Texas American Oil Corp. v. U.S. Dept. of Energy, 93-1152

• Citation: 24 F.3d 210
• Decision Date: 10 May 1994
• Docket Number: No. 93-1152,93-1152
• Parties: TEXAS AMERICAN OIL CORPORATION, Plaintiff-Appellant, v. UNITED STATES DEPARTMENT OF ENERGY, Defendant-Appellee.
• Court: U.S. Court of Appeals — Federal Circuit

Page 210

24 F.3d 210

TEXAS AMERICAN OIL CORPORATION, Plaintiff-Appellant, v. UNITED STATES DEPARTMENT OF ENERGY, Defendant-Appellee.

No. 93-1152.

United States Court of Appeals, Federal Circuit.

May 10, 1994.

J. Maxwell Tucker, Winstead, Sechrest & Minick, P.C., of Dallas, TX, argued for plaintiff-appellant.

Marc E. Kasischke, Office of Gen. Counsel, Department of Energy, of Washington, DC, argued for defendant-appellee. Stephen C. Skubel and Gilbert T. Renaut, Office of Gen. Counsel, Dept. of Energy, of Washington, DC, were on the brief for defendant-appellee.

Before ARCHER, Chief Judge, ^* NEWMAN and MICHEL, Circuit Judges.

PAULINE NEWMAN, Circuit Judge.

Texas American Oil Corporation appeals the decision of the United States District Court for the Northern District of Texas, ¹ reversing the Bankruptcy Court's classification of the Department of Energy's claim as a creditor under the Bankruptcy Code. ² Texas American appealed the district court's decision to the Fifth Circuit Court of Appeals, relying on subsequent changes in statute and precedent. On motion of the United States Department of Energy (DOE), opposed by Texas American, the Fifth Circuit held that the issue was within the exclusive jurisdiction of the Temporary Emergency Court of Appeals (TECA), and transferred the appeal. ³

Effective April 29, 1993 the TECA was dissolved, and all continuing and future actions subject to that court's jurisdiction were transferred to the Court of Appeals for the Federal Circuit. Texas American also appeals the transfer of this appeal to the TECA and now to this court. We consider first the question of our jurisdiction.

I JURISDICTION

When the Fifth Circuit transferred the appeal to the TECA, in accordance with Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 108 S.Ct. 2166, 100 L.Ed.2d 811 (1988), that jurisdictional ruling became the law of the case, subject only to the TECA's finding the transfer "plausible". The Supreme Court in Christianson had resolved a difference of opinion between the Courts of Appeals of the Seventh Circuit and the Federal Circuit, wherein each believed that the other had exclusive jurisdiction of the subject matter, and each had transferred the case accordingly. The Court held that appellate courts should accept plausible transfer decisions made by sister tribunals, and that courts of appeals should adhere

strictly to principles of law of the case. Situations might arise, of course, in which the transferee court considers the transfer "clearly erroneous." But as "[t]he doctrine of the law of the case is ... a heavy deterrent to vacillation on arguable issues," such reversals should necessarily be exceptional; courts will rarely transfer cases over which they have clear jurisdiction, and close questions, by definition, never have clearly correct answers. Under law-of-the-case principles, if the transferee court can find the transfer decision plausible, its jurisdictional inquiry is at an end.

486 U.S. at 819, 108 S.Ct. at 2179 (citations omitted) (alterations in original).

Our review of the Fifth Circuit's transfer ruling is conducted within the analytical framework of Christianson. Although the Fifth Circuit did not explain its ruling, the Court held in Christianson that the fact that the appellate court "did not explicate its rationale is irrelevant, for the law of the case turns on whether a court previously 'decide[d] upon a rule of law' ... not on whether, or how well, it explained the decision." 486 U.S. at 817, 108 S.Ct. at 2178. Therefore, unless the Federal Circuit can not find the transfer to the TECA to be plausible, and the succession of the Federal Circuit to this appeal to be correct, our jurisdictional inquiry is at an end. See Xeta, Inc. v. Atex, Inc., 852 F.2d 1280, 1281 (Fed.Cir.1988).

Our review commences with the TECA's selection of "issue" jurisdiction in implementation of its statutory assignment, and whether the issue of the bankruptcy classification of the DOE's claim is plausibly within the exclusive jurisdiction of the TECA.

A

The Economic Stabilization Act of 1970 (ESA) was enacted in response to rising prices and spiraling inflation. Pub.L. No. 91-379, 84 Stat. 799 (1970), codified at 12 U.S.C. Sec. 1904 note. The ESA authorized the President to stabilize prices, rents, wages, and salaries, and to establish priorities for use and allocation of petroleum products. Section 211 of the ESA, the judicial review provision, placed trial jurisdiction in the federal district courts and created the Temporary Emergency Court of Appeals, assigning to it exclusive appellate jurisdiction in cases and controversies arising under the ESA:

Sec. 211(b)(2) Except as otherwise provided in this section, the Temporary Emergency Court of Appeals shall have exclusive jurisdiction of all appeals from the district courts of the United States in cases and controversies arising under this title or under regulations or orders issued thereunder....

The purpose was "to funnel into one court all the appeals arising out of the District Courts and thus gain in consistency of decision". S.Rep. No. 92-507, 92nd Cong., 1st Sess. 10, reprinted in 1971 U.S.C.C.A.N. 2283, 2292.

The ESA authority expired on April 30, 1974; however, ESA sections 205 through 213 (other than section 212(b)) were incorporated by reference into section 5(a)(1) of the Emergency Petroleum Allocation Act (EPAA), which was enacted in response to nationwide shortages of petroleum products due to the 1973 Arab oil embargo. Pub.L. No. 93-159, 87 Stat. 627 (1973), codified at 15 U.S.C. Secs. 751 et seq.

In January 1981 the President lifted all price controls of petroleum products. Exec. Order No. 12,287, 46 Fed.Reg. 9,909 (1981). The President's authority to promulgate regulations and controls under the EPAA expired on September 30, 1981 pursuant to a "sunset" provision, 15 U.S.C. Sec. 760g, and has not been renewed. Section 760g provided that the expiration of this regulatory authority did not affect any pending action or proceeding not then finally determined, or any administrative, civil, or criminal action or proceeding, whether or not pending, based upon any act committed or liability incurred prior to the expiration date.

The Federal Courts Administration Act of 1992, Pub.L. No. 102-572, 106 Stat. 4506 (1992), abolished the TECA and transferred its jurisdiction to the Court of Appeals for the Federal Circuit, amending the ESA to read:

Sec. 211(b)(2) Appeals from orders or judgments entered by a district court of the United States in cases and controversies arising under this title shall be brought in the United States Court of Appeals for the Federal Circuit if the appeal is from a final decision of the district court or is from an interlocutory appeal permitted under section 1292(c) of title 28, United States Code.

Pub.L. 102-572, Sec. 102, 106 Stat. at 4506. Concurrently, 28 U.S.C. Sec. 1295(a) was amended to add the following jurisdiction to that of the Federal Circuit:

(11) of an appeal under section 211 of the Economic Stabilization Act of 1970;

(12) of an appeal under section 5 of the Emergency Petroleum Allocation Act of 1973 (13) of an appeal under section 506(c) of the Natural Gas Policy Act of 1978; and

(14) of an appeal under section 523 of the Energy Policy and Conservation Act.

B

The TECA interpreted its statutory authorization as meaning "issue" jurisdiction, not "case" or "arising under" jurisdiction. ⁴ This interpretation has not been free of controversy, not only within the TECA but also in the regional circuit courts and among students of judicial structure.

In United States v. Cooper, 482 F.2d 1393, 1398 (Temp.Emer.Ct.App.1973) the TECA explained that a "loose" construction of its jurisdictional grant was not acceptable in light of the traditional rule that courts of special jurisdiction should strictly construe their statutory authorization. The court in Cooper therefore voided that portion of a Ninth Circuit transfer order that included a non-ESA issue. The TECA then dismissed the appeal of the counts that arose under the ESA as untimely filed in the TECA, adopting "issue" jurisdiction and incidentally illustrating one of the pitfalls that has accompanied "issue" jurisdiction, whereby procedural uncertainty has led to loss of substantive appeal rights.

The TECA has steadfastly implemented the jurisdictional policy and practice of deciding only the EPAA/ESA issues in a case, leaving to the regional circuit courts all other issues arising in the same transaction or joined to EPAA/ESA issues. See, e.g., City of Groton v. Federal Power Comm'n, 487 F.2d 927, 935-36 (Temp.Emer.Ct.App.1973) (the TECA refused to review Federal Power Act issues after having reviewed district court ruling that Federal Power Commission order did not violate the ESA); Associated Gen. Contractors of Am., Inc. v. Laborers Int'l Union, 489 F.2d 749, 750-51 (Temp.Emer.Ct.App.1973) (TECA refused to hear collective bargaining issue but heard appeal of ESA issue); Spinetti v. Atlantic Richfield Co., 522 F.2d 1401, 1403 (Temp.Emer.Ct.App.1975) (antitrust, fair trade, and contract issues were separated and held appealable only to the Ninth Circuit); Longview Refining Co. v. Shore, 554 F.2d 1006, 1009 (Temp.Emer.Ct.App.) (TECA had jurisdiction over remaining EPAA/ESA issue after district court dismissed the antitrust and contract claims), cert. denied, 434 U.S. 836, 98 S.Ct. 126, 54 L.Ed.2d 98 (1977); Texaco Inc. v. U.S. Dep't of Energy, 616 F.2d 1193, 1196 (Temp.Emer.Ct.App.1979) (TECA lacks jurisdiction when sole question relates to DOE Organization Act, reaffirming TECA policy of "issue" jurisdiction); Atlantic Richfield Co. v. U.S. Dep't of Energy, 655 F.2d 227, 233 (Temp.Emer.Ct.App.1981) (TECA refused to hear contract issue but took appeal of issue of validity of DOE remedial order).

The TECA established two threshold requirements for its exercise of appellate jurisdiction: (1) resolution of...