Resource Investments v. United States

CourtUnited States Court of Federal Claims
DecidedFebruary 5, 2014
Docket1:98-cv-00419
StatusPublished

This text of Resource Investments v. United States (Resource Investments 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.

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Resource Investments v. United States, (uscfc 2014).

Opinion

United States Court of Federal Claims No. 98-419 L February 5, 2014 _______________________________________

RESOURCE INVESTMENTS, INC. and LAND RECOVERY, INC., Fifth Amendment Takings; Plaintiffs, 28 U.S.C. § 1500; RCFC 12(b)(1), Subject Matter v. Jurisdiction

THE UNITED STATES OF AMERICA,

Defendant. _______________________________________

Daniel D. Syrdal, Orrick, Herrington & Sutcliffe, LLP, Seattle, WA, for plaintiffs.

Frank J. Singer, Environment & Natural Resources Division, Natural Resources Section, United States Department of Justice, Washington, DC, for defendant.

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, 131 S. Ct. 1723, 1731 (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 . . . .”

1 For instance, the Court of Federal Claims issued only 8 published § 1500 opinions in 2008, only 5 in 2009, and only 6 in 2010. In contrast, between June and December 2011—i.e., the months following the publication of Tohono O’Odham in April 2011—the Court of Federal claims issued 18 published § 1500 opinions. See also Klamath Irrigation Dist. v. United States, 1- 5910L, 2013 WL 6139925 (Fed. Cl. Nov. 22, 2013), at *1 (“[I]n recent years, [§ 1500] has experienced a risorgimeneto, triggered by the Supreme Court’s decision in . . . Tohono O’Odham”). 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 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/recommendation/reform-28-usc-section-1500, 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

2 Congress imposes these jurisdictional limits to safeguard its sovereign immunity and to promote uniformity. See, e.g., Emery Worldwide Airlines, Inc. v. United States, 264 F.3d 1071, 1079 (Fed. Cir. 2001) (observing that Congress limited jurisdiction over “procurement protest jurisdiction to the Court of Federal Claims” in order to “prevent forum shopping and to promote uniformity in government procurement award law”). See also Gregory C. Sisk, The Jurisdiction of the Court of Federal Claims and Forum Shopping in Money Claims Against the Federal Government, 88 IND. WASH. L. J. 83 (2013). 3 Klamath Irrigation Dist. v. United States, 01-591L, 2013 WL 6139925 (Fed. Cl. Nov. 22, 2013), at *1; Low v. United States, 90 Fed. Cl. 447, 455 (2009). A prospective plaintiff with multiple claims must be careful to file suit in the correct order. For instance, this court has ruled on several occasions that the plain language of § 1500 does allow plaintiffs to escape its strictures by filing their Court of Federal Claims suit prior to filing their district court suit. See, e.g., Otoe-Missouria Tribe of Indians, Okla. v. United States, 105 Fed. Cl. 136, 139 (2012) (“The plain meaning of pending in court is that there is some action going on in the court. All of the dictionary references refer to something ongoing . . .”). See also United Keetoowah Band of Cherokee Indians in Oklahoma v. United States, 104 Fed. Cl. 180, 185 (2012); Nez Perce Tribe v. United States, 101 Fed. Cl. 139, 142 (2011). However, this court is divided on the treatment of same day filings. See Passamaquoddy Tribe v. United States, 82 Fed. Cl. 256, 268 (2008) aff'd, 426 F. App'x 916 (Fed. Cir. 2011) (holding that “same-day filings in a district court are per se pending for the purposes of § 1500, and the order of filing of the two complaints on the day in question is of no consequence”); c.f. United Keetowah Band, 86 Fed. Cl. at 190 (holding that the order of filing does apply to same-day filings). 4 Since prospective plaintiffs may not sue in multiple courts on the basis of the same operative facts, they must first identify “whether the government’s conduct is best characterized as a tort, a breach of contract, a taking, a violation of statute, or some combination of these. No single court has jurisdiction over all these kinds of claims against the government, so the plaintiff cannot combine the claims into a single lawsuit.” Emily S. Bremer & Jonathan R. Siegel, Clearing the Path to Justice: The Need to Reform 28 U.S.C. § 1500, 65 ALA. L. REV. 1, 5 (2013). If the plaintiff errs, the plaintiff must request that the case be transferred and hope that the applicable statute of limitations has not run. -2- and local permits and four quasi federal-state permits. Pls.’ Dist. Ct. Compl. at 1. However, after considering 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 v. Tohono O’Odham Nation, 131 S. Ct. 1723, 1731 (2011).

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