Schooner Harbor Ventures, Inc. v. United States

92 Fed. Cl. 373, 2010 U.S. Claims LEXIS 217, 2010 WL 1752189
CourtUnited States Court of Federal Claims
DecidedApril 10, 2010
DocketNo. 06-87L
StatusPublished
Cited by4 cases

This text of 92 Fed. Cl. 373 (Schooner Harbor Ventures, 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
Schooner Harbor Ventures, Inc. v. United States, 92 Fed. Cl. 373, 2010 U.S. Claims LEXIS 217, 2010 WL 1752189 (uscfc 2010).

Opinion

OPINION

HORN, Judge.

FINDINGS OF FACT

This is a takings case pursuant to the Fifth Anendment to the United States Constitution. The background and facts of the case are more fully reflected in the opinion on summary judgment issued by this court in Schooner Harbor Ventures, Inc. v. United States, 81 Fed.Cl. 404, 404-407 (2008) and in the opinion issued by the United States Court of Appeals for the Federal Circuit on appeal, Schooner Harbor Ventures, Inc. v. United States, 569 F.3d 1359, 1360-61 (Fed.Cir.2009). The findings of fact of both are incorporated into this opinion. On remand, in a motion to dismiss the complaint, defendant argues that plaintiffs takings claim is not ripe for adjudication. The relevant facts, briefly reiterated below, focus exclusively on the ripeness issue raised by defendant’s motion to dismiss.

The Mississippi Sandhill Crane was designated an endangered species1 in 1973. In 1975, the United States Department of the Interior, Fish and Wildlife Service (FWS) acquired acreage to establish the Mississippi Sandhill Crane National Wildlife Refuge (Refuge), in Jackson County, Mississippi, with subsequent acreage added. In 1977, the FWS established a critical habitat for the Mississippi Sandhill Crane, which also included land outside of the Refuge. In 1998, Schooner Harbor entered into an option contract to purchase 82 acres of property in Jackson County, Mississippi. The 82 acres are within the designated critical habitat of [375]*375the Mississippi Sandhill Crane, and also are adjacent to the Refuge. On January 6, 2000, Schooner Harbor exercised its option to purchase the property, and paid $963,802.51 for the property. In July and August 2000, in three different transactions, plaintiff sold three parcels of about 7.36 acres of its 82 acre parcel, leaving the 74.64 acres at issue in this case. Plaintiffs total sales proceeds for the three parcels amounted to $430,000.00. Schooner Harbor never applied for an incidental take permit pursuant to Section 10 of the Endangered Species Act of 1973, as amended, 16 U.S.C. § 1539 (2000). In addition, neither prior to acquiring the property, nor prior to learning of the Navy’s interest in its property, did Schooner Harbor ever inquire of the Fish and Wildlife Service whether development of the property would have an impact on the Mississippi Sandhill Crane, or any endangered species.

From late 2000 through March 2001, the Navy began searching for property in Jackson County, Mississippi suitable to build 188 units of housing for Navy personnel and their families assigned to the Naval Station at Pascagoula. The Navy became interested in Schooner Harbor’s property, which was identified as Site 28. Pursuant to the National Environmental Policy Act of 1969, 42 U.S.C. §§ 4321-4347 (2000), the Navy communicated with the FWS concerning the proposed development of Site 28 for military family housing. The FWS informed the Navy that if Site 28 were to be developed into military family housing, due to the resulting loss of critical habitat for the Mississippi Sandhill Crane, fences and replacement wildlife habitat would be required. In a letter to the Navy, dated July 9, 2001, Schooner Harbor indicated that it had met with the FWS and was exploring parcels of land potentially suitable for habitat replacement. In a letter dated August 20, 2001, the Navy requested a formal Section 7, Endangered Species Act consultation from the FWS, with respect to the development of military family housing at Site 28. See 16 U.S.C. § 1536(a)(2) (2000). On September 20, 2001, the FWS confirmed to the Navy that the formal consultation process had been initiated. On February 12, 2002, the FWS issued its Biological Opinion, which addressed the impact of the Navy’s proposed development on Site 28 and the requirement for replacement wildlife habitat if Site 28 were to be developed for military family housing. On April 17, 2002, the Navy contracted with Schooner Harbor to purchase Site 28 for $1,900,000.00. The contract provided as a condition of sale that Schooner Harbor would transfer replacement wildlife habitat to the FWS. For this purpose, Schooner Harbor purchased 77 acres of property for $300,000.002 from a third party and transferred that property to the FWS on May 3, 2002. Site 28 also was transferred to the Navy on May 3, 2002, and subsequently was developed by the Navy into military family housing.

PRIOR PROCEEDINGS

At the trial level, defendant argued that plaintiff did not possess a compensable, protected property right under takings law. The trial court agreed and granted summary judgment to the defendant. Schooner Harbor Ventures, Inc. v. United States, 81 Fed.Cl. at 415 (“For the foregoing reasons, the court finds that the plaintiff has not established it possessed a compensable property interest which could have been taken by the government.”). The trial court opinion stated:

The court does not disagree with the plaintiffs assertion that as a fee simple owner of the property, “[pjlaintiff had the right to [376]*376sell and develop the Property.” The court also does not dispute the plaintiffs assertion that “[tjhese development rights were an integral part of the Property’s title and value.” The plaintiffs argument fails in that the plaintiff is asserting that it had the right to sell its property to the government, without conditions imposed, in this instance to meet regulatory burdens imposed on the Navy, by obtaining the mitigation parcel. Whereas, the right to alienate the property is a cognizable property interest, the right to sell the property to the government at a particular price and without conditions is not a cognizable property interest which is protected by the Fifth Amendment.
The plaintiffs injury does not amount to a taking.... Plaintiff did not have an inherent right to sell its property to the government without valid regulatory derivative conditions imposed on the sale. The plaintiffs argument that it did not enjoy the right to alienate its property also is vulnerable because the plaintiff engaged in four separate sales of the adjacent property, despite the location of the property and, in fact, consummated the sale to the Navy of the property at issue.
The court recognizes that the plaintiffs expectations as to its financial gain with regards to selling the property may have been somewhat frustrated as a result of government regulation, in that the plaintiff may have realized less profit in its sale as a result of the requirement that the plaintiff purchase a mitigation parcel in order to consummate the sale. However, what occurred in this case is no different than any arms length, real estate transaction in which the buyer imposes conditions to finalize a sale.
In a commercial transaction, such as this one, the buyer has the right to negotiate the terms of the sale. At the time of the sale, the Navy was indisputably bound by Section 7 of the Endangered Species Act, 16 U.S.C. § 1536

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Bluebook (online)
92 Fed. Cl. 373, 2010 U.S. Claims LEXIS 217, 2010 WL 1752189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schooner-harbor-ventures-inc-v-united-states-uscfc-2010.