Pete v. United States

569 F.2d 565, 215 Ct. Cl. 377, 1978 U.S. Ct. Cl. LEXIS 4
CourtUnited States Court of Claims
DecidedJanuary 25, 1978
DocketNo. 17-72
StatusPublished
Cited by7 cases

This text of 569 F.2d 565 (Pete v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pete v. United States, 569 F.2d 565, 215 Ct. Cl. 377, 1978 U.S. Ct. Cl. LEXIS 4 (cc 1978).

Opinion

Kashiwa, Judge,

delivered the opinion of the court:

The sole issue presented in this case is whether section 304(c) of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4654(c) (1970), authorizes the payment of litigation expenses by the United States in an inverse condemnation action involving personal, as opposed to real, property. After consideration of the briefs and oral arguments presented, we find that plaintiffs are entitled to recover appropriate litigation expenses under that statute.

This case is the latest in a protracted line of litigation on defendant’s liability for the alleged taking of three cabin barges or large houseboats belonging to plaintiffs.1 The [379]*379United States and Canada had established a wilderness area along the international boundary between the two countries. This area, called the Boundary Waters Canoe Area, covers approximately four million acres and includes numerous lakes, rivers, and creeks. Commercial activities were prohibited. The United States condemned all privately owned property under its jurisdiction in the Boundary Waters Canoe Area, including two separate tracts of land owned by plaintiffs (the condemnees in the district court action). Plaintiffs sought to receive compensation for the value of the three barges used in their business, claiming that these barges were rendered useless and that relocation was not feasible. In United States v. 967.905 Acres of Land, supra note 1,2 the court held that the barges were fixtures, thus entitling the condemnees to compensation for their value. The Eighth Circuit, however, reversed the district court, holding that the barges could not properly be characterized as real estate. United States v. 967.905 Acres of Land, 447 F. 2d 764, 769 (8th Cir. 1971), cert. denied, 405 U.S. 974 (1972). Consequently the condemnees were denied compensation for these personal property items, since the eminent domain proceeding brought by the Government was limited to real property.

Plaintiffs subsequently filed an inverse condemnation action in this court, seeking just compensation for the barges under the Fifth Amendment and 28 U.S.C. § 1491 (1970). On March 17, 1976, the court adopted the recommended opinion of Trial Judge Charlotte P. Murphy and held that plaintiffs were entitled to $153,000 as just compensation for the taking of the three barges, plus "interest pursuant to law, and costs, with these amounts to be determined under Rule 131(c).” Pete v. United States, 209 Ct. Cl. 270, 300, 531 F. 2d 1018, 1036 (1976).

The parties have stipulated and agreed that the appropriate interest rate in this case is 6 percent and that plaintiffs have incurred reasonable attorney fees, costs, and [380]*380disbursements in the total amount of $31,293.79 in connection with this litigation. In agreeing to the reasonableness of such costs, however, defendant "reserve[d] its right to question the jurisdiction of the Court to award such fees and costs in this case which involves a taking of personal - not real property,” notwithstanding this court’s March 17, 1976, opinion.

42 U.S.C. § 4654 (1970) provides:

Litigation Expenses
(a) The Federal court having jurisdiction of a proceeding instituted by a Federal agency to acquire real property by condemnation shall award the owner of any right, 01* title to, or interest in, such real property such sum as will in the opinion of the court reimburse such owner for his reasonable costs, disbursements, and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of the condemnation proceedings, if—
(1) the final judgment is that the Federal agency cannot acquire the real property by condemnation; or
(2) the proceeding is abandoned by the United States.
(b) Any award made pursuant to subsection (a) of this section shall be paid by the head of the Federal agency for whose benefit the condemnation proceedings was instituted.
(c) The court rendering a judgment for the plaintiff in a proceeding brought under section 1346(a)(2) or 1491 of Title 28, awarding compensation for the taking of property by a Federal agency, or the Attorney General effecting a settlement of any such proceeding, shall determine and award or allow to such plaintiff, as a part of such judgment or settlement, such sum as will in the opinion of the court or the Attorney General reimburse such plaintiff for his reasonable costs, disbursements, and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of such proceeding.

Defendant contends that section 4654(c) only authorizes the award of litigation expenses in an inverse condemnation action involving real property and that Congress, in enacting this statute, did not intend to allow the award of litigation expenses for the taking of personal property. Defendant’s position is premised on the argument that the whole tenor of the Uniform Relocation Assistance and Real [381]*381Property Acquisition Policies Act of 1970, 42 U.S.C. §§ 4601-4655 (1970), deals with the taking by the United States of real property. Not only does the title of the Act itself refer to "real property,” but subchapter III (§§ 4651-4655) is entitled "Uniform Real Propérty Acquisition Policy.” Finally, defendant cites the legislative history3 of section 4654 in support of this interpretation of the statute.4

What defendant does not account for, however, is the fact that section 4654(c), concerning inverse condemnation actions, specifically omits the word "real” as a modifier for "property.” Section 4654(a), by way of contrast, specifically limits recovery of litigation expenses in eminent domain proceedings (where the final judgment is that the Government cannot acquire the real property by condemnation or the proceeding is abandoned by the United States) instituted by a federal agency to situations involving the acquisition of "real property.” Thus, for us to agree with the defendant’s interpretation of section 4654(c), we must conclude that Congress accidently omitted the word "real” from section 4654(c).

We cannot agree with defendant that the omission of the word "real” from section 4654(c) was merely due to Congressional inadvertence. The fact that section 4654(a) was expressly limited to certain condemnations of "real” property, while section 4654(c) was not so limited, clearly demonstrates to us that Congress understood the difference [382]*382between the types of actions. It also demonstrates to us that Congress intended to be more generous in allowing costs in inverse condemnation cases. Nor does our reading of the legislative history of section 4654 lead to a contrary conclusion.

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Cite This Page — Counsel Stack

Bluebook (online)
569 F.2d 565, 215 Ct. Cl. 377, 1978 U.S. Ct. Cl. LEXIS 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pete-v-united-states-cc-1978.