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PUBLISH
UNITED STATES COURT OF APPEALS
TENTH CIRCUIT
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M. LOUISE CANNON and ALLAN ROBERT
CANNON, Individuals,
Plaintiffs-Appellees/Cross-
Appellants,
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v. |
Nos. 02-4059, 02-4066 |
UNITED STATES OF AMERICA,
Defendant-Appellant/Cross- Appellee.
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- APPEAL FROM THE UNITED STATES DISTRICT COURT
- FOR THE DISTRICT OF UTAH
- (D.C. No. 98-CV-882-J)
Ryan M. Harris (Anthony L. Rampton with him on the briefs), of
Jones, Waldo, Holbrook & McDonough, Salt Lake City, Utah, for
Plaintiffs-Appellees/Cross-Appellants.
Gay Elizabeth Kang, Trial Attorney, Torts Branch, Civil Division (Paul
M. Warner, United States Attorney, Daniel D. Price, Assistant United
States Attorney, Robert D. McCallum, Jr., Assistant Attorney General,
J. Patrick Glynn, Director, Torts Branch, Civil Division, Joann J.
Bordeaux, Deputy Director, Torts Branch, Civil Division, and David S.
Fishback, Assistant Director, Torts Branch, Civil Division, with her
on the brief), United States Department of Justice, Washington D.C.,
for Defendant-Appellant/Cross-Appellee.
Before LUCERO, BALDOCK, and O’BRIEN, Circuit Judges.
BALDOCK, Circuit Judge.
=== The Federal Tort Claims Act (FTCA)
waives the sovereign immunity of the United States for certain tort
claims "accruing on or after January 1, 1945 . . . under circumstances
where the United States, if a private person, would be liable to the
claimant in accordance with the law of the place where the act . . .
occurred." 28 U.S.C. § 1346(b). Under the FTCA’s limited waiver of
sovereign immunity, "[a] tort claim against the United States shall be
forever barred unless it is presented in writing to the appropriate
Federal agency within two years after such claim accrues . . . ."
Id. § 2401(b). This Government appeal presents the question of
whether § 2401(b) bars Plaintiffs’ FTCA claim against the United
States for damages to mining property caused by World War II weapons
testing. While not condoning the Government’s abysmal failure over the
past half-century to clean up the test site, we hold § 2401(b) bars
Plaintiffs’ FTCA claim for money damages. Accordingly, the district
court erred in entering judgment for Plaintiffs. We reverse and remand
with directions to dismiss the complaint for lack of subject
matter jurisdiction.
I.
=== In
1945 near the end of World War II, the United States Army conducted
conventional high explosive, chemical, and incendiary weapons testing
on Jesse F. Cannon’s property located in the remote Dugway Mining
District of Tooele County, Utah. The property is a part of the "Yellow
Jacket Area," and sits adjacent to the Army’s Dugway Proving Ground (DPG).
The property consists of over 1,416 acres encompassing 86.5 patented
mining claims. The purpose
of the Army’s testing was to explore means of battling Japanese forces
entrenched in caves in the Pacific Islands. Prior to testing, Cannon
secured a written agreement from the Army in which Cannon agreed
to the Army’s use of his property in exchange for the Army’s promise
to "leave the property of the owner in as good condition as it is on
the date of the government’s entry."1
- ===The Army failed to keep its promise to clean up Cannon’s
property. In September 1945, Cannon reentered his property and found
the testing had damaged his mines.2 That same month, Cannon successfully filed an administrative claim
against the Government to compensate him for cessation of mining
operations "due to the use of toxic chemical agents and explosive
munitions." The Government paid Cannon $755.48 on his first claim.
In October 1945, Cannon filed a second successful administrative
claim for destruction of mine shaft timbering due to "the use of
toxic chemical agents, incendiaries, and explosive munitions." The
Government paid Cannon $2,064 on his second claim. Nearly
five years later in July 1950, Cannon submitted a third claim
against the Government. To support his third claim, Cannon submitted
a statement which read in part:
_____________
1 During the testing
known as "Project Sphinx," the Army, according to the record in
this case, dropped over 3,000 rounds of ammunition containing
either chemical or incendiary weapons. Over twenty-three tons of
chemical weapons were dropped. The incendiary weapons tested
included butane, gasoline, and napalm. The chemical weapons tested
included the choking agent phosgene, the blood agent
hydrogen cyanide, and the blistering agent mustard. The Army also
dropped conventional type bombs filled with high explosive
materials.
-
- 2 Cannon
walked the property with the Army Post Engineer and an Army Claims
Officer. The site visit report states the purpose of the walk was
"to observe damage that may have resulted from CWS [Chemical Warfare
Services] operations in the area." The report further states the
"entire area is liberally covered with shell, rocket, and bomb
fragments," and notes that "[j]ust outside [a] cabin are 10 Butane
filled dud bombs."
===I realize that when I accepted this $2064 payment from the
Government it constituted full satisfaction for the claim against
the Government for damages done to the Yellow Jacket Mine. However,
I did not believe at that time that the chemical agents used by the
Army would remain in the workings and make it impossible for me to
ever operate the mine again without some sort of decontamination of
the underground workings. . . . It is now five years since the Army
dropped their poison gas bombs on the mine and I am certain that
there is still a concentration of poison gas present in the mine
that would preclude its operation by anybody without some sort of
decontamination. I do not know if the gas is present in dangerous
quantities or even if the odorous material present is a poison gas
but I do know that the miners who have looked at the property with a
view of taking a lease have shied away when they learned of the
Army’s use of the mine. . . . I believe[] that it would require
about $5000 to put the mine in condition to be worked again.
In 1951, the Government denied Cannon’s third claim without further
complaint.
===Jesse F. Cannon’s son, Dr. J. Floyd Cannon, acquired the property
in 1954 with knowledge of ordnance contamination on the property.
Around 1957, Dr. Cannon conveyed a 75% interest in the property to his
four children, retaining a 25% interest. Over the next few years,
Dr. Cannon made numerous trips onto the property and each time found
exploded and unexploded surface bombs and weapon fragments. Dr. Cannon
reportedly requested the DPG to clean up the property on multiple
occasions, but never filed any claim or grievance against the
Government.
===In the late 1970s, the Government conducted a comprehensive study
of contaminated lands at the DPG. In 1979, the Government issued a
detailed report of its study. United States Army Toxic and Hazardous
Materials Agency, Report No. 140, Installation Assessment of Dugway
Proving Ground (1979). The report noted testing had occurred in
the Yellow Jacket Area adjacent to DPG: "The Yellow Jacket Area . . .
was used
in the 1940’s . . . to test munitions containing chemical
agents, incendiaries, and high explosives. Complete documentation is
lacking in this area." The report recommended that (1) "DPG better
define the hazards and problems of UXO [unexploded ordnance] at . . .
the Yellow Jacket Area," and (2) "action by DPG be expedited to better
define the extent of the test site within the . . . Yellow Jacket
Area, and to bring this area under proper control." Dr. Cannon
apparently was not aware of the report upon his death in 1980.
===In 1980, Dr. Cannon’s four children, Mary Alice, Margaret Louise,
Allan Robert, and Douglas F. Cannon, inherited the remainder of the
property. In 1988, the Government issued an update to its 1979 report.
United States Army Toxic and Hazardous Materials Agency, Update of
the Initial Installation Assessment of Dugway Proving Ground
(1988). Regarding the Yellow Jacket Area, the unclassified report
stated the area–
was identified in the [1979 report] as a test area for various
unidentified chemical agents, fire bombs, rockets, and smoke and
mortar rounds during the 1940s . . . . Discussion with long-time
employees indicate that the surface UXOs [unexploded ordnance] and
empty containers were cleared from the area but some subsurface UXOs
could exist. . . . Due to an absence of records, DPG has not been
able to better define the activities or exact locations where they
occurred in the Yellow Jacket Area. The installation is to withdraw
this area from . . . the Public Domain, and permanently add it to
the current DPG land holdings because it is potentially contaminated
from past Army activities . . . .
The report reiterated the Yellow Jacket Area was "potentially
contaminated with hazardous materials," and was subject to an ongoing
"environmental assessment."
===On July 13, 1994, the United States Army Corp of Engineers (COE),
in cooperation with the DPG, notified the Cannons that the Government
was conducting a "geophysical survey of property known as the Yellow
Jacket Mines." The purpose of the survey was "to determine whether . .
. these lands have been impacted by unexploded ordnance." The letter
provided a contact if the Cannons "wished to discuss the project in
greater detail." Margaret Louise and Allan Robert Cannon signed access
agreements on July 22 and August 28, respectively.3
The agreements authorized the Government to inspect the Cannons’
property "under the remedial design phase of the Defense Environmental
Restoration Program for Formerly Used Defense Sites" (FUDS) to "determine the presence or absence of Ordnance and Explosive Wastes (OEW) contamination."4
- _____________
- 3 As a result of a conveyance from Mary Alice,
Margaret Louise today owns a 50% interest in the property. The two
Cannon brothers, Douglas F. and Allan Robert continue to own a
25% interest each. Margaret Louise and Allan Robert
are Co-Plaintiffs in this case. Douglas F. Cannon is not a party to
this litigation.
-
- 4 As part of the restoration program, the COE
conducted a risk assessment of the Yellow Jacket Area in 1993. The
unreleased report noted the "potentially catastrophic nature of an
encounter" with unexploded munitions in the area. This report
apparently spawned the Government’s "survey."
===On August 23, 1994, the COE issued a press release announcing "an
informal Availability Session" to be held the following week on August
30, 1994, at the Tooele County Courthouse. The release stated the COE
was undertaking an "Engineering Evaluation/Cost Analysis (EE/CA)" to
determine risks associated with former defense sites including the
Yellow Jacket Area.5 The release explained that testing in and around
the area during the 1940s involved "toxic, smoke, and flame agents in
bombs, mortar and artillery shells, rockets, and . . . light
case tanks. Gasoline, butane, the non-persistent agents Phosgene,
Hydrogen Cyanide, and Cyanogen Chloride, and the persistent agent
Mustard Gas were used in the tests." The release further explained
that once testing ended, "the cleanup process involved a sweep of the
areas to clear remaining surface ordnance." The release specifically
noted the possibility that "some soil contamination and subsurface OEW
may still exist."
===Margaret Louise Cannon attended the public "Session" and obtained
three "Fact Sheets." One of those sheets, entitled "Yellow Jacket
Ranges," reiterated much of the information contained in the press
release. A portion of the fact sheet labeled "Potential Hazards" read:
A study by the [COE] in 1993 . . . reported that it is
highly probable that these mine areas are contaminated with
hazardous ordnance and explosive waste (OEW). It is
suspected that there is subsurface OEW throughout the area
which may come to the surface through erosion, frost
heaving, intrusive work such as digging, or recreational
land use. Additionally, rounds that may have fallen short or
long of intended targets could also present public hazards.
_____________
5 According to the release,
"[i]nvestigation of FUDS takes place under the Defense Environmental
Restoration Program (DERP) which is regulated by the Comprehensive
Environmental Response, Restoration, Compensation, and Liability Act (CERCLA)
of 1980 as amended by the Superfund Amendment and Reauthorization Act
(SARA) of 1986."
===In the fall of 1994, the COE conducted numerous interviews with
community members to assess the public’s level of concern
and informational needs regarding the EE/CA project. On December 6,
1994, Margaret Louise Cannon participated in a telephone interview.
The interviewer’s contemporaneous notes indicate Margaret Louise
obtained knowledge about the Government’s weapons testing program in
the Yellow Jacket Area from her father Dr. J. Floyd Cannon.
According to the notes, Dr. Cannon asked DPG four to six times
to clean up its mess and was "treated horribly." Dr. Cannon witnessed
unexploded ordnance "all over" the property and was "livid over" the
Army’s testing. During the interview, Margaret Louise reportedly
expressed much distrust towards the Government and its apparent
willingness to address the problem. She stated private land owners
affected by the testing were "probably going to have
to hire an attorney."
===In August 1996, the Government released an EE/CA draft report
documenting the survey results. United States Army Corps of Engineers
Engineering and Support Center, Draft: Formerly Used Defense Site
Engineering Evaluation/Cost Analysis Report: Yellow Jacket Ranges,
Site No. J08UT109800, Tooele County, Utah (1996). The draft report
indicated the Cannons’ property was in fact highly contaminated with
ordnance. A limited search of the property based on "search grids"
revealed "subsurface geophysical anomalies."6 The report stated "[n]o
assumption can be made as to what percentage of subsurface geophysical
anomalies are actually CWM [chemical weapons], UXO, or UXO related
items." The limited search also revealed "a number of UXO and UXO-related
items . . . on the ground surface."7 The report concluded:
The density of the geophysical anomalies and
ordnance-related debris, the presence of UXO and UXO-related
items on the surface, and the presence of multiple spent
ordnance items imply that a relatively higher hazard exists
due to UXO/CWM contamination at the Yellow Jacket Mines
than at the other investigation areas.
-
_____________
6A government contractor
conducted the geophysical survey. In conducting the survey, the
contractor searched portions of only five of the Cannons’ 86.5
patented mining claims. Within those five claims, the contractor
searched specified 100' by 200' "search grids." Twenty-eight of
forty grids in the Yellow Jacket Area were located on the Cannons’
property.
-
- 7 Among the
"live" munitions found on the surface were (1) a 4.2-inch mortar
round filled with high explosives; (2) four partially intact to
intact burster tubes and fuses from M47 100-pound chemical-filled
bombs containing remnant amounts of high explosives; (3) four
partially intact to intact burster tubes and fuses from
7.2-inch chemical rockets, some of which were still inside burst
warhead casings; and (4) three partially intact burster tubes from
7.2-inch chemical rockets containing varying amounts of high
explosives. The report noted these items provided "[n]o evidence of
intact chemical rounds," and were subsequently "demilitarized."
Numerous burst bomb casings, spray/drop tanks, 4.2-inch mortar
baseplates, and spent rocket motors from 7.2-inch rockets also were
present in the area.
===Due to cost concerns, the EE/CA draft report rejected a proposed
clean-up of the site. The report estimated "Full-Scale Removal" of
munitions and related debris in the Yellow Jacket Area would cost
approximately $12.3 million. The report recommended an alternative
plan which included (1) acquisition of private mine claims and
property titles; (2) fencing and posting signs; (3) limited removal
action; and (4) mine sealing. To date, the only action the Government
has taken associated with the draft report’s conclusions and
recommendations is to defend this lawsuit. In fact, "due to funding
constraints," the Government has yet to issue a final version of the
EE/CA Report.8
II.
===On April 7, 1998, Plaintiffs Margaret Louise and Allan Robert
Cannon presented the Army a damage claim for injury to their
respective mining interests. On December 11, 1998, the Cannons filed
this lawsuit under the FTCA asking for "not less than $8 million."
Shortly thereafter, the Army summarily denied the Cannons’
administrative claim. See 28 U.S.C. § 2675(a).9 The Government
submitted a motion to dismiss the Cannons’ suit for lack of subject
matter jurisdiction. See Fed. R. Civ. P. 12(b)(1).
The Government based its motion on, among other things, the FTCA’s
two-year statute of limitations, 28 U.S.C. § 2401(b), and the doctrine
of sovereign immunity.10 The Cannons argued the discovery rule tolled
the limitations period until August 1996 when the EE/CA draft report
issued. Because the Cannons filed their administrative claim in April
1998, their suit ostensibly was timely.
===After hearing, the district court denied the Government’s motion to
dismiss. Apparently rejecting application of the discovery rule, the
court summarily concluded the contamination from the Army’s weapons
testing constituted a "continuing trespass and nuisance"
on the Cannons’ mining interests. The court made no underlying factual
findings to support its legal conclusion. Following a bench trial and
entry of judgment for the Cannons, the Government appealed.11
We exercise jurisdiction under 28 U.S.C. § 1291. We review de novo the
district court’s legal conclusion. See Dahl v. United
States, 319 F.3d 1226, 1228-29 (10th Cir. 2003).
-
_____________
- 8 Despite the
contamination, the Cannons’ mining interests in the affected area
have not been wholly unproductive. The district court found that
between 1969 and 1993 the Cannons earned $246,000 from mining
leases in the area.
-
- 9 The Cannons properly filed this action prior
to disposition of their administrative claim pursuant to § 2675(a).
That section provides "[t]he failure of an agency to make final
disposition of a claim within six months after it is filed shall,
at the option of the claimant any time thereafter, be deemed a final
denial of the claim for purposes of this section."
-
- 10 The FTCA constitutes a limited waiver of the
Government’s sovereign immunity. See Smith v. United
States, 507 U.S. 197, 201 (1993). If a claimant fails to satisfy
the FTCA’s timing requirements set forth in § 2401(b), the district
court lacks subject matter jurisdiction to proceed under the FTCA.
See Dahl v. United States, 319 F.3d 1226, 1228 (10th
Cir. 2003).
-
- 11 Following denial of the Government’s motion
to dismiss, the Cannons moved for partial summary judgment on the
question of liability. The district court granted the Cannons’
motion and set the matter for trial on the question of damages.
The Government filed a motion in limine to exclude evidence of
remediation costs as the measure of damages. Over the Cannons’
objection, the court granted the Government’s motion. The district
court ruled that dimunition in value was the proper measure
of damages. The court concluded the presence of military ordnance
reduced the value of the property from $176.26 per acre to $25.00
per acre, and awarded the Cannons $160,936.85 in damages
based upon their 75% ownership interest. See supra
n.3. On appeal, the Government also challenges the amount of the
damage award. The Cannons have cross-appealed, challenging the
district court’s measure of damages. Because we conclude the
Cannons’ FTCA claims are time-barred, we need not consider
the question of damages.
===On appeal, the Government contends the two-year limitations period
began to run no later than August 30, 1994, the date on which
Margaret Louise Cannon attended the "Public Availability Session" and
obtained a fact sheet indicating a high probability the Cannon
property was contaminated with hazardous ordnance and explosive waste.
The Cannons counter with the proposition that the discovery
rule tolled the limitations period until August 1996 when the
Government released the EE/CA draft report. According to the Cannons,
"[t]heir claim did not accrue until release of the Government’s 1996
EE/CA report, which finally and conclusively determined the Cannon
property had been severely contaminated by U.S. Army weapons tests."
In the alternative, the Cannons adopt the district court’s rationale.
They assert the Government’s contamination constitutes a continuing
trespass and nuisance on their property. Under this theory,
the Cannons argue their FTCA claim continues to accrue until the
Government ceases its tortious conduct by decontaminating
their property.
III.
===An FTCA claim against the Federal Government must be "presented in
writing to the appropriate Federal agency within two years after such
claim accrues."12 Federal law governs the point at which a claim
accrues under the FTCA. Hoery v. United States, 324 F.3d 1220,
1222 (10th Cir. 2003). Neither the FTCA nor its legislative history,
however, speaks to when a "claim accrues." In making that
determination, we keep "in mind that the Act waives the immunity of
the United States and that in construing the statute of limitations,
which is a condition of that waiver, we should not take it upon
ourselves to extend the waiver beyond that which Congress intended." United States v. Kubrick, 444 U.S. 111, 117-18 (1979). Nor
should we seek to narrow that waiver. Rather, we seek to interpret §
2401(b) consistent with congressional intent.
-
_____________
- 12
Section 2401(b) reads in its entirety:
law governs the point at which a claim accrues under the FTCA.
Hoery v. United States, 324 F.3d 1220, 1222 (10th Cir. 2003).
Neither the FTCA nor its legislative history, however, speaks to
when a "claim accrues." In making that determination, we keep
"in mind that the Act waives the immunity of the United States and
that in construing the statute of limitations, which is a condition
of that waiver, we should not take it upon ourselves to extend the
waiver beyond that which Congress intended." United States v. Kubrick,
444 U.S. 111, 117-18 (1979). Nor should we seek to narrow that
waiver. Rather, we seek to interpret § 2401(b) consistent with
congressional intent.
A.
===In the Tenth Circuit, the general rule for accrual of an FTCA claim
outside the medical malpractice context is the "injury-occurrence
rule." An FTCA tort claim accrues on the date of the injury’s
occurrence. Plaza Speedway Inc. v. United States, 311 F.3d
1262, 1267-68 (10th Cir. 2002). A different rule, the discovery rule,
applies only in the "exceptional case" where a reasonably diligent
plaintiff could not immediately know of the injury and its cause.
Id. at 1268. In that instance, an FTCA claim accrues at the time
when a reasonably diligent plaintiff would have known of the injury
and its cause. Id. at 1267. For FTCA purposes, "[a] claimant is
aware of the injury once . . . apprised of the general nature of
the injury. Lack of knowledge of the injury’s permanence, extent, and
ramifications does not toll the statute." Gustavson v. United
States, 655 F.2d 1034, 1036 (10th Cir. 1981) (medical malpractice
claim); see also 28 U.S.C.
§ 2401(b).
A tort claim against the United States shall be forever barred
unless it is presented in writing to the appropriate Federal agency
within two years after such claim accrues or unless action is begun
within six months after the date of mailing, by certified or
registered mail, of notice of final denial of the claim by the
agency to which it was presented.
Robbins v. United States, 624 F.2d 971,
973 (10th Cir. 1980) (uncertainty as to the "ultimate damage" does not
toll § 2401(b)). In Dahl, 319 F.3d at 1229, we
recently explained–
the discovery rule should be applied only when the injury
is "unknowable by its very essence, i.e., its existence at
the critical moment simply cannot be ascertained. The fact
that a plaintiff happens to be ignorant of a potential
claim, whether because the plaintiff was not diligent in
monitoring its land or because observing the taking would
exact a hardship on plaintiff in terms of money, manpower,
time and effort, is not enough to" justify application of
the discovery rule.
(quoting Catellus Dev. Corp. v. United States, 31 Fed. Cl.
399, 407 (1994)) (internal citations and brackets omitted).
===After Dahl, the Government’s argument that this is not an
"exceptional case" calling for application of the discovery rule is
forceful.13 Any suggestion that the nature of the Cannons’ injury or
its cause at the outset was "unknowable by its very essence," seems
doubtful.14 But we need not apply the "injury-occurrence rule" to
resolve this case. Our decision in Plaza Speedway, 311 F.3d at
1262, compels us to conclude that the discovery rule, even
if applicable, did not toll the two-year limitations period beyond
the date of the "Availability Session" in August 1994.
===In Plaza Speedway, we applied the discovery rule to an FTCA
toxic tort claim. From 1960 through 1984, the Army, on property
adjacent to the subject property, trained firefighters by pouring
flammable liquids into a shallow fire pit, igniting the liquids, and
extinguishing the flames. When claimants purchased the adjacent
property in February 1989, they "were aware that the United States
Army had conducted numerous operations at [the airfield] in a close
proximity to [the] area whereby jet fuel, solvents and various
chemicals were employed in a number of exercise activities over the
years." Id. at 1265. Nonetheless, the new owners did not seek
an environmental assessment of their property. In August 1993, an
environmental geologist with the State of Kansas phoned the owners to
discuss chemical contamination on their property. The geologist
followed up with an October 1993 letter informing the owners
of hazardous substances on their property. In February 1995, the
owners received formal notice from the State that the Army’s nearby
military operations could be the source of the contamination. The
owners filed an administrative claim with the Army for property
contamination in October 1995.
-
_____________
- 13 In Dahl,
landowners filed an FTCA claim alleging the Government wrongfully
destroyed a mineral ore stockpile on their mining claims. The
stockpile contained several tons of ore. The Bureau of
Land Management (BLM) "reclaimed" the stockpile in July 1997. None
of the owners visited the reclamation site until June 1998. In May
2000, the owners filed an administrative claim with the BLM.
Holding the action barred, we squarely rejected application of the
discovery rule: We see no reason to depart from the general rule
in this case. The destruction of a quarter-mile wide, 30-foot high
stockpile of mineral ore is a manifest injury, whose cause could
hardly have been a mystery. The injury was neither inherently
unknowable, nor latent. Plaintiffs could have discovered what had
happened at any time after the leveling. To be sure, the area is
somewhat remote, about 100 miles from Dahl’s laboratory. But it is
fair to charge a property owner with knowledge of what happens on
his land, at least when the occurrence would be obvious upon
inspection.
-
- Dahl, 319 F.3d at 1229 (internal citations, quotations, and
brackets omitted).
-
- 14 Nothing in the record suggests the Cannons’
grandfather and predecessor in title could not have ascertained the
nature of his injury and its cause following cessation of the Army’s
weapons testing near the end of World War II. Rather, the record
reflects Jesse F. Cannon did ascertain the nature of his injury and
its cause. Shortly after testing ended, Cannon walked the property
which was "liberally covered with shell, rocket, and bomb
fragments." See supra n.2. He submitted three
administrative claims to the Army. In his second claim, Cannon
referred to the Army’s "use of toxic chemical agents, incendiaries,
and explosive munitions." In his third claim, Cannon expressed
the belief "that the chemical agents used by the Army . . . remain
in the workings and make it impossible for me to ever operate
the mines again without some sort of decontamination." See
supra at 3-4 (emphasis added).
===We held the discovery rule tolled the running of the limitations
period only until August 1993 when the State’s environmental geologist
informally phoned the owners to discuss the contamination on their
property. Because the owners knew at that time of the Army’s prior
use of chemical substances on the adjacent property, they had adequate
knowledge of their injury and its cause to warrant further
investigation. Thus, the owners’ October 1995 administrative claim was
untimely. Section 2401(b) and the doctrine of sovereign immunity
prohibited the district court from exercising jurisdiction over the
matter. Id. at 1270-71.
===We reach a similar conclusion in this case. In a December 1994
government interview, Margaret Louise Cannon acknowledged she learned
of the weapons testing on the property from her father, Dr. J. Floyd
Cannon, who died in 1980. She indicated her father witnessed
unexploded ordnance "all over" the property and "was livid" over the
testing. She further indicated Dr. Cannon repeatedly asked the DPG
to clean up the property. See supra at 8. In July 1994,
the Army sent the Cannons a letter of concern regarding ordnance
contamination on their property. In August 1994, the Army held a
public gathering which further informed the Cannons about possible
ordnance contamination on their property and the ongoing environmental
assessment. One of the fact sheets which Margaret Louise Cannon
procured at the gathering "reported that it is highly probable that
these mine areas are contaminated with hazardous ordnance and
explosive waste." She acknowledged the Cannons’ likely need for an
attorney to address the situation during her December 1994 interview. See supra at 6-8.15
===The Cannons certainly were not "ignorant of a potential claim"
against the Government in August 1994. Dahl, 319 F.3d at 1229.
At that point (if not before), the Cannons possessed adequate
information about their injury and its cause to commence running of
the limitations period. Yet they failed to seek counsel
or initiate any investigation into the matter. Rather, the
Cannons waited until the Government informed them of the extent of
their injury to file an administrative claim, and now assert they were
unaware of "long-term" damage to their property prior to release
of the EE/CA draft report.
-
_____________
- 15 The Cannons do not suggest that Allan
Robert’s knowledge of the situation was any different than Margaret
Louise’s knowledge. Presumably, she shared the information and
knowledge she obtained with her brother.
===Notably, much of the damage which the Government’s study detected
was surface damage due to unexploded ordnance. See supra
n.7. A surface investigation of their mining property would have
revealed the likely extent of the Cannons’ property damage long before
the Government’s study did. As we stated over two decades ago in
Gustavson, 655 F.2d at 1036, and now reaffirm: "Lack of knowledge
of the injury’s permanence, extent, and ramifications does not toll
[§ 2401(b)]."
===The Supreme Court’s decision in Kubrick, 444 U.S. at 111,
further supports our conclusion. In that FTCA malpractice case, the
Court rejected the proposition that once aware of an injury and its
cause, a plaintiff "need not initiate a prompt inquiry and would be
free to sue any time within two years from the time he receives
or perhaps forms for himself a reasonable opinion that he has been
wronged." Id. at 118. The Cannons, armed with notice of their
injury and its cause, could have protected themselves months if not
years before release of the EE/CA draft report. Under the undisputed
facts of this case, the Cannons undoubtedly had notice of the general
nature of their injury and its cause no later than August 1994. Hence,
we refuse to postpone accrual of their FTCA claim until the Government
informed them as to the extent of their damage in August 1996. Binding
precedent will not permit us to "undermine the purpose of
the limitations statute, which is to require the reasonably diligent
presentation of tort claims against the Government." Id. at 123.
B.
===The Cannons seek to avoid the effect of § 2401(b) and case law
construing it by characterizing the Government’s tortious conduct in
this case as continuous. As we recently explained: "For continuing
torts, . . . [an FTCA] claim continues to accrue as long as the
tortious conduct continues, although the plaintiff’s recovery is
limited by the statute of limitations to the two-year period dating
back from when the plaintiff’s complaint was filed." Hoery, 324
F.3d at 1222. Under their continuing tort theory, the Cannons
contend the presence of the Government’s unexploded ordnance and
chemical contamination on their mining interests constitutes ongoing
tortious misconduct which accrues repeatedly.
===Under the FTCA, the Government is liable "in the same manner and to
the same extent as a private individual under like circumstances," 28
U.S.C. § 2674, and "in accordance with the law of the place where
the act . . . occurred." Id. § 1346(b)(1). Because the FTCA
mandates application of state law to resolve questions of substantive
liability, the question of whether a tort is characterized
as permanent or continuous depends upon how state law would
characterize the tort. Hoery, 324 F.3d at 1222.16 Because the
Cannons’ property is located in Utah, we look to Utah state law to
characterize the nature of the tort in this case. Compare
infra n.18.
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_____________
- 16 In Hoery, 324 F.3d at 1223-24, we
rejected the Government’s argument that a continuing tort theory in
FTCA cases would thwart Congress’ intent to establish a uniform
statute of limitations for tort claims by effectively extending
§ 2401(b)’s limitations period. We explained "[c]ongressional intent
that stale claims be avoided is not frustrated when,
under applicable state law, the wrongful conduct continues." Id.
at 1224. Moreover, "the two-year statute of limitations does run
uniformly on a continuing tort because damages are recoverable for
only the two years prior to the time the plaintiff files the
required administrative complaint." Id. The language of the
FTCA and Hoery’s reasoning undoubtedly dictate the
application of state law in this case to characterize the nature of
the Government’s tort. But cf. Toussie v. United States,
397 U.S. 112, 115 (1970) (noting in the criminal context that "the
tension between the purpose of a statute of limitations and the
continuing offense doctrine is apparent; the latter, for
all practical purposes, extends the statute beyond its stated term")
(internal quotations and brackets omitted).
===To determine whether a trespass or nuisance is permanent or
continuous, Utah state courts "look solely to the act
constituting the trespass [or nuisance], and not to the harm
resulting from the act." Breiggar Prop., L.C., v. H.E. Davis & Sons,
52 P.3d 1133, 1135 (Utah 2002) (emphasis in original) (clarifying
Walker Drug Co., Inc. v. La Sal Oil Co., 902 P.2d 1229 (Utah 1995)
(Walker I)). In Breiggar, a landowner sued a state
transportation department contractor for trespass after the contractor
left debris on his property. The Utah Supreme Court characterized the
tort as permanent, and concluded the limitations period began
to run on the date the contractor dumped the debris on the property.
The court viewed as irrelevant "[t]he fact that the pile of debris
continued to remain on Breiggar’s property." Id. at 1136.
"Whether the trespass or nuisance is continuous or permanent is a
different question from whether the resulting injury to the land or to
the possessor’s interests in the land is temporary or permanent."
Walker Drug Co., Inc. v. La Sal Oil Co., 972 P.2d 1238, 1246 n.9
(Utah 1998) (Walker II)). Under Utah law, a continuous tort
requires "recurring tortious . . . conduct and
is not established by the continuation of harm caused by
previous but terminated tortious . . . conduct." Breiggar, 52
P.3d at 1136 (emphasis in original) (internal quotations omitted).
===In this case, the Army discontinued its conduct, i.e.,
dropping ordnance, on the Cannons’ property in 1945, leaving a "debris
field" of exploded and unexploded ordnance and chemical contamination
on and under the surface. The harm for which the Cannons now seek
to recover damages is the exact same harm which their grandfather,
Jesse F. Cannon, incurred in 1945 and which their father, Dr. J. Floyd
Cannon, "inherited" in 1954. Despite the Cannons’ contrary assertion,
the fact that dangerous ordnance and contamination remain on
the Cannons’ property is irrelevant in characterizing the nature of
the Government’s tort under Utah law. The harm that existed in 1945 is
the harm that exists now. The Cannons do not suggest and nothing
in the record supports the proposition that contamination or ordnance
continues to enter or migrate onto the Cannons’ property. Compare Hoery, 324 F.3d at 1221 (recognizing allegation that chemical
contamination continued to migrate onto plaintiff’s property and enter
groundwater and soil).17 The Government’s failure to remove ordnance
and contamination from the Cannons’ property does not constitute a
continuing trespass or nuisance under Utah law.18 Accordingly, a
continuing trespass or nuisance theory provides the Cannons no relief
from §2401(b)’s two-year limitations period.
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_____________
- 17 Although Utah law provides no definite
answer, detonation of ordnance presently on the Cannons’ property
causing additional harm might very well be characterized as a new
instance of tortious conduct. The Government acknowledges
the situation would change significantly if unexploded ordnance on
the Cannons’ property accidently detonated causing personal
or additional property damage. We need not reach this question,
however, as the record before us does not indicate that any such
detonations have occurred.
-
- 18 As Hoery illustrates, Colorado law
would dictate a different result in this case. In Hoery, we
certified to the Colorado Supreme Court the question of whether
the ongoing presence of toxic chemicals on plaintiff’s property
constitutes a continuing trespass or nuisance under Colorado law.
324 F.3d at 1222-23. The Colorado Supreme Court held that "Colorado
law recognizes the concepts of continuing trespass and nuisance for
those property invasions where a defendant fails to stop or
remove continuing, harmful physical conditions that are
wrongfully placed on a plaintiff’s land." Hoery v. United States,
64 P.3d 214, 220 (Colo. 2003) (emphasis added).
IV.
===The result the law dictates in this case does not diminish the harm
to the Cannons’ property which has persisted over half a century.
Courts generally "should regard the plea of limitations as a
meritorious defense, in itself serving a public interest." Kubrick,
444 U.S. at 117 (internal quotations omitted). Nevertheless, "[e]very
statute of limitations . . . may permit a rogue to escape." Toussie
v. United States, 397 U.S. 112, 123 (1970) (internal quotations
omitted). Prior to testing, the United States expressly promised the
Cannons’ grandfather that it would "leave the property of the owner in
as good condition as it is on the date of the government’s entry."
Fifty-eight years later, the Government has yet to fulfill its
contractual obligation to the Cannon family. They are still waiting.19
===The United States Government has yet fully to recognize and
appreciate Jesse F. Cannon’s contribution to National Security during
World War II. The Government should have lived up to its obligations
long ago. Unfortunately, applicable law rendered the district court
powerless to grant the Cannons the monetary relief to which they
undoubtedly are entitled absent decontamination. The Cannons’ remedy
at this stage is political, however, not legal.20
REVERSED and REMANDED with instructions to dismiss this action for
want of subject matter jurisdiction.
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_____________
19 We Share the frustration of
the district court expressed over the situation. The court
specifically directed the Government to bring pre-trial conference an
Army official prepared with authority to state a specific time
by witch the Plaintiffs' propity will be cleaned-up. After hearing
from a representative from the COE, the court found that if several
variables including Congressional funding remain as they currently
stand, the clean-up could begin in 2007.
-
- 20 The FTCA provides only for an award of monetary damages. We
express no opinion on the possible availability of injunctive relief
to remedy the situation.
|