Reunion, Inc. v. United States

90 Fed. Cl. 576, 2009 U.S. Claims LEXIS 694, 2009 WL 4800045
CourtUnited States Court of Federal Claims
DecidedDecember 10, 2009
DocketNo. 09-280L
StatusPublished
Cited by11 cases

This text of 90 Fed. Cl. 576 (Reunion, 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
Reunion, Inc. v. United States, 90 Fed. Cl. 576, 2009 U.S. Claims LEXIS 694, 2009 WL 4800045 (uscfc 2009).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This action concerns a 72-acre parcel of land in Madison County, Mississippi, near Jackson, Mississippi, that has been leased by the Federal Aviation Administration (“FAA”) for use as a Very High Frequency Omni-range Radar Tactical Air Navigation (“VOR-TAC”) facility. Compl. ¶ 5. Plaintiffs, Reunion, Inc., Cypress Brake Properties, L.P., and Annandale Investors, L.P. (collectively “Reunion”), claim that the United States has [578]*578continued to occupy their property after the expiration of the lease without compensation in contravention of the Takings Clause of the Fifth Amendment. Compl. ¶¶ 21-22, 25. Reunion also asserts a contractual theory for recovery of damages, alleging that when the government refused to vacate plaintiffs’ property upon expiration of the lease, it breached its contractual obligations respecting occupation of their property. Compl. ¶27. Reunion additionally avers that the FAA has violated its own regulations by failing to vacate plaintiffs’ property upon expiration of the lease. Compl. ¶ 26. The government has answered Reunion’s complaint, admitting “a temporary physical taking of a leasehold interest in the VORTAC property” but asserting the affirmative defenses of lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted. Answer to Compl. and Affirmative Defenses at 2, 7 (“Answer”). Reunion has moved to strike those defenses as “insufficient” under Rule 12(f) of the Rules of the Court of Federal Claims (“RCFC”), Pis.’ Mot. to Strike Insufficient Defenses at 1 (“Pis.’ Mot.”), and the government has responded with an opposition to that motion. See Def.’s Resp. in Opp’n to Pis.’ Mot. to Strike Insufficient Defenses (“Def.’s Opp’n”).

Despite its opposition to Reunion’s motion, the government continues to concede that a taking has occurred and advises that “[t]he FAA will file a condemnation action in the district court by December 31, 2009.” Joint Prelim. Status Report at 4. The government acknowledges that any future filing of a Declaration of Taking in the United States District Court for the Southern District of Mississippi would not moot this action because such a Declaration would have effect only prospectively. See id,.1 This action would remain viable for the period of the government’s occupancy after the lease expired and before the Declaration of Taking was filed. Given its concession that a temporary taking has occurred, the government urges that future “proceedings [in this court] should be limited to determining just compensation for the period between the end of the lease and the filing of the condemnation action.” Id.2 In this respect, the parties have failed to reach an agreement on a plan for future proceedings in this case, and the court necessarily must address the resulting case-management issues in connection with action on Reunion’s motion to strike.

FACTS3

On December 17, 1996, the United States, acting through the FAA, and plaintiffs’ predecessors in title entered into a lease by the United States of a parcel of land located in Madison County, Mississippi for the maintenance of a VORTAC facility for the guidance of aircraft. See Lease.4 The facility had been in existence for “some years” prior to the Lease. Compl. ¶ 5.5 The Lease covered approximately five acres, which “together with developmental restrictions and covenants covering all lands located within a one[-]thousand[-]foot radius of the facility,” constrained a total of approximately seventy-two acres. Id.; see Lease ¶¶ 1, 4, and Attach. “A” (Legal Description). The FAA [579]*579was also granted an easement for ingress and egress. See Lease, Attach. “A.” The Lease specified a term beginning October 1, 1996 and expiring September 30, 2008. Lease ¶ 2. Notably, the Lease as executed contained a “Holdover” provision that was struck out and initialed by the parties, indicating that the parties intentionally elided any holdover clause from the lease. See Lease ¶ 9. Although the Lease was amended on December 18, 2000, and again on January 3, 2005, the lease term was not changed by these amendments. See Lease Amend. 1; Lease Amend. 2.

At the time the FAA first began leasing the VORTAC property for the operation of the facility, the property and surrounding areas were rural pasture land. Compl. ¶ 7. However, since that time, development has increased in southern Madison County, and in 2001, plaintiffs or their predecessors began developing “Reunion,” a large, two-thousand-acre master-planned community, said to be “the largest and most successful community of its kind in the State of Mississippi.” Id. The facility is located within the Reunion development and, according to Reunion, is “directly in the path of the immediate development plan.” Id. Reunion avers that as early as 2001, it told the FAA of its plans to develop the property covered by the Lease after the Lease expired on September 30, 2008 and “spent their own money in 2001 to have Airspace Safety Analysis Corporation, a Boeing Subsidiary, study the feasibility of relocating [the facility].” Compl. ¶ 9. The study, which has not been submitted in this case, reportedly produced four relocation options, which Reunion discussed with the FAA during the period from May through July of 2001. Id.

On September 20, 2005, Reunion sent a letter to Wayne Simmons, FAA’s Southern Regional Real Estate Contracting Officer, reminding FAA that the Lease would expire on September 30, 2008 and that Reunion planned to develop the property surrounding the facility upon expiration of the Lease and accordingly did not intend to renew or extend the Lease beyond the term ending September 30, 2008. Compl. ¶ 10. Mr. Simmons responded by letter, dated May 4, 2006, in which he expressed a desire to negotiate a renewal lease or purchase of the property. Compl. ¶ 11. Mr. Simmons reportedly stated that the government had a continuing need for the facility and that “failing a negotiated resolution, the FAA would ‘convert’ the property to government ownership.” Id. With regard to relocation, Mr. Simmons represented that relocating the facility would cost the government $2.5 million. Id. Reunion responded by letter dated October 13, 2006, advising the FAA that they believed the property was worth more than that amount and urging the government to pursue relocation before the Lease expired on September 30, 2008. Compl. ¶ 12.

A series of further communications and meetings between Reunion and FAA officials concerning the expiration of the Lease followed. In October of 2006, Alan Bradley of the FAA met with plaintiffs at the facility. Compl. ¶ 13; Answer ¶ 13. Thereafter, on November 3, 2006, Mr. Simmons contacted Reunion and requested that they provide the government with an estimate of the property’s current value, together with any supporting documentation. Compl. ¶ 13; Answer ¶ 13. The FAA offered to meet with Reunion for further discussions concerning the Lease during the month of November 2006. Compl. ¶ 14; Answer ¶ 14. Reunion avers that it received a further communication from the FAA on November 9, 2006, indicating that the FAA was “in the process of ‘review and evaluation’ of this matter and expected to achieve a plan for resolution within thirty (30) days.” Id. On March 29, 2007, Reunion met with Mr. Bradley and Mr. Simmons at the facility. Compl. ¶ 15; Answer ¶ 15. Plaintiffs allege that Mr.

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Bluebook (online)
90 Fed. Cl. 576, 2009 U.S. Claims LEXIS 694, 2009 WL 4800045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reunion-inc-v-united-states-uscfc-2009.