FISHERMAN‘S HARVEST, INC., C. Joe Nelson, Jr., Doris Mae Nelson, Vanessa Jo Nelson Vallejo, Vickie Jo Nelson Salazar, and Nelson Plaintiffs Fisherman‘s Harvest, Inc., Plaintiffs--Appellants, and Childress Seafood, Inc., W.F. Childress, and Alton Lee Kelly, Plaintiffs-Appellants, v. PBS & J (formerly known as Espey, Huston & Associates, Inc.), Defendant, and Bertucci Contracting Corporation, Defendant, and Luhr Brothers, Inc., Defendant, and Bradley Industrial Textiles, Inc., Defendant-Appellee, and Nicolon Corporation (also known as Ten Cate Nicolon), Defendant-Appellee, and Huston & Associates, Inc., Defendant, and Weeks Marine, Inc., Defendant/Third Party Plaintiff-Appellee, v. United States Army Corps of Engineers, Third Party Defendant-Appellee.
No. 2006-1208
United States Court of Appeals, Federal Circuit
June 21, 2007
1371
Paul G. Preston, The Preston Law Firm, L.L.P., of Houston, TX, for defendant-appellee, Bradley Industrial Textiles, Inc. With him on the brief was Devon H. Decker.
Jill A. Schaar, Locke Liddell & Sapp LLP, of Houston, TX, for defendant-appellee, Nicolon Corporation (also know as Ten Cate Nicolon).
Kenneth G. Engerrand, Brown Sims, P.C., of Houston, TX, argued for defendant/third party plaintiff-appellee.
David D‘Alessandris, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, of Washington, DC, argued for third party defendant-appellee. With him on the brief were Peter D. Keisler, Assistant Attorney General, and Patricia M. McCarthy, Assistant Director.
Before NEWMAN, LINN, and MOORE, Circuit Judges.
Opinion for the court filed by Circuit Judge LINN. Dissenting opinion filed by Circuit Judge NEWMAN.
LINN, Circuit Judge.
This case involves alleged damage to oyster growers due to dredging operations and requires us to interpret the scope of jurisdiction provided by
I. BACKGROUND
The oyster growers are the owners or beneficial owners of oyster leases in Gal-
The oyster growers filed suit against the private contractors in federal district court, alleging federal question and diversity jurisdiction. On June 23, 2005, Weeks Marine filed a third-party complaint against the Army Corps of Engineers, alleging a contractual right to contribution and indemnity. Neither the oyster growers’ complaint nor the third-party complaint against the government asserted a cause of action derived from
The Army Corps of Engineers moved to dismiss the third-party complaint for lack of jurisdiction, asserting that the Court of Federal Claims has exclusive jurisdiction over Weeks Marine‘s claim for contribution and indemnification based on
II. DISCUSSION
A. Appellate Jurisdiction
Generally, a transfer order is interlocutory and thus not appealable unless incident to a final judgment or as a certified question pursuant to
Here, in the context of examining the oyster growers’ claims, the district court cited only to
B. Transfer to Cure Want of Jurisdiction
Section 1631 provides that when a court “finds that there is a want of jurisdiction, the court shall, if it is in the interest of justice, transfer such action or appeal to any other such court in which the action or appeal could have been brought at the time it was filed or noticed.”
Here, the district court transferred the oyster growers’ claims against the private contractors without engaging in the analysis required by section 1631. Specifically, the district court failed to determine whether it lacked jurisdiction or whether the Court of Federal Claims possessed jurisdiction over the oyster growers’ claims. The oyster growers filed an action against the private contractors for negligence; Weeks Marine‘s subsequent third-party complaint against the government
Section 1497 creates jurisdiction in the Court of Federal Claims over actions for damages to oyster growers, and provides:
The United States Court of Federal Claims shall have jurisdiction to render judgment upon any claim for damages to oyster growers on private or leased lands or bottoms arising from dredging operations or use of machinery and equipment in making river and harbor improvements authorized by Act of Congress.
The oyster growers argue that section 1497 should be read consistently with the Tucker Act as only creating jurisdiction to entertain claims against the United States. The government--styled as a third party defendant-appellee in this appeal--agrees, noting that the Court of Federal Claims is a legislative court limited to resolving claims involving public rights, not private rights. The oyster growers also argue that, to the extent there is jurisdiction, such jurisdiction is not exclusive.
The private contractors counter that although the Tucker Act expressly creates jurisdiction for claims “against the United States,” section 1497 does not, and thus section 1497 means what it says in providing jurisdiction for “any” claim for damages to oyster growers. The private contractors also counter that such jurisdiction is exclusive to the Court of Federal Claims, arguing that before the predecessor to section 1497 was enacted, oyster farmers had no cause of action against private parties engaged in dredging operations as demonstrated by Lewis Blue Point Oyster Cultivation Co. v. Briggs, 229 U.S. 82, 33 S.Ct. 679, 57 L.Ed. 1083 (1913). As further support for exclusive jurisdiction, the private contractors note that section 1497 makes no mention of concurrent jurisdiction, whereas
Because there was no “want of jurisdiction” over the oyster growers’ claims against the private contractors, a transfer under section 1631 is not proper. The oyster growers’ state law tort claims, which allege complete diversity of citizenship and an amount in controversy exceeding $75,000, meet the jurisdictional requirements of
With respect to Tucker Act claims against the government for more than $10,000, we have held that jurisdiction lies exclusively in the Court of Federal Claims despite the absence of the word “exclusive” in
The direct legislative history for section 1497 provides no guidance on this issue. The predecessor to section 1497,
In Lewis, an oyster grower sought to enjoin a contractor for the United States from dredging a channel that would significantly impair the value of its leased oyster beds. 229 U.S. at 82, 33 S.Ct. 679. Because the oyster grower argued that the government‘s action would be an invasion of a private property right, the Supreme Court examined whether the dredging of navigable waterways was a taking of prop-
The Lewis decision does nothing to disturb the common law of torts and the legal theory that a negligent private party that causes damage to another‘s private property is liable for the damages. Although the passage of the Act in 1935 may have created a right where none existed against the government,3 parties have long held the right to pursue action against private parties for property damage, including negligence actions in federal district courts under diversity jurisdiction.
Finally, we note that the interpretation proposed by the private contractors raises constitutional concerns implicated by the “public rights” doctrine and the Seventh Amendment‘s guarantee of a right to a jury trial “in suits at common law.” The “public rights” doctrine, first set forth in Murray v. Hoboken Land & Improvement Co., 59 U.S. (18 How.) 272, 15 L.Ed. 372 (1855), draws a distinction between “public” rights, the adjudication of which Congress may assign to an Article I tribunal, and “private” rights, which Congress cannot remove from judicial cognizance under Article III. See, e.g., Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 51-55, 109 S.Ct. 2782, 106 L.Ed.2d 26 (1989); N. Pipeline Const. Co. v. Marathon Pipe Line Co., 458 U.S. 50, 69-70, 102 S.Ct. 2858, 73 L.Ed.2d 598 (1982); Murray, 59 U.S. at 284. As the Supreme Court identified in Granfinanciera, the inquiries under the “public rights” doctrine and the Seventh Amendment are the same.4 In this action, the oyster growers assert state tort law claims against private parties. Although we need not decide whether such an action is “public” or “private” in nature, we note that private tort actions are quintessentially suits at common law. An interpretation of section 1497 in which the Court of Federal Claims--an Article I tribunal--is the exclusive avenue for bringing certain private tort actions raises serious constitutional doubts. The canon of constitutional avoidance in statutory interpretation implies that a plausible construction of section 1497 that does not raise such constitutional doubts gives better effect to congressional intent. See Clark v. Martinez, 543 U.S. 371, 380-82, 125 S.Ct. 716, 160 L.Ed.2d 734 (2005) (“When deciding which of two plausible statutory constructions to adopt, a court must consider the necessary consequences of its choice. If one of them would raise a multitude of constitutional problems, the other should prevail.“).
For the foregoing reasons, we hold that section 1497 does not create exclusive jurisdiction in the Court of Federal Claims over the oyster growers’ claims against
C. Change of Venue
Although the district court cited
Section 1404(a) provides that, “[f]or the convenience of the parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”
In so holding, we recognize that in Hondros v. United States Civil Service Commission, 720 F.2d 278, 299 (3d Cir. 1983), the Third Circuit held that a district court may transfer a case to the Court of Claims (predecessor to the Court of Federal Claims) under
For the foregoing reasons, we hold that section 1404(a) does not provide for a transfer from a district court to the Court of Federal Claims. The district court
III. CONCLUSION
Accordingly, we reverse the district court‘s order transferring the oyster growers’ claims to the Court of Federal Claims and remand for further proceedings consistent with this opinion.
REVERSED AND REMANDED
NEWMAN, Circuit Judge, dissenting.
With all respect to the concerns of this panel, I do not agree that this transfer from the district court to the Court of Federal Claims is forbidden by statute. The ultimate liability for “damages” is that of the United States, and jurisdiction has been explicitly assigned to the Court of Federal Claims. It is not required that any underlying fault on the part of the dredging operators, if there were such, be litigated first and only in the district court. Nor must such fault be shown in order for the United States to incur liability to the oyster growers.
The applicable statute,
§ 1497. Oyster growers’ damages from dredging operations. The United States Court of Federal Claims shall have jurisdiction to render judgment upon any claim for damages to oyster growers on private or leased lands or bottoms arising from dredging operations or use of other machinery and equipment in making river and harbor improvements authorized by Act of Congress.
Recognizing this jurisdictional assignment, the district court transferred the case, citing § 1497 and the authority of 28 U.S.C. § 1404(a), as follows:
§ 1404(a). Change of venue. For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.
Such transfer is not dependent on whether the district court could retain jurisdiction of an issue raised in the pleadings, for § 1404(a) is not subordinate to
§ 1631. Transfer to cure want of jurisdiction. Whenever a civil action is filed in a court as defined in section 610 of this title or an appeal, including a petition for review of administrative action, is noticed for or filed with such a court and that court finds that there is want of jurisdiction, the court shall, if it is in the interest of justice, transfer such action or appeal to any other such court in which the action or appeal could have been brought at the time it was filed or noticed, and the action or appeal shall proceed as if it had been filed in or noticed for the court to which it is transferred on the date upon which it was actually filed in or noticed for the court from which it is transferred.
Taken together, the district court‘s transfer action is within the letter of the transfer statutes, whose purpose is to facilitate judicial cognizance of disputes.
This court now holds that if the district court had jurisdiction to decide a negligence claim between the oyster farmers and the dredgers, the district court is precluded by §§ 1404(a) and 1631 from transfer to the Court of Federal Claims. However, as the parties point out, there may be no need to decide whether the dredgers were negligent, for it appears that any ultimate liability to the oyster growers due to federally-ordered dredging is with the United States, a liability that can be assessed only by the Court of Federal Claims. This invokes §§ 1497 and 1631,
The district court‘s reliance on § 1404(a) and § 1497 as the bases for transfer to the Court of Federal Claims is not excluded by § 1631. The purpose of § 1631 was to assure transfer authority in the event the restructuring in 1982 of the Court of Claims into two courts, appeal and trial, produced jurisdictional uncertainties. The purpose was to facilitate transfer between federal trial courts, not to require separate litigation of “issues” in different trial courts. Thus the Federal Courts Improvement Act, Pub.L. No. 94-164, 96 Stat. 25 (1982), assigned to the new Federal Circuit the appellate jurisdiction of the Court of Claims, and established a separate trial court (then named the Claims Court) to handle the trial work that was previously conducted by the Court of Claims through trial “commissioners.” The purpose of
In recent years, much confusion has been engendered by provisions of existing law that leave unclear which of two or more Federal Courts have subject matter jurisdiction over certain categories of civil actions.
127 Cong. Rec. 23085, 23097 (1981). In further remedy of perceived deficiencies in judicial structure, the authority of the new Claims Court was enlarged from that of the predecessor Court of Claims to enable the grant of “complete relief“:
In addition, section 133 of the bill gives the new Claims Court the power to grant declaratory judgments and give equitable relief in controversies within its jurisdiction. This provision will for the first time give the court specializing in certain claims against the Federal Government the ability to grant litigants complete relief. The [Senate Judiciary] committee concluded that this provision will avoid the costly duplication in litigation presently required when a citizen seeks both damages and equitable relief against the Government.
Id. at 29860. The panel majority strays from the text and intent of Congress by permitting, indeed requiring, duplicative litigation of the issue of dredging injury for which the United States would ultimately be liable.
The Court of Federal Claims is fully authorized to decide the issues that relate to liability of the United States under § 1497. My colleagues appear to deny this authority, by requiring trial of the negligence count in the district court. Indeed, it may not be necessary to decide whether the dredgers were negligent, in order for the oyster growers to obtain compensation for actual injury. Nonetheless, this court now finds lack of jurisdiction by applying § 1497, and ignores the transfer grounds relied on by the district court.
Transfer to the Court of Federal Claims is not precluded even for cases in which the district court and the Court of Federal Claims both have jurisdiction, for example transfer for forum non conveniens as might arise under the Little Tucker Act,
It is far from clear how this litigation could proceed in the district court to resolve the third-party complaint for monetary relief based on contracts with the United States. The plaintiffs and the third party plaintiffs have been and are being pressed into litigating duplicate protective actions--at significant cost to them as well as to the United States--by this unnecessary jurisdictional rigor. The district court invoked a logical and permissible solution, implementing the goals of Congress. This court‘s redistribution of portions of this action to separate trial forums is neither necessary nor desirable. The district court‘s transfer action was within its discretionary authority and not contrary to law, and should be sustained.
