Federal Circuits, Fed. Cir. (November 26, 2003)
Docket number: 02-5115
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US Code - Title 26: Internal Revenue Code - 26 USC 6511 - Sec. 6511. Limitations on credit or refund
US Code - Title 28: Judiciary and Judicial Procedure - 28 USC 2501 - Sec. 2501. Time for filing suit
U.S. Code - Title 15: Commerce and Trade - 15 USC 15 - Sec. 15. Suits by persons injured
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U.S. Court of Appeals for the 1st Cir. - Alfonso-Delgado v. Rivera-Cubano (1st Cir. 2005)
U.S. Court of Appeals for the Fed. Cir. - John Barclay, Constance Barclay, Royer Barclay, Althea Barclay, John Amos, Marcia J. Bacon, Ronald J. Bartel, Melvin Bergen, John E. Boyle, Jonathan Ehrlich, Florence Ehrlich, Donald Graumann, Ruben Kliewer, Alvin Kroupa, Barbara Kroupa, Burdett Ledell, Lee Dale Miller, Vernon Minns, Frank A. Mitchell, Mid Kansas Cooperative Association, John F. Opat, Robert Presnell, Janet Regier, Sonja Regier, Don Reinhardt, Janice Reinhardt, Mary J. Rodgers, Darrell Thompson, Robert Turner, Geneva Turnquist, Donald Turnquist, Clark E. Wiebe, and Marlene J. Weber, Plaintiffs-Appellants, v. United States, Defendant-Appellee. Renewal Body Works, Inc., Plaintiff-Appellant, v. United States, Defendant-Appellee., 443 F.3d 1368 (Fed. Cir. 2006) Constance Barclay, Royer Barclay, Althea Barclay, John Amos, Marcia J. Bacon, Ronald J. Bartel, Melvin Bergen, John E. Boyle, Jonathan Ehrlich, Florence Ehrlich, Donald Graumann, Ruben Kliewer, Alvin Kroupa, Barbara Kroupa, Burdett Ledell, Lee Dale Miller, Vernon Minns, Frank A. Mitchell, Mid Kansas Cooperative Association, John F. Opat, Robert Presnell, Janet Regier, Sonja Regier, Don Reinhardt, Janice Reinhardt, Mary J. Rodgers, Darrell Thompson, Robert Turner, Geneva Turnquist, Donald Turnquist, Clark E. Wiebe, and Marlene J. Weber, Plaintiffs-Appellants, v. United States, Defendant-Appellee. Renewal Body Works, Inc., Plaintiff-Appellant, v. United States, Defendant-Appellee.
Anthony D'Amato, D'Amato, Keegan & Duggan, of Chicago, Illinois, argued for plaintiffs-appellants.
Douglas Hallward-Driemeier, Attorney, Appellate Staff, Civil Division, United States Department of Justice, of Washington, DC, argued for defendant-appellee. On the brief was Mark B. Stern, Attorney.Before LINN, Circuit Judge, PLAGER, Senior Circuit Judge, and PROST, Circuit Judge.PLAGER, Senior Circuit Judge.This is a takings case, in which the triggering event ? the 1951 Treaty of Peace between the United States and Japan (known as the San Francisco Treaty) that formally ended World War II in the Pacific Theater ? occurred more than fifty years ago. Plaintiffs purport to represent a class of 400,000 to 600,000 United States citizens injured or killed as a result of Japan's war against the United States; plaintiffs' prayer for relief seeks damages against the United States in the amount of $1 trillion.1It is plaintiffs' claim that, by barring individual claims against Japan for personal wrongs done to them, the Treaty took their property, and that the taking of their property is in violation of the United States Constitutional requirement that "private property [shall not] be taken for public use without just compensation."2Plaintiffs recognize that they have a problem with the statute of limitations, which bars suits against the United States in the Court of Federal Claims that are brought more than six years after the cause of action accrues. 28 U.S.C. 2501. They offer two novel theories why the statute of limitations does not bar their cause of action: one is that since takings claims are constitutionally enabled, Congress does not have the power to limit a claimant's right of recovery; and the second is that until the United States announces in no uncertain terms its intention not to pay for the taking, a cause of action does not begin to accrue for limitations purposes.The trial court was not persuaded by plaintiff's theories, and granted the Government's motion to dismiss on the ground that the suit was barred by the statute of limitations. This appeal followed. We have jurisdiction under 28 U.S.C. 1295(a)(3).I. BACKGROUNDThe relevant facts can be briefly stated. On September 8, 1951, the United States and over forty Allied nations signed a Treaty of Peace with Japan. The Treaty was ratified by the Senate on March 20, 1952, and it entered into force on April 28, 1952.The Treaty was a comprehensive settlement of all issues arising between Japan and the Allied nations concerning the war. As part of the settlement, the Allied nations, including the United States, agreed to seize certain assets of Japan in their various territories, and to waive all claims for themselves and their nationals arising out of any actions taken by Japan and its nationals in the course of the prosecution of the war. Treaty of Peace with Japan, Sept. 8, 1951, art. 14, 3 U.S.T. 3169, 3180-83. Each Allied power would then make its own arrangements for compensation of its nationals for injuries attributable to the war.In the United States, Congress created a War Claims Fund and made payments to American victims of the war. 50 U.S.C. app. § 2012. This included compensation for civilians as well as military personnel who were mistreated during captivity. Plaintiffs are two individuals who fall into that category. Plaintiff Gilbert Hair was an infant in 1942 when he and his mother were interned by the Japanese in the Philippines; plaintiff Ethel Millett was a member of the U.S. Army who was captured by the Japanese and also interned. Both allege that they were mistreated by their captors, and that they represent a large number of other individuals similarly situated. As noted, on behalf of the class they ask for $1 trillion in compensation from the United States for the causes of action that were taken from them by the Treaty.Plaintiffs filed their complaint on September 12, 2001, just short of fifty years after the Treaty of Peace went into effect. The United States moved to dismiss on the ground that the action was barred by the six-year statute of limitations provided in 28 U.S.C. 2501.3 The trial court granted the motion, and plaintiffs appealed.II. DISCUSSIONWhatever may have been the injustices visited upon these plaintiffs, first by the forces of Japan and, arguably, later by a home government whose expression of gratitude in dollar terms is thought to be less than adequate, the narrow issue presented in this appeal is whether plaintiffs' suit against the United States, based on the 1951 Treaty provisions, is barred by the statute of limitations. For purposes of the government's motion to dismiss, we must assume that plaintiffs' well-pleaded allegations of fact are true. Additionally, although we are not required to do so, for purposes of evaluating whether the statute of limitations bars plaintiffs' claim here, we will accept plaintiffs' legal conclusion that the act of the United States in effectively barring its nationals from suing Japan for wrongs committed against them individually constituted a taking of their private causes of action for a public purpose or use without just compensation, in violation of the Fifth Amendment.Whether the United States might have other defenses for such an act deriving from its powers as a nation-state is not before us. The sole issue on appeal is whether the six-year statute of limitations bars these plaintiffs from recovering against the United States for the alleged wrong: if the statute applies to bar causes of action such as this one that are not brought until after six years from its accrual, and if the entry into force of the treaty in 1952 is the event that violated plaintiffs' rights and marks the accrual of the cause of action, then plaintiffs had until 1958 to bring the present action or be forever barred.A. The Constitution and the Statute of LimitationsPlaintiffs' first argument for avoiding the impact of the six-year statute on their cause of action is that their claim is constitutionally based, and therefore it is unconstitutional to deprive them of their constitutional right, short of a full and fair decision on the merits. Since the right to compensation for a governmental taking of private property is constitutionally protected, the argument is stunning in its potential ? it would have the effect of leaving all takings claims against the United States without a termination, except by ultimate resolution in the courts.It has been the common understanding that wrongs for which the law grants a remedy are subject to a requirement that, in fairness, the party wronged must pursue the remedy in a timely fashion.4 See generally Developments in the Law: Statutes of Limitations, 63 Harv. L.Rev. 1177, 1185 (1950). The concern is for stale claims, when witnesses and records are missing, and memories have faded. There is also the concern for repose ? after some period of time, claims should not continue to hang about, unresolved. The thought is that a plaintiff cannot sleep on his or her rights, and then suddenly demand a remedy, without creating a greater wrong against the party charged, and a wrong against the peace of the community.In Board of Regents v. Tomanio, 446 U.S. 478, 487, 100 S.Ct. 1790, 64 L.Ed.2d 440 (1980), the Supreme Court said: Statutes of limitations are not simply technicalities. On the contrary, they have long been respected as fundamental to a well-ordered judicial system. Making out the substantive elements of a claim for relief involves a process of pleading, discovery, and trial. The process of discovery and trial which results in the finding of ultimate facts for or against the plaintiff by the judge or jury is obviously more reliable if the witness or testimony in question is relatively fresh. Thus in the judgment of most legislatures and courts, there comes a point at which the delay of a plaintiff in asserting a claim is sufficiently likely either to impair the accuracy of the factfinding process or to upset settled expectations that a substantive claim will be barred without respect to whether it is meritorious.Legislatures enact statutes of limitations tailoring the time period to what is thought appropriate to the nature of the cause of action. See, e.g., 28 U.S.C. 2401(b) (two years for claims under the Federal Tort Claims Act); 26 U.S.C. 6511 (for tax refund suits, three years from time tax return was filed or two years from time tax was paid, whichever expires later); 15 U.S.C. 15b (four years for private antitrust suits under the Clayton Act). Even without a specific statutory bar to call into play, courts will impose a parallel bar ? under the rubric of laches ? in cases in which the plaintiff has failed to act in a reasonably prudent manner to protect and enforce rights, and when a perceived injustice to the defendant exists. See, e.g., A.C. Aukerman Co. v. R.L. Chaides Constr. Co., 960 F.2d 1020 (Fed.Cir.1992) (en banc) (patent infringement claim may be barred under the doctrine of laches).Does the fact that the right sought to be enforced has its origin in the Constitution, rather than in a statutory grant, mean that there should be no limits imposed on its enforcement, either by legislature or courts? Plaintiffs so argue. They begin by drawing a distinction between what they call "common-law takings" and "eminent-domain takings." Common-law takings, according to plaintiffs, include takings that arise from torts (non-contract wrongs) and contract wrongs; the eminent-domain takings are government actions that occupy (or today, regulate) private property. Plaintiffs posit that the former are subject to sovereign immunity doctrines, the latter are not.Sovereign immunity is the immunity that, by the accident of English history that underlies American law, shields the government, absent consent to be sued, from legal liability for all sorts of wrongs, including torts and contract wrongs. Based on the distinction between common-law takings and eminent-domain takings, plaintiffs conclude that the bar of the statute of limitations properly applies only to cases involving the government's waiver of sovereign immunity, the common-law takings cases.It is true that sovereign immunity does not protect the government from a Fifth Amendment Takings claim because the constitutional mandate is "self-executing." See United States v. Clarke, 445 U.S. 253, 257, 100 S.Ct. 1127, 63 L.Ed.2d 373 (1980); Hendler v. United States, 952 F.2d 1364, 1371 (Fed.Cir.1991). Therefore, ask the plaintiffs, if Congress lacks the constitutional power to take private property without paying for it, how can it suddenly get the power after six years or any other designated period of elapsed time? The correct answer, we are told, must be that an eminent-domain taking cannot be foreclosed except by a judicial proceeding on the merits.There are several flaws in plaintiffs' argument. First is that the premise on which it is based is wrong. Second is the absence of any law in support of the theory ? plaintiffs do not favor us with any citation to authority that supports their view of the law, something of which courts do have a fondness ? though its absence here may be because the available authority is to the contrary.First, the premise. The hypothesized distinction between "common-law" takings and "eminent-domain takings" is a verbal joust without substance. The fundamental idea that there is a right for every wrong, the jurisprudential basis for torts and contract wrongs, arises from early common law decisions. See 3 William Blackstone, Commentaries *23, *109. Its application is universal, in the sense that such wrongs can be committed by private parties as well as by governments, although governments may be able to escape their duty to pay by hiding behind the sovereign immunity doctrine. The presence or absence of sovereign immunity in a case is simply an attribute of government, not an inherent characteristic of a cause of action.The constitutional constraint on government's power to take private property, on the other hand, arose from the historic power of the English sovereign to seize private property for governmental purposes, with or without the consent of the property owner, and with or without compensation. The salutary inclusion in the list of limitations on government contained in the Fifth Amendment to our Constitution that prohibits the taking of private property without just compensation was a response to the claim of the English kings that sovereign rights prevailed over private property rights. The Founders thought otherwise ? though they recognized the necessity for government to be able to take private property for governmental purposes, see The Federalist No. 10 (James Madison), that power could be exercised only by making the private property owner whole. Thus the distinction plaintiffs attempt to draw is unavailing. Analytically, whether common law-based tort and contract law is subject to statutes of limitations, with or without sovereign immunity in the case of suits against the government, is unrelated to the question of whether constitutionally based takings claims may be made subject to such statutes.5Which leads to the question of the applicable law. This court hears a goodly number of takings cases. In some the plaintiff property owner prevails. See, e.g., Cienega Gardens v. United States, 331 F.3d 1319 (Fed.Cir.2003) (holding that statutory abrogation of low-income housing owners' contract rights was a taking); Palm Beach Isles Assocs. v. United States, 231 F.3d 1354 (Fed.Cir.2000) (holding that permit denial constituted a categorical taking); McKay v. United States,Try vLex for FREE for 3 days
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