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Julian v. United States
658 F. App'x 1014
Fed. Cir.
2016
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Background

  • Christopher and Renee Julian sued in the Western District of Virginia under 18 U.S.C. § 1964(c) (RICO) and related tort/due-process theories after USDA denied a farm loan; the district court dismissed most claims and granted summary judgment for USDA on the loan denial. The Fourth Circuit affirmed and the Supreme Court denied certiorari.
  • The Julians then sued in the Court of Federal Claims for $42 million, alleging the government breached an implied contract by permitting private RICO suits (which they characterized as an "offer") and that dismissal of their RICO claim constituted a Fifth Amendment taking of that implied contract.
  • The Court of Federal Claims dismissed for lack of jurisdiction and for failure to state a claim, and denied the plaintiffs’ motion to recuse the assigned judge.
  • The Julians sought mandamus; the Court of Appeals for the Federal Circuit converted the petition into a notice of appeal and heard the case under its appellate jurisdiction.
  • The Federal Circuit affirmed: it held the Court of Federal Claims lacked jurisdiction to review a district court’s dismissal; § 1964(c) is not money‑mandating for the Court of Federal Claims; no contract was formed by RICO’s private-right provision; alleged frustration of a legal claim is not a compensable taking; and the recusal denial was not an abuse of discretion.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the CFC had jurisdiction to review the district court’s dismissal Julian: CFC can review because dismissal breached an implied contract/created a taking arising from the RICO private‑right U.S.: CFC lacks jurisdiction to review district court decisions; RICO is not money‑mandating for CFC jurisdiction CFC lacks jurisdiction to review district court dismissals; §1964(c) is not money‑mandating for the CFC
Whether §1964(c) created an implied contract between government and private plaintiffs Julian: RICO’s private‑suit provision is an "offer" creating an implied contract when plaintiffs filed suit U.S.: Statutes are not contracts absent clear legislative intent to create contractual obligations No contract existed; statutory private‑remedy does not create a contract offer
Whether dismissal of the RICO claim was a Fifth Amendment taking of plaintiffs’ property Julian: The RICO claim was a property right; its dismissal was a taking U.S.: Frustration/loss of a legal claim is not a compensable taking Denied — frustration/loss of a legal claim is not a compensable taking
Whether the assigned judge abused discretion by refusing recusal request Julian: Judge should have recused because he would not attest he took his statutory oath U.S.: No requirement that a judge prove oath-taking to a party; denial not abuse No abuse of discretion in denying recusal

Key Cases Cited

  • Agency Holding Corp. v. Malley‑Duff & Assoc., Inc., 483 U.S. 143 (1987) (recognizing §1964(c) creates a private right to sue under RICO)
  • Nat’l R.R. Passenger Corp. v. Atchison Topeka & Santa Fe Ry. Co., 470 U.S. 451 (1985) (statutes are not presumed to create contractual or vested rights absent clear legislative intent)
  • Dodge v. Bd. of Ed., 302 U.S. 74 (1937) (similar presumption against statutes creating private contractual rights)
  • Belk v. United States, 858 F.2d 706 (Fed. Cir. 1988) (frustration of a legal claim is not a compensable taking)
  • Joshua v. United States, 17 F.3d 378 (Fed. Cir. 1994) (CFC lacks jurisdiction to review district court proceedings)
  • Shell Oil Co. v. United States, 672 F.3d 1283 (Fed. Cir. 2012) (review of a judge’s refusal to recuse is for abuse of discretion)
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Case Details

Case Name: Julian v. United States
Court Name: Court of Appeals for the Federal Circuit
Date Published: Aug 4, 2016
Citation: 658 F. App'x 1014
Docket Number: 2016-1889
Court Abbreviation: Fed. Cir.