Greenwood v. United States
10-15
Fed. Cl.Jan 25, 2017Background
- Rails-to-trails takings case brought on behalf of 53 landowners (78 parcels) along a 6.70-mile corridor in Lawrence County, Arkansas. Class certified March 5, 2013.
- Parties negotiated a settlement after a joint appraisal process categorizing representative parcels and using spreadsheets to value unappraised parcels.
- Settlement total: $1,025,595.00 (principal $611,795.00; interest $413,800.00 as of Aug. 31, 2016). Individual principal amounts listed in an attachment to the agreement.
- Class counsel moved for preliminary approval of the settlement and proposed notice; the government did not oppose approval but proposed revisions to the notice and that certain supporting materials be made available (via website).
- Key contested points: sufficiency of notice and access to appraisal/methodology details; whether class counsel could seek contingent/common-fund fees from the settlement (later withdrawn/abandoned).
- Court granted preliminary approval, adopted the government’s notice with modifications, required documents be made available upon request, scheduled a 30‑day notice period (Feb 3–Mar 6, 2017) and a telephonic fairness hearing on Mar 24, 2017.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement is preliminarily fair, reasonable, and adequate | Settlement results from joint appraisals and non-collusive negotiation; provides specific payments per parcel | Agrees with preliminary approval generally | Court preliminarily approved the settlement; found no collusion or preferential treatment |
| Whether notice to class members is adequate under RCFC 23(e) and due process | Proposed notice states counsel will provide appraisals and calculations upon request and details the joint appraisal process | Proposed revisions to add more detail, clarify interest calculation, and provide access to appraisals/methodology (suggests website) | Court adopted government’s notice form (with minor edits); found notice adequate to inform class members |
| Whether class members must be given easy access to appraisal spreadsheets and methodology (extent/method of access) | Class counsel: will provide appraisals and calculations upon request; previous opportunities existed to review appraisals | Government: class members should be able to readily access appraisals and methodology (proposes website) | Court required counsel to provide appraisals/methodology upon request (did not mandate website) and found this satisfied Haggart’s requirement for access to additional information |
| Attorney fees — whether contingent fees/common-fund recovery may be claimed from settlement | Class counsel initially sought contingent fees from some members and suggested common-fund recovery | Government opposed common-fund recovery; relied on Haggart to preclude such recovery here | Court approved notice omitting references to contingent/common-fund fees; class counsel abandoned common-fund argument and fees will be addressed separately under URA |
Key Cases Cited
- Haggart v. Woodley, 809 F.3d 1336 (Fed. Cir. 2016) (notice must allow class members easy access to additional detailed information and methodology)
- Mullane v. Central Hanover Bank & Tr. Co., 339 U.S. 306 (1950) (notice must be reasonably calculated to apprise interested parties and permit objections)
- In re Katrina Canal Breaches Litig., 628 F.3d 185 (5th Cir. 2010) (importance of providing means to acquire more detailed information when notice is general)
- Barnes v. United States, 89 Fed. Cl. 668 (Fed. Cl. 2009) (process for preliminary fairness evaluation, notice, and fairness hearing in class settlements)
- Sabo v. United States, 102 Fed. Cl. 619 (Fed. Cl. 2011) (approving settlement that did not include attorney-fee recoveries from the settlement fund)
