Salt River Pima-Maricopa Indian Community v. U.S.
| Decision Date | 03 September 2009 |
| Docket Number | No. CV-08-1005-PHX-ROS.,CV-08-1005-PHX-ROS. |
| Parties | SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY, et al., Plaintiffs, v. UNITED STATES of America, et al., Defendants. |
| Court | U.S. District Court — District of Arizona |
Ronda R. Fisk, Geoffrey M.T. Sturr, Osborn Maledon PA, Phoenix, AZ, A. Stephens Clay, Craig Edward Bertschi, Kilpatrick Stockton LLP, Atlanta, GA, Catherine F. Munson, David Coventry Smith, Kilpatrick Stockton LLP, Winston-Salem, NC, G. William Austin, Justin M. Guilder, Keith M. Harper, Kilpatrick Stockton LLP, Washington, DC, for Plaintiffs.
Sue A. Klein, U.S. Attorney's Office, Phoenix, AZ, for Defendants.
On May 30, 2008 the Salt River Pima-Maricopa Indian Community and various Community members (Plaintiffs/Counterdefendants) filed a tort class action against the United States and its officers (Defendants/Counterclaimants) relating to the unauthorized presence of federal power lines on Plaintiffs' property, seeking monetary, declaratory and injunctive relief (Doc. 1).1 On August 11, 2008 Defendants filed a Motion to Stay Proceedings, pending the outcome of a related action for breach of contract before the Federal Court of Claims (Docs. 21-22). On October 27, 2008 the Motion was denied and Defendants were ordered to file an Answer (Doc. 29). On November 5, 2008 Defendants filed an Answer and Counterclaim requesting equitable relief against Plaintiffs (Doc. 32). On November 25, 2008 Plaintiffs filed a Motion to Dismiss Counterclaim pursuant to Federal Rule of Civil Procedure 12(b)(6) (Docs. 39-40). On December 12, 2008 Defendants responded and, on December 31, 2008, Plaintiffs replied (Docs. 47, 50). Before the Court is Plaintiffs' Motion to Dismiss, which will be granted.
On October 28, 1942 Congress enacted Public Law 764, authorizing the Secretary of the Department of the Interior ("Secretary") to designate Indian lands necessary for the completion of the Parker Dam power project, including placement of electric transmission lines, and to acquire such lands for the United States in exchange for just compensation . See Act of Oct. 28, 1942, ch. 630, 56 Stat. 1011, Pub.L. No. 77-764. On February 5, 1948, Congress enacted the Indian Right-of-Way Act ("IRWA"), which established certain criteria for granting rights-of-way across Indian lands and otherwise authorized the Secretary to regulate the creation of easements on Indian reservations. IRWA became effective thirty days after enactment (Doc. 40 Ex. 3).
On March 5, 1948 the Community Council of Plaintiff Salt River Pima-Maricopa Indian Community ("SRPMIC") authorized the Department of the Interior Bureau of Reclamation ("BOR") to enter the SRPMIC reservation to conduct surveys related to the placement of Parker Dam power project transmission lines. The authorization was granted with the understanding that BOR, upon deciding to construct transmission lines on the reservation, would apply for an easement "in the usual manner" and compensate SRPMIC for both land use and property damage caused by construction and surveying (Doc. 40 Ex. 1). On August 1, 1949 BOR executed a Contract and Grant of Easement with owners of certain allotted lands on the SRPMIC reservation for the purpose of transmission line construction (Doc. 40 Ex. 2). On September 21, 1949 the SRPMIC Community Council, noting BOR's pending application for an easement with the Department of the Interior Bureau of Indian Affairs ("BIA"), authorized construction of the transmission lines (Doc. 47 Ex. D). The duration of the agreed-upon easement is not discussed in any of the above-referenced documents.
On March 29, 1950 the Secretary provisionally authorized BOR to begin construction of transmission lines on the SRPMIC reservation, noting that a permanent easement had not yet been approved (Doc. 40 Ex. 5). On August 10, 1951 the Secretary promulgated regulations for IRWA and set a fifty-year limitation on specified easements across Indian lands, including those for electric transmission lines (Doc. 40 Ex. 6). On December 17, 1951 the BIA Commissioner ("Commissioner") approved BOR's easement application, restricting the easement to fifty years in accordance with the new regulations (Doc. 40 Ex. 7-8). On October 31, 2007 SRPMIC President Diane Enos notified Defendants of the expiration of the BOR easement and presented Plaintiffs' claim for damages (Docs. 1 Ex. 1; 30 Ex. 1). On May 30, 2008, Plaintiffs filed suit (Doc. 1).
A motion to dismiss a counterclaim pursuant to Federal Rule of Civil Procedure 12(b)(6) ("Rule 12(b)(6)") is judged by the same standard as a motion to dismiss a claim.2 Accordingly, a court's inquiry "is limited to the allegations in the [counter-]complaint, which are accepted as true and construed in the light most favorable to the plaintiff." Lazy Y Ranch Ltd. v. Behrens, 546 F.3d 580, 588 (9th Cir. 2008); see also Aagard v. Palomar Builders, Inc., 344 F.Supp.2d 1211, 1214 (E.D.Cal.2004) (). However, a court "need not accept as true allegations contradicting documents that are referenced in the [counter-]complaint or that are properly subject to judicial notice." Lazy Y Ranch Ltd., 546 F.3d at 588. Consideration of materials incorporated by reference in the counter-complaint is permitted when "plaintiff's claim depends on the contents of a document, the defendant attaches the document to its motion to dismiss, and the parties do not dispute the authenticity of the document." Knievel v. ESPN, 393 F.3d 1068, 1076 (9th Cir.2005). The counterdefendant bears the burden of proving the counterclaimant fails to state a claim. See e.g. Hedges v. U.S., 404 F.3d 744, 750 (3d Cir.2005); Bangura v. Hansen, 434 F.3d 487, 498 (6th Cir.2006); James Wm. Moore, 2 Moore's Federal Practice § 12.34[1][a] at 12-73 (2008 ed.).
Defendants allege the easement approved by the Commissioner on December 17, 1951 did not conform to the intent of the parties, as expressed by the prior agreements, or to the intent of Congress, as expressed by Public Law 764. Defendants specifically allege the Commissioner erred by incorporating a fifty-year duration into the easement, which, according to Defendants, was intended by both Congress and the parties to last in perpetuity (Doc. 32 at 11-13). Defendants thus seek to equitably reform the easement to last in perpetuity (Doc. 32 at 13).3
Plaintiffs seek dismissal of the Counter-complaint for failure to state a claim, arguing reformation would violate the 1951 IRWA regulations' fifty-year limitation on transmission line easements across Indian lands. Plaintiffs are correct that the doctrine of equitable reformation may not be invoked to reform an agreement into one which contravenes public policy, including current law or the law at the time the agreement was formed. See Hedges v. Dixon County, 150 U.S. 182, 192, 14 S.Ct. 71, 37 L.Ed. 1044 (1893) () (internal citation omitted); see also e.g. Trowell v. S. Fin. Group, Inc., 315 Fed.Appx. 163, 165-66 (11th Cir.2008) (per curiam) () (citing Hedges, 150 U.S. at 192, 14 S.Ct. 71).
Defendants do not contest that the 1951 IRWA regulations limited to fifty years the duration of transmission line easements across Indian lands. Nor do Defendants contest that the easement at issue was finalized by the Commissioner on December 17, 1951 (Doc. 32 at 11). Instead, Defendants argue the proposed reformation would not violate public policy because the 1951 regulations were inapplicable to the easement. Specifically, Defendants contend their right to the easement vested upon enactment of Public Law 764, in 1942, prior to promulgation of the 1951 regulations. Defendants also contend, because IRWA did not repeal Public Law 764, any portion of the 1951 regulations inconsistent with Public Law 764, including the fifty-year limitation, did not apply to the easement. The question presented is whether the 1951 regulations apply to the easement and render Defendants' proposed reformation illegal. Defendants advance two arguments.
Defendants argue the 1951 regulations were inapplicable to the easement because Defendants' right to the easement vested in 1942, upon enactment of Public Law 764. Public Law 764, however, did not identify any particular parcel or allotment, but rather "granted to the United States . . . [s]uch right, title, and interest of the Indians as may be required in and to such tribal and allotted lands as may be designated by the Secretary of the Interior from time to time for the construction, operation, and maintenance of electric transmission lines and other works of the project" . Pub.L. No. 77-764 § 1. To interpret Public Law 764 as vesting the easement upon enactment, Defendants rely on the doctrine of in praesenti land grants.
An in praesenti land grant occurs when Congress authorizes the disposition of federal land to a third party in exchange for a condition precedent act, such as the construction of a railroad track or electric transmission line. The grant is one of unfixed location and the specific parcels within the grant are determined by the completion of the condition precedent act (e.g. when the grantee lays the railroad track or builds the transmission lines, all land beneath the track or line becomes part of the grant). In this way, the particular contours of the grant are chosen by the grantee. Once the act is completed, satisfaction of...
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