San Carlos Irrigation & Drainage District v. United States

23 Cl. Ct. 276, 1991 U.S. Claims LEXIS 209, 1991 WL 93583
CourtUnited States Court of Claims
DecidedMay 31, 1991
DocketNo. 460-86L
StatusPublished
Cited by11 cases

This text of 23 Cl. Ct. 276 (San Carlos Irrigation & Drainage District 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
San Carlos Irrigation & Drainage District v. United States, 23 Cl. Ct. 276, 1991 U.S. Claims LEXIS 209, 1991 WL 93583 (cc 1991).

Opinion

OPINION

MARGOLIS, Judge.

This case comes before the court on the defendant’s renewed motion for summary judgment and the plaintiff’s cross-motion for summary judgment on liability. After a careful review of the record, and after hearing oral argument, this court denies the defendant’s renewed motion for summary judgment and grants the plaintiff’s cross-motion for summary judgment on liability.

FACTS

Detailed accounts of the facts appear in earlier opinions of this court, San Carlos Irrigation & Drainage District v. United States, 15 Cl.Ct. 197, 198-201 (1988), and of the United States Court of Appeals for the Federal Circuit, San Carlos Irrigation & Drainage District v. United States, 877 F.2d 957, 958-59 (Fed.Cir.1989). A brief summary of facts relevant to the issues raised by the parties’ cross-motions follows.

Congress enacted the San Carlos Act, ch. 288, 43 Stat. 475 (1924) (“Act”), creating the San Carlos Irrigation Project (“Project”) and authorizing the construction of the Coolidge Dam (“Dam”) across the Gila River. The Act provided that irrigable water collected behind the Dam would be distributed to Project lands, half of which are on the Gila River Indian Reservation and half of which are public and private lands. The Act directed the United States to enter into a contract (“Repayment Contract”) with an irrigation district representing private non-Indian owners of Project lands. 43 Stat. at 476.

Congress authorized the development of hydroelectric power generation facilities at Coolidge Dam and allowed the Secretary of the Interior (“Secretary”) to sell surplus power generated there. Act of March 7, 1928, ch. 137, 45 Stat. 200, 210-11. On July 16, 1928, private non-Indian landowners organized the San Carlos Irrigation and Drainage District (“District”), the plaintiff in this case, to represent them in dealings with the defendant, the United States.

On June 8, 1931, the District and the United States entered into the Repayment Contract. It defined the Project Works as including, inter alia, the Coolidge Dam, the San Carlos Reservoir, and everything pertaining thereto, including the power plant and electrical transmission lines. The United States agreed to continue to maintain the Project Works and the District agreed to pay annually to the United States, in addition to all operating and maintenance costs, five percent of the construction cost of the project plus interest. Subsequently, the Secretary executed a Joint Works Order defining the Joint Works to include the Coolidge Dam, San Carlos Reservoir and electrical power generating, transmission and distribution system, and continuing the government’s responsibility of operating and maintaining those structures. The United States promised that it would continue to operate and maintain the Joint Works “in the best possible manner so as to promote efficiency and economy in the use of water and conserve the Project water supply.” The United States, through the Bureau of Indian Affairs (“BIA”), retained exclusive control and management of the Project and Joint Works’ operation and maintenance.

On October 1,1983, a storm caused large inflows of water into the San Carlos Reservoir. On October 4, the reservoir began to spill over the spillway crest and down the [278]*278spillways.1 Considering the size of the spillways, the spill was a minor one.2 Yet the gates in the spillway were inoperable and there was no way to control or stop the spill.3 On October 6, the cylinder gates that allow water to enter the penstocks4 were closed. Also on October 6, the switchyard began to settle, causing the soil to cave in and resulting in damage to electrical equipment in the switchyard. The Dam was shut down and evacuated, leaving no way to generate electrical power or store water.

On July 28, 1986, the District filed suit for breach of its contracts and agreements with the United States. On July 28, 1988, this court granted the defendant’s motion for summary judgment on the ground that the plaintiff did not state a claim for which relief may be granted. San Carlos, 15 Cl.Ct. at 204. The United States Court of Appeals for the Federal Circuit reversed, interpreting the Repayment Contract to require the government “to keep the entire Joint Works, including the spillways and electrical generation system, in a state of repair and to safeguard against their failure.” San Carlos, 877 F.2d at 960. The court further stated that “[i]f the District can prove that the government has breached its duty to maintain the Joint Works, including the spillways and the electrical generation system, general damages may be recovered.” Id. (citations omitted). It also declared that “[t]he District may be able to recover consequential damages if it can prove that they were foreseeable at the time of contract formation.” Id. (citing Prudential Insurance Co. v. United States, 801 F.2d 1295, 1300 (Fed.Cir.1986)).

The issue now before this court on cross-motions for summary judgment is whether the United States breached its contractual duty to operate and maintain the Joint Works. The United States asserts that it is entitled to summary judgment because the District’s action is barred by the statute of limitations, precluded by the equitable doctrines of laches and estoppel, and precluded by the Repayment Contract’s funds available clause. Because there are no genuine issues of material fact in dispute, the United States claims it is entitled to summary judgment as a matter of law. The District disavows the statute of limitations, laches and estoppel and funds available clause arguments, and asserts that there are no genuine issues of material fact, and that the District is entitled to summary judgment as a matter of law.

DISCUSSION

Statute of Limitations

The Claims Court’s statute of limitations provides that every claim is time-barred “unless the petition thereon is filed within six years after such claim accrues.” 28 U.S.C. § 2501 (1988). This is a jurisdictional requirement and hence is strictly construed. Collins v. United States, 14 Cl.Ct. 746, 751, aff'd, 865 F.2d 269 (Fed.Cir. 1988), cert. denied, 492 U.S. 909, 109 S.Ct. 3222, 106 L.Ed.2d 572 (1989). “A claim first accrues when all the events have occurred which fix the alleged liability of the United States and entitle the claimant to institute an action.” E.g., Japanese War Notes Claimants Association v. United States, 178 Ct.Cl. 630, 632, 373 F.2d 356, 358, cert. denied, 389 U.S. 971, 88 S.Ct. 466, 19 L.Ed.2d 461 (1967).

The United States contends that the District’s claims based upon the improper [279]*279maintenance of the spillway gates are time-barred.

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Bluebook (online)
23 Cl. Ct. 276, 1991 U.S. Claims LEXIS 209, 1991 WL 93583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/san-carlos-irrigation-drainage-district-v-united-states-cc-1991.