CLUB COMANCHE, INC. v. GOVERNMENT OF THE VIRGIN ISLANDS, and any other person or party claiming an interest in Plot 40 or 40A Strand Street, Christiansted, St. Croix, Appellant.
No. 01-1717.
United States Court of Appeals, Third Circuit.
Argued Dec. 3, 2001. Jan. 14, 2002.
278 F.3d 250
V.
For these reasons, we affirm the order of the District Court.
Bethaney J. Pichierri (Argued), Tom Bolt & Associates, St. Thomas, U.S. Virgin Islands, Brian P. Kenney, Kenney & O‘Shea, Philadelphia, PA, Counsel for Appellee.
Before BECKER, Chief Judge, NYGAARD and COWEN, Circuit Judges.
OPINION OF THE COURT
BECKER, Chief Judge.
A dispute between the Government of the Virgin Islands (“GVI“) and a littoral landowner1 over the boundaries of a piece of property in downtown Christiansted, St. Croix, led to this quiet title action in the District Court of the Virgin Islands, which the District Court resolved by granting summary judgment to the plaintiff, Club Comanche, Inc. The threshold question in this appeal is whether the District Court had (or lacked) subject matter jurisdiction. Applying the “well-pleaded complaint rule,” we conclude that none of the asserted bases for jurisdiction in the District Court rather than the Territorial Court of the Virgin Islands—i.e., the 1916 treaty by which Denmark transferred the Virgin Islands to the United States and the federal statutes by which the United States transferred public lands and submerged and reclaimed lands to the GVI in 1974—is sufficient to support federal question jurisdiction in a quiet title action brought pursuant to the Virgin Islands quiet title statute,
I. Facts & Procedural History
The case involves the disputed boundaries of the property at 40 Strand Street, which is located in the town of Christiansted. Club Comanche, Inc., the current owner of 40 Strand Street, operates a hotel and restaurant on the property. The case arises from the GVI‘s attempt to build a pedestrian boardwalk along Christiansted Harbor. According to Club Comanche, the GVI told the littoral landowners in Christiansted that it could not afford to exercise eminent domain and pay for the land necessary to build the boardwalk. Believing that the boardwalk would be beneficial to their businesses, the littoral landowners, including Club Comanche, agreed to grant a “perpetual easement” to the government for the boardwalk. The GVI originally agreed to this arrangement but, in Club Comanche‘s submission, subsequently claimed that the coastline of lot 40 actually does not belong to Club Comanche but rather to the GVI in trust for the people of the Virgin Islands. The GVI drew a new map of the area around lot 40 Strand Street, designating the northern coastal portion of the lot as “lot 40A Strand Street,” and claimed ownership of the renamed parcel. In response, Club
Lot 40 Strand Street is a roughly rectangular piece of property that fronts Strand Street on its southern edge. The lot is bordered on its western edge by lot 39 Strand Street. The northern and eastern borders of the property are in dispute. Club Comanche contends that its property extends northward all the way to Christiansted Harbor. The GVI submits that Club Comanche‘s lot does not extend all the way to the water, and that the coastal area north of lot 40, which it has designated lot 40A, belongs to the GVI.2 This dispute turns largely on the proper translation of the first document recording the dimensions of lot 40 Strand Street, the so-called Danish Measure Brief. The dimensions from the original Danish Measure Brief have appeared on the deeds to that property since 1803 (first in Danish, and later in English).
The deed by which the previous owner of 40 Strand Street conveyed the property to Club Comanche recites the following interpretation of the language from the original Danish Measure Brief:
MEASURE BRIEF
FOR THE PROPERTY NO. 40 Strand Street, in the Town of Christiansted, on the Island of St. Croix, V.I.[,] U.S.A.
THIS IS TO CERTIFY that the above mentioned lot according to the Surveyor‘s Records has the following boundaries:
to the north 63 feet towards the sea
to the south 61 feet towards Strand Street
to the East 215 feet towards 55 King Street
to the West 215 feet towards 39 Strand Street
This area is about DANISH MEASURE square feet.3
Club Comanche offered testimony from its surveyor, who contacted the main Cadastral (property records) Office in Denmark, which keeps historical property records from St. Croix, stating that the Danish word “til,” which the above passage translates as “towards,” should actually be translated as “along” or “against.” This would make the proper translation of the Measure Brief, “63 feet along the sea,” “61 feet along Strand Street,” and so on.4 Under this translation, Club Comanche would be a littoral landowner.
The GVI presented an affidavit from a translator that stated that the proper translation of the dimensions recited in the Danish Measure Brief is as follows:
Facing North 63’ toward the Sea
[Facing] South 61’ toward Strand Street
[Facing] East 215’ toward 55 King‘s Street
[Facing] West 215’ toward 39 Strand Street
The translator translated the word “facing” from the Danish word “mod,” which begins the first line of the original Danish Measure Brief. According to the transla-
[T]he intention of the description is to explain the size of the piece of land and where it is located. Thus, in reality what is being stated is:
The property line facing the north side toward the sea is 63 feet long.
The property line facing the south side toward Strand Street is 61 feet long.
The property line facing the east side toward 55 King‘s Street is 215 feet long.
The property line facing the west side toward 39 Strand Street is 215 feet long.
Thus, in order to understand how far 40 Strand Street extends towards the sea, it is necessary to look at the east and west property lines. According to the surveyor‘s description, the property extends 215’ (Danish measure) from Strand Street in the direction of the sea, that is, northward.
Under this interpretation, given the dimensions of the disputed lot, Club Comanche would not be a littoral landowner with any claim to the area traversed by the boardwalk.
Basing its argument on the contention that the original Danish Measure Brief defined the property as running “along the sea,” or northward “to the sea,” Club Comanche reasoned that the rule of construction stated in
When permanent and visible or ascertained boundaries or monuments are inconsistent with the measurement either of lines, angles, or surfaces, the boundaries or monuments are paramount.
Following discovery, Club Comanche moved for summary judgment. The GVI filed a brief in opposition to the motion and a cross-motion for summary judgment. Club Comanche then moved for a temporary restraining order (TRO) and preliminary injunction against the construction of the boardwalk. Following a hearing, the District Court granted the TRO, ordering the GVI to cease exercising dominion over lot 40A, with the proviso that the GVI could continue to build the boardwalk subject to the understanding that it would be required to remove any of the boardwalk it constructed on lot 40A if that portion of the lot was later determined to belong to Club Comanche.
The parties filed a stipulation waiving a hearing on the request for a preliminary injunction and the summary judgment motions. Thereafter, Club Comanche moved to amend its complaint to request a declaration clarifying title to the disputed area on the eastern side of the property (the Strand Lane extension), see supra note 2, which the District Court granted. Club Comanche then filed an amended complaint that included a prayer for declaratory judgment on the disputed eastern edge of the property, which the GVI answered.
II. Subject Matter Jurisdiction
A. Background—Contentions of the Parties
Although neither party challenges the District Court‘s subject matter jurisdiction (or raised the issue in the District Court), we are obligated to address questions of jurisdiction sua sponte. See Meritcare Inc. v. St. Paul Mercury Ins. Co., 166 F.3d 214, 217 (3d Cir.1999).
We have detailed the jurisdictional history of the District Court of the Virgin Islands in Callwood v. Enos, 230 F.3d 627 (3d Cir.2000), and Brow v. Farrelly, 994 F.2d 1027 (3d Cir.1993), so we will provide only a summary version here. The Revised Organic Act,
In 1984, Congress rewrote the section of the Revised Organic Act that defines the jurisdiction of the District Court of the Virgin Islands. The new jurisdictional provision effected two changes. First, the Act provided that, “[t]he District Court of the Virgin Islands shall have the jurisdiction of a District Court of the United States, including, but not limited to, the diversity jurisdiction provided for in section 1332 of Title 28, and that of a bankruptcy court of the United States.”
The Virgin Islands legislature exercised this power in 1990, by enacting the following statutory section, which provides in relevant part:
Subject to the original jurisdiction conferred on the District Court by section 22 of the Revised Organic Act of 1954, as amended, effective October 1, 1991, the Territorial Court shall have original jurisdiction in all civil actions regardless of the amount in controversy....
Therefore, the question in this case is whether the District Court had jurisdiction to hear this dispute under
They point primarily to the Convention Between the United States and Denmark, 39 Stat. 1706 (signed Aug. 4, 1916; ratified Jan. 16, 1917) (reprinted in Title 1 V.I. Code Ann. at 27), by which the United States purchased from Denmark all of the state-owned lands in the islands of St. Croix, St. Thomas, and St. John. They argue that the resolution of this quiet title action requires the court to interpret this treaty, thus providing the basis for federal question jurisdiction.
The GVI also points to three other purported sources of federal question jurisdiction. First, the GVI cites the two federal statutes by which the United States turned over submerged and public lands to the GVI:
B. Significance of the Virgin Islands Quiet Title Statute
Preliminarily we must dispose of the question whether the fact that the Virgin Islands quiet title statute,
The Virgin Islands Code section governing quiet title actions, titled “Action to determine boundaries,” provides as follows:
In any case where any dispute or controversy exists, or may hereafter arise, between two or more owners of adjacent or contiguous lands in the Virgin Islands, concerning the boundary lines thereof, or the location of the lines dividing such lands, either party or any party to such dispute or controversy may bring and maintain an action of an equitable nature in the district court for the purpose of having such controversy or dispute determined....
While we recognize that these two statutes are in some tension, we are satisfied that § 76(a)‘s language vesting original jurisdiction in the Territorial Courts in “all civil actions” includes quiet title actions, notwithstanding the language from § 372 about bringing a quiet title action “in the district court.”8 Reading § 76(a) to divest the District Court of the Virgin Islands of jurisdiction over § 372 quiet title actions does not actually impliedly repeal any operative part of § 372. The only part that it arguably repeals is § 372‘s statement that “either party or any party to such dispute or controversy may bring and maintain an action of an equitable nature in the district court....”
C. Reasons for the Absence of Federal Question Jurisdiction
The most straightforward test of whether an action presents a federal question is to determine the law from which the cause of action arises, federal or otherwise. Justice Holmes‘s formulation of this test was that “[a] suit arises under the law that creates the cause of action.” Am. Well Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260, 36 S.Ct. 585, 60 L.Ed. 987 (1916). The parties in this case both concede that it is a quiet title action. The only potential source of law for such an action is
If, as here, the cause of action is created by state or territorial law rather than federal law, the claim may still present a federal question. In these circumstances, “[t]he presence or absence of federal-question jurisdiction is governed by the ‘well-pleaded complaint rule,’ which provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff‘s properly pleaded complaint.” Rivet v. Regions Bank of La., 522 U.S. 470, 475, 118 S.Ct. 921, 139 L.Ed.2d 912 (1998) (quoting Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987) (internal quotation marks omitted)). A plaintiff‘s lack of reference, or erroneous reference to federal law is not controlling. See N. Am. Phillips Corp. v. Emery Air Freight Corp., 579 F.2d 229, 233 (2d Cir. 1978). Common-law pleading requirements originally provided the benchmark for determining whether a federal element must be raised to support a “well-pleaded” complaint. See 13B Charles A. Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure, § 3566 at 83 (1984) (noting that in early cases, the Supreme Court “cit[ed] Chitty [on Pleadings] to determine what allegations are proper“).
Modern cases, however, look to the pleading requirements established in the statutes from which the causes of action arise, or in courts’ interpretations of the pleading requirements of those statutes. See, e.g., Yokeno v. Mafnas, 973 F.2d 803, 808 (9th Cir.1992) (citing Hodges Transp., Inc. v. Nevada, 562 F.Supp. 521, 522 (D.Nev.1983), which in turn relied on the Nevada Supreme Court‘s interpretation of the pleading requirements in quiet title actions for the purpose of the well-pleaded complaint rule). The Virgin Islands legislature has helpfully specified what is necessary for a properly pleaded complaint brought under
The complaint in an action to determine boundaries shall be sufficient if it appears therefrom that the plaintiff and defendant or defendants are owners of adjacent lands and that there is a controversy or dispute between the parties concerning their boundary or dividing line or lines. It shall not be necessary to set forth the nature of such dispute or controversy further than that the plaintiff shall describe the boundary or dividing line as he claims it to be. The defendant, in his answer, shall set forth the nature of his claim with reference to the location of the lines in the controversy.
Club Comanche could have filed a well-pleaded § 372 complaint in this action simply by stating the boundaries of the property that it claimed. Thus, in this case, the federal issues of interpreting the Convention Between the United States and Denmark, interpreting the federal statutes
Other federal courts that have considered the question whether quiet title actions in which the defendant‘s claim to the land was based on federal law have also concluded that they do not qualify for federal question jurisdiction under the well-pleaded complaint rule. See American Invs-Co Countryside, Inc. v. Riverdale Bank, 596 F.2d 211, 217 n. 10 (7th Cir. 1979) (“If title to land is in doubt because of some matter of federal law, there is federal jurisdiction to entertain a bill to remove a cloud on title but not a suit to quiet title, since allegations as to the nature of the cloud are proper in the first kind of action but improper in the second.“); see also Friend v. Kreger, 1998 WL 242685, at *1 (N.D.Cal. May 7, 1998) (finding that the state law quiet title action before the court did not present a federal question under the well-pleaded complaint rule); accord 14 ALR.2d 992, 1125 (1950) (“[I]t is difficult, at least in the ordinary type of case, to plead a Federal question substantial in nature which is an essential element of plaintiff‘s quiet title action....“). This analysis accords with common jurisprudential notions of the incidents of “arising under” jurisdiction. The mere fact that a source of law, such as the treaty involved here, is consulted in deciding an issue, does not create jurisdiction.
For the foregoing reasons, we hold that Club Comanche‘s quiet title claim does not “arise under” the laws or treaties of the United States within the meaning of section 1331, and therefore that the District Court did not have jurisdiction over this dispute under
BECKER
CHIEF JUDGE
