Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

Three property owners in Oregon alleged that the federal government committed a taking of their property rights under the Fifth Amendment when the Surface Transportation Board (STB) issued a Notice of Interim Trail Use or Abandonment (NITU) involving a railroad corridor that crossed their properties. The corridor, previously used for freight trains by the Port of Tillamook Bay Railroad (POTB), was also leased to the Oregon Coast Scenic Railroad (OCSR), which operated a scenic passenger-excursion service both before and after the NITU was issued. After severe storm damage in 2007, POTB ceased freight operations, but OCSR continued using the corridor under its lease, which extended at least until 2026.The United States Court of Federal Claims previously found that a taking had occurred due to the issuance of the NITU. The case then proceeded to a valuation phase to determine just compensation. The Court of Federal Claims ruled that the property owners did not meet their burden to prove that the NITU caused a reduction in the fair market value of their land. The court found that the “before” condition for valuation properly included OCSR’s ongoing operations, and that the property owners failed to show an actual market value loss resulting from the NITU and the new trail-use easement.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the Court of Federal Claims’ judgment. The Federal Circuit held that the “before” condition for compensation must reflect the ongoing encumbrance of the scenic railroad’s operations, as the lease and use by OCSR would have existed regardless of the NITU. The court also concluded that the property owners had not proven with reasonable certainty any diminution in market value attributable to the NITU or the trail easement, and thus were not entitled to compensation. The judgment was affirmed. View "LOVERIDGE v. US " on Justia Law

This case centers on a contractor’s claim for a Type I differing site condition relating to a flood control project in Jefferson Parish, Louisiana. The United States Army Corps of Engineers issued a solicitation for work on the Trapp Canal, which included boring logs and cross-sections of the canal but lacked specific information about the southwest bank. Hamp’s Construction LLC, after being awarded the contract, encountered unexpected bank failures in the southwest quadrant, resulting in unsafe conditions for land-based equipment and significant delays. Hamp’s Construction submitted a request for equitable adjustment and later a formal claim, asserting that the conditions encountered were materially different from those indicated in the contract documents.The contracting officer denied Hamp’s Construction’s request and subsequent claim, concluding there was insufficient proof of a differing site condition under the relevant Federal Acquisition Regulation clause. Hamp’s Construction appealed to the Armed Services Board of Contract Appeals. After a hearing, the Board found that although Hamp’s Construction had faced unforeseen difficulties and increased costs, the contract documents did not provide representations or indications about the subsurface conditions of the southwest bank. The Board emphasized the absence of boring logs or explicit information for the area where the failures occurred and denied the appeal.The United States Court of Appeals for the Federal Circuit reviewed the Board’s legal conclusions de novo and factual findings for substantial evidence. The court held that, for a Type I differing site condition claim, the contract must affirmatively indicate conditions at the disputed site. The court determined that Hamp’s Construction could not reasonably rely on contract documents as indications for the southwest bank. The court affirmed the Board’s decision, holding that Hamp’s Construction failed to establish a threshold element of a Type I differing site condition claim. View "HAMP'S CONSTRUCTION LLC v. SECRETARY OF THE ARMY" on Justia Law

This case concerns a group of landowners in Indiana who own property adjacent to former railroad corridors once operated by the Peru and Indianapolis Railroad Company (PIRC). The landowners asserted that they also hold fee simple title to the land underlying these corridors. They challenged the federal government's authorization of public recreational trail use on these corridors under the National Trails System Act Amendments of 1983, claiming that this action constituted a taking of their property without just compensation, in violation of the Fifth Amendment.The United States Court of Federal Claims reviewed the dispute. The main issue was whether PIRC’s interest in the rail corridors consisted merely of easements, rather than fee simple title. The Court of Federal Claims examined two sets of parcels: those associated with a 1907 Indiana Circuit Court quiet title judgment (the Manship Parcels) and those deriving from a lost 1849 instrument (the Vanlaningham Parcels). The Court of Federal Claims concluded that PIRC held only easements in both sets of parcels, meaning that when railroad operations ceased, full title reverted to the plaintiffs under Indiana law. Thus, the court found in favor of the landowners, holding that the government’s issuance of Notices of Interim Trail Use (NITUs) resulted in an uncompensated taking.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the grant of summary judgment de novo. The Federal Circuit affirmed the lower court’s judgment, holding that the record demonstrated PIRC’s interests were limited to easements for both the Manship and Vanlaningham Parcels. The court concluded that, under Indiana law and the facts presented, the plaintiffs hold fee simple title to the corridor land, and the government’s actions constituted a taking for which just compensation is required. The judgment of the Court of Federal Claims was therefore affirmed. View "PRESSLY v. US " on Justia Law

The appellants, including trustees of several trusts and Hall Atlas, LLC, held coal mining rights to the Hall Ranch in Wyoming, containing significant coal reserves. In 1985, the Wyoming Department of Environmental Quality (WDEQ) determined that a portion of the Hall Ranch was located on an alluvial valley floor (AVF), which limited mining under the Surface Mining Control and Reclamation Act (SMCRA). For decades, neither the appellants nor Exxon Coal Resources, the lessee at the time, pursued a coal exchange. In 2010, Hall Atlas applied to the Bureau of Land Management (BLM) for a coal exchange. BLM initially rejected WDEQ’s 1985 determination but changed position in 2014, and Hall Atlas submitted a mine plan. In 2016, BLM determined the Hall Ranch AVF coal had a value of $0. In 2017, BLM reiterated its $0 valuation and rejected the appellants’ proposed exchange tract, instead proposing alternatives based on the same valuation.The United States Court of Federal Claims dismissed the appellants’ takings claim for lack of subject matter jurisdiction, holding that the claim was time-barred because it was filed more than six years after the claim accrued. The appellants argued that their claim did not accrue until BLM’s 2017 letter, but the court found that the relevant accrual date was in 2016, when BLM finalized its $0 valuation.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the decision. The Federal Circuit held that any takings claim accrued no later than 2016, making the 2023 filing untimely under the Tucker Act’s six-year statute of limitations. The court rejected arguments for equitable tolling and the application of the continuing claim or stabilization doctrines, and concluded the dismissal for lack of subject matter jurisdiction was correct. The judgment was affirmed and costs were awarded to the appellee. View "WYOMING TRUST CO. v. US " on Justia Law

Several property owners upstream of the Addicks and Barker Dams in Houston, Texas, experienced flooding on their land during Hurricane Harvey in 2017. The Army Corps of Engineers, responsible for the design and operation of these dams, had long maintained a protocol to protect downtown Houston from flooding, which involved allowing reservoir water to inundate upstream private property under extraordinary storm conditions. The Corps had previously considered purchasing all land that would flood during such events but ultimately acquired only a portion, leaving other private lands at risk. When Hurricane Harvey produced record rainfall, water exceeded government-owned land and flooded privately owned properties, resulting in significant damage.The property owners brought suit against the United States in the United States Court of Federal Claims, alleging that the government’s operation of the dams constituted an uncompensated taking of their property under the Fifth Amendment. The court consolidated and subdivided the cases, held a liability trial for thirteen bellwether properties, and found the government liable for taking flowage easements. The court later denied a motion for class certification on grounds of untimeliness and selected six bellwether properties for a damages trial, awarding a total of $454,535.03 plus interest.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the Court of Federal Claims’ findings of liability and its denial of class certification. With respect to damages, the Federal Circuit affirmed the awards for leasehold advantage, damaged personal property, and the offsetting of FEMA relief, but vacated the awards for lost rent, displacement, and the valuation of the flowage easement for one property owner, remanding those issues for further proceedings. The main holdings are that the government’s operation of the dams constituted a permanent physical taking of flowage easements, and that certain categories of damages were compensable while others were not. View "ABLAN v. US " on Justia Law

Several landowners in Colorado owned property subject to a railroad easement held by Great Western Railway of Colorado, LLC. The railroad line, originally used for transporting sugar beets, had fallen into disuse except for railcar storage. In 2008, Great Western sought permission from the Surface Transportation Board (STB) to abandon the line. The STB granted this request and issued a Notice of Interim Trail Use (NITU) to allow negotiations for possible interim recreational trail use. Negotiations failed, and the NITU expired. Instead of abandoning the line, Great Western repeatedly extended its abandonment authority and ultimately decided not to abandon the line, continuing to use it for storage and making some improvements.The landowners sued the United States in the United States Court of Federal Claims, alleging that the issuance of the NITU constituted a temporary taking under the Fifth Amendment. Both parties moved for summary judgment. The Claims Court granted summary judgment to the government, finding that the plaintiffs failed to prove that the NITU caused a taking. Specifically, the court determined that Great Western would not have abandoned the line at the time of the NITU, so the NITU did not delay the vesting of the landowners’ reversionary interests.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the Claims Court’s decision de novo. The Federal Circuit affirmed, holding that to establish a compensable taking in a rails-to-trails case, plaintiffs must show that the issuance of the NITU caused a delay in abandonment that would have otherwise occurred, thereby postponing the vesting of their property interests. The court found that the evidence showed Great Western would not have abandoned the line regardless of the NITU, so causation was not established. The court also rejected arguments that state law abandonment or mere issuance of a NITU alone could establish a taking. The judgment for the government was affirmed. View "SAUER WEST LLC v. US " on Justia Law

A group of landowners in Indiana, who own land adjacent to the former Indiana Nickel Plate Line, sued the United States in the Court of Federal Claims. They sought compensation for an alleged taking under the Fifth Amendment, arguing that the issuance of Notices of Interim Trail Use (NITUs) under the National Trails System Act Amendments of 1983 constituted a taking of their property.The Court of Federal Claims rejected the plaintiffs' request to certify a question to the Indiana Supreme Court. It held that the plaintiffs lacked a compensable property interest because the releases signed by their predecessors-in-interest conveyed fee simple estates to the Peru and Indianapolis Railroad Company. The court granted summary judgment in favor of the United States.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the lower court's decision, holding that under Indiana law, the releases conveyed fee simple titles to the railroad company. The court relied on the Indiana Supreme Court's decisions in Newcastle & Richmond Railroad Co. v. Peru & Indianapolis Railroad Co. and Indianapolis, Peru, & Chicago Railway Co. v. Rayl, which established that releases executed under the railroad's legislative charter conveyed fee simple estates. The court also declined to certify a question to the Indiana Supreme Court, finding that the relevant Indiana law was clear and controlling. View "ATS FORD DRIVE INVESTMENT, LLC v. US " on Justia Law

The plaintiffs, Michael Etchegoinberry, Erik Clausen, Barlow Family Farms, L.P., and Christopher Todd Allen, own land in the Westlands Water District, part of the San Luis Unit in California. They alleged that the United States failed to provide necessary drainage for their irrigated lands, leading to a rise in the water table and accumulation of saline groundwater, which they claimed resulted in a taking of their property without just compensation under the Fifth Amendment.The United States Court of Federal Claims initially denied the government's motion to dismiss the case for lack of subject matter jurisdiction, agreeing with the plaintiffs that their claim was timely under the stabilization doctrine. This doctrine postpones the accrual of a takings claim until the damage has stabilized and the extent of the damage is reasonably foreseeable. The case was then stayed for nearly seven years for settlement attempts. In 2023, the Court of Federal Claims revisited the issue and dismissed the case sua sponte for lack of subject matter jurisdiction, holding that the stabilization doctrine did not apply and the claim was time-barred.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the dismissal. The court held that the stabilization doctrine did not apply because the plaintiffs' claim was based on the regular and known lack of drainage over many years, not an irregular or intermittent physical process. Even if the doctrine applied, the court found that the plaintiffs' claim accrued before the critical date of September 2, 2005, as they were aware of the permanent nature of the damage to their land well before that date. The court concluded that the plaintiffs' claim was time-barred and affirmed the dismissal for lack of subject matter jurisdiction. View "ETCHEGOINBERRY v. US " on Justia Law

In 2014, due to severe drought conditions, the United States Bureau of Reclamation (Reclamation) was unable to meet its water delivery obligations to both the Exchange Contractors and the Friant Contractors under the Central Valley Project (CVP). Reclamation prioritized delivering water to the Exchange Contractors, including water from the San Joaquin River, which resulted in a near-zero allocation to the Friant Contractors. The Friant Contractors and individual growers sued the United States, alleging breach of contract and takings without just compensation.The United States Court of Federal Claims dismissed the Friant Growers' breach of contract claims for lack of standing and dismissed the takings claims for lack of a property interest. The court granted summary judgment to the government on the Friant Contractors' breach of contract claims, concluding that the Exchange Contractors' rights under the Exchange Contract were superior and that Reclamation's actions were not arbitrary, capricious, or unreasonable.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the lower court's decision. The court held that the Exchange Contract allowed Reclamation to deliver San Joaquin River water to the Exchange Contractors when necessary, and that the government did not breach the Friant Contract by doing so. The court also found that the government was immune from liability under the Friant Contract because its actions were not arbitrary, capricious, or unreasonable. Finally, the court affirmed the dismissal of the takings claims, concluding that the Friant Contractors and Growers did not have a property interest in the water delivered by Reclamation under California law. View "CITY OF FRESNO v. US " on Justia Law

In September 2020, the CDC issued a nationwide order temporarily halting residential evictions in response to the COVID-19 pandemic. This eviction moratorium remained effective for nearly a year. Owners of residential rental properties sued the government, claiming that the CDC’s order constituted a physical taking of their property for public use, requiring just compensation under the Fifth Amendment’s Takings Clause.The U.S. Court of Federal Claims dismissed the property owners' complaint for failing to state a claim upon which relief could be granted. The court agreed with the government’s argument that a takings claim cannot be premised on government action that was unauthorized, and it concluded that the CDC’s order was unauthorized because it exceeded the CDC’s statutory authority under the Public Health Service Act (PHSA).The United States Court of Appeals for the Federal Circuit reviewed the case and reversed the lower court’s decision. The Federal Circuit concluded that the CDC’s order was “authorized” for takings-claim purposes because it was issued within the normal scope of the CDC’s duties and pursuant to a good faith implementation of the PHSA. The court also determined that the order did not contravene any explicit prohibition or positively expressed congressional intent. Furthermore, the court held that the property owners’ complaint stated a claim for a physical taking, as the CDC’s order prevented them from evicting non-rent-paying tenants, thus infringing on their fundamental right to exclude others from their property. The case was remanded for further proceedings. View "DARBY DEVELOPMENT COMPANY, INC. v. US " on Justia Law