Resource Investments, Inc. and Land Recovery, Inc. v. United States

114 Fed. Cl. 639, 2014 U.S. Claims LEXIS 60, 2014 WL 465132
CourtUnited States Court of Federal Claims
DecidedFebruary 5, 2014
Docket98-419L
StatusPublished
Cited by9 cases

This text of 114 Fed. Cl. 639 (Resource Investments, Inc. and Land Recovery, 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
Resource Investments, Inc. and Land Recovery, Inc. v. United States, 114 Fed. Cl. 639, 2014 U.S. Claims LEXIS 60, 2014 WL 465132 (uscfc 2014).

Opinion

OPINION and ORDER

Block, Judge.

Before the court is defendant’s motion to dismiss for lack of subject matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (“RCFC”) and 28 U.S.C. § 1500. This motion is among a myriad 1 brought by defendant based on United States v. Tohono O’Odham Nation, — U.S. -, 131 S.Ct. 1723, 179 L.Ed.2d 723 (2011), which clarified the limitations of this court’s jurisdiction contained in 28 U.S.C. § 1500. Although the Tucker Act confers jurisdiction upon this court to hear certain types of monetary claims against the United States, § 1500 curtails that jurisdictional grant by prohibiting the court from entertaining “any claim for or in respect to which” the plaintiff “has pending in any other court any suit or process against the United States____”

Although the purpose of § 1500 is to protect the United States against double recovery, this law has created a tremendous burden on plaintiffs because Congress frequently requires certain claims against the *643 United States to be heard in one particular court. 2 Since § 1500 prohibits plaintiffs from contemporaneously suing under different theories of relief that are based on the same or similar operative facts, § 1500 frequently compels plaintiffs with multiple claims “to pursue only one claim and abandon the others.” See Administrative Conference Recommendation 2012-6, Reform of 28 U.S.C. Section 1500, http://www.acus.gov/ reeommendation/reform-28-usc-section1500, at 1 (recommending that § 1500 be reformed or repealed altogether). Section 1500 has been described as a “trap for the unwary” 3 that calls to mind the old formal rules of pleading. 4

The facts of this case date back to the mid-1980s, when Pierce County, Washington, sought to address an acute shortage of landfill space by contracting with plaintiffs to locate and develop a new waste disposal site. Plaintiffs purchased a 320-acre site in 1987 after conducting extensive research, and eventually succeeded in securing a host of permits, including twelve state and local permits and four quasi federal-state permits. Pis.’ Dist. Ct. Compl. at 1. However, after eonsidering the matter for nearly seven years, the U.S. Army Corps of Engineers denied their application on September 30, 1996. Id. at 5. Protracted litigation ensued.

Litigation over plaintiffs’ takings claim has been ongoing in this court since May 4, 1998, when plaintiffs filed their original complaint. Four other judges on this court have presided over this case. The parties have spent significant time and resources on this matter, and this court has issued numerous opinions, including opinions concerning the parties’ discovery requests and denying the parties’ cross-motions for summary judgment. However, in April 2011, the course of this litigation took a sudden turn. “[A]lter[ing] decades of Court of Claims and Federal Circuit jurisprudence,” 5 the Supreme Court clarified the scope of § 1500 by holding that the provision precludes jurisdiction as long as a suit shares “substantially the same operative facts” with the claims in another suit that is pending before another court, regardless of whether the suits seek the same relief. United States *644 v. Tohono O’Odham Nation, — U.S.-, 131 S.Ct. 1723, 179 L.Ed.2d 723 (2011). The Court held that § 1500 applies even if the various jurisdictional statutes passed by Congress over the years have the cumulative effect of compelling an aggrieved party to seek equitable relief in one court and monetary relief in another court. Id. at 1731. In so ruling, the Court directly overturned the opinion of the United States Court of Appeals for the Federal Circuit (“Federal Circuit”) that § 1500 does not apply unless “the claim pending in another court” also requests “the same relief.” Loveladies Harbor, Inc. v. United States, 27 F.3d 1545, 1551 (Fed.Cir. 1994).

On June 10, 2011—over thirteen years after plaintiffs filed their original distinct court complaint—defendant seized upon the Court’s ruling in Tohono O’Odham by filing, for the first time, 6 a motion to dismiss on the ground that § 1500 deprives this court of subject matter jurisdiction. Defendant alleges that plaintiffs’ Court of Federal Claims and district court complaints are based on the same operative facts and that § 1500 accordingly precludes the court from hearing this case, notwithstanding the fact that plaintiffs cannot possibly obtain complete relief in any one court.

For the reasons set forth below, the court agrees that § 1500 applies. Despite the anachronistic nature of the statute and the harsh outcome for plaintiffs, because of § 1500 the court has no choice but to GRANT defendant’s motion to dismiss.

I. Background 7

Plaintiffs Resource Investments, Inc. and Land Recovery, Inc. 8 are in the lucrative but heavily regulated business of municipal solid waste management. In 1987, plaintiffs purchased a 320-acre site in Pierce County, Washington, for the purpose of constructing a 168-acre solid waste landfill. Pis.’ Dist. Ct. Compl. at 1; Def.’s Mot. Dismiss at 24, ECF No. 234. 9 Plaintiffs applied for the necessary permits in 1990, including one permit they did not actually need from the U.S. Army Corps of Engineers (“Corps”) under § 404 (“section 404 permit”) of the Clean Water Act (“CWA”), 33 U.S.C. § 1344, to fill approximately 33.3 acres of wetlands on the site. Pis.’ Dist. Ct. Compl. at 1; see Res. Investments, Inc. v. United States, 85 Fed.Cl. 447, 460-63 (2009) (discussing plaintiffs’ dispute with the Corps). In 1993, three years after plaintiffs applied for their section 404 permit, the Corps decided that plaintiffs must consider “long hauling ... solid waste to out-of-county disposal sites as an ‘action’ alternative to the [landfill] project, despite the fact that such alternative was not available to [plaintiffs] and was not legally permissible due to binding provisions of the Taeoma-Pierce County Solid Waste Management Plan.” Pis.’ Dist. Ct. Compl. at 5. After several years of administrative wrangling, the Corps ultimately denied plaintiffs’ permit application on September 30,1996. Id.

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Bluebook (online)
114 Fed. Cl. 639, 2014 U.S. Claims LEXIS 60, 2014 WL 465132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resource-investments-inc-and-land-recovery-inc-v-united-states-uscfc-2014.