Otay Mesa Property, L.P. v. United States
111 Fed. Cl. 422
Fed. Cl.2013Background
- Otay Mesa Property, L.P. and others claim a permanent Fifth Amendment taking via a government easement created by seismic sensors on their property.
- Court previously awarded damages and ordered interest under the CDA to commence from the 2008 stipulation date.
- Federal Circuit held the taking was permanent, altering damages methodology from rental value to risk-based value.
- Dispute centers on when interest should accrue: from the taking (1999) or from government disclosure (2008).
- Court’s May 30, 2013 damages decision used a 2008 start for interest under the CDA; plaintiffs seek 1999 start per earlier opinions.
- Court grants reconsideration only to adjust the interest start date to August 28, 2008, not other relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Start date for CDA interest after taking | Otay Mesa asserts April 1999 start. | Interest should begin with government’s stipulation (Aug. 28, 2008). | Start date adjusted to August 28, 2008. |
| Whether earlier 1999 start was improperly relied on | Earlier opinion supported 1999 start. | Higher court resolved permanent taking precludes 1999 start. | No retroactive extension beyond 2008; reconsideration denies broader relief. |
| Effect of permanent taking on damages approach | Sensor easement caused ongoing risk starting earlier. | Risk existed post-disclosure; damages limited to 2008+ | Risk-based damages remain, but start date fixed at 2008. |
| Scope of reconsideration order | Seek broader relief beyond start date. | Limit to start-date adjustment only. | GRANTED IN PART; only adjusted start date to 08/28/2008. |
Key Cases Cited
- Kirby Forest Indus., Inc. v. United States, 467 U.S. 1 (U.S. 1984) (owner entitled to interest to compensate for time value of money)
- Jacobs v. United States, 290 U.S. 13 (U.S. 1933) (interest to produce equivalent value at time of taking)
- Whitney Benefits, Inc. v. United States, 30 Fed. Cl. 411 (Fed. Cir. 1994) (recognizes time value of money in damages)
- ITT Corp. v. United States, 17 Cl. Ct. 199 (Ct. Fed. 1989) (delay in payment equates to delay in use of funds)
- Otay Mesa Property, L.P. v. United States, 93 Fed. Cl. 476 (2010) (earlier damages decision; holding on sensor-related taking)
- Otay Mesa Property, L.P. v. United States, 110 Fed. Cl. 732 (2013) (damages decision; start of interest at 2008 stipulation)
- Otay Mesa Property, L.P. v. United States, 670 F.3d 1358 (Fed. Cir. 2012) (permanent vs temporary taking designation)