Jan 11: In the U.S. Court of Appeals, Federal Circuit, Case No. 12-5030. Appealed from the United States Court of Federal Claims. The Appeals Court explains that Indian Harbor Insurance Company (Indian Harbor) appeals the final judgment of the Court of Federal Claims dismissing Indian Harbor's Second Amended Complaint. In that complaint, Indian Harbor sought reimbursement under Section 330 of the National Defense Authorization Act of 1993, Pub. L. No. 102-484, (Nov. 30, 1993) (Section 330) for environmental cleanup costs associated with the development of property formerly used as a military base. The Court of Federal Claims determined that Indian Harbor failed to identify a "claim for personal injury or property" that triggered the government's duty to indemnify under Section 330, Indian Harbor Insurance Co. v. United States, 100 Fed. Cl. 239, 240 (Fed. Cl. 2011) and, thus, dismissed the complaint under Rule 12(b)(6) of its rules.
The Appeals Court said, "Although the plain language of Section 330 is clear that there must be a "suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage," we find no support for the proposition that the claim for personal injury or property damage must be adversarial. . . Thus, we see no reading of the plain language resulting in the conclusion that the RWQCB's [Regional Water Quality Control Board's] communications with TLCP [Tustin Legacy Community Partners, LLC] do not constitute a "claim" under Section 330."
The Appeals Court summarizes saying, "Because we disagree with the trial court's interpretation of the requirements of Section 330, we reverse the decision of the Court of Federal Claims and remand for proceedings in accordance with this decision." In further background the Appeals Court indicates that, "Indian Harbor subsequently filed suit in the Court of Federal Claims seeking $5,331,872.09, plus interest and any additional amounts proven at trial, pursuant to Section 330. The United States moved to dismiss. Following briefing by the parties, oral argument was held on June 20, 2011. On June 28, 2011, the Court of Federal Claims granted Indian Harbor's unopposed motion to file its First Amended Complaint, which clarified Count II of the Complaint. On July 5, 2011, the Court of Federal Claims granted the Defendant's motion in part, dismissing Count I of Indian Harbor's Complaint on grounds that Indian Harbor failed to allege facts plausibly suggesting the existence of a 'claim for personal injury or property damage' as required under Section 330."
The Appeals Court said, "Although the plain language of Section 330 is clear that there must be a "suit, claim, demand or action, liability, judgment, cost or other fee arising out of any claim for personal injury or property damage," we find no support for the proposition that the claim for personal injury or property damage must be adversarial. . . Thus, we see no reading of the plain language resulting in the conclusion that the RWQCB's [Regional Water Quality Control Board's] communications with TLCP [Tustin Legacy Community Partners, LLC] do not constitute a "claim" under Section 330."
Finally, the Appeals Court concludes, "There is nothing to suggest that addition of the phrase 'claim for personal injury or property damage' was intended to limit the scope of governmental indemnification in a way that ignores the original purpose of the Act. The Court of Federal Claims reads far too much into that clause; we decline to do so."
Access the complete opinion (click here). [#Remed, #CAFed]
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