Opinion · Supreme Court of the United States
Keene Corp. v. United States
Keene Corp. v. United States, 7 Fla. L. Weekly Fed. S 297 (Supreme Court of the United States 1993)
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1993-05-24
- Topic
- general
holding that the jurisdiction of the Court of Federal Claims depends “upon the state of things at the time of the action brought” | ruling that court must examine the facts existing when plaintiff “filed each of its complaints” | noting that “we apply the presumption that Congress was aware of these earlier judicial interpretations and, in effect, adopted them” | noting that "we apply the presumption that Congress was aware of these earlier judicial interpretations and, in effect, adopted them" | providing that courts have a "duty to refrain from reading a phrase into the statute when Congress has left it out" | holding that dismissal under section 1500 hinges “on whether the plaintiffs other suit was based on substantially the same operative facts as the Court of Claims action ... [and whether] there was some overlap in the relief requested” | holding that similarity in terms of underlying legal theories is irrelevant | providing that courts have a “duty to refrain from reading a phrase into the statute when Congress has left it out” | recognizing courts’ “duty to refrain from reading a phrase into the statute when Congress has left it out.” | noting that use of “a narrow concept of identity” would provide “a correspondingly liberal opportunity to maintain two suits arising from the same factual foundation” | noting that jurisdiction “depends upon the state of things at the time of the action brought” | noting that courts have a “duty to refrain from reading a phrase into [a] statute when Congress has left it out” | explaining that jurisdiction “depends upon the state of things at the time of the action brought” (internal quotation marks omitted) | observing that courts have a “duty to refrain from reading a phrase into the statute when Congress has left it out” | explaining that judiciary may not override statutory limitation of jurisdiction of Court of Federal Claims | noting that courts have a “duty to refrain from reading a phrase into [a] statute when Congress has left it out” | recognizing “the longstanding principle that ‘the jurisdiction of the Court depends upon the state of things at the time of the action brought’” | holding that section 1500 “bar[s] jurisdiction over the claim of a plaintiff who, upon filing [in the Claims Court — now the Court of Federal Claims], has an action pending in any other court ‘for or in respect to’ the same claim” | applying the "presumption that Congress was aware of [prior] judicial interpretations and, in effect, adopted them" | applying the “presumption that Congress was aware of [prior] judicial interpretations and, in effect, adopted them” | stating that “Congress has the constitutional authority to define the jurisdiction of the lower federal courts” and that “Congress has employed its power” to do so in section 1500 | noting that the " 'proper theater' for such arguments ... 'is the halls of Congress, for that branch of the government has limited the jurisdiction of the Court of Claims’ " | finding that “tort cases are outside the jurisdiction of the Court of Federal Claims” | noting that tort claims such as conversion are outside the jurisdiction of this court | warning that courts should avoid reading language into statutes that Congress chose to omit | noting that “tort cases are outside the jurisdiction of the Court of Federal Claims” | stating that “tort cases are outside the jurisdiction of the Court of Federal Claims” | noting that “tort eases are outside the jurisdiction of the Court of Federal Claims” | noting that “tort cases are outside the jurisdiction of the Court of Federal Claims” | stating that “tort cases are outside the jurisdiction of the Court of Federal Claims” | stating that “tort cases are outside the jurisdiction of the Court of Federal Claims” | stating that section 1500 “bar[s] jurisdiction over the claim of a plaintiff who, upon filing, has an action pending in any other court ‘for or in respect to’ the same claim” | finding that the use of a phrase i
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delivered the opinion of the Court.
Keene Corporation has been sued by thousands of plaintiffs alleging injury from exposure to asbestos fibers and dust released from products made by Keene and by a company it acquired. In trying to recoup some of the money it was paying to litigate and settle the cases, Keene filed two complaints against the United States in the Court of Federal Claims.1 When it filed each complaint, however, Keene had a similar claim pending against the Government in another court. We hold that 28 U. S. C. § 1500 consequently precludes Court of Federal Claims jurisdiction over Keene’s actions and affirm the dismissal of its complaints.
r — i
Through its subsidiary Keene Building Products Corporation, Keene manufactured and sold thermal insulation and acoustical products containing asbestos, as did a company it acquired in 1968, Baldwin-Ehret-Hill, Inc. In the mid-
In the meantime, in December 1979, with the Miller third-party action still pending, Keene filed the first of its two complaints in issue here, seeking damages from the United States in the Court of Federal Claims “for any amounts which have been, or which may be recovered from Keene by the claimants, by settlement or judgment.” Keene Corp. v. United States, No. 579-79C (Keene I), App. to Pet. for Cert. H15. The “claimants” are defined as the plaintiffs in the more than 2,500 lawsuits filed against Keene “by persons alleging personal injury or death from inhalation of asbestos fibers contained in thermal insulation products” manufactured or sold by Keene or its subsidiaries. Id., at H3. Keene alleges conformance with Government specifications in the inclusion of asbestos within the thermal insulation products Keene supplied to Government shipyards and other projects funded or controlled by the Government, and Keene further claims that the Government even sold it some of the asbestos fiber used in its products. Keene’s theory of recovery is breach by the United States of implied warran
Keene’s next move against the Government came the following month when it filed a 23-count complaint in the District Court for the Southern District of New York. Keene Corp. v. United States, No. 80-CIV-0401(GLG). The pleadings tracked, almost verbatim, the lengthy factual allegations of Keene I, but the action was recast in terms of various tort theories, again seeking damages for any amounts paid by Keene to asbestos claimants. Keene also added a takings claim for the Government’s allegedly improper recoupment, under the Federal Employees’ Compensation Act (FECA), 5 U. S. C. § 8132, of money paid by Keene to claimants covered by the Act. For this, Keene sought restitution of “the amounts of money which have been, or which may be, recouped by [the United States] from claimants from judgments and settlements paid by Keene,” App. 37, as well as an injunction against the Government’s collection of FECA refunds thereafter. This suit suffered dismissal in September 1981, on the basis of sovereign immunity, which the court held unaffected by any waiver found in the Federal Tort Claims Act, the Suits in Admiralty Act, and the Public Vessels Act. The Court of Appeals affirmed, Keene Corp. v. United States, 700 F. 2d 836 (CA2 1983), and we denied certiorari, 464 U. S. 864 (1983).
Only five days before the Southern District’s dismissal of that omnibus action, Keene returned to the Court of Federal Claims with the second of the complaints in issue here. Keene Corp. v. United States, No. 585-81C (Keene II). Although this one, too, repeats many of the factual allegations of Keene I, it adopts one of the theories raised in the Southern District case, seeking payment for “the amounts of money that [the United States] has recouped” under FECA from asbestos claimants paid by Keene. App. to Pet. for
After the Court of Federal Claims raised the present jurisdictional issue sua sponte in similar actions brought by Johns-Manville, the Government invoked 28 U. S. C. § 1500 in moving to dismiss both Keene I and Keene II, as well as like actions by five other asbestos product manufacturers. With trial imminent in the Johns-Manville cases, the Court of Federal Claims initially granted the motion to dismiss only as to them. Keene Corp. v. United States, 12 Cl. Ct. 197 (1987). That decision was affirmed on appeal, Johns-Manville Corp. v. United States, 855 F. 2d 1556 (CA Fed. 1988) (per curiam), cert. denied, 489 U. S. 1066 (1989), and the Court of Federal Claims then entered dismissals in Keene I and Keene II, among other cases, finding that when Keene had filed both Keene I and Keene II, it had the same claims pending in other courts. 17 Cl. Ct. 146 (1989). While a panel of the Court of Appeals for the Federal Circuit reversed on the ground that § 1500 was inapplicable because no other claim had been pending elsewhere when the Court of Federal Claims entertained and acted upon the Government’s motion to dismiss, UNR Industries, Inc. v. United States, 911 F. 2d 654 (1990), the Court of Appeals, en banc, subsequently vacated the panel opinion, 926 F. 2d 1109 (1990), and affirmed the trial court’s dismissals, 962 F. 2d 1013 (1992). We granted certiorari. 506 U. S. 939 (1992).
HH HH
The authority cited for dismissing Keene’s complamts for want of jurisdiction was 28 U. S. C. § 1500 (1988 ed., Supp. IV):
“The United States Court of Federal Claims shall not have jurisdiction of any claim for or in respect to which*206 the plaintiff or his assignee has pending in any other court any suit or process against the United States or any person who, at the time when the cause of action alleged in such suit or process arose, was, in respect thereto, acting or professing to act, directly or indirectly under the authority of the United States.”2
The lineage of this text runs back more than a century to the aftermath of the Civil War, when residents of the Confederacy who had involuntarily parted with property (usually cotton) during the war sued the United States for compensation in the Court of Claims, under the Abandoned Property Collection Act, ch. 120, 12 Stat. 820 (1863). When these cotton claimants had difficulty meeting the statutory condition that they must have given no aid or comfort to participants in the rebellion, see §8 of the Act, they resorted to separate suits in other courts seeking compensation not from the Government as such but from federal officials, and not under the statutory cause of action but on tort theories such as conversion. See Schwartz, Section 1500 of the Judicial Code and Duplicate Suits Against the Government and Its Agents, 55 Geo. L. J. 573, 574-580 (1967). It was these duplicative lawsuits that induced Congress to prohibit anyone from filing or prosecuting in the Court of Claims “any claim ... for or in respect to which he ... shall have commenced and has pending” an action in any other court against an officer or agent of the United States. Act of June 25, 1868, ch. 71, § 8, 15 Stat. 77. The statute has long outlived the cotton claimants, having been incorporated
Keene argues it was error for the courts below to apply the statute by focusing on facts as of the time Keene filed its complaints (instead of the time of the trial court’s ruling on the motion to dismiss) and to ignore differences said to exist between the Court of Federal Claims actions and those filed in the District Courts. Neither assignment of error will stand.
A
Congress has the constitutional authority to define the jurisdiction of the lower federal courts, see Finley v. United States, 490 U. S. 545, 548 (1989), and, once the lines are drawn, “limits upon federal jurisdiction ... must be neither disregarded nor evaded,” Owen Equipment & Erection Co. v. Kroger, 437 U.S. 365, 374 (1978). In § 1500, Congress has employed its power to provide that the Court of Federal Claims “shall not have jurisdiction” over a claim, “for or in respect to which” the plaintiff “has [a suit or process] pending” in any other court. In applying the jurisdictional bar here by looking to the facts existing when Keene filed each of its complaints, the Court of Federal Claims followed the longstanding principle that “the jurisdiction of the Court depends upon the state of things at the time of the action brought.” Mollan v. Torrance, 9 Wheat. 537, 539 (1824) (Marshall, C. J.); see Gwaltney of Smithfield, Ltd. v. Chesapeake Bay Foundation, Inc., 484 U. S. 49, 69 (1987) (opinion of Scalia, J.); St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U. S. 283, 289-290 (1938); Minneapolis & St. Louis R. Co. v. Peoria & P.U.R. Co., 270 U. S. 580, 586 (1926).
While acknowledging what it calls this “general rule” that subject-matter jurisdiction turns on the facts upon filing,
Keene’s next appeal, to statutory history, is no more availing. The immediate predecessor of § 1500, § 154 of the Judicial Code of 1911, provided that “[n]o person shall file or prosecute in the Court of Claims . . . any claim for or in respect to which he ... has pending in any other court any suit or process . . . .” Act of Mar. 3, 1911, ch. 231, § 154, 36 Stat. 1138. With this express prohibition against filing claims for which another suit was pending, there could, of course, have been no doubt that at least a time-of-filing rule applied. See Shapiro v. United States, 168 F. 2d 625, 626 (CA3 1948) (§ 154 “forbids the filing” of a Little Tucker Act
The statutory notion of comparable claims is more elusive. _ By precluding jurisdiction over the claim of a plaintiff with a suit pending in another court “for or in respect to” the same claim, § 1500 requires a comparison between the claims raised in the Court of Federal Claims and in the other lawsuit. The exact nature of the things to be compared is not illuminated, however, by the awkward formulation of § 1500. Nor does it advance the ball very far to recognize from the statute’s later reference to “the cause of action alleged in such suit or process,” that the term “claim” is used here synonymously with “cause of action,” see Black’s Law Dictionary 247 (6th ed. 1990) (defining “claim” as “cause of action”), since, as both parties admit, “cause of action,” like “claim,” can carry a variety of meanings. See Brief for Petitioner 18; Brief for United States 15; see also Johns-Manville Corp., 855 F. 2d, at 1560.
Fortunately, though, we can turn to earlier readings of the word “claim” as it appears in this statute. The phrase “any claim ... for or in respect to which” has remained unchanged since the statute was first adopted in 1868, see Act of June 25, 1868, ch. 71, § 8, 15 Stat. 77, and prior encounters with § 154 of the Judicial Code of 1911, the immediate predecessor to §1500, shed some light on the issue. Corona Coal Co. v. United States, 263 U. S. 537 (1924), was an action brought against the United States in the Court of Claims, seeking compensation for coal requisitioned by the Government. Before bringing its appeal to this Court, the plaintiff sued the President’s agent in Federal District Court, “the causes of action therein set forth being the same as that set forth in the [Court of Claims] case.” Id., at 539. After noting that the causes of action “arose out of” the same factual setting, we applied §154 and dismissed the
A few years later, the Court of Claims settled a key question only foreshadowed by Skinner & Eddy: whether § 154 applied when the Court of Claims action and the “other” suit proceeded under different legal theories. In British American Tobacco Co. v. United States, 89 Ct. Cl. 438 (1939) (per curiam), after the plaintiff had surrendered his gold bullion to the Government (in compliance with executive orders and regulations that took this country off the gold
These precedents demonstrate that under the immediate predecessor of § 1500, the comparison of the two cases for purposes of possible dismissal would turn on whether the plaintiff’s other suit was based on substantially the same operative facts as the Court of Claims action, at least if there was some overlap in the relief requested.6 See Skinner & Eddy, supra; Corona Coal, supra. That the two actions were based on different legal theories did not matter. See British American Tobacco, supra. Since Keene has given us no reason to doubt that these cases represented settled law when Congress reenacted the “claim for or in respect to which” language in 1948, see 62 Stat. 942, we apply the presumption that Congress was aware of these earlier judicial interpretations and, in effect, adopted them. Lorillard v. Pons, 434 U. S. 575, 580 (1978); cf. United States v. Powell, 379 U. S. 48, 55, n. 13 (1964) (presumption does
Keene nonetheless argues, for the first time in its merits brief,7 that “[a] claim brought outside the [Court of Federal Claims] is ‘for or in respect to’ a claim in the [Court of Federal Claims only] when claim-splitting law would treat them as the same — i. e., require them to be joined in a single suit — if the two claims were both brought against the United States.” Brief for Petitioner 20. Under this theory, § 1500 would not apply to a Court of Federal Claims plaintiff unless his suit pending in the other court rested on a legal theory that could have been pleaded (as Keene’s could not have been) in the Court of Federal Claims. But this reinterpretation of § 1500 is bound to fail, not because novelty is always fatal in the construction of an old statute, but because the novel proposition in Keene’s suggested reading would have rendered the statute useless, in all or nearly all instances, to effect the very object it was originally en
Finally, Keene takes the tack that if we adopt the Court of Appeals’s construction of § 1500, we will be announcing “a new rule of law” that ought to be applied only prospectively under the test set out in Chevron Oil Co. v. Huson, 404 U. S. 97 (1971). Brief for Petitioner 42-43. Even assuming that this call for “pure prospectivity,” see James B. Beam Distilling Co. v. Georgia, 501 U. S. 529, 544 (1991) (opinion of Souter, J.), might fairly fall within the questions presented,10 there is no need to address it because, as the Government points out, Keene’s claims were dismissed under well-settled law.
The Court of Appeals, to be sure, announced that it was overruling five cases: Tecon Engineers, Inc. v. United States, 170 Ct. Cl. 389, 343 F. 2d 943 (1965), cert. denied, 382 U. S. 976 (1966); Gasman v. United States, 135 Ct. Cl. 647 (1956); Boston Five Cents Savings Bank, FSB v. United States, 864 F. 2d 137 (CA Fed. 1988); Brown v. United States, 175 Ct. Cl. 343, 358 F. 2d 1002 (1966) (per curiam); and Hossein v. United States, 218 Ct. Cl. 727 (1978) (per curiam). And while Keene contends that nothing less than these repudiations of precedent would have sufficed to dismiss its suits, we read the five eases as supporting neither Keene’s position that the Court of Federal Claims had jurisdiction over its cases nor its plea for pure prospectivity of the overruling decision.
IV
We have said nothing until now about Keene’s several policy arguments, and now can only answer that Keene addresses the wrong forum. It may well be, as Keene argues, that § 1500 operates in some circumstances to deprive plaintiffs of an opportunity to assert rights that Congress has generally made available to them “under the complex legal and jurisdictional schemes that govern claims against the Government.” Brief for Petitioner 15. The trial judge in this case was not the first to call this statute anachronistic, see 12 Cl. Ct., at 205; A. C. Seeman, Inc. v. United States, 5 Cl. Ct. 386, 389 (1984), and there is a good argument that, even when first enacted, the statute did not actually perform the preclusion function emphasized by its sponsor, see Schwartz, 55 Geo. L. J., at 579. But the “proper theater” for such arguments, as we told another disappointed claimant many years ago, “is the halls of Congress, for that branch of the government has limited the jurisdiction of the Court of Claims.”14 Smoot’s Case, 15 Wall. 36, 45 (1873). We enjoy no “liberty to add an exception ... to remove
The judgment of the Court of Appeals is
Affirmed.
Keene actually filed its complaints in the old Court of Claims. Soon thereafter, Congress transferred the trial functions of the Court of Claims to a newly created “United States Claims Court.” Federal Courts Improvement Act of 1982, § 133, 96 Stat. 39-41. The Claims Court has just been renamed the “United States Court of Federal Claims.” See Court of Federal Claims Technical and Procedural Improvements Act of 1992, § 902, 106 Stat. 4616. To avoid confusion, we will refer to the trial court in this case by its latest name.
When Keene filed its complaints, §1600 referred to the “Court of Claims” rather than the “United States Court of Federal Claims.” See 28 U. S. C. § 1600 (1976 ed.). Section 1500 has since been amended twice, first to substitute “United States Claims Court” for “Court of Claims,” Federal Courts Improvement Act of 1982, § 133(e)(1), 96 Stat. 40, and then to substitute “Court of Federal Claims” for “Claims Court,” Court of Federal Claims Technical and Procedural Improvements Act of 1992, § 902(a), 106 Stat. 4516. See also n. 1, supra.
On this score, Keene cites Newman-Green, Inc. v. Alfonzo-Larrain, 490 U. S. 826 (1989), for the proposition that the Court can rely on practical considerations to create exceptions to the time-of-ñling rule. Brief for Petitioner 35-36. We need not decide whether Keene’s reading is accurate, for Keene has not shown that we should, even if we could. We do note, however, that Newman-Green reiterated the principle that "[t]he existence of federal jurisdiction ordinarily depends on the facts as they exist when the complaint is filed.” 490 U. S., at 830.
We do not decide whether the statute also continues to bar a plaintiff from prosecuting a claim in the Court of Federal Claims while he has pending a later-filed suit in another court "for or in respect to” the same claim. Cf. Tecon Engineers, Inc. v. United States, 170 Ct. Cl. 389, 343 F. 2d 943 (1965), cert. denied, 382 U. S. 976 (1966). As the dissenting judge noted below, this case does not raise that issue. UNR Industries,
We have had one other encounter with this statute, in Matson Navigation Co. v. United States, 284 U. S. 852 (1932), where we relied on the plain words of § 154 to hold that the statute did not apply where the Court of Claims plaintiff had brought suit in another court against the United States, rather than against an agent of the United States, for the same claim. When Congress reenacted the statute in 1948, it added the phrase "against the United States” to close this loophole. See Act of June 25, 1948, ch. 646, 62 Stat. 942; Johns-Manville Corp. v. United States, 855 F. 2d 1556, 1566-1567, and n. 15 (CA Fed. 1988).
Because the issue is not presented on the facts of this case, we need not decide whether two actions based on the same operative facts, but seeking completely different relief, would implicate § 1500. Cf. Casman v. United States, 135 Ct. Cl. 647 (1956); Boston Five Cents Savings Bank, FSB v. United States, 864 F. 2d 137 (CA Fed. 1988).
Keene argued in its petition for certiorari that the claim it raised in its third-party action in Miller was not based on the same facts as its complaint in Keene I. Keene did not press this argument after we granted the writ, and, in any event, we see no reason to disturb the rulings to the contrary by both courts below. See 962 F. 2d, at 1024 (“[W]e have no quarrel with the [Court of Federal Claims] determination that the underlying facts in Miller and Keene I are the same”).
It is not that Keene has not tried to meet the objection. Keene assumes, contrary to the plain text, that the statute here is not jurisdictional, arguing instead that it was meant to supplement the formalistic 19th-century concept of res judicata. According to Keene, res judicata would not have barred a cotton claimant from instigating an action against a federal officer who had acted for the Government, even though the claimant had lost an otherwise identical action against the Government itself (and vice versa), the difference between the named defendants being significant at that time. On the assumption that the statute eliminated nonidentity of parties defendant as a barrier to the application of res judicata, Keene then argues that causes of action were treated as identical in those days if the same evidence was used to prove multiple claims. On this view of the law, Keene concludes, multiple cotton claims would have been treated as the same, and the statute would have barred the Court of Claims suit, just as Congress intended. Reply Brief for Petitioner 7. Even on its own terms, however, this argument fails, for the Court of Claims in 1868 had no jurisdiction to try a tort action for conversion, however similar it might have been for res judicata purposes to the statutory action within that court’s jurisdiction. Accordingly, under Keene’s claim-splitting theory, the conversion action would not have been treated as identical with the statutory action; each would have survived, leaving the statute useless to solve the problem Congress was addressing.
Keene claims that its view represents “well-established law,” citing Allied Materials & Equipment Co. v. United States, 210 Ct. Cl. 714 (1976) (per curiam), and Casman v. United States, supra. Brief for Petitioner 15. In Casman, however, the plaintiff was seeking completely different relief in the Court of Claims and the District Court, and later eases have read Casman as limited to that situation. See Johns-Manville Corp., 855 F. 2d, at 1566-1567; Boston Five Cents Savings Bank, FSB v. United States, 864 F. 2d, at 139. Although it is not clear whether the plaintiff in Allied Materials was seeking completely different relief in the District Court, the Court of Claims simply applied Casman without much explanation. Neither Casman nor Allied Materials discussed, much less purported to overrule, British American Tobacco Co. v. United States, 89 Ct. Cl. 438 (1939), a case that undoubtedly is well established. See, e. g.,
The questions on which we granted certiorari contain no direct mention of prospectivity, see Pet. for Cert, i, although Keene did argue in its petition that Tecon Engineers should be overruled only prospectively, see Pet. for Cert. 13, and the Court of Appeals did consider, and reject, the argument that its ruling should only be prospectively applied, see 962 F. 2d, at 1025.
We note that both the Brown and Hossein courts failed to consider the possibility that the District Court, in such a situation, could transfer the case to the Court of Federal Claims under a statute first adopted in 1960. See Act of Sept. 13, 1960, § 1, 74 Stat. 912 (codified at 28 U. S. C. § 1406(c) (1964 ed.)); Act of Apr. 2, 1982, § 301(a), 96 Stat. 55 (codified at 28 U.S.C. §1631).
Brown and Hossein do not survive our ruling today, for they ignored the time-of-filing rule discussed in Part II-A, supra.
Keene also asks the Court to “make clear that, if Keene refiles the same claims, equitable tolling would be available to eliminate any limitations bar.” Brief for Petitioner 45. But any response to this request would be an advisory opinion.
A recent attempt to repeal §1500 failed in Congress. See S. 2521, 102d Cong., 2d Sess., § 10(c) (1992); 138 Cong. Rec. S4830-S4832 (Apr. 2, 1992).