Century Exploration New Orleans, Inc. v. United States
103 Fed. Cl. 70
Fed. Cl.2012Background
- Century Exploration New Orleans, Inc. and Champion sue the United States in a lease dispute under OCSLA for Gulf of Mexico submerged lands.
- BOEMRE/MMS governed the lease; после Deepwater Horizon, moratoria and new drilling regulations were imposed.
- Plaintiffs paid $23,236,314 for the lease, plus $164,160 in rental payments; initial plan approved and reserves estimated.
- Plaintiffs allege breach of lease and an uncompensated Fifth Amendment taking (Count II) and seek contract damages or fair market value.
- Court denies the 12(b)(6) dismissal of Count II and, after Champion’s joinder, stays takings issues pending resolution of the contract claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can a plaintiff pursue a takings claim and a breach of contract claim in the same suit when rights arise from the contract? | Stockton East II supports dual claims | Sovereign act defense may bar takings when rights come from contract | Yes; both claims may be pursued in the same complaint; takings claim stayed pending contract resolution |
| Does government sovereign vs. proprietary capacity affect viability of a takings claim here? | Not dispositive; previous cases allow dual theories | Sovereign acts defense can shield from contractual liability | Not controlling; court allows takings claim to proceed while staying during contract proceedings |
Key Cases Cited
- Lynch v. United States, 292 U.S. 571 (1934) (contract rights protected by Fifth Amendment)
- Lion Raisins, Inc. v. United States, 416 F.3d 1356 (Fed.Cir.2005) (contract rights may be takings when government interferes with federal contracts)
- Castle v. United States, 301 F.3d 1328 (Fed.Cir.2002) (breach claims trump takings; but not precluding dual pleadings in some contexts)
- Stockton East Water District v. United States (Stockton East II), 583 F.3d 1344 (Fed.Cir.2009) (party may plead contract and takings in same complaint; may defer takings until contract resolved; one recovery rule)
- Hughes Communications Galaxy, Inc. v. United States, 271 F.3d 1060 (Fed.Cir.2001) (takings claims often limited when government acts commercially rather than sovereignly)