Brandt v. United States

Citation710 F.3d 1369
Decision Date26 March 2013
Docket NumberNo. 2012–5050.,2012–5050.
PartiesMarvin M. BRANDT and Marvin M. Brandt Revocable Trust, Plaintiffs–Appellants, v. UNITED STATES, Defendant–Appellee.
CourtUnited States Courts of Appeals. United States Court of Appeals for the Federal Circuit

OPINION TEXT STARTS HERE

Steven J. Lechner, Mountain States Legal Foundation, of Lakewood, Colorado, argued for plaintiffs-appellants.

Brian C. Toth, Attorney, Environmental & Natural Resources Division, United States Department of Justice, of Washington, DC, argued for defendant-appellee. With him on the brief was Ignacia S. Moreno, Assistant Attorney General.

Before PROST, O'MALLEY, and REYNA, Circuit Judges.

Opinion for the court filed by Circuit Judge O'MALLEY. Concurring opinion filed by Circuit Judge PROST.

O'MALLEY, Circuit Judge.

Marvin M. Brandt and Marvin M. Brandt Revocable Trust (collectively, “Brandt” or plaintiffs) appeal from the final decision of the United States Court of Federal Claims dismissing their takings claim for lack of jurisdiction under 28 U.S.C. § 1500. Brandt v. United States, 102 Fed.Cl. 72 (2011). Because we find that § 1500 does not bar Brandt's complaint, we reverse and remand the case to the Court of Federal Claims for further proceedings consistent with this opinion.

Background

This case involves an alleged taking of Brandt's property interests in a railroad right-of-way that traverses his property. In 1908, the United States granted the railroad right-of-way at issue to the Laramie, Hahn's Peak, and Pacific Railroad Company for railroad purposes. In 1976, the government conveyed 83.32 acres of land partially burdened by the railroad right-of-way to Melvin M. Brandt and Lula M. Brandt—the parents of Marvin M. Brandt. The land patent conveyed the property in fee simple and stated that it was subject to the right-of-way. The property was placed into a family trust, which Brandt acquired in 2002.

In 1987, the Wyoming and Colorado Railroad Company, Inc. (“WYCO”) acquired the railroad right-of-way and operated the rail line for a number of years. In May 1996, WYCO filed a Notice of Intent to Abandon Rail Service with the Surface Transportation Board (“STB”). The STB approved abandonment of the rail line in December 2003, and, in January 2004, WYCO notified the STB that it had completed its abandonment of the railroad right-of-way.

A. District Court Litigation

In July 2006, the United States filed suit in the United States District Court for the District of Wyoming seeking declaratory judgment that title to the abandoned right-of-way had vested in the government. Specifically, the United States alleged that, [u]nder the National Trails System Improvements Act of 1988, 16 U.S.C. § 1248(c), any and all right, title, and interest in rights-of-way of the type described in the Abandoned Railroad Right–of–Way Act of 1922 (43 U.S.C. § 912) are retained by the United States upon a judicial decree of abandonment.” Amended Compl. for Decl. Judgment of Abandonment and Quiet Title, United States v. Wyoming and Colorado Railroad Co., No. 2:06–cv–184 (D.Wyo. Mar. 9, 2007), ECF 105, ¶ 31.

On August 8, 2006, Marvin M. Brandt filed an answer and counterclaims asserting that the court should quiet title in his favor.1 In a separate counterclaim, Brandt alleged that, to the extent the government acquired some interest in the portion of the land formerly occupied by the railroad easement, that interest would constitute a taking for which just compensation is owed. Recognizing the district court's jurisdictional limitations, and because the value of the land at issue exceeded $10,000, Brandt requested that the district court transfer his takings counterclaim to the Court of Federal Claims. By agreement of the parties, the district court bifurcated the case, staying the takings counterclaim while it resolved the quiet title claims.

In April 2008, after the parties filed cross-motions for summary judgment, the district court granted summary judgment in favor of the government, finding that it retained a reversionary interest in the railroad right-of-way. United States v. Brandt, No. 06–cv–184, 2008 U.S. Dist. LEXIS 111935, *26–27 (D.Wyo. Apr. 8, 2008). In that decision, the court noted that, if Brandt decided to pursue a takings claim in excess of $10,000, the Court of Federal Claims would have exclusive jurisdiction over that claim and thus “any takingsissues brought before this Court would be dismissed for want of subject matter jurisdiction.” Id. at *27.

Brandt subsequently moved to transfer his takings claim to the Court of Federal Claims pursuant to 28 U.S.C. § 1631. In response, the government asked the court to deny the motion to transfer and dismiss the takings counterclaim for lack of subject matter jurisdiction. In its motion to dismiss, the government indicated that [d]ismissal of the claim upon entry of this Court's judgment will appropriately require the Trust to file a new, current pleading in the Court of Federal Claims which recognizes the Judgment entered by this Court. It is, after all, this Court's Judgment which allegedly forms the basis of the Trust's taking claim.” United States' Motion to Dismiss Third Counterclaim, United States v. Wyoming and Colorado R.R. Co., No. 2:06–cv–184 (D.Wyo. Apr. 18, 2008), ECF 173, ¶ 10.

Almost one year later, in March 2009, the district court entered judgment in favor of the United States and against Brandt. In relevant part, the court declared and decreed that: (1) WYCO abandoned the railroad right-of-way “for all purposes including the National Trails System Improvements Act of 1988, 16 U.S.C. § 1248(c), and the Abandoned Railroad Right–of–Way Act of 1922 (43 U.S.C. § 912);” (2) the government retained a reversionary interest in the railroad right-of-way; (3) “as a result of the abandonment by WYCO, title to the railroad right-of-way is hereby vested and quieted in the United States, and the United States is entitled to the quiet and peaceful use and possession of the railroad right-of-way;” and (4) the interest vested in the government includes the right to construct and operate a recreational trail. Judgment, United States v. Wyoming and Colorado R.R. Co., No. 2:06–cv–184 (D.Wyo. Mar. 2, 2009), ECF 200, ¶¶ 3–6. Two days later, the court denied Brandt's motion to transfer and granted the government's motion to dismiss Brandt's takings counterclaim without prejudice.

On April 29, 2009, Brandt appealed the district court's judgment quieting title in favor of the government to the Tenth Circuit Court of Appeals. In a decision dated September 11, 2012, the Tenth Circuit affirmed, concluding that the district court correctly held that the interest in the abandoned railroad right-of-way belongs to the United States.” United States v. Brandt, No. 09–8047, 496 Fed.Appx. 822, 823, 2012 WL 3935613, at *1 (10th Cir.2012). 2

B. Court of Federal Claims Proceedings

On April 28, 2009—one day before he appealed the district court's decisions to the Tenth Circuit—Brandt filed the instant takings claim in the Court of Federal Claims. In the complaint, Brandt alleged that the district court's decree of abandonment with respect to the railroad easement and decision quieting title in favor of the government effectuated a taking in violation of the Fifth Amendment. Specifically, Brandt alleged that, but for the court's application of 16 U.S.C. § 1248(c), the easement would have terminated upon abandonment and no longer would have burdened his property. Brandt argued that the court had jurisdiction pursuant to the Tucker Act, 28 U.S.C. § 1491(a)(1), because: (1) the case is a suit against the government seeking just compensation; and (2) as of the date of filing, Plaintiffs have no claims for or in respect to this claim pending in any other court.” Complaint, Brandt v. United States, No. 09–cv–265 (Fed.Cl. Apr. 28, 2009), ECF 1, ¶ 2.

In response, the government moved to either dismiss Brandt's complaint for failure to state a claim or stay proceedings pending resolution of Brandt's appeal to the Tenth Circuit. In a decision dated October 27, 2009, the Court of Federal Claims chose to stay proceedings. In June 2011, following the Supreme Court's decision in United States v. Tohono O'odham Nation (“ Tohono ”), ––– U.S. ––––, 131 S.Ct. 1723, 179 L.Ed.2d 723 (2011), the government moved to lift the stay and dismiss Brandt's takings claim for lack of subject matter jurisdiction under 28 U.S.C. § 1500. In Tohono, the Supreme Court clarified that two suits “are for or in respect to the same claim, precluding jurisdiction in the CFC, if they are based on substantially the same operative facts, regardless of the relief sought in each suit.” Id. at 1731. Given this language, the government argued that, because Brandt's takings claim in the Court of Federal Claims and his counterclaim in the district court were based on substantially the same operative facts, the court lacked jurisdiction under § 1500.

In the November 30, 2011 decision at issue on appeal, the Court of Federal Claims granted the government's motion and dismissed Brandt's takings claim on grounds that § 1500 precluded jurisdiction. Specifically, the court found that: (1) Brandt's case was “pending” within the meaning of § 1500 when he filed in the Court of Federal Claims because the time for filing a notice of appeal to the Tenth Circuit had not yet expired; and (2) Brandt's takings claim filed in the Court of Federal Claims was “for or in respect to” the claims filed in Wyoming district court because they shared “substantially the same operative facts.” Brandt, 102 Fed.Cl. at 76. Brandt timely appealed those issues to this court, and we have jurisdiction pursuant to 28 U.S.C. § 1295(a)(3).

Discussion

We review the Court of Federal Claims' decision to dismiss a case for lack of subject matter jurisdiction de novo. Trusted Integration, Inc. v. United States, 659 F.3d 1159, 1163 (Fed.Cir.2011). It is well-established that the plaintiff bears the burden of establishing the court's jurisdiction by a preponderance of...

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