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McGuire v. United States
97 Fed. Cl. 425
Fed. Cl.
2011
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Background

  • McGuire leased 1,355 acres from CRIT; lease allows ingress/egress over existing roadways, with a BIA-owned canal and right-of-way; bridge at Eighth Avenue Mohave Road used since 1969.
  • BIA planned removal of the unsafe bridge in January 2000; McGuire was advised to apply for a crossing permit to replace the bridge; he sought a permit but was not granted a replacement at that time.
  • Bridge removal in January 2000; McGuire stopped paying January 1, 2000 rent; lease cancelled August 2000; subsequent BIA/Western Director decisions upheld cancellation.
  • McGuire filed an inverse condemnation claim in bankruptcy; Ninth Circuit held the claim ripe but limited district court jurisdiction, remanding to the Court of Federal Claims under 28 U.S.C. § 1631.
  • Summary-judgment posture: government argues lack of ripeness and no cognizable property interest; expert evidence suggests substantial alternative access costs; factual questions remain.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did the Ninth Circuit’s ripeness ruling bind this court as law of the case? McGuire argues law-of-the-case requires adherence to ripeness holding. Government argues transfer decision may not bind this court and deference doctrines apply differently. Court abides by Ninth Circuit ripeness holding and applies Christianson framework.
Does McGuire have a legally cognizable property interest in the bridge/access? Lease and access rights create a cognizable interest in access to the northern portion. Interest depends on regulatory regime and possible revocation; may not be cognizable. Summary judgment on this issue is premature; genuine issues of material fact remain.
Was there a compensable taking under Penn Central or Lucas? Removal of bridge denied access, causing substantial economic injury and loss of use. Economic impact and expectations must balance; not per se or total taking. Lucas categorical taking denied; Penn Central factors require further factual development.
Are extraordinary delay or nuisance defenses applicable to defeat ripeness or takings claims? Delay/futility exceptions could excuse failure to pursue administrative remedies. Delay was not extraordinary; nuisance defense is not dispositive here. No extraordinary circumstances to overturn ripeness; nuisance defense not determinative at this stage.

Key Cases Cited

  • Quality Tooling v. United States, 47 F.3d 1569 (Fed. Cir. 1995) (district bankruptcy jurisdiction over government contracts; transfer issues)
  • Williamson Cnty. Reg’l Planning Comm’n v. Hamilton Bank, 473 U.S. 172 (U.S. 1985) (final decision required for takings ripeness)
  • Palazzolo v. Rhode Island, 533 U.S. 606 (U.S. 2001) (administrative processes not always required; focus on reach of regulation)
  • Lingle v. Chevron U.S.A., Inc., 544 U.S. 528 (U.S. 2005) (substantially advances test rejected for takings)
  • Penn Cent. Transp. Co. v. City of New York, 438 U.S. 104 (U.S. 1978) (Penn Central factors for regulatory takings)
  • Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (U.S. 1992) (categorical taking where all economically beneficial use is lost)
Read the full case

Case Details

Case Name: McGuire v. United States
Court Name: United States Court of Federal Claims
Date Published: Feb 18, 2011
Citation: 97 Fed. Cl. 425
Docket Number: No. 09-380L
Court Abbreviation: Fed. Cl.