Appellant William Eugene Owen, in his capacity as executor of the estate of Caroline Pearson Payne,
1
brought suit in the United States Claims Court against the United States, seeking compensation for losses allegedly incurred when dredging in the Tombigbee River by the Army Corps of Engineers (Corps) resulted in erosion which caused Payne’s land and eventually her house to topple into the river. The Claims Court granted the government’s motion for judgment on the pleadings, finding that the Tombigbee River was navigable water and that the government’s activities were immunized from suit by its dominant naviga
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tional servitude. Specifically, the court held that the decisions in
Pitman v. United States,
Having considered the present appeal in banc in order to clarify our precedents with respect to the scope of the government’s navigational servitude, we now reverse the judgment of the Claims Court, overrule those portions of Pitman and Ballam which are inconsistent with the following opinion, and remand this case for further proceedings not inconsistent herewith.
BACKGROUND
The Tennessee-Tombigbee Waterway Project was initially authorized by Congress in 1946.
2
The design for the component of the project relevant to this appeal, the Demopolis Lake Navigation Channel to extend navigation between Demopolis, Alabama, and the Tennessee River, was approved on April 28, 1976. As part of that project component, the Corps dredged and widened portions of the existing channel of the Tombigbee River and increased the arcs of certain river bends. Prior to commencing construction on the Demopolis Lake Navigation Channel, the Corps knew that the redesign of the existing river channel would result in increased erosion and sloughing of some property adjoining the river bed. However, the Corps decided that the cost of conducting a preconstruction study to identify those areas most likely to be affected by the resulting erosion and sloughing would exceed the cost of any after-the-fact acquisition by inverse condemnation of property specifically affected by the construction. Therefore, no such study was made nor was any fast land condemned or acquired by the government prior to the actual construction, which took place between 1976 and 1978.
See Payne v. United States,
The Payne property was located on the banks of the Tombigbee River in Greene County, Alabama, along a portion of the river in which the construction took place. According to the complaint filed in this action, the Corps modified the course of the Tombigbee River “by dredging a large amount of the riverbed and the bank upstream and across from the Plaintiffs property.” These actions allegedly caused the river channel to be somewhat straightened and the arc of the curve of the river bend upstream of the property to be increased. The complaint went on to allege that “[t]he activities of the United States Corps of Engineers caused the velocity of the current striking the riverbank adjoining the Plaintiffs property to be increased substantially.” The alleged result of the increased river velocity was increased erosion of the river bank adjoining the Payne property to the point that the erosion eventually undermined her house and caused it to collapse into the river. According to the complaint, the house was uninhabitable after April 13, 1979.
In 1981, Payne brought suit in the United States District Court for the Northern District of Alabama, alleging that the government’s construction activities constituted a taking of her property and were a violation of the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346(b), 2674 (1982). The district court dismissed the Tucker Act taking claim without prejudice since Payne sought more than $10,000, the maximum permitted for Tucker Act claims brought against the United States in federal district courts. See 28 U.S.C. § 1346(a)(2). The district court then granted the government’s motion for summary judgment on the FTCA claim, holding that the FTCA’s discretionary function exception, 28 U.S.C. § 2680(a) *1407 (1982), 3 immunized the government from liability.
On appeal, the Eleventh Circuit affirmed, holding that the government’s decision not to conduct any preconstruction studies to determine the location and extent of damages likely to result from the construction was a discretionary decision of the type exempt from review under the FTCA.
Payne,
In February 1985, Ms. Payne filed the present action in the Claims Court. As noted, the government moved for judgment on the pleadings which was granted on the basis of the government’s navigational servitude and the decisions in Pitman and Ballam.
OPINION
A. Standard of Review
Under the government’s view of this case, it is very significant that the complaint contains no allegation or inference that the Corps raised the high-water level of the river or that the Corps had invaded Payne’s property or otherwise caused the water to overflow her land. The government argues that the Fifth Amendment to the Constitution of the United States only mandates compensation for government takings of property, not for mere damage to property, and that there can be no taking without an actual physical invasion of the Payne property by the government. Furthermore, in the government’s view, since all the construction occurred below the high-water mark within the bed of the river, any damage which resulted therefrom outside the river bed is merely indirect and consequential damage, which cannot be held to be a compensable taking in light of the government’s dominant navigational servitude. Finally, the government argues that Payne had no property interest in the uninterrupted natural flow of the Tombigbee River as against the government’s authority to improve navigation under its dominant servitude.
However, a motion for judgment on the pleadings should be granted only where “it appears to a certainty that plaintiff is entitled to no relief under any state of facts which could be proved in support of his claim.”
Branning v. United States,
B. The Central Issue
We agree that, for the purposes of this appeal, we must assume that the erosion resulting from the increased velocity of the Tombigbee River against the appellant’s land occurred below the high-water mark. Furthermore, it is also undisputed here that there was no direct overflow of the appellant’s property as it was erosion occurring below the high-water mark which undermined the land and house located above the high-water mark to the point that both land and house fell into the river. However, despite no allegation that the Corps itself invaded Ms. Payne’s property, *1408 in our view the complaint contains quite a sufficient allegation of a governmental invasion of Ms. Payne’s property since we must assume as true the allegation that the increased erosion of appellant’s land was due to the government’s construction activities. 4 We recognize, however, that a sufficient allegation of government invasion of appellant’s property alone is not enough to support the conclusion that a compensable taking may have occurred under the facts as alleged in Payne’s complaint. The critical issue to be resolved here is whether the circumstances set forth in the complaint could possibly constitute a compensable taking when viewed, as it must be, in light of the government's dominant navigational servitude and the related Supreme Court caselaw binding on this court.
C. The Navigational Servitude
The nation’s navigable waters have always been considered “public property” and since the early days of the nation have been under the exclusive control of the federal government under the Commerce Clause.
Gilman v. Philadelphia,
This power to regulate navigation confers upon the United States a “dominant servitude,” FPC v. Niagara Mohawk Power Corp.,347 U.S. 239 , 249 [74 S.Ct. 487 , 493,98 L.Ed. 666 ] (1954), which extends to the entire stream and the stream bed below ordinary high-water mark. The proper exercise of this power is not an invasion of any private property rights in the stream or the lands underlying it, for the damage sustained does not result from taking property from riparian owners within the meaning of the Fifth Amendment but from the lawful exercise of a power to which the interests of riparian owners have always been subject. United States v. Chicago, M., St. P. & P.R. Co.,312 U.S. 592 , 596-597 [61 S.Ct. 772 , 775,85 L.Ed. 1064 ] (1941); (other citation omitted).
United States v. Rands,
Thus, the government’s navigational servitude is a dominant servitude which reflects the superior interest of the United States in navigation and the nation’s navigable waters.
United States v. Twin City Power Co.,
*1409 D. The Scope of the Navigational Servitude
The holdings of the Supreme Court and the other federal courts make clear that no compensation is owed by the government for injury or destruction of a riparian owner’s property which is located in the bed of a navigable stream. For example, in the
Chicago, Milwaukee
case, the Supreme Court rejected the respondent railroad’s claims seeking compensation for damage to its railway embankments located between the high- and low-water marks of the Mississippi River which was caused by raising the river’s water level to improve navigation.
1. The “Bed" of the Navigable Stream
Consequently, the question to be addressed here is what constitutes the boundaries of the “bed” of a navigable stream, determination of which will also define the scope of the navigational servitude applicable to the facts alleged by Payne. In the Chicago, Milwaukee case, the Supreme Court defined the bed of a river as—
“that portion of its soil which is alternately covered and left bare, as there may be an increase or diminution in the supply of water, and which is adequate to contain it at its average and mean stage during the entire year, without reference to the extraordinary freshets of the winter or spring, or the extreme droughts of the summer or autumn.”
However, it is also well established that the fair value which is to be paid by the
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government for the taking of fast land does not include any value derived from access to or use of the stream or its flow.
See Kaiser Aetna,
In the present case, there is no allegation of any loss of property or value associated with “the flow of the stream.” Nor was the “property” allegedly taken by the government from Ms. Payne an artificial structure built in or under the bed of the Tombigbee River. Instead, the allegedly taken property was the native soil and rock which, although below the high-water mark, supported the fast land and house located beyond the high-water mark. Yet it should not be the extent of the analysis to conclude that the land or property in question was or was not located below the ordinary high-water mark. There must also be horizontal limits to the “bed” of a river; otherwise, the navigational servitude would extend infinitely in all directions and swallow up any claim for “just compensation” under the Fifth Amendment for damages occurring anywhere below the elevation of the high-water mark.
Cf. Kaiser Aetna,
2. The Supreme Court Caselaw
Although not providing an express definition of horizontal limits of the “bed” of a navigable stream as it applies specifically to the navigational servitude, Supreme Court precedent properly limits the range of the navigational servitude to the land beneath and within the navigable stream’s high-water mark. In recognizing that there are limits to the horizontal scope of the servitude, the Court has stated:
Since the privilege or servitude only encompasses the exercise of this federal power with respect to the stream itself and the lands beneath and within its high-water mark, the Government must compensate for any taking of fast lands which results from the exercise of the power. This was the rationale of United States v. Kansas City [Life] Ins. Co.,339 U.S. 799 [70 S.Ct. 885 ,94 L.Ed. 1277 ] [1950], where the Court held that when a navigable stream was raised by the Government to its ordinary high-water mark and maintained continuously at that level in the interest of navigation, the Government was liable “for the effects of that change [in the water level] upon private property beyond the bed of the stream.”339 U.S. at 800-801 ,70 S.Ct. at 886 .
United States v. Virginia Electric & Power Co.,
The case cited above,
United States v. Kansas City Life Insurance Co.,
The government nevertheless argues that the result here should be controlled by the Supreme Court’s decision in
Bedford v. United States,
The Supreme Court affirmed a judgment in favor of the government on the grounds that the government’s revetment was constructed along the banks of the river in order to preserve the natural course of the river, and was therefore distinguishable from construction in the river bed which obstructed or altered the natural flow.
Strong precedent supports our conclusion that the actual construction equipment or work need not directly en
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croach upon the property in question before a taking by the government can be deemed to have occurred.
See also United States v. Causby,
The government also argues that Payne had no property interest in the uninterrupted natural flow of the Tombigbee River as against the government’s authority to improve navigation under its dominant servitude. However, that the instrument of the taking is the increased “flow of the stream” does not place the case within the purview of the
Twin City Power
line of cases. Those cases deal with the value of the property claimed to have been taken, not the manner in which it was taken.
Tri-State,
Therefore, based on the above analysis, we conclude that Supreme Court precedent undeniably requires our holding that the navigational servitude does not provide a blanket exception to the Takings Clause of the Fifth Amendment where improvements to navigation made by the government result in erosion to land located above or outside the bed of the stream as delineated by the high-water mark at the time of the construction. Actually, our research and analysis also reveal that nearly all of our own precedents are in accord with those of the Supreme Court. Unfortunately, allowing the navigational servitude to extend to land beyond the high-water mark outside the bed of the navigable water is the specific issue that was decided incorrectly by the Court of Claims in Pit-man and by this court in Ballam. Not surprisingly, these are the two decisions which the Claims Court felt bound to follow in the present case, unavoidably leading to an incorrect result.
E. The Error in Pitman and Ballam
1. Pitman v. United States
Pitman
was an inverse condemnation suit involving beachfront property on the east coast of Florida, seeking compensation for 4 acres of eroded property following interruption of the southerly littoral drift by government construction of channel jetties north of the property. The Court of Claims denied recovery, stating that “while a riparian owner has a right to have navigable waters come to him unchanged in their natural condition as against other riparian owners, he has no such right against the paramount power of the United States to improve navigation.”
Finally, under the facts of
Pitman,
most of the land lost was shorefront that existed solely because of the ocean’s littoral drift. However, the sand comprising that shore-front property is in a constant state of flux, as existing sand is moved southward by the littoral drift’s currents and new sand from the north is deposited in its place. The loss of such shorefront was due to the blocking of the northern “replacement” sand, causing the drift to remove more sand than it replaced. Since the sand comprising the lost shorefront was continually being deposited and moved by the ocean’s action, it necessarily lay below the ocean’s high-water mark and within the bed of the ocean. As such, its loss would not entitle the riparian owner to compensation under any of the relevant caselaw.
10
Although the Court of Claims in
Pitman
was not incorrect in relying on the Supreme Court's decision in
United States v. Twin City Power Co.,
2. Ballam v. United States
In addition to its reliance on
Pitman,
the Claims Court concluded that this court’s decision in
Ballam v. United States,
If this court in
Ballam
had adopted the view of the Fourth Circuit majority in
Ballam v. United States,
It hardly is pretended that the government would be responsible to landowners on natural navigable water for erosion caused by public works which do not themselves impinge on such upland but only cause water to do so by waves or currents causing erosion. The appellee, and the court below, cite no such cases. There is one the other way, a binding precedent in this court ... Pitman v. United States,457 F.2d 975 ,198 Ct.Cl. 82 (1972).
However, the district court in
Ballam
had indeed cited and relied on
United States v. Dickinson,
Before the Supreme Court, inter alia, the government in Dickinson challenged the award of damages based on the erosion to land outside the easement. In affirming the judgment, the Court made the following observations:
[The Government] regards [the erosion damage] as consequential, to be borne without any right to compensation. Of course, payment need only be made for what is taken, but for all that the Government takes it must pay. When it takes property by flooding, it takes the land which it permanently floods as well as that which inevitably washes away as a result of that flooding. The mere fact that all the United States needs and physically appropriates is the land up to the new level of the river, does not determine what in nature it has taken. If the Government cannot take the acreage it wants without also washing away more, that more becomes part of the taking.
Regrettably, the relevance of
Dickinson
to the situation in
Ballam
went unrecognized by this court. Perhaps seduced by the unrestrained application of the navigational servitude without horizontal bounds in
Pitman,
this court in
Ballam
determined that “[t]he government does not claim a right to erode Mrs. Ballam’s land.”
However, the geographical scope of the easement was of critical relevance and should have been the determinative issue in Ballam. Only one revetment would have been needed to prevent bank erosion and the issue was who should pay for its placement, not where or when the revetment should be placed. In light of the easement granted, the government would have been free to allow the wave erosion to extend to the limits of the easement in hopes that the widening channel would cause the eroding energy of the waves to dissipate before reaching shore. However, once the erosion resulting directly from the government’s construction of the artificial waterway reached the land outside the easement right-of-way, Dickinson instructs that the cost of revetments necessary to protect land outside the easement be borne by the government. It should make no difference to the analysis or the result that the government-caused erosion in Dickinson extended beyond the vertical limits of the easement granted and that the erosion in Ballam extended beyond the horizontal limits of the easement. 12
As a final point, the government points to the existence of a flowage easement in the present case, which the government acquired from Ms. Payne’s predecessor-in-interest, and argues that the easement bars any further liability to the government for damage resulting from the construction-related flooding of the Payne property since the property remains subject to the easement. However, the government acquired the right to flood and submerge the land below elevation 76 mean sea level permanently and the additional right to overflow, flood, and submerge the tracts of land above elevation 76 occasionally. The government admits that the Payne house was built above and beyond mean sea level 76. Since the government only acquired a right to flood the land above elevation 76 occasionally, the easement by its terms does not contemplate a complete and permanent flooding of the land above elevation 76 as alleged to have occurred here. So, similar to the situation in Dickinson, while the flowage easement would limit any final calculation of damages to the difference between the complete loss of the land due to permanent flooding and the previously compensated loss associated with occasional flooding, it cannot be used to bar recovery of damages altogether.
F. Summary
Thus, in addition to finding
Dickinson
indistinguishable in substance from
Pit-man, Ballam,
and the basic facts alleged in the present complaint, we fail to discern valid distinctions between the undermining and permanent loss of fast land (and a house) due to government-caused erosion and the permanent flooding of fast land due to government improvements to navigation found to be compensable by the Supreme Court.
See, e.g., United States v. Grizzard,
As the Supreme Court observed in
Kaiser Aetna,
decided after
Pitman,
“this Court has never held that the navigational servitude creates a blanket exception to the Takings Clause whenever Congress exercises its Commerce Clause authority to promote navigation.”
G. One Final Issue
The parties focused their arguments in this appeal on the issue that was the linchpin of the Claims Court decision: whether the government’s navigational servitude was of sufficient scope to cover the alleged taking of Payne’s property under the alleged facts. However, since a remand will necessarily be required in light of our conclusions above, we feel it proper to address one other issue raised in this appeal that may continue to be an issue on remand. Appellant asserts in his brief that the navigation servitude cannot apply in this case because that portion of the Tom-bigbee River at issue here was not navigable until after the Corps had dredged, re-channeled, and made artificial cuts to construct the waterway. 14
The government’s assertion that there is nothing in the record to support the claim that the river was not navigable prior to construction is of dubious value since we are reviewing a judgment on the pleadings and the particular facts which would form
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the record on that issue have yet to be adduced. The Eleventh Circuit’s decision focused solely on whether the government’s decision not to conduct preconstruction studies was discretionary and any statements regarding the navigability of the Tombigbee River prior to the construction were not actually litigated nor necessary to the decision in that case.
See Mother’s Restaurant Inc. v. Mama’s Pizza, Inc.,
It is undisputed that the Tennessee-Tom-bigbee Waterway Project was authorized by Congress in 1946 as an improvement for navigation purposes.
See Payne,
In Boyer, the Supreme Court held that a navigable, artificial canal used in interstate commerce was public water of the United States and within the legitimate scope of admiralty jurisdiction of the federal courts. There was no question that navigability existed at the time of the incident giving rise to the suit in Boyer and the fact that the canal was not navigable or did not exist at some time prior to the incident made no difference to whether the federal court had jurisdiction. Here, if navigability did not exist when the events giving rise to the taking commenced, the navigational servitude cannot apply. To allow the navigational servitude to attach to nonnavigable water or land which is being made navigable would allow the government to build artificial canals for use in interstate commerce without ever paying just compensation for the land in which a canal was built. Thus, a successful demonstration by the appellant that the river was nonnavigable prior to construction would be a valid basis for upholding the appellant’s general claim that the government’s navigational servitude would not foreclose recovery of compensation for a taking by the government.
Navigability is a question of fact determined from the particular circumstances of each case,
United States v. Utah,
CONCLUSION
When the Army Corps of Engineers initiated plans to alter the channel of the Tom-bigbee River, it realized that the construction would lead to encroachment of some adjoining property. Rather than identify and acquire the specific areas likely to be harmed prior to construction, the Corps decided it would be cheaper to undertake the construction and acquire through inverse condemnation those areas actually suffering damage. Apparently, the Payne property was such an area and suit was brought against the government seeking compensation for the resulting damages. When the Eleventh Circuit affirmed the *1418 dismissal of Payne’s tort claims, it noted that an inverse condemnation claim was available in the Claims Court. This is the appeal of that Claims Court action, yet our precedent mandated that there can be no possible legal recovery under any conceivable state of facts for the very damages that have been anticipated and contemplated as potentially compensable since the beginning of the Tennessee-Tombigbee Waterway Project!
Thus, this court was confronted with an anomaly of its own creation. If the only relevant precedent was that of the Supreme Court, it is certain that the Payne complaint would have withstood the government’s motion for a judgment on the pleadings. But since that was not all that was binding on the Claims Court, that court understandably concluded that it had no choice but to enter judgment for the defendant as the precedent of this court, specifically Pitman and Ballam, completely foreclosed any possible recovery on the facts alleged here. Now, in light of the foregoing analysis overruling those decisions to the extent of their complete foreclosure of recovery for government-caused erosion outside the bed of a navigable stream, the anomaly which barred the Payne taking complaint has been eliminated, as it should have been, by this court sitting in banc.
On remand the government will not be constrained to accept the complaint’s factual allegations and will be free to prove that the alleged destruction was either not the result of its action or was such an indirect consequence of it as not to be a compensa-ble taking. However, the executor of the Payne estate will now also have the opportunity to prove his allegations that the loss of Ms. Payne’s fast land and house was the direct result of the government’s improvements to navigation on the Tombigbee River or flowed from “an intention to do an act the natural consequence of which was to take [the] property.”
Columbia Basin Orchard v. United States,
The judgment of the Claims Court is reversed and the case is remanded to the Claims Court for further proceedings not inconsistent with this opinion.
REVERSED and REMANDED.
Notes
. Mr. Owen was substituted as the party in interest in this action following the death of Ms. Payne shortly after the filing of the complaint. For brevity and simplicity, we use the decedent’s name in this opinion.
. For an overview of the scope and history of the entire project, see generally
Environmental Defense Fund v. Alexander,
. Section 2680(a) provides that the United States cannot be sued under the FTCA for acts "based upon the exercise or performance or the failure to exercise or perform a discretionary function ... whether or not the discretion involved be abused.”
See Dalehite v. United States,
. In
Payne v. United States,
. Similarly, the government’s navigational servitude can also serve to restrict certain uses of riparian land within the bed of a navigable stream that could affect navigation.
See, e.g., Lambert Gravel Co. v. J.A. Jones Constr. Co.,
.
See also Leslie Salt Co. v. Froehlke,
. Examples of elements of damage which are not compensated include the land's value as a hydroelectric site,
United States v. Twin City Power Co.,
. The government also cites
Jackson v. United States,
See id.
at 20,
.
Ross
involved a suit against a government contractor who had constructed dikes in the Missouri River for the purpose of improving navigation which resulted in erosion of the plaintiffs accretion land through deflection of the river’s current against it. The Eighth Circuit reversed a judgment for the plaintiffs on the grounds that the damage to the riparian land was merely consequential damage and not a taking under the Fifth Amendment.
. Since at least the
Ross
case involved erosion of accretion land in'-the Mississippi River, the same reasoning would likely have applied there as well.
See
. The government had-originally appealed the case, brought under the “Little Tucker Act,” 28 U.S.C. § 1346(a)(2), to the Fourth Circuit which issued a decision on the merits. The Supreme Court vacated the decision since the Federal Courts Improvement Act provided that “Little Tucker Act” appeals properly resided in the Federal Circuit.
. Since the canal at issue in
Ballam
was an artificial cut, the bounds of the easement granted to the government should properly define the boundary relevant to a taking analysis related to the initial canal construction. No navigational servitude existed prior to the cut and, after the cut created navigable water, the high-water mark which would have defined the limits of the servitude in
Ballam
was within the easement boundaries.
Cf. Ballam v. United States,
. Similar statements in other Court of Claims cases, although not always necessary to their respective decisions, to the effect that the waters which effect the taking must rise above the ordinary high-water mark of the river involved as a result of improvements to navigation should also be viewed as inaccurate.
See, e.g., Barnes v. United States,
. The parties do not dispute that the portion of the Tombigbee River adjacent to the Payne property is navigable in its present, postcon-struction state.
