frazer/exton Development, L.P. v. United States
19-2143
Fed. Cir.Apr 7, 2020Background
- The Foote Mineral Superfund Site was contaminated by government-contracted lithium processing and waste disposal during the 1940s–1950s, producing soil and groundwater contamination.
- EPA involvement began in 1988 with consent orders and remedial investigations; Frazer/Exton acquired the site in 1998 with actual knowledge of contamination and agreed to assume environmental obligations.
- EPA issued a Record of Decision in 2006; Frazer/Exton volunteered to perform the remedial work and entered a consent order (approved 2008). Additional contamination was discovered and EPA amended the ROD in 2008.
- Frazer/Exton represented it completed investigation/remediation in 2011. Whiteland purchased the site at sheriff’s sale in 2016 and executed an environmental covenant (PEC) in 2017; EPA approved it.
- Frazer/Exton (later joined by Whiteland) sued the United States in the Court of Federal Claims on July 24, 2018, alleging a gradual physical taking by deposition of hazardous substances.
- The Claims Court held the takings claim accrued by 2011 (when remediation was represented complete), dismissed under the six-year statute of limitations (28 U.S.C. § 2501), and the Federal Circuit affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the physical-takings claim accrue? | Accrual delayed until land-use restrictions (PEC) made the taking permanent and foreseeable. | Claim accrued by 2011 when remediation was completed and the contamination/stabilization was evident. | Accrual occurred by 2011; suit filed in 2018 was time-barred. |
| Whether stabilization doctrine requires regulatory action (PEC) before accrual | Stabilization should be measured only once EPA remediation and land-use restrictions fixed permanency. | Stabilization concerns the physical process itself; regulatory measures do not extend accrual beyond stabilization. | Court declined to extend stabilization doctrine to wait for regulatory action; regulatory restrictions are separate from physical taking. |
| Whether accrual suspension (concealment or inherently unknowable injury) applies | The injury was inherently unknowable until the PEC; accrual should be suspended until then. | Plaintiff bought with knowledge of contamination and had information showing permanence by 2011; no reasonable ignorance. | Accrual-suspension inapplicable; facts show plaintiffs knew or should have known by 2011. |
Key Cases Cited
- United States v. Dickinson, 331 U.S. 745 (1947) (stabilization concept for gradual physical takings)
- Boling v. United States, 220 F.3d 1365 (Fed. Cir. 2000) (stabilization touchstone: permanency and foreseeability of damage)
- Banks v. United States, 314 F.3d 1304 (Fed. Cir. 2003) (accrual and stabilization analysis in gradual takings)
- Mildenberger v. United States, 643 F.3d 938 (Fed. Cir. 2011) (obligation to sue arises once permanency is evident)
- Young v. United States, 529 F.3d 1380 (Fed. Cir. 2008) (concealment and inherently unknowable exceptions to accrual)
- Holmes v. United States, 657 F.3d 1303 (Fed. Cir. 2011) (reasonableness component of the inherently unknowable test)
