W. FRANK BOLING, W.E. GORE, JR., GEORGE RAYFORD VEREEN, HOPE WILLARD, in their behalf and on behalf of all other persons similarly situated; WILLIAM D. BOLING, individually, WILLIAM D. BOLING, as Trustee of the Agnes T. Boling Living Trust, and W. FRANK BOLING; LOY REE B. BALLAM; CLIFTON BELLAMY; BEACHWOOD GOLF CORPORATION; ROBERT T. DARDEN, SR., MILDRED C. DARDEN, DANNY ROSS MOORE, SR., MARTHA R. MOORE; FRANK B. CLARE, individually, FRANK B. CLARE, as personal representative of the Estate
of Shelley S. Edmondson, FRANK B. CLARE as personal representative of the Estate of Louise Edmondson, and FRANK B. CLARE as personal representative of the Estate of Shirley E. Clare, SAMUEL L. OWENBY, DONNA K. OWENBY; ELBERT POWELL, DALE POWELL; NATHALIE FLOWERS EDGE, HILBURN EDGE; JOHN E. BATTEN, III, DONNA A. BATTEN; H.F. BELL, JOSEPH E. BELL, L.J. BELL, RALPH C. BELL, RETHA C. BELL, CLARICE B. RITTER, DORIS B. GUMP, ESTHER B. BOYD, LOY REE B. BALLAM; L.J. BELL, J.B. JOHNSON, as personal representatives of the Estate of C.H. Permenter, Jr. and Louise L. Permenter; HERBERT CECIL WARD, WILLIAM M. WARD, LINDA W. FUNDERBURK; GEORGE R. VEREEN; HOPE WILLARD, GERALD DENNIS NEELEY and JAMES FAIRCLOTH, Plaintiffs-Appellants,
v.
UNITED STATES, Defendant-Appellee.
99-5025
United States Court of Appeals for the Federal Circuit
DECIDED: August 10, 2000
Appealed from: United States Court of Federal Claims Judge John P. WieseThornwell F. Sowell, Sowell Todd Laffitte Beard & Watson, L.L.C., of Columbia, South Carolina, argued for palintiffs-appellants. With him on the brief was Carey T. Kilton. Of counsel on the brief were H.F. Bell, of Chesterfield, South Carolina, and Newman Jackson Smith, Nelson Mullins Riley & Scarborough, L.L.P., of Charleston, South Carolina.
Steve D. Gold, Attorney, Appellate Section, Environment and Natural Resources Division, Department of Justice, of Washington, DC, argued for the defendant-appellee. With him on the brief were Lois J. Schiffer, Assistant Attorney General, John T. Stahr, Attorney, Appellate Section, and Alan Brenner, Attorney, General Litigation Section. Of counself on the brief were Franklin Jordan and John Kassebaum, District Counsel, U.S. Army Corps of Engineers, of Charleston, South Carolina.
Before LOURIE, Circuit Judge, FRIEDMAN, Senior Circuit Judge, and GAJARSA, Circuit Judge.
GAJARSA, Circuit Judge.
DECISION
The plaintiffs appeal the decision of the United States Court of Federal Claims in which fifteen of the plaintiffs' cases were dismissed as time-barred. Because the Court of Federal Claims erred by applying the incorrect legal standard for determining when the claims accrued, we vacate and remand.
BACKGROUND
The Atlantic Intracoastal Waterway runs along the eastern seaboard, and generally follows natural waters occurring inside barrier islands. In some areas, however, artificial cuts to land were required to make the waterway a continuous navigable channel. One section that required the digging of a canal was in Horry County, South Carolina. To this end, in the early 1930's, South Carolina obtained right-of-way easements from the owners of property adjacent to the proposed canal site. These easements, ranging in overall width from about 320 to 380 feet, were then assigned to the United States. Construction of the canal by the Army Corps of Engineers ("Corps") began in 1933 and was finally completed in 1940. The original canal width was significantly less than the width of the easements owned by the United States.
Erosion of the waterway banks began occurring almost immediately after the construction of the waterway was completed. By 1976, the Corps concluded that erosion had removed most of the monuments that marked the limits of the easement. In 1982, Loy Ree Ballam, an owner of property adjacent to the canal (and a plaintiff in the current suit) filed suit in federal district court alleging that her land had been taken within the meaning of the Fifth Amendment due to erosion caused by the waterway. See Ballam v. United States,
Two years later, the Federal Circuit revisited the legal pronouncement made in Ballam. In Owen v. United States,
In the present suit, numerous owners of land adjacent to the waterway have brought suit in the Court of Federal Claims for a taking caused by erosion from the waterway. Plaintiffs alleged that "waves created by boat traffic, the ebb and flow of the tide and other natural actions of water in man-made canals, in addition to improper maintenance of the waterway, have caused and continue to cause erosion" to their land. Thus, the plaintiffs sought compensation for the land actually taken and the cost of revetments necessary to protect their land from future damage. The government responded by claiming that all suits should be dismissed for lack of subject matter jurisdiction because the plaintiffs were actually alleging a tort and not a taking. Alternatively, the government alleged nineteen of the suits should be dismissed as time-barred, including Loy Ree Ballam's suit, which should also be barred by res judicata. Finally, the government moved for summary judgment of the plaintiffs' claim for the costs of revetments, asserting that the plaintiffs have no property right to bank protection at the expense of the government.
The Court of Federal Claims rejected the government's contention that this was not a taking. The court held that a taking is determined not by the care with which a governmental action is taken, but by the extent of the injury occasioned by that action. Thus, "the nature of the alleged invasion by the government is such that, if established, would clearly constitute a taking." Boling v. United States,
The Court of Federal Claims held a trial to determine the factual issue of when each parcel first experienced erosion damage. The primary witness at trial, Dr. Timothy Kana, was charged with the task of determining when and if the erosion had crossed the easement line of the properties at issue. Dr. Kana divided the parcels into three categories: category 1 encompassed those properties that were encroached prior to 1988,3 category 2 encompassed those properties that were encroached between 1988 and 1994, and category 3 encompassed those properties that were encroached, if at all, after 1994. Only those claims based on properties in category 2 were deemed viable claims. Those in category 1 were dismissed as barred by the six-year statute of limitations of the Tucker Act; those in category 3 were dismissed as not ripe for adjudication. As a result of this trial, fifteen cases were dismissed with prejudice as time-barred under the Tucker Act.4 Ten other cases were dismissed without prejudice because the landowners had not yet suffered erosion damage. Four cases were timely filed and remained viable. The Court of Federal Claims rejected arguments by the plaintiffs for equitable tolling of the statute of limitations, which would have resurrected some of the claims dismissed as time-barred. Additionally, the court rejected the plaintiffs' assertion that the erosion damage to their property amounted to a continuing claim, which would have allowed all landowners to recover for erosion damage sustained in the six years prior to the filing of the lawsuit. Finally, the court ruled that the plaintiffs with viable claims did not have a separate property right for the costs of bank protection.
This appeal deals only with those cases dismissed with prejudice as time-barred under the Tucker Act's statute of limitations.
DISCUSSION
A. Accrual
The Fifth Amendment of the United States Constitution ensures that the federal government does not appropriate private property for public use without just compensation. See U.S. Const. amend. V. A wide spectrum of governmental action has been found to constitute a taking of property within the meaning of the Fifth Amendment, ranging from the actual physical occupation of land to, in certain circumstances, the enactment of a regulation or statute. See generally Loveladies Harbor, Inc. v. United States,
When property is taken and the government fails to compensate the owner, the Tucker Act, 28 U.S.C. § 1491 (1994), provides jurisdiction to enforce the owner's compensatory right. See Preseault v. Interstate Commerce Comm'n,
The Supreme Court grappled with this problem in Dickinson, a case involving intermittent flooding caused by a government-constructed dam. Mindful of the difficulties faced by property owners in such situations, the Court discouraged the strict application of accrual principles in cases where the taking is the result of a gradual process. See Dickinson,
Ten years later, the Court clarified the "stabilization" concept as expressed in Dickinson, noting: "The expressly limited holding in Dickinson was that the statute of limitations did not bar an action under the Tucker Act for a taking by flooding when it was uncertain at what stage in the flooding operation the land had become appropriated for public use." United States v. Dow,
In this case, the Court of Federal Claims held that the plaintiffs' takings claims accrued once any small portion of the property had suffered erosion damage. See Boling,
The contention that Dickinson stands for the proposition that the filing of a lawsuit can be postponed until the full extent of the damage is known has been soundly rejected. See Fallini,
The plaintiffs' reliance on Applegate v. United States,
In an attempt to fit themselves within the rule expressed in Applegate, the plaintiffs point out that the Corps had a fluctuating policy regarding the erosion along the waterway during the relevant time period. It is true that between 1979 and 1988, the Corps studied the erosion along the waterway and even authorized the construction of revetments. It is also true that these plans to build revetments, which would have protected the plaintiffs' property, were later rescinded. However, unlike the situation in Applegate, the plaintiffs in this case were not aware of these plans until after they filed this lawsuit. In fact, the Corps denied the only request that was made for erosion protection. Thus, the critical element that delayed stabilization in Applegate--the justifiable uncertainty about the permanency of the taking--is simply not present in this case.
However, the holding of the Court of Federal Claims that the claim stabilizes once any small portion of land has been taken is also inconsistent with Dickinson. See Boling,
The point at which the erosion damage transitions from "mere inches" to substantial encroachment is not amenable to precise definition, and will vary from parcel to parcel. See Cooper v. United States,
B. Continuing Claim
In addition to arguing that the accrual of their claims should be delayed, the plaintiffs assert that the time-bar should be limited to exclude only damage that occurred greater than six years prior to the filing of the claim. According to the plaintiffs, a taking by a gradual process is a continuing claim, so that as each additional quantum of land is taken, a new cause of action arises. To hold otherwise, plaintiffs argue, would essentially give the government the right to erode the plaintiffs' remaining property with impunity. Even the Court of Federal Claims, which rejected the plaintiffs' argument, noted the conceptual difficulty of a rule that would hold the plaintiffs' time-barred from suing for land that has yet to be taken. See Boling,
The continuing claims doctrine has been applied when the government owes a continuing duty to the plaintiffs. In such cases, each time the government breaches that duty, a new cause of action arises. See Hatter v. United States,
Similarly, this case does not fall within the continuing claims doctrine because each additional quantum of erosion damage is not a new breach by the government. While erosion is certainly a process that gradually increases the property damage over time, there is only a single governmental act that breaches a duty to the plaintiffs--allowing the erosion from the waterway to substantially encroach the plaintiffs' property. Once this has occurred, the permanence of the taking is manifest, its progressive nature is apparent, and its ultimate extent is reasonably foreseeable. In short, the increased damages that occur as more of the land is eroded are not the result of new and independent breaches by the government, but are merely the natural and foreseeable consequences of the government's single breach. The continuing claims doctrine is inapplicable in such a situation.
C. Equitable Tolling
Finally, the plaintiffs allege that the commencement of the statute of limitations should have been equitably tolled. As a basis for equitable tolling, plaintiffs point to the fluctuations of the Corps' policy regarding erosion along the waterway and the fluctuating status of the legal claim that they were attempting to assert. As discussed above, the plaintiffs were unaware of the Corps' policy toward the erosion damage along the waterway until the filing of this lawsuit. The government did not promise corrective action regarding the damages sustained nor mislead the plaintiffs into believing that such corrective action would be forthcoming. Therefore, any alleged fluctuations in the Corps' policy do not justify equitable tolling of the limitations period. See Applegate,
The plaintiffs also assert that this court's Ballam decision, which effectively barred the cause of action they intended to assert, and its subsequent reversal in Owen, form another basis for equitable tolling. According to the plaintiffs, after the Ballam decision was rendered, any attempt to assert their rights to compensation under the Fifth Amendment would have been futile, because the identical claim had been previously rejected. However, the plaintiffs point to no authority which would suggest that the presence of adverse precedent automatically leads to equitable tolling. The only case cited by the plaintiffs in support of their position is Seattle Audubon Soc'y v. Robertson,
CONCLUSION
The Court of Federal Claims correctly rejected the arguments by the plaintiffs that the continuing claims doctrine applied to this case, and that the statute of limitations should be equitably tolled. However, because the court, in dismissing the plaintiffs' claims as time-barred, applied an incorrect standard for claim accrual, we vacate and remand for the court to apply the correct accrual standard as set forth in this opinion.
COSTS
Each party shall bear its own costs.
VACATED AND REMANDED.
NOTES:
Notes
The appeal was initially taken to the Court of Appeals for the Fourth Circuit, where the district court was reversed. See Ballam v. United States,
The filing dates for the lawsuit were February 4, 1993 for plaintiffs Boling, Gore, Vereen, and Willard, and November 30, 1993 for all other plaintiffs.
Dr. Kana erroneously used 1994 as the filing date of the lawsuit, resulting in a 1988 cut-off date for category 1 property. The Court of Federal Claims found this error to be harmless, a finding not challenged in this appeal. See Boling,
Ballam's case was among those time-barred. Therefore, the court did not rule on whether her case could also be barred by res judicata. See Boling,
Substantial encroachment of the parcel also puts a duty on the landowner to take reasonable steps to protect the property from further erosion damage, such as by the construction of revetments. If the cost of these protections would have been less than the value of the property lost to such preventable erosion, then the government's damages, if any, are limited to the cost of protection. See Dickinson,
