Justia Constitutional Law Opinion Summaries

United Water Conservation District (United) filed a lawsuit against the United States, seeking just compensation for an alleged taking under the Fifth Amendment. United claimed that the National Marine Fisheries Service (NMFS) required it to increase the amount of water bypassing its diversion dam to protect an endangered species of trout, resulting in a loss of water that United could otherwise use for beneficial purposes.The United States Court of Federal Claims dismissed United's complaint for lack of subject matter jurisdiction, determining that the claim should be evaluated as a regulatory taking. The court reasoned that United had not yet exhausted its administrative remedies by applying for and being denied an incidental-take permit under the Endangered Species Act, making the claim not ripe for adjudication.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the lower court's decision. The appellate court agreed that United's claim was regulatory in nature, as the NMFS's actions did not constitute a physical appropriation of water already diverted by United. Instead, the actions required more water to remain in the river, representing a regulatory restriction on United's use of the water. The court held that United's claim was not ripe because it had not yet obtained a final agency action by applying for and being denied an incidental-take permit. Therefore, the dismissal for lack of subject matter jurisdiction was appropriate. View "UNITED WATER CONSERVATION DISTRICT 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

Shareholders lacked standing to challenge, as an illegal exaction, U.S. government’s acquisition of AIG stock as loan collateral. In 2008, during one of the worst financial crises of the last century, American International Group (AIG) was on the brink of bankruptcy and sought emergency financing. The Federal Reserve Bank of New York granted AIG an $85 billion loan, the largest such loan to date. The U.S. Government received a majority stake in AIG’s equity under the loan, which the Government eventually converted into common stock and sold. One of AIG’s largest shareholders, Starr, filed suit alleging that the Government’s acquisition of AIG equity and subsequent actions relating to a reverse stock split were unlawful. The Claims Court held that the Government’s acquisition of AIG equity constituted an illegal exaction in violation of the Federal Reserve Act, 12 U.S.C. 343, but declined to grant relief for either that or for Starr’s reverse-stock-split claims. The Federal Circuit vacated in part, holding that Starr and the shareholders it represented lack standing to pursue the equity acquisition claims directly, as those claims belong exclusively to AIG, rendering the merits of those claims moot. The court affirmed as to Starr’s reverse-stock-split claims. View "Starr International Co. v. United States" on Justia Law

Veterans Access, Choice, and Accountability Act (VACAA) provisions vesting significant authority in administrative judges violates Appointments Clause. In 2014, Congress investigated reports that senior executives in the Department of Veterans Affairs (DVA) had manipulated hospital performance metrics by maintaining secret wait lists of veterans who needed care. The resulting VACAA established new rules for the removal of DVA Senior Executive employees, 38 U.S.C. 713. Previously, senior DVA executives could only be removed under the Civil Service Reform Act, 5 U.S.C. 1101, and were entitled to appeal to the Merit Systems Protection Board (MSPB), to a hearing, and to attorney representation. Section 713 created an accelerated timeline for MSPB appeals and required the MSPB to refer all appeals to an administrative judge (AJ) for decision within 21 days. Helman, the Director of the Phoenix Veterans Affairs Health Care System, was removed from her position under section 713. An MSPB AJ affirmed. Helman sought review from the full Board. Citing section 713(e)(2), the Board refused to take any further action. The Federal Circuit remanded, holding that, by prohibiting Board review under section 713(e)(2), Congress vested significant authority in an AJ in violation of the Appointments Clause. Section 713(e)(2) and two related sections are severable, leaving the remainder of the statute intact. View "Helman v. Department of Veterans Affairs" on Justia Law

During Mayberry’s tenure as a civilian employee with the FBI, he elected Becker to receive survivor benefits under the Federal Employees Retirement System upon his death. They were married for less than nine months and had no children together when Mayberry died. Becker applied for survivor benefits with the Office of Personnel Management, which denied her application, citing 5 U.S.C. 8441(1), which identifies a widow as a “surviving wife” who: “was married to [the covered decedent] for at least [nine] months immediately before his death” or “is the mother of issue by that marriage.” An administrative judge for the Merit Systems Protection denied her request to seek information regarding whether OPM had ever waived the nine-month requirement for prior applicants, and whether OPM had ever sufficiently explained the nine-month requirement to Mayberry. The denial became the final decision of the Board. The Federal Circuit affirmed, rejecting arguments that 5 U.S.C. 8441(1) is unconstitutional and that the Board improperly denied her discovery requests. The court applied the rational basis test and cited Supreme Court precedent. View "Becker v. Office of Personnel Management" on Justia Law

In the 1980s, Simonson began exploring for deposits of pumicite, a porous volcanic rock, which he thought had potential commercial applications. Simonson found high quality pumicite in Kern County and located 23 mining claims in his name. For two decades, Simonson commissioned scientific testing. Lab reports and industry analyses confirmed that pumicite could be useful in industrial paint and plastic manufacture; Simonson began taking orders. In 1987, Simonson submitted a Plan of Operations to Bureau of Land Management to mine 100,000 tons per year. BLM conditionally approved the plan, specifying that it had not yet determined whether Simonson had discovered valuable minerals under the General Mining Law, 30 U.S.C. 22. Simonson postponed mining until BLM completed its common/uncommon variety determination, but hired a consultant to generate investor interest. In 1989, the BLM concluded that Reoforce pumicite was an uncommon mineral, locatable under federal law, but did not establish that Simonson had a right to patent his claims. From 1987-1995, Simonson mined only 200 tons of pumicite and sold only five. In 1995, BLM stated that the lands encompassing 10 of the claims would be transferred to become part of Red Rock Canyon State Park. An agreement between BLM and California permitted some mining claimants to continue operating, depending on prior use of the mine, subject to California’s Surface Mining and Reclamation Act. Ultimately, BLM found pumicite not marketable and the claims invalid. The Department of the Interior later granted Simonson a conditional right to mine some claims. Simonson then sought compensation for a temporary taking (1995-2008). The Federal Circuit affirmed rejection of the claims. Although the character of the government's action did not weigh heavily against the taking claim, the economic-impact and reasonable-investment-backed-expectations factors weighed heavily against Simonson. View "Reoforce, Inc. v. United States" on Justia Law

Utah Trooper Swenson attempted to stop a car near the Uncompahgre Ute Reservation. The car entered the reservation. About 25 miles later, it stopped. Kurip, age 17, and Murray emerged and ran. Swenson caught Kurip and requested back-up. Vernal City Officer Norton and others responded. Norton claims that Murray shot at Norton, then shot himself. The officers found an illegally-purchased gun near Murray. No officer administered medical assistance to Murray while waiting for an ambulance. FBI agents took charge, and, with local officers, allegedly denied a tribal officer access. After Murray was declared dead (off-reservation), an officer allegedly photographed Murray nude and manipulated his remains. After an external examination, the medical examiner concluded that the bullet entered the back of Murray’s head, above and behind his left ear. Murray was right-handed. No soot was found on Murray’s hands. When the investigation into the gun concluded, the FBI destroyed it. Plaintiffs sued under 42 U.S.C. 1983. The district court held that there was no seizure, that the pursuit was reasonable, and that Murray had fired at Norton. The Tenth Circuit affirmed. Meanwhile, plaintiffs sued the United States in the Claims Court, alleging violations of an 1868 Treaty and of the government’s trust obligations. The Claims Court concluded that the Treaty was limited to affirmative criminal acts committed on reservation lands and dismissed allegations regarding failure to take custody of and secure Murray’s body against desecration, spoliation of evidence, failure to ensure a proper autopsy, and failure to protect the Tribe’s reservation boundary and sovereign interest in the crime scene. The court found allegations concerning acts on the reservation barred by issue preclusion. The Federal Circuit vacated. The Claims Court improperly limited the scope of claims cognizable under the Treaty and erred in applying issue preclusion without considering a spoliation issue. View "Jones v. United States" on Justia Law

In 2015, Abbas sued the federal government, alleging taking of his property rights in certain pre-World War II German bonds that were underwritten and payable in the U.S. After the war, Germany was reluctant to pay off the bonds, some of which were in unauthorized hands. Several post-World War II treaties between the U.S. and Germany established procedures for determining the validity of the bonds and the rights of the holders. It appears that Germany finished paying settling holders of validated German pre-war bonds in 2010. The Federal Circuit affirmed dismissal of the claim, finding it barred by the statute of limitations, 28 U.S.C. 2501, which requires that claims brought in the Court of Federal Claims be filed within six years of accrual of the cause of action. Abbas’s claim is that the U.S. caused a regulatory taking of his right to sue Germany for payment of his bonds when the U.S. entered into a 1953 Treaty. View "Abbas v. United States" on Justia Law

Freddie Mac is a privately-owned, publicly-chartered financial services corporation, 12 U.S.C. 1452, created to provide stability in the secondary residential mortgage market. Piszel began working as the CFO of Freddie Mac in 2006. Piszel with a signing bonus of $5 million in Freddie Mac restricted stock units that would vest over four years, an annual salary of $650,000, and performance-based incentive compensation of $3 million a year in restricted stock. If terminated without cause, Piszel would receive a lump-sum cash payment of double his annual salary and certain restricted stock units would continue to vest. In 2008, facing Freddie Mac's potential collapse, Congress passed the Housing and Economic Recovery Act,12 U.S.C. 4511, establishing the FHFA as Freddie Mac's new primary regulator, with authority to disaffirm any contract, after which damages for the breach would be limited to “actual direct compensatory damages.” The Act contained a limit on “golden parachutes.” Piszel alleges that he was terminated without cause and Freddie Mac “refused to provide him with any of the benefits to which he was contractually entitled.” The Claims Court dismissed his allegations of an unconstitutional taking. The Federal Circuit affirmed, noting that Piszel’s breach of contract claim remains intact despite the legislation, particularly in light of Piszel’s assertion that his contract called for “deferred compensation,” rather than a golden parachute. View "Piszel v. United States" on Justia Law

The High Line is an elevated “linear park” in New York City that runs along the west side of Manhattan from Gansevoort Street to 34th Street. The park, used for walking, jogging, and other recreational purposes, occupied the elevated viaduct of a former railway line. In 2005, the elevated viaduct was converted to a public recreational trail under the authority of the National Trails System Act. Before the Federal District Court of Appeals was a takings matter: appellant Romanoff Equities, Inc., contended that the conversion of the railway property to a trail entailed a taking of its property without just compensation. The Court of Federal Claims held, on summary judgment, that the conversion did not result in a taking of Romanoff’s property. Finding no reversible error, the Federal District appellate court affirmed. View "Romanoff Equities, Inc. v. United States" on Justia Law