Complaint

On August 19, 1998, after the USAF rejected Plaintiff’s claim, Plaintiff filed a complaint in the United States District Court for the Middle District of Alabama under the FTCA, 28 U.S.C. §§ 1346(b) and 2671, pleading five causes of action; the fifth cause of action sought money damages for the taking of property caused by the Government’s contamination and pollution. Def.’s Mot., Ex. 2.

On December 7, 1998, Plaintiff filed a motion to sever and transfer its fifth cause of action from the District Court to the United States Court of Federal Claims (COFC). Def.’s Mot., Ex. 5. Defendant opposed this motion contending that this Court would lack jurisdiction pursuant to 28 U.S.C. § 1500. On June 9, 1999, Plaintiff filed a second amended complaint in the District Court action adding a sixth and a seventh cause of action alleging that Defendant had violated the Resource Conservation Recovery Act (RCRA) and the Comprehensive Environ[42]*42mental Response, Compensation, and Liability Act (CERCLA). Def. Mot., Ex. 6.6 On March 26, 2001, the District Court denied Plaintiffs motion to sever and transfer its fifth cause of action and granted both Defendant’s motion to dismiss the first five causes of action and its motion for summary judgment on the RCRA and CERCLA claims. Def.’s Mot., Exs. 8-10.

Plaintiff appealed to the United States Court of Appeals for the Eleventh Circuit. On March 12, 2002, the Court of Appeals affirmed the dismissal of the first five causes of action and vacated the court’s dismissal of the sixth and seventh causes of action, remanding the CERCLA and RCRA issues to the District Court. OSI, Inc. v. United States, 285 F.3d 947, 953 (11th Cir.2002), reh’g denied (2002). On July 26, 2004, Plaintiff filed an action in this Court claiming an inverse condemnation while its CERCLA and RCRA claims were pending in the District Court.7

Plaintiff’s CERCLA and RCRA Claims Before the District Court

After the remand from the Eleventh Circuit, Plaintiff continued to pursue its RCRA and CERCLA claims in the District Court.8 In its CERCLA claim, Plaintiff alleged that as a result of Defendant depositing waste in the three landfill sites, hazardous material was deposited onto and migrated to Plaintiffs property. Def.’s Mot., Ex. 7 at 114-15 (Third Am. Compl. ¶¶ 37-42). Plaintiff alleged that it had incurred response costs of at least $863.08 for retaining a hydro geologist. Id., Ex. 7 at 115 (Third Am. Compl. ¶¶ 9-10). Pursuant to CERCLA, 42 U.S.C. § 9607,9 Plaintiff sought “judgment against defendants in an appropriate sum to be determined by the court, plus interest and costs for all necessary response costs incurred.” Id., Ex. 7 at 116 (Third Am. Compl. at 15). [43]*43Specifically, Plaintiff sought the “response cost for retaining an expert hydro geologist whose services were necessary to monitor, assess and evaluate the release of hazardous substances.” Id., Ex. 7 at 115 (Third Am. Compl. ¶ 41). In addition, pursuant to CERCLA Section 113, 42 U.S.C. § 9613

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Bluebook (online)
73 Fed. Cl. 39, 63 ERC (BNA) 1793, 2006 U.S. Claims LEXIS 272, 2006 WL 2615847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osi-inc-v-united-states-uscfc-2006.