United States v. 14,770.65 ACRES OF LAND

Decision Date16 August 1985
Docket NumberCiv. A. No. 77-2046.
Citation616 F. Supp. 1235
PartiesUNITED STATES of America, Plaintiff, v. 14,770.65 ACRES OF LAND, MORE or LESS, SITUATED in the COUNTY of RICHLAND, STATE of SOUTH CAROLINA, and Congaree Limited Partnership, et al., Defendants.
CourtU.S. District Court — District of South Carolina

Don E. Strouse, Washington, D.C., and Wistar D. Stuckey, Columbia, S.C., for plaintiff.

Terrell L. Glenn and Charles Porter, Columbia, S.C., Philip Nacke and Charles Appler, Washington, D.C., and Hubert B. Humphrey, Greensboro, N.C., for defendants.

MEMORANDUM OF DECISION

GORDON, Senior District Judge.

This condemnation proceeding concerns the acquisition of land by the United States under its power of eminent domain for the Congaree Swamp National Monument, a unit of the National Park System established by Congress in the Act of October 18, 1976, Pub.L. No. 94-545, 90 Stat. 2517. The tract now at issue, comprising some 14,770.65 acres of the total 15,138.25 acres acquired for the monument, is located in Richland County, South Carolina, and was formerly owned by defendant Congaree Limited Partnership ("Congaree" or "the landowners"), a limited partnership organized under the laws of the State of Illinois.1 Plaintiff is the United States (collectively, "the government"), acting through the National Park Service ("NPS") of the Department of the Interior ("DOI"), the acquiring agency, which of course is represented herein by the government's primary litigation arm, the Department of Justice ("DOJ").

Although the fair market value component of the just compensation due to Congaree for the property which is the subject of this action has been decided by this Court, there remains for resolution the amount of damages for delay in payment, or interest, which the government is obligated to pay as part of just compensation.2 Specifically, the issue now before the Court on cross-motions by the parties, is a determination as to the date from which the government's interest obligation commences to accrue.3

The Court has carefully reviewed the motions, briefs, supporting papers of both parties, replies thereto filed by both parties, evidence proffered and the entire record in this case. Oral argument on the issue was heard on May 8, 1985. After full consideration of all the foregoing, including proposed findings submitted by the parties, and being fully advised in the premises, the Court concludes that, under the principles of U.S. v. Dow, 357 U.S. 17, 78 S.Ct. 1039, 2 L.Ed.2d 1109 (1958), and its progeny, as applied and adapted to the rather peculiar facts of the subject case, the defendant Congaree shall prevail and shall recover interest as an element of just compensation from February 23, 1978, the date of taking in this case. Now, pursuant to this disposition, the Court finds and concludes the following facts:

I. FINDINGS OF FACT4

Background

For a number of years prior to passage of the legislation creating the Congaree Swamp National Monument, attention had been directed to the virgin hardwood forest located in the flood-plain of the Congaree River as an area worthy of preservation. A larger area including the tract now at issue had been considered for inclusion in the National Park System as early as 1963, and by the mid-1970's attention was focused primarily on the so-called "Beidler Tract" owned by defendant Congaree. Legislation proposing creation of the "Congaree Swamp National Preserve" was introduced in the House of Representatives in February 1976, and in the Senate in May of that year. Government Documents 3, 6, 7, 10, 11, 12, and 13.5

The goal of this legislation, as revealed by the legislative record before this Court, was to preserve the Beidler Tract for the enjoyment and education of future generations. Accordingly, considerable discussion and attention was given, during the process of legislative consideration, to defendant's then-ongoing program of timber sales on the property. As early as April 1976, NPS officials initiated discussions with representatives of defendant concerning protection of the tract from further harvesting, and, by August 1976, defendant was requested by both NPS and by members of Congress to agree to a voluntary moratorium on further sales of timber from the property. Acceding to these requests, defendant agreed to a voluntary moratorium on further timber sales from its property until October 1, 1977. Government Documents 9 and 19; Congaree Document 1.

During the same time frame, Congress, "in order to preserve and protect for the education, inspiration, and enjoyment of present and future generations an outstanding example of a near-virgin southern hardwood forest situated in the Congaree River floodplain in Richland County, South Carolina," enacted legislation creating the Congaree Swamp National Monument Act of October 18, 1976, Pub.L. No. 94-545, 90 Stat. 2517. Other pertinent provisions of the authorizing legislation read:

The monument shall consist of the area within the boundary as generally depicted on the map entitled `Congaree Swamp National Monument,' numbered CS-80, 001-B, and dated August 1976 (generally known as the Beidler Tract), which shall be on file and available for public inspection in the offices of the National Park Service, Department of the Interior. Following reasonable notice in writing to the Committees on Interior and Insular Affairs of the Senate and House of Representatives of his intention to do so, the Secretary of the Interior ... may make minor revisions of the boundary of the monument by publication of a revised map or other boundary description in the Federal Register, but the total area may not exceed fifteen thousand, two hundred acres. (emphasis added).
. . . . .
Sec. 2(b) With respect to any lands acquired under the provisions of this Act which at the time of acquisition are leased for hunting purposes, such acquisition shall permit the continued exercise of such lease in accordance with its provisions for its unexpired term, or for a period of five years, whichever is less: Provided, that no provision of such lease may be exercised which, in the opinion of the Secretary, is incompatible with the preservation objectives of this Act, or which is inconsistent with applicable Federal and State game laws, whichever is more restrictive.
. . . . .
Sec. 5(a) The Secretary may not expend more than $35,500,000 from the Land and Water Conservation Fund for land acquisition nor more than $500,000 for the development of essential facilities.6

The record thus demonstrates an unequivocal intention on the part of Congress, expressed both in the statute itself and its legislative history, that the Beidler Tract be preserved in its then-existing condition and acquired for the permanent enjoyment of the people of the United States. Government Documents 23 and 34.

Acquisition of the Timber Sales Tracts

Upon enactment of the legislation, the primary executive branch responsibility for carrying out the expressed will of the Congress devolved upon the DOI, acting through the NPS. Though the voluntary moratorium on further timber sales was in effect, there were three areas of the overall tract on which preexisting timber sales contracts had been executed, and which were still active.7 NPS quickly moved to prevent further operations under those contracts. In connection with this effort, NPS informed Senator Thurmond on March 1, 1977, that the government was "determined to stop further cutting within the boundaries of Congaree Swamp National Monument." Government Documents 39-43 and 45-47; Congaree Document 2.

On April 11, 1977, efforts to reach a negotiated purchase having failed, the government commenced condemnation proceedings against the Timber Sales Tracts, naming as defendants, inter alia, Congaree and the entities to whom Congaree had sold timber harvesting rights. The government described the nature of its acquisition by stating that:

The interest in the property to be acquired is as to Tracts 101-03, 101-04 and 101-05, an estate in fee simple title, subject to existing easements for public roads and highways, public utilities, railroads, and pipelines.

Complaint for Condemnation, ¶¶ 1, 2 and 4 (filed April 11, 1977), in United States v. 367.60 Acres of Land, Civ. Action Nos. 77-652, 77-653 and 77-654.

In addition to the foregoing complaint commencing the proceedings as to the Timber Sales Tracts, the government also filed on April 11, 1977, a declaration of taking as to those properties, accompanied by a deposit of the government's estimate of the just compensation owed to defendants. The declaration of taking had the effect of vesting in the government title to, and the immediate right to possession of, the Timber Sales Tracts, and on April 12, 1977, the Court entered its "Order for Delivery of Possession," directing that all defendants surrender possession immediately to the United States. Declaration of Taking (filed April 11, 1977) and Order for Delivery of Possession (filed April 12, 1977), in United States v. 367.60 Acres of Land, Civ. Action Nos. 77-652, 77-653 and 77-654; see 40 U.S.C. § 258a.

Proceedings Regarding the Large Tract

At the time condemnation proceedings were commenced on the Timber Sales Tracts, no proceedings were begun as to the remaining acreage of the Beidler Tract (i.e., the Large Tract), on which defendant's voluntary moratorium on further timber sales was still effective. By mid-May of 1977, NPS had available to it an approved appraisal of the Large Tract, which showed a value for that property of $32,936,000. This amount, when combined with the amounts already deposited in connection with the Timber Sales Tracts, was within the congressionally authorized limit on acquisition expenditures, in effect at that time, of $35,500,000 set forth in the Act establishing the Monument.

During 1977, discussions between Congaree and NPS regarding proposals by both parties for a negotiated purchase...

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