United States v. F.E.B. Corp.

Court of Appeals for the Eleventh Circuit·Decided November 5, 2025·No. 24-12383·Unpublished

Opinion

NOT FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 24-12383

Non-Argument Calendar

UNITED STATES OF AMERICA, Plaintiff-Counter Defendant-Appellee, versus

F.E.B. CORP., a Florida Corporation,

Defendant-Counter Claimant-Appellant.

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 4:18-cv-10203-JEM

Before ROSENBAUM, NEWSOM, and ABUDU, Circuit Judges. PER CURIAM:

This case is about ownership of Wisteria Island, a small island just off the coast of Key West, Florida, which was created by

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dredging operations by the United States in the 1920s and 1940s. The United States brought this action to quiet title to Wisteria Island against F.E.B. Corp., which traces its ownership of the island to a quitclaim deed Florida issued in 1952.

In a prior appeal, we held that the question of ownership came down to “whether the United States had an intended use for Wisteria Island when the United States created it.” United States v. F.E.B. Corp. (“FEB II”), 52 F.4th 916, 927 (11th Cir. 2022). And we remanded for trial, because there was a “genuine dispute of fact about whether the United States created Wisteria Island for its own use or whether Wisteria Island’s creation was an accident.” Id. at 931. After a bench trial on remand, the district court found that the United States created Wisteria Island for its own uses, including as a natural protective feature, a site for potential improvements, and a place for future dredge-spoil deposits. The court therefore quieted title for the United States.

On appeal, F.E.B. contends that the district court’s “intent”

findings lack support in the record, and that Wisteria Island was created without a specific intention or purpose beyond “just disposing of dredge spoils.” But because the district court’s factual findings are plausible and supported by the record, we affirm.

I.

Wisteria Island is located on what used to be shoals—or shallow areas in water that are hazardous to navigation—less than a mile off the coast of Key West. The location was at the southern

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end of shoals known as the Frankford (or Frankfort) Bank, which formed a natural barrier to the west of the harbor. A. Creation of Wisteria Island Around the time Florida became a state, the United States reserved the “shoals” of Key West for “military purposes” in connection with the development of a naval depot. Correspondence sent in 1908 by Commandant William H. Beehler, at the naval station in Key West, explains that the Navy regarded Frankford Bank as “a part of the Naval Reservation at Key West” for the naval depot , and that “there is a definite claim by the Navy to Frankford Bank.” Commandant Beehler also wrote that Frankford Bank was important to naval operations since it formed a natural barrier protecting the harbor, and that the Navy “had contemplated erecting a coal shed” there.

In 1916, during World War I, Beehler’s successor at Naval Station Key West, Commandant Warren Terhune, reported to a Navy commission that the advantages of Key West arose from its strategic location at the nation’s southernmost continental limits, as well as the Navy’s “ownership of . . . Frankford Bank, and other partially submerged [keys] and shoals capable of development.” Terhune suggested development possibilities, which included “reclaiming of land by filling, for the purpose of erecting a magazine on Frankford Bank” for “explosive stowage.” In other words, according to Terhune, Frankford Bank, where Wisteria Island now sits, “should be enlarged by fill and utilized.” Terhune also proposed “the erection of a breakwater to afford a harbor of refuge at

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the naval station.” The following year, in 1917, Commandant Terhune signed blueprints for the development of a submarine base at Key West, which included plans for “secure and safe wharfage” at the southern end of Frankford Bank.

In 1917, the Navy commission issued a report which noted that station authorities in Key West “agreed that it will be necessary to fill in over present shoal waters at Frankford Bank or Fleming Key, or both.” Commenting on the plans for development, the report said that certain proposed breakwaters could be rendered unnecessary “by a slight filling in on Frankford Bank.”

In the early 1920s, the United States began a dredging project to deepen the harbor and channels at Key West. The project was undertaken by the Army Corps of Engineers on behalf of the Navy. Dredging refers to excavating sediment from bodies of water . The material removed during this process is referred to as “spoils” or “spoilage.”

In or around 1923, the Army Corps deposited dredged spoils onto the southern part of Frankford Bank, creating a “spoil bank” or island in the rough shape of a kidney bean or crescent. The area of land above sea level was approximately 2.95 acres. According to Professor Charlie Hailey, an expert who literally wrote the book on Wisteria Island 1, the shape of the island reflected that the outer

1 Charlie Hailey, Spoil Island: Reading the Makeshift Archipelago (2013). Spoil Island is about the construction and use of spoil islands, and it includes a chapter on Wisteria Island.

24-12383 Opinion of the Court 5

edge (fronting the harbor) was created first, and then filled in behind . This process, the professor testified, reflected an intent to create a place for future placement of spoil.

In 1924, after the dredging project was complete, the Florida Trustees of Internal Improvement Fund published a notice that it intended to sell the island. After the Navy objected that the island belonged to the United States, and therefore was not Florida’s to sell, the state withdrew the notice and did not move forward with the sale.

In response to Florida’s proposed sale, the Navy took steps to protect its interests in Frankford Bank and the spoil island. In a letter dated May 17, 1924, the Navy’s Chief of the Bureau of Yards and Docks requested the reservation of the spoil island “for possible Navy use.” He explained that, in the Navy commission’s development plans for the harbor, “Frankford Bank formed the principal protection from wave action from the westward, and [the plans] contemplated the enlarging of Frankford Bank by depositing the dredged material from the harbor along the edge of the bank.” The following week, the Chief of Naval Operations made the same recommendation to the Judge Advocate General, citing the “possible future development of Key West as a naval base of much larger proportions and of the desirability of ownership of Frankford Bank to form a breakwater” for the harbor.

Then, in August 1924, Secretary of the Navy Curtis Wilbur sent a formal request for entry of an executive order reserving the shoals and keys around Key West, including Frankford Bank, for

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naval purposes. He wrote that private development on Frankford Bank might be a source of strain with the Navy, and that “[i]f in the future Key West defenses are to be modernized this area would be of great value in connection with outer defense works.” On August 11, 1924, President Coolidge issued an executive order reserving the shoals and keys in the vicinity of Key West, including Frankford Bank, for naval purposes.

In 1928, the Navy issued a revocable license to a private company to use Frankford Bank and the spoil bank in connection with the shark-fishing industry. The license described Frankford Bank as “[g]overnment property,” under the jurisdiction of the Navy, which was “not in use at the present time.”

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