Scott Timber Co. v. United States

44 Fed. Cl. 170, 1999 U.S. Claims LEXIS 121, 1999 WL 357471
CourtUnited States Court of Federal Claims
DecidedJune 3, 1999
DocketNos. 94-784C, 96-204C
StatusPublished
Cited by12 cases

This text of 44 Fed. Cl. 170 (Scott Timber Co. 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
Scott Timber Co. v. United States, 44 Fed. Cl. 170, 1999 U.S. Claims LEXIS 121, 1999 WL 357471 (uscfc 1999).

Opinion

OPINION

MARGOLIS, Judge.

These consolidated cases are before the court on defendant’s motion for reconsideration of the court’s March 12, 1998 opinion denying defendant’s cross-motion for summary judgment in case 94-784C, see Scott Timber Co. v. United States, 40 Fed.Cl. 492 (1998), and on plaintiffs motions for leave to amend its complaints to add takings claims under the Fifth Amendment in cases 94-784C and 96-204C.

With regard to defendant’s motion for reconsideration, defendant contends that the court erred in holding that a genuine issue of material fact existed as to whether the Forest Service’s suspension of plaintiffs timber contracts was unreasonable because the Forest Service failed to design the timber sales with adequate protections for the marbled murrelet. According to defendant, Section 318 of the Department of Interior and Related Agencies Appropriations Act of 1990, Pub.L. No. 101-121, Tit. III, 103 Stat. 745 (1989) (“Section 318” or the “Northwest Timber Compromise”) applied to the timber contracts and relieved the Forest Service of any statutory duty to design the sales with protections for the marbled murrelet. Defendant further contends that the circumstances surrounding the sales demonstrate that clause C6.25 was not intended to create a separate contractual duty to design the sales with protections for the marbled murrelet or to warrant that the sales were designed based on all the information then available.

After careful consideration of the record, and after hearing oral argument, the court, upon reconsideration, agrees with defendant that Section 318 applied to the timber sales at issue and relieved defendant of its statutory duty to protect the marbled murrelet when designing the timber sales. Moreover, the circumstances surrounding these sales do not evidence a separate contractual undertaking to design the sales with protections for the marbled murrelet or an implied warranty that the Forest Service had designed that sales with all information then- available. Under Section 318 and the relevant provisions of the timber contracts, defendant acted reasonably in exercising its authority to suspend Scott Timber’s contracts. Defendant’s motion for reconsideration is therefore granted.

[172]*172With regard to plaintiffs motions for leave to amend, defendant opposes plaintiffs proposed amendments on the grounds that defendant would be prejudiced by the amendments due to plaintiffs delay in bringing the motions and because the proposed takings claims are futile. After careful consideration of the parties’ briefs, the court grants plaintiffs motions to amend because they are necessary to serve the interests of justice.

BACKGROUND

Case 94-784C concerns 11 separate contracts that were made between plaintiff, Scott Timber Company (“Scott Timber”), and defendant, the United States, acting through the United States Department of Agriculture, United States Forest Service (“Forest Service”), for the sale and harvest of timber in the Siskiyou and Siuslaw National Forests in Oregon.1 The sales at issue in this case were specifically authorized by Section 318 of the Department of the Interior Appropriations Act of 1990, which mandated that “[t]he Forest Service shall offer ... an aggregate timber sale level of seven billion seven hundred million board feet of net merchantable timber from the national forests of Oregon and Washington for fiscal years 1989 and 1990.” § 318(a)(1).

After conducting environmental analyses of the Section 318 sales at issue in this case, the Forest Service issued “Findings of No Significant Impact” (“FONSIs”) for each of the sale areas. Subsequently, the Forest Service solicited competitive bids for the sales between February 21, 1990 and September 10,1990. Scott Timber was the high bidder on 11 sales, which were awarded to Scott Timber between April 1990 and October 1990.

Despite the Forest Service’s award of the contracts and approval of Scott Timber’s, operating plans, the Forest Service suspended Scott Timber’s performance under all of the contracts on or about September 17, 1992, before Scott Timber began harvesting timber in earnest. The decision to suspend Scott Timber’s operations was prompted by concerns over the protection of a small, robin-like bird known as the “marbled murrelet” (Brachyramphus marmoratus). More specifically, the Forest Service’s decision was prompted by a Temporary Restraining Order (“TRO”), issued by Judge Barbara Rothstein of the United States District Court for the Western District, of Washington, that prohibited the logging of any marbled murrelet habitat on the Siskiyou and Siuslaw National Forests. Marbled Murrelet v. Lujan, No. C91-522R (W.D.Wash. September 16, 1992).

Concerns about the protection of the marbled murrelet and its habitat had been raised several years prior to the district court’s issuance of the TRO and the Forest Service’s resulting decision to suspend plaintiffs contracts. In early 1988, the National Audubon Society and 32 of its chapters in Washington, Oregon, and California filed a petition with the United States Fish and Wildlife Service (“FWS”) requesting that FWS list the murrelet as a “threatened species.” On October 17, 1988, FWS accepted the Audubon Society’s petition, and stated that “the petition presented substantial information indicating that [listing the murrelet as a threatened species] may be warranted.” 53 Fed.Reg. 40,479 (Oct. 17, 1988). FWS invited public comments on the possible listing of the murrelet until December 1,1988.

On January 6, 1989, FWS issued a revised notice identifying the marbled murrelet as a Category 2 taxa, that is, a taxa for which information then in the possession of FWS indicated that “proposing to list as endangered or threatened is possibly appropriate.” 54 Fed.Reg. 554 (Jan. 6,1989). The January 6 notice also “encourage[d] Federal agencies and other appropriate parties to take these taxa into account in environmental planning.” Id. By March 1989, the Forest Service had identified the marbled murrelet as a “sensitive species” in Region 6, an area that includes the states of Oregon and Washington. Other federal and state agencies, including [173]*173the United States Bureau of Land Management, the Washington Department of Wildlife, and the Oregon Department of Fish and Wildlife, had also listed the murrelet as a sensitive species. In addition, the California Department of Fish and Game had listed the murrelet as a “species of special concern.”

Despite these actions, by April 1991 FWS had still not acted upon the Audubon Society’s January 12, 1988 petition to list the marbled murrelet as a threatened species. Therefore, on April 17,1991, several chapters of the Audubon Society filed suit against FWS in the United States District Court for the Western District of Washington, seeking to compel FWS to make a final decision whether or not to list the murrelet. Marbled Murrelet v. Lujan, No. C91-522 (W.D. Wash, filed April 17, 1991) (“murrelet listing suit”). Following the institution of the murrelet listing suit, FWS published a notice in the Federal Register proposing to list the marbled murrelet as a threatened species. 56 Fed. Reg. 28,362 (June 20, 1991). On July 29, 1992, FWS issued another notice in the Federal Register extending the deadline for making a final determination on the proposal to add the murrelet to the list of threatened species until December 20, 1992. 57 Fed. Reg. 33,478 (July 29,1992).

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Bluebook (online)
44 Fed. Cl. 170, 1999 U.S. Claims LEXIS 121, 1999 WL 357471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-timber-co-v-united-states-uscfc-1999.