Chance v. Zinke
Opinion
*1027
Merrill Chance, a landowner in Osage County, Oklahoma, sued the government
1
to void a lease and various permits that allow Great Southwestern Exploration, Inc. (GSE) to drill for oil and gas beneath his property. He also seeks damages from GSE for trespassing on his property. The district court ruled that Chance's claims against the government were untimely under
We agree with the district court that Chance's claims against the government are untimely. But the Supreme Court has warned us to beware of "profligate use of the term 'jurisdiction.' "
Sebelius v. Auburn Reg'l Med. Ctr
.,
Therefore, we reverse the district court's order dismissing Chance's claims against the government for lack of subject-matter jurisdiction and instruct the district court to dismiss those claims for failure to state a claim. We affirm the district court's judgment over Chance's claims against GSE because, to the extent Chance's claims against the government fail, the district court properly declined to exercise supplemental jurisdiction over Chance's claims against GSE.
Background
The controversy surrounding Chance's property stems from the government's unusual presence in Osage County. Before the turn of the twentieth century, Osage County was a tribal reservation belonging to the Osage Nation.
See
Osage Nation v. Irby
,
Today, Department of Interior regulations task the Osage Agency of the BIA with managing this trust.
See
Chance is the surface owner of a tract of land in Osage County. In 1963, the Osage Agency granted the Eason Oil Company (Eason) an oil lease for deposits underlying Chance's property. Eason drilled two wells in 1964 that remain in operation today. With the BIA's approval, Eason assigned its lease to GSE in 1991. The BIA
*1028 granted GSE permits to drill three new wells that same year. Two of these wells remain in operation. Chance maintains that the construction and operation of these wells has damaged his surface property in various ways over the years.
In October 2016-25 years after Eason assigned its lease to GSE and the BIA granted GSE permits to drill new wells on the lease-Chance filed this lawsuit. He argued that
Additionally, Chance asserted that the Osage Agency's failure to comply with NEPA reflects systemic problems. He alleged that for decades, the Osage Agency had been relying only on an assessment it conducted in 1979 that evaluated the general impact of the Osage County drilling program rather than conducting site-specific environmental-impact assessments, as Chance argued NEPA requires. Chance further alleged that the Osage Agency attempted to conceal its noncompliance with NEPA.
The government moved to dismiss Chance's claims against it for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1), and GSE moved to dismiss Chance's claims against it for failure to state a claim under Rule 12(b)(6). The district court granted both motions. It first ruled that Chance's claims against the government were untimely under § 2401(a), which establishes a six-year statute of limitations for nontort claims against the government. Chance urged the district court to equitably toll § 2401(a)'s limitations period. But the district court determined that § 2401(a) is a jurisdictional bar and thus not subject to equitable tolling. Alternatively, it ruled that Chance wasn't entitled to equitable tolling under the facts of this case. The district court further ruled that Chance failed to exhaust his administrative remedies. And it denied Chance's motion for jurisdictional discovery.
The district court then concluded that Chance's claims against GSE necessarily relied on his claims against the government, so it granted GSE's Rule 12(b)(6) motion. It alternatively declined to exercise supplemental jurisdiction over Chance's claims against GSE and dismissed for lack of subject-matter jurisdiction. Chance appeals the order granting both defendants' motions and denying his motion for jurisdictional discovery.
Analysis
I. Chance's Claims Against the Government
A. Subject-Matter Jurisdiction
Chance appeals the district court's order granting the government's Rule 12(b)(1) motion. We review the district court's ruling on this motion de novo,
see
Butler v. Kempthorne
,
At the outset, the government invites us to bypass this jurisdictional question by (1) assuming the district court erred by treating § 2401(a) as jurisdictional but (2) nevertheless
*1029
affirming because Chance fails to state a claim on which relief can be granted. We must decline this invitation. The Supreme Court has made clear that courts may not exercise "hypothetical jurisdiction" to reach the merits of a case, even if proceeding in such a manner might offer a more straightforward path to its resolution.
Steel Co. v. Citizens for a Better Env't
,
"For the last decade, the Supreme Court has been on a mission to rein in profligate uses of 'jurisdiction,' a word with 'many, too many, meanings.' "
Herr v. U.S. Forest Serv.
,
The Court's campaign is rooted in legitimate concern. Treating a rule as jurisdictional is more than just semantics; it has real-world effects on the parties and can be detrimental to judicial economy.
See
Henderson
,
"Because the consequences that attach to the jurisdictional label may be so drastic, [the Court has] tried in recent cases to bring some discipline to the use of this term."
Id. at 435,
With these concerns in mind, we now turn to the district court's jurisdictional ruling.
Section 2401(a) requires that all nontort actions against the government be filed within six years of the date on which the right accrues. Chance doesn't dispute that his claims accrued in 1991, when the government approved GSE's lease assignment and drilling permits. Nor does he dispute that he filed his October 2016 lawsuit far outside this six-year deadline. Instead, he argues that he's entitled to equitable tolling to extend that deadline because (1) the government didn't notify his predecessors-in-interest that it approved GSE's lease assignment and new drilling permits; and (2) the government concealed the fact that it didn't conduct site-specific environmental-impact assessments when it approved the assignment and the permits.
The district court determined that § 2401(a) presents a jurisdictional requirement for lawsuits against the government. And because courts can't toll statutes of limitations that deprive them of jurisdiction, it rejected Chance's equitable-tolling argument. Chance asks us to take the opposite path and hold that § 2401(a) isn't jurisdictional and can thus be equitably tolled. This presents an issue of first impression for this court. Other circuits are split.
Compare
Herr v. U.S. Forest Serv.
,
The Supreme Court has "made plain that most time bars are nonjurisdictional."
United States v. Kwai Fun Wong
, --- U.S. ----,
First, the Court concluded that
Several terms later, the Court considered whether § 2401(b)'s statute of limitations, which governs tort claims against the government, is jurisdictional.
See
Kwai Fun Wong
,
In so holding, the Court rejected the government's argument that because § 2401(b) is similarly worded to § 2501, the Court should follow
John R. Sand
and conclude that § 2401(b) is jurisdictional too.
Here, Chance invites us to follow Kwai Fun Wong and hold that § 2401(a) is nonjurisdictional because Congress hasn't clearly stated otherwise and the Court hasn't directly held otherwise. If only it were so simple. As explained in some detail below, despite its proximity in the federal code to § 2401(b), § 2401(a) is a closer genetic relative to § 2501. And the government cautions that § 2401(a)'s and § 2501's shared legislative history compels us to interpret these statutes identically. Thus, the government argues the court should follow John R. Sand and conclude that like § 2501, § 2401(a) is jurisdictional.
*1032
Section 2501 originated in an 1863 statute.
See
Act of Mar. 3, 1863, ch. 92, § 10,
In 1911, Congress created separate statutes of limitations for the Big and Little Tucker Acts.
Herr
,
The government argues that this history rebuts Irwin 's presumption that § 2401(a) isn't jurisdictional. Essentially, the government maintains that the Tucker Act gave the district courts concurrent jurisdiction with the Court of Claims-albeit capped at claims of $1,000. Thus, because § 2501's predecessor was jurisdictional, the Tucker Act's statute of limitations must have been jurisdictional too; otherwise the district courts' jurisdiction would have been broader than the Court of Claims' jurisdiction. And, the reasoning goes, because we can trace § 2401(a) back to the Tucker Act's statute of limitations, § 2401(a) must also be jurisdictional.
This argument fails for two reasons. First, the Court made clear in
John R. Sand
and again in
Kwai Fun Wong
that the only reason § 2501 is jurisdictional is because the Court had directly concluded as much in pre-
Irwin
precedent.
See
Kwai Fun Wong
,
Next, even if the original Tucker Act's statute of limitations was meant to be jurisdictional, that changed when Congress codified it at § 2401(a). At that point, Congress separated the statute of limitations from the jurisdictional grant and enlarged it to cover all nontort claims against the government. As the Sixth Circuit concluded, this "demonstrates that § 2401(a) was designed to serve as a standard, mine-run statute of limitations without jurisdictional qualities."
Herr
,
Given the Court's strong recent emphasis on limiting jurisdictional bars and its unusually frank recognition in
John R. Sand
and
Kwai Fun Wong
that stare decisis and stare decisis
alone
renders § 2501 jurisdictional, we conclude that § 2401(a) isn't jurisdictional. To our knowledge, the only circuit that has considered this issue since
Kwai Fun Wong
-the Sixth-reached the same conclusion.
See
Herr
,
Accordingly, we reverse the portion of the district court's order dismissing Chance's claims against the government for lack of subject-matter jurisdiction. In the interest of judicial economy, however, we nevertheless evaluate the district court's alternative conclusion that Chance
*1034
is not entitled to equitable tolling.
5
Cf.
Odom v. Penske Truck Leasing Co.
,
B. Equitable Tolling
Although the district court erroneously concluded that § 2401(a) is jurisdictional and thus isn't subject to equitable tolling, 6 it alternatively concluded that Chance isn't entitled to equitable tolling on the facts of this case. In ruling on this issue, the district court went beyond the face of Chance's complaint to make findings of jurisdictional fact. 7 Because we conclude that this isn't a jurisdictional issue, we examine whether the district court could have reached the same conclusion looking only to the face of Chance's complaint. See Smith , 561 F.3d at 1098.
Although timeliness is an affirmative defense,
see
Fed. R. Civ. P. 8(c)(1), "[i]f the allegations ... show that relief is barred by the applicable statute of limitations, the complaint is subject to dismissal for failure to state a claim."
Jones v. Bock
,
"Equitable tolling is granted sparingly."
Impact Energy Res., LLC v. Salazar
,
Chance-at most-only alleges the latter of these requirements. He fails to point to a single action that he took to pursue his rights before filing this lawsuit. That the government didn't notify Chance's predecessors-in-interest about the new drilling permits it approved and concealed its *1035 failure to conduct an environmental-impact assessment might have ultimately prevented Chance from filing a timely lawsuit. But as we explain, these wrongs didn't prevent Chance from making an attempt to pursue his rights.
In his complaint, Chance alleges that that the Osage County Cattlemen's Association attempted to probe the Osage Agency's NEPA compliance through a Freedom of Information Act (FOIA) request.
See
Nor are we convinced that the government's alleged misconduct somehow excuses Chance from his duty to pursue his rights. Chance argues that the government "lulled [him] into inaction" by actively concealing its NEPA violations. Aplt. Br. 20. We've "held that the limitations period may be tolled where a claimant has been 'actively misled.' "
Biester v. Midwest Health Servs., Inc.
,
Chance essentially argues that the limitations period must be tolled because-through no efforts of his own-he discovered a legal basis to void GSE's lease and permits more than 20 years after GSE began operating on his property. We cannot agree. Therefore, although we reverse the portion of the district court's order dismissing Chance's claims against the government for lack of subject-matter jurisdiction, we agree with the district court's conclusion that those claims are untimely. Accordingly, we remand to the district court with instructions to dismiss for failure to state a claim. 8
II. Chance's Claims Against GSE
We now briefly turn to Chance's claims against GSE. The district court dismissed these claims for failure to state a claim because it held that they are dependent on Chance's claims against the government, which fail. Alternatively, the district court said it would exercise its discretion to decline *1036 supplemental jurisdiction over Chance's claims against GSE.
We see no reason to address the merits of these claims. The district court's alternative ruling was well within its prerogative.
See
Conclusion
We reverse in part and affirm in part. We reverse the portion of the district court's order dismissing Chance's claims against the government for lack of subject-matter jurisdiction and remand with instructions to dismiss for failure to state a claim. But we affirm the district court's order dismissing Chance's claims against GSE for lack of subject-matter jurisdiction. As a final matter, we deny the government's motion to strike portions of amici's brief.
Chance named as defendants the Bureau of Indian Affairs (BIA), Department of Interior Secretary Sally Jewell in her official capacity, and BIA Director Michael Black in his official capacity. Ryan Zinke has since succeeded Jewell as interior secretary, and Darryl LaCounte has since succeeded Black as acting BIA director. Zinke and LaCounte thus automatically substitute for Jewell and Black as defendants. See Fed. R. App. P. 43(c)(2). We refer to these defendants collectively as "the government."
The Court in
Irwin
addressed courts' power to toll statutes of limitations for claims against the government without expressly framing the inquiry as a question of jurisdiction.
See
The government asserts that the Court held in
United States v. Wardwell
,
For the Big Tucker Act, the 1911 amendment provided, "Every claim against the United States cognizable by the Court of Claims, shall be forever barred unless the petition setting forth a statement thereof is filed in the court ... within six years after the claim first accrues." Act of Mar. 3, 1911, ch. 231, § 156,
We won't dwell on what Congress specifically intended by the differences in this language because
Kwai Fun Wong
teaches us that there's limited utility to comparing the language in statutes of limitations.
See
Because we conclude that the district court had subject-matter jurisdiction, Chance's argument that the district court should have granted him jurisdictional discovery is moot.
Having concluded that § 2401(a) isn't jurisdictional, we assume without deciding that it may be tolled.
See
Kwai Fun Wong
,
We observe that the district court had no reason to make factual findings on this issue. True, district courts may generally make findings when ruling on a motion to dismiss for lack of subject-matter jurisdiction.
See
Holt v. United States
,
Because we conclude that Chance's claims are untimely, we don't reach the government's alternative argument that Chance failed to exhaust his administrative remedies.
Reference
- Full Case Name
- Merrill CHANCE, Plaintiff-Appellant, v. Ryan ZINKE, in His Official Capacity as Secretary of the United States Department of Interior; United States Bureau of Indian Affairs, an Agency Within the United States Department of Interior; Darryl LaCounte, in His Official Capacity as Director of the United States Bureau of Indian Affairs; Great Southwestern Exploration, Inc., an Oklahoma Corporation, Defendants-Appellees. Pawnee Nation of Oklahoma ; Walter R. Echo-Hawk, Amici Curiae.
- Cited By
- 37 cases
- Status
- Published