Petition for Writ of Certiorari — United Water Conservation District, Petitioner v. United States

Supreme Court briefOct 27, 2025

Ask Donna

What actually matters in this document.

Text

No.

IN THE

Supreme Court of the United States

UNITED WATER CONSERVATION DISTRICT,

Petitioner,

v.

UNITED STATES OF AMERICA,

Respondent.

On Petition For A Writ Of Certiorari

To The United States Court Of Appeals

For The Federal Circuit

PETITION FOR A WRIT OF CERTIORARI

FRANK S. MURRAY

FOLEY & LARDNER LLP

3000 K. Street, N.W.

Suite 600

Washington, D.C. 20007

DAVID T. RALSTON, JR.

DAVID T. RALSTON, JR., ESQ., PLLC

6510 Rockland Drive

Clifton, VA 20124

THOMAS H. DUPREE, JR.

Counsel of Record

JONATHAN C. BOND

GIBSON, DUNN & CRUTCHER LLP

1700 M Street, N.W.

Washington, D.C. 20036

(202) 955-8500

TDupree@gibsondunn.com

PATRICK J. FUSTER

GIBSON, DUNN & CRUTCHER LLP

333 South Grand Avenue

Los Angeles, CA 90071

Counsel for Petitioner

QUESTION PRESENTED

Whether the government’s appropriation of water

that a person had a property right to use is analyzed

as a physical taking, rather than a regulatory taking,

under the Fifth Amendment.

ii

RELATED PROCEEDINGS

United States Court of Federal Claims:

United Water Conservation District v.

United States,

No. 22-cv-542 (Jan. 26, 2023)

United States Court of Appeals (Fed. Cir.):

United Water Conservation District v.

United States,

No. 23-1602 (Apr. 2, 2025)

iii

TABLE OF CONTENTS

Page

OPINIONS BELOW .................................................... 1

JURISDICTION .......................................................... 1

CONSTITUTIONAL AND STATUTORY

PROVISIONS INVOLVED .................................... 2

INTRODUCTION ........................................................ 2

STATEMENT .............................................................. 5

REASONS FOR GRANTING THE PETITION ....... 13

I. The Federal Circuit’s Decision Conflicts

With This Court’s Decisions ........................... 15

A. The United States’ Expropriation Of

Petitioner’s Right To Use Water Is A

Physical Taking ......................................... 16

B. The Federal Circuit Flouted Cedar

Point For Physical Takings Of Water

Rights ......................................................... 20

II. The Question Presented Is Exceptionally

Important And Recurring............................... 28

III. This Petition Is An Ideal Vehicle ................... 33

CONCLUSION .......................................................... 34

iv

TABLE OF APPENDICES

Page

APPENDIX A:

Opinion of the United States Court of

Appeals for the Federal Circuit

(Apr. 2, 2025) ....................................................... 1a

APPENDIX B:

Order of the United States Court of

Federal Claims Dismissing the Complaint

(Jan. 26, 2023) ................................................... 15a

APPENDIX C:

Order of the United States Court of

Appeals for the Federal Circuit Denying

Rehearing

(July 29, 2025) ................................................... 41a

v

TABLE OF AUTHORITIES

Cases

Page(s)

Arizona v. California,

283 U.S. 423 (1931) ........................................ 14, 24

Arkansas Game and Fish Commission v.

United States,

568 U.S. 23 (2012) ................................................ 32

Armstrong v. United States,

364 U.S. 40 (1960) ................................................ 30

Army Corps of Engineers v. Hawkes Co.,

578 U.S. 590 (2016) .............................................. 30

Babbitt v. Sweet Home Chapter,

Communities for Great Oregon,

515 U.S. 687 (1995) ................................................ 9

Baley v. United States,

942 F.3d 1312 (Fed. Cir. 2019) ............................ 28

California Farm Bureau Federation v. State

Water Resources Control Board,

51 Cal. 4th 421 (2011) ............................................ 7

California v. United States,

438 U.S. 645 (1978) .................................... 6, 20, 25

Casitas Municipal Water District v.

United States,

543 F.3d 1276 (Fed. Cir. 2008) ...................... 11, 29

vi

Cases (continued)

Page(s)

Cedar Point Nursery v. Hassid,

594 U.S. 139 (2021) ............... 2, 3, 4, 12, 14, 15, 16,

17, 18, 19, 20, 21, 25,

26, 27, 29, 31, 32

City of Fresno v. United States,

124 F.4th 876 (Fed. Cir. 2024)............................. 28

City of San Buenaventura v. United Water

Conservation District,

3 Cal. 5th 1191 (2017) ...................................... 7, 33

Colorado v. New Mexico,

459 U.S. 176 (1982) ...................................... 5, 6, 18

CRV Enterprises, Inc. v. United States,

626 F.3d 1241 (Fed. Cir. 2010) ............................ 28

Dugan v. Rank,

372 U.S. 609 (1963) ....................... 4, 12, 14, 19, 22,

24, 25, 26, 27

Eddy v. Simpson,

3 Cal. 249 (1853) .................................................. 24

Estate of Hage v. United States,

687 F.3d 1281 (Fed. Cir. 2012) ............................ 28

Feliciano v. Department of Transportation,

605 U.S. 38 (2025) ................................................ 32

Horne v. Department of Agriculture,

569 U.S. 513 (2013) .............................................. 30

vii

Cases (continued)

Page(s)

Horne v. Department of Agriculture,

576 U.S. 351 (2015) .................. 2, 17, 19, 21, 27, 31

International Paper Co. v. United States,

282 U.S. 399 (1931) ............ 4, 12, 14, 18, 19, 24, 33

Irwin v. Phillips,

5 Cal. 140 (1855) .................................................... 6

Kaiser Aetna v. United States,

444 U.S. 164 (1979) .............................................. 20

Kansas v. Colorado,

206 U.S. 46 (1907) .................................................. 6

Knick v. Township of Scott,

588 U.S. 180 (2019) .............................................. 30

Legal Tender Cases,

79 U.S. (12 Wall.) 457 (1871) ............................... 16

Loretto v. Teleprompter Manhattan

CATV Corp.,

458 U.S. 419 (1982) .............................................. 21

Lucas v. South Carolina Coastal Council,

505 U.S. 1003 (1992) ...................................... 16, 18

Penn Central Transportation Co. v.

New York City,

438 U.S. 104 (1978) .............................. 2, 12, 13, 17

Pennsylvania Coal Co. v. Mahon,

260 U.S. 393 (1922) .............................................. 17

viii

Cases (continued)

Page(s)

Oklahoma ex rel. Phillips v.

Guy F. Atkinson Co.,

313 U.S. 508 (1941) .............................................. 16

Portsmouth Harbor Land & Hotel Co. v.

United States,

260 U.S. 327 (1922) .............................................. 26

Russell & Elizabeth Reid Family Trust v.

United States,

— Fed. Cl. —, 2025 WL 2527572

(Sept. 3, 2025) ...................................................... 29

Sheetz v. El Dorado County,

601 U.S. 267 (2024) .............................................. 27

Soto v. United States,

605 U.S. 360 (2025) .............................................. 32

Tahoe-Sierra Preservation Council, Inc. v.

Tahoe Regional Planning Agency,

535 U.S. 302 (2002) .............................................. 26

Tee-Hit-Ton Indians v. United States,

348 U.S. 272 (1955) .............................................. 22

Thayer v. California Development Co.,

164 Cal. 117 (1912) ................................................ 6

Thryv, Inc. v. Click-To-Call Technologies, LP,

590 U.S. 45 (2020) ................................................ 32

Transportation Co. v. Chicago,

99 U.S. 635 (1879) ................................................ 17

ix

Cases (continued)

Page(s)

TVA v. Hill,

437 U.S. 153 (1978) .............................................. 27

Tyler v. Hennepin County,

598 U.S. 631 (2023) .................................. 16, 23, 24

United States Fish and Wildlife Service v.

Sierra Club, Inc.,

592 U.S. 261 (2021) ................................................ 9

United States v. Causby,

328 U.S. 256 (1946) .............................................. 26

United States v. Gerlach Live Stock Co.,

339 U.S. 725 (1950) ......................... 6, 7, 12, 14, 19,

20, 22, 24, 33

United States v. Rio Grande Dam &

Irrigation Co.,

174 U.S. 690 (1899) .............................................. 20

United States v. State Water Resources

Control Board,

182 Cal. App. 3d 82 (1986) ............................... 7, 24

Washoe County v. United States,

319 F.3d 1320 (Fed. Cir. 2003) ............................ 29

In re Water of Hallett Creek Stream System,

44 Cal. 3d 448 (1988) ............................................. 6

Webb’s Fabulous Pharmacies, Inc. v.

Beckwith,

449 U.S. 155 (1980) .............................................. 23

x

Cases (continued)

Page(s)

Williamson County Regional Planning

Commission v. Hamilton Bank,

473 U.S. 172 (1985) .............................................. 13

Wyoming v. Colorado,

259 U.S. 419 (1922) .............................................. 24

Constitutional Provisions

U.S. Const. Amend. V.................................... 16, 23, 34

Cal. Const. Art. X, § 2.................................................. 7

Statutes

California Statehood Act,

ch. 50, § 1, 9 Stat. 452 (1850)................................. 6

Endangered Species Act of 1973,

Pub. L. No. 93-205, 87 Stat. 884............................ 8

Mining Act of 1866,

ch. 262, § 9, 14 Stat. 253 ........................................ 6

16 U.S.C. § 1531(c)(1) .................................................. 8

16 U.S.C. § 1538(a)(1)(B) ............................................ 9

16 U.S.C. § 1539(a)(1)(B) ............................................ 9

16 U.S.C. § 1540(a)-(b) .............................................. 10

18 U.S.C. § 659 .......................................................... 31

28 U.S.C. § 1254(1) ...................................................... 2

xi

Statutes (continued)

Page(s)

28 U.S.C. § 1295(a)(3) ............................................... 31

28 U.S.C. § 1491(a)(1) ........................................... 2, 31

Cal. Water Code § 102 ............................................... 24

Cal. Water Code § 1381 ............................................... 7

Cal. Water Code § 1610 ............................................... 7

Cal. Water Code § 74000 et seq. .................................. 7

Cal. Water Code § 74203 ............................................. 7

Other Authorities

William Blackstone, Commentaries on the

Laws of England (1776) ......................................... 6

Richard Epstein, Property Rights in Water,

Spectrum, and Minerals, 86 U. Colo. L.

Rev. 389 (2015) ..................................................... 28

62 Fed. Reg. 43937-01 (1997) ...................................... 8

IN THE

Supreme Court of the United States

No.

UNITED WATER CONSERVATION DISTRICT,

Petitioner,

v.

UNITED STATES OF AMERICA,

Respondent.

On Petition For A Writ Of Certiorari

To The United States Court Of Appeals

For The Federal Circuit

PETITION FOR A WRIT OF CERTIORARI

Petitioner United Water Conservation District respectfully petitions for a writ of certiorari to review

the judgment of the United States Court of Appeals

for the Federal Circuit.

OPINIONS BELOW

The opinion of the court of appeals (App., infra,

1a-14a) is reported at 133 F.4th 1050. The order of

the Court of Federal Claims dismissing the complaint

(App., infra, 15a-40a) is reported at 164 Fed. Cl. 79.

JURISDICTION

The judgment of the court of appeals was entered

on April 2, 2025. A petition for rehearing was denied

2

on July 29, 2025 (App., infra, 41a-43a). This Court’s

jurisdiction is invoked under 28 U.S.C. § 1254(1).

CONSTITUTIONAL AND STATUTORY

PROVISIONS INVOLVED

The Fifth Amendment to the Constitution of the

United States provides in pertinent part: “[N]or shall

private property be taken for public use, without just

compensation.”

The Tucker Act provides in pertinent part: “The

United States Court of Federal Claims shall have jurisdiction to render judgment upon any claim against

the United States founded * * * upon the Constitution * * * or for liquidated or unliquidated damages

in cases not sounding in tort.” 28 U.S.C. § 1491(a)(1).

INTRODUCTION

In recent years, this Court has rejected attempts

to inject doctrinal complexity into the Takings Clause

that frustrates its core mandate: The government

must pay just compensation when it takes private

property for itself. The Court instead has recognized

simple, categorical rules that safeguard property from

physical expropriation by the government—cabining

the unpredictable regulatory-takings balancing approach of Penn Central Transportation Co. v. New York

City, 438 U.S. 104 (1978), to mere limitations on a person’s right to use his own property. E.g., Cedar Point

Nursery v. Hassid, 594 U.S. 139, 149 (2021); Horne v.

Department of Agriculture, 576 U.S. 351, 361 (2015).

The Court’s decisions have fortified the Takings

Clause’s enduring protection against attempts to balance away property rights.

But that protection is only as strong as courts’

willingness to enforce it. Below, the Federal Circuit

3

did the opposite by expanding the reach of Penn Central to the physical taking of water rights. It did so by

interposing arbitrary exceptions to physical-takings

doctrine that have no basis in the Constitution’s text,

case law, or logic but that, left unchecked, will seriously erode the Takings Clause’s central guarantee.

Petitioner is a water-conservation district with an

undisputed property right under California law to divert and use a fixed amount of water (up to 144,630

acre-feet of water per year) from a particular river.

The United States commandeered a sizable chunk of

that water for its own purposes: facilitating fish migration by sending water downstream. Needless to

say, petitioner is never getting that water back. Yet

the Federal Circuit shoehorned petitioner’s claim for

the physical taking of its water rights into the balancing framework of Penn Central by reconceptualizing

the government’s action as a regulatory taking. The

Federal Circuit then kicked the claim out of court, holding that such regulatory-takings claims are unripe so

long as license proceedings under the Endangered

Species Act remain ongoing.

That conclusion erases this Court’s dividing line

between physical and regulatory takings. When the

government “appropriat[es] private property for itself

or a third party,” it “must pay for what it takes”—no

ifs, ands, or buts. Cedar Point, 594 U.S. at 148. But the

Federal Circuit rerouted petitioner into Penn Central

by inventing novel carveouts to physical-takings law:

The United States took petitioner’s water rights only

partially, not “completely”; it intercepted the water for

its own use before the water reached petitioner; and it

acted through “regulation” rather than formal eminentdomain proceedings. App., infra, 11a, 13a. This Court

has repeatedly and recently rejected such contrived

4

workarounds to the Takings Clause as “insupportable

as a matter of precedent and common sense.” Cedar

Point, 594 U.S. at 153; see id. at 153-156. It should do

the same here.

The Federal Circuit put Penn Central on a stage

where it has never belonged. For almost a century,

this Court has held that the Takings Clause mandates

the payment of just compensation whenever the United

States requires a person to relinquish a right to use

water, which is “turned elsewhere by government requisition” to its own ends. International Paper Co. v.

United States, 282 U.S. 399, 407 (1931). The Court

also has analogized the “partial taking of water

rights” to the physical “taking of air space over land.”

Dugan v. Rank, 372 U.S. 609, 625 (1963). Cedar Point

confirmed that physical invasions of the right to exclude remain per se takings that categorically require

payment of just compensation. 594 U.S. at 156. That

is no less true of the partial taking of water rights.

The Court’s intervention is urgently needed. The

Federal Circuit establishes nationwide precedent for

claims seeking just compensation from the United

States because it alone hears appeals from the Court

of Federal Claims, which has exclusive jurisdiction

over just-compensation claims for more than $10,000

against the United States. Those courts routinely adjudicate claims that the United States has taken water rights without compensation. And such disputes

have only increased as the administrative state has

fueled more and more of its regulatory agenda with

water that others have a property right to use. Only

this Court can restore the centuries-old principle that

the United States must honor state water rights as it

finds them.

5

Although the question presented is exceptionally

important on its own terms, the decision below is by

no means limited to water. The Federal Circuit has

resurrected the ancien régime that this Court swept

away in Horne and Cedar Point. And the Federal Circuit’s precedent governs the Court of Federal Claims

when it hears any claim seeking just compensation

from the United States. The Court has not hesitated

to step in when the Federal Circuit gets an important

question wrong for the entire Nation and should not

hesitate to do so here.

This case also is an ideal vehicle. The United States

has never disputed that petitioner possesses a statelaw property interest in its water rights. Nor does the

government deny that petitioner was entitled under

California law to divert the water that the government

instead repurposed to further its own policy priorities.

And the question presented was squarely pressed and

passed upon below. This case thus offers this Court a

clean opportunity to reject the Federal Circuit’s artificial limitations on the physical-takings framework and

to reiterate that Penn Central did not override traditional decisions recognizing per se takings. The petition

should be granted.

STATEMENT

1. “[T]he two basic doctrines governing the

rights to the use of water” are “[t]he prior appropriation doctrine and the riparian doctrine.” Colorado v.

New Mexico, 459 U.S. 176, 179 n.4 (1982). Many

States (mostly in the eastern half of the Nation) follow

the riparian doctrine, which accords downstream

landowners an entitlement to a “variable” amount of

water depending on many factors. Ibid. By contrast,

under the prior-appropriation doctrine—prevalent in

the West—rights are “fixed in quantity” and “do not

6

depend on land ownership but are acquired and maintained by actual use” of the water. Ibid. The core

principle of the prior-appropriation doctrine is that

the first user to redirect water to his own use “acquire[s] a property in the current.” 2 William Blackstone, Commentaries on the Laws of England 403

(1776).

Unlike many States, California has chosen to recognize both riparian and appropriative rights. In re

Water of Hallett Creek Stream System, 44 Cal. 3d 448,

458 (1988). As to the latter, as with other western

States, California has long followed the doctrine that

first in time is first in right for water. United States

v. Gerlach Live Stock Co., 339 U.S. 725, 747 (1950)

(citing Irwin v. Phillips, 5 Cal. 140 (1855)). The right

one “gains by diversion of a stream for a beneficial

use” is property “subject to ownership and disposition

by him, as in the case of other private property.”

Thayer v. California Development Co., 164 Cal. 117,

125 (1912).

The federal government has never asserted superior title to California’s waters. California entered

“the Union on an equal footing with the original

States in all respects whatever.” California Statehood

Act, ch. 50, § 1, 9 Stat. 452 (1850). Indeed, in the

1860s, Congress disavowed any attempt to override

state water rights, even where water flowed through

land that the United States owned. California v.

United States, 438 U.S. 645, 656 (1978) (citing Mining

Act of 1866, ch. 262, § 9, 14 Stat. 253). This Court

later “reaffirmed that each State ‘may determine for

itself whether’” to grant appropriative or riparian

rights because “‘Congress cannot enforce either rule

upon any State.’” Id. at 663 (quoting Kansas v. Colorado, 206 U.S. 46, 94 (1907)).

7

Since 1914, California has assigned appropriative rights through state-issued licenses and permits.

California Farm Bureau Federation v. State Water Resources Control Board, 51 Cal. 4th 421, 429 (2011).

Both licenses and permits may grant the right to take

up to a certain amount of water, as “reasonably required for the beneficial use to be served.” Cal. Const.

Art. X, § 2. Licenses “confir[m] the right to the appropriation of such an amount of water as has been determined to have been applied to beneficial use.” Cal.

Water Code § 1610. Permits similarly grant a “right

to take and use water” for the uses specified in the

permit. Id. § 1381. And “once rights to use water are

acquired, they become vested property rights” that

cannot be taken without “just compensation.” United

States v. State Water Resources Control Board, 182 Cal.

App. 3d 82, 101 (1986) (citing Gerlach, 339 U.S. at

752-754).

2. a. Petitioner is a water-conservation district

established under California law. App., infra, 2a; see

Cal. Water Code § 74000 et seq. Water-conservation

districts are local agencies whose directors are elected

by their constituents. Cal. Water Code § 74203. Petitioner’s territory reaches across 214,000 acres in Ventura County and includes all or part of eight groundwater basins. City of San Buenaventura v. United Water Conservation District, 3 Cal. 5th 1191, 1198 (2017).

Within that territory, petitioner serves 400,000 residents, as well as farmers with 85,102 acres of agricultural land. C.A. App. 23.

The California State Water Resources Control

Board issued petitioner a license in 1958 and a permit

in 1983 to appropriate and divert water from the

Santa Clara River for numerous beneficial uses, including recharging groundwater aquifers, delivering

8

surface water to groundwater users, and stabilizing

the riverbed. App., infra, 2a-3a. Both the license and

permit grant petitioner appropriative property rights.

Id. at 9a. It has the right to appropriate up to 144,630

acre-feet of water per year. Id. at 4a.

Petitioner exercises that right to the fullest, seeking to divert as much water as possible for “aquifer

recharge” and for the benefit of its users through “surface deliveries.” C.A. App. 25. But petitioner is limited by the amount of water actually available in the

Santa Clara River. Between 1991 and 2014, for example, petitioner was able to divert on average less than

half (roughly 71,000 acre-feet) of its annual entitlement. Id. at 26; App., infra, 18a-19a.

b. As amended in 1987, petitioner’s permit authorized it to construct a dam to divert water in the

Santa Clara River for its beneficial use. App., infra,

3a. In 1991, petitioner completed the Vern Freeman

Diversion Dam, built in part with federal funds from

the Bureau of Reclamation. Id. at 17a. The dam diverts water into a canal for petitioner to use and to

distribute to its customers in line with its license and

permit. Id. at 3a.

Petitioner built a fish ladder at the dam to allow

fish to travel up the river, App., infra, 18a, and one of

those fish caused petitioner’s property rights to collide with the Endangered Species Act of 1973, Pub. L.

No. 93-205, 87 Stat. 884. Congress enacted the Act to

further a “policy * * * that all Federal departments

and agencies shall seek to conserve endangered species and threatened species.” 16 U.S.C. § 1531(c)(1).

Years after completion of the dam, the National Marine Fisheries Service designated the southern California steelhead trout as an endangered species.

App., infra, 3a; see 62 Fed. Reg. 43937-01 (1997). That

9

action triggered a ban on “tak[ing]” the fish. 16 U.S.C.

§ 1538(a)(1)(B). This Court has construed “take” in the

Act to include “habitat modification” that “indirect[ly]”

harms members of the designated species. Babbitt v.

Sweet Home Chapter, Communities for Great Oregon,

515 U.S. 687, 697-698 (1995). The federal government

can issue permits to take endangered species “if such

taking is incidental to, and not the purpose of, the carrying out of an otherwise lawful activity.” 16 U.S.C.

§ 1539(a)(1)(B).

The Bureau of Reclamation later initiated a proceeding under the Endangered Species Act to determine whether the operation of petitioner’s dam would

harm steelhead trout. App., infra, 20a-21a. In 2008,

the Service issued a proposed biological opinion finding that the dam could jeopardize the trout’s migration and advocating restrictions on the dam’s operation to increase the “bypass flow” at the dam, meaning

the amount of water left flowing through the Santa

Clara River (directly or through the fish ladder). Id.

at 21a; see United States Fish and Wildlife Service v.

Sierra Club, Inc., 592 U.S. 261, 264-265 (2021) (describing role of biological opinions for interagency coordination under the Act). The Bureau thereafter terminated the proceeding because (despite providing initial funding) it does not own or operate the dam.

App., infra, 21a.

The issue resurfaced in 2016, when the Service sent

petitioner a letter stating that “a significant issue regarding ongoing take of endangered southern California steelhead trout exists at the Diversion Dam.” App.,

infra, 3a (brackets and citation omitted). The Service

opined that the dam’s operation had violated the Act

and ordered petitioner to increase the bypass flow, as

the Service had recommended in its 2008 biological

10

opinion. Id. at 4a. In other words, the Service commandeered the use of the water by forcing petitioner

to send it downstream, to facilitate the migration of

the trout, rather than diverting it at the dam to petitioner’s uses. The Service instructed petitioner that

“these measures must be in place before December 1,

2016.” Id. at 24a (citation and emphasis omitted).

Facing significant civil and even criminal penalties, petitioner did as the Service demanded and surrendered more of its water to flow downstream. App.,

infra, 25a-26a; see 16 U.S.C. § 1540(a)-(b). A federal

district court in California also later issued a permanent injunction under the Endangered Species Act requiring petitioner to continue abiding by the measures

in the 2008 biological opinion. App., infra, 22a-23a. As

a result, petitioner lost at least 49,800 acre-feet of water between 2017 and 2021—reducing the amount petitioner could divert further below its annual entitlement. Id. at 26a. Because the average household in the

area uses between one half and one acre-foot of water

per year, that water could have supported many tens

of thousands of families. C.A. App. 23-24. The Service

instead claimed priority to use the water to increase

bypass flow for steelhead trout. App., infra, 26a.

3. Petitioner sued in the Court of Federal Claims

for just compensation under the Fifth Amendment’s

Takings Clause. C.A. App. 18-40. Claiming a physical

taking of its appropriative rights, petitioner sought at

least $40 million for the 49,800 acre-feet of water that

the Service had commandeered for public use under

the Endangered Species Act. App., infra, 26a-27a.

The United States moved to dismiss the complaint

for lack of subject-matter jurisdiction, asserting the

absence of “final agency action.” App., infra, 27a.

The government has never disputed that petitioner’s

11

“appropriative rights are private property rights.” Id.

at 29a. But it argued that petitioner had to exhaust a

request for an incidental-take permit under the Endangered Species Act before challenging the taking of

its water rights. Ibid.

The Court of Federal Claims dismissed the complaint for lack of subject-matter jurisdiction. App., infra, 15a-40a. The court understood its jurisdiction to

depend on whether petitioner challenged a physical or

regulatory taking. Id. at 28a-29a. It also noted that

the Federal Circuit had previously held that a government mandate to “build [a] fish ladder and divert water” to facilitate the migration of steelhead trout

“should be analyzed under the physical takings rubric.” Id. at 35a (quoting Casitas Municipal Water

District v. United States, 543 F.3d 1276, 1296 (Fed.

Cir. 2008)) (emphasis omitted). But the Court of Federal Claims concluded that the physical-takings

framework applies only when the government’s public

use requires the return of “water that was already diverted into [a] diversion canal,” and not (as here)

when the government prevents water from being diverted in the first place. Id. at 37a (emphasis added).

The court then held that petitioner’s claim, once recharacterized as a regulatory-takings challenge, was

not ripe because petitioner had not exhausted a request for an incidental-take permit. Id. at 39a.

4. The Federal Circuit affirmed, upholding the

dismissal for lack of jurisdiction on the theory that petitioner asserted an unripe regulatory-takings claim,

not a physical-takings claim. App., infra, 1a-14a.

The court of appeals acknowledged that petitioner

asserted a valid property interest. App., infra, 9a-10a.

It recognized that generally “the property rights protected by the Takings Clause are creatures of state

12

law.” Id. at 9a (quoting Cedar Point Nursery v. Hassid,

594 U.S. 139, 155 (2021)). And the court noted that the

United States did not dispute “that [petitioner] acquired a valid, appropriative property right in the

beneficial use of water it diverts to the Freeman Canal.” Ibid. That right to use the water is “private property.” Id. at 10a (citation omitted).

The court of appeals held, however, that the

United States did not physically take petitioner’s appropriative rights by reallocating the use of water that

petitioner had a right to divert under its license and

permit. App., infra, 11a-12a. In the court’s view, a

physical taking would occur only if the United States

had either (1) “completely cut off [petitioner’s] access

to the water” or (2) required petitioner “to return any

volume of water it had previously diverted to its possession.” Id. at 11a (emphases added).

The court of appeals did not dispute petitioner’s contention that this Court had held in a trio of decisions—

International Paper Co. v. United States, 282 U.S. 399

(1931), Gerlach, supra, and Dugan v. Rank, 372 U.S.

609 (1963)—that similar appropriations of water rights

were takings without drawing any distinction between

water taken before or after entry into someone’s facility.

App., infra, 12a-13a. Yet the Federal Circuit discounted those decisions because they predated Penn

Central Transportation Co. v. New York City, 438 U.S.

104 (1978), and “did not arise from a regulation.”

App., infra, 13a. The court also sought to distinguish

Gerlach and Dugan on the theory that only riparian

rights, but not appropriative rights, “vest” as property

interests before water has been diverted. Ibid.

Having recharacterized petitioner’s claim as asserting a regulatory taking, the court of appeals affirmed its dismissal as unripe. App., infra, 14a. The

13

court stated that such a claim “is not ripe until the

government entity charged with implementing the

regulations has reached a final decision regarding the

application of the regulations to the property at issue.”

Id. at 8a (quoting Williamson County Regional Planning Commission v. Hamilton Bank, 473 U.S. 172, 186

(1985)). Because petitioner had not exhausted a request for an incidental-take permit, the court considered the claim to be unripe. Id. at 14a.

5. The Federal Circuit denied rehearing en banc.

App., infra, 41a-43a.

REASONS FOR GRANTING THE PETITION

Petitioner has a conceded state-law property right

to divert up to 144,630 acre-feet of water each year for

its own use. The United States prefers that petitioner’s

water be repurposed—to further federal policy under

the Endangered Species Act. To that end, the government leveraged the threat of civil and even criminal

liability to force petitioner to cede a significant part of

its water rights, commandeering more than 16 billion

gallons of water that petitioner will never get back. But

the Federal Circuit held that petitioner cannot assert

a physical-takings claim. Instead, the court diverted

petitioner’s claim down the regulatory-takings branch

governed by Penn Central Transportation Co. v. New

York City, 438 U.S. 104 (1978). In the decision below—

now controlling precedent for all claims brought

against the United States in the Court of Federal

Claims—a water-rights holder can bring a physicaltakings claim only if the United States takes all of the

water that person has a right to use or commands the

return of water already within the person’s possession.

14

That result and reasoning are irreconcilable with

the Takings Clause and this Court’s precedent. The

Court has recently reiterated that the Clause requires

the payment of just compensation when “the government has physically taken property for itself or someone else—by whatever means.” Cedar Point Nursery v.

Hassid, 594 U.S. 139, 149 (2021). In a trilogy of cases,

the Court also held that government actions reallocating water to its own use were physical appropriations

of another’s right to “the use of the water” that required the payment of just compensation. International Paper Co. v. United States, 282 U.S. 399, 407

(1931); see Dugan v. Rank, 372 U.S. 609, 625 (1963);

United States v. Gerlach Live Stock Co., 339 U.S. 725,

753 (1950). First principles that the Court has reinforced and takings decisions from the water-rights

context point in the same direction: An order to surrender water for a public use should be analyzed as a

physical taking.

None of the Federal Circuit’s attempts to escape the

physical-takings framework has any foothold in law or

logic, and each is at war with this Court’s decisions.

The court of appeals opined that a physical taking requires a total deprivation of petitioner’s water rights.

But the “size of an appropriation * * * bears only on

the amount of compensation,” not on whether a physical taking occurred at all. Cedar Point, 594 U.S. at 153

(emphasis added). The court suggested that petitioner

has no vested property right unless and until it has diverted particular molecules of water. But after acquiring its license and permit, petitioner maintains a

“vested right to take and divert from the same source,

and to use and consume the same quantity of water annually forever.” Arizona v. California, 283 U.S. 423, 459

(1931). And the court dismissed International Paper,

Gerlach, and Dugan as outdated relics that predated

15

Penn Central’s purported epiphany and did not arise

from regulations. But this Court’s historical decisions

“safeguar[d] the basic property rights that help preserve individual liberty,” no matter the “complexities of

modern society” and the administrative state. Cedar

Point, 594 U.S. at 158.

The question presented also warrants this Court’s

review. Water rights hold unsurpassed practical importance and represent a substantial subset of physicaltakings litigation against the United States. Because

the Federal Circuit has exclusive appellate jurisdiction over claims seeking more than $10,000 in just

compensation from the United States, the decision below further invites manipulation of all kinds of property rights in the Court of Federal Claims. And this

petition is an ideal vehicle to correct the court of appeals’ departures from this Court’s decisions. The

Court should grant the petition, reverse the judgment

below, and allow petitioner to proceed on its physicaltakings claim.

I.

THE FEDERAL CIRCUIT’S DECISION CONFLICTS

WITH THIS COURT’S DECISIONS

For almost a century, this Court has treated government appropriations of the right to use water as a

physical taking requiring the payment of just compensation. The Court also has recently and repeatedly rejected artificial limits on the physical-takings

doctrine—just as it has rejected other contrived efforts

to cabin the Takings Clause. But the Federal Circuit

dusted off the forbidden playbook, refusing to recognize petitioner’s physical-takings claim here because

the United States took only some of petitioner’s water

rights, commandeered that water before it reached petitioner, and acted through a regulatory mandate instead of an eminent-domain proceeding. At every turn,

16

that reasoning defies this Court’s decisions interpreting the Takings Clause.

A. The United States’ Expropriation Of

Petitioner’s Right To Use Water Is A

Physical Taking

When the government appropriates property for

itself, that action is a physical taking, which triggers

a categorical mandate under the Takings Clause to

pay just compensation. The action here—an order demanding that petitioner surrender water that it has a

legal right to use—is a physical taking under this

Court’s decisions.

1. The Takings Clause requires the United States

to pay “just compensation” when it “take[s]” “private

property,” U.S. Const. Amend. V, including property

owned by state and local entities, e.g., Oklahoma ex rel.

Phillips v. Guy F. Atkinson Co., 313 U.S. 508, 534

(1941). By and large, “the property rights protected by

the Takings Clause are creatures of state law.” Cedar

Point, 594 U.S. at 155. This Court also considers “‘traditional property law principles,’ plus historical practice and this Court’s precedents,” but primarily to prevent governments from circumventing the Takings

Clause by changing the law to erase established rights.

Tyler v. Hennepin County, 598 U.S. 631, 638 (2023)

(citation omitted).

This Court has distinguished between physical

and regulatory takings. The Takings Clause’s traditional core is its just-compensation mandate for physical takings: “‘direct appropriation’ of property” and

“the functional equivalent of a ‘practical ouster of [the

owner’s] possession.’” Lucas v. South Carolina Coastal

Council, 505 U.S. 1003, 1014 (1992) (quoting Legal

Tender Cases, 79 U.S. (12 Wall.) 457, 551 (1871), and

17

Transportation Co. v. Chicago, 99 U.S. 635, 642 (1879)).

The Court has long recognized that the Clause’s protection extends beyond physical takings and also requires just compensation when the government does

not take property but imposes a burden on its use

through “regulation” that “goes too far.” Cedar Point,

594 U.S. at 148 (quoting Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 415 (1922)). For that zone of additional protection against regulatory takings, the

Court has applied a more “flexible” test that “balanc[es] factors such as the economic impact of the regulation, its interference with reasonable investmentbacked expectations, and the character of the government action.” Ibid. (citing Penn Central, 438 U.S. at

124). But that context-sensitive approach for regulatory takings does not dilute the just-compensation

guarantee for physical takings.

In Cedar Point, this Court explained how to categorize government interference with property rights

as a physical or regulatory taking. A physical taking

occurs when the government “appropriat[es] private

property for itself or a third party.” 594 U.S. at 148.

Examples include the formal condemnation of property, the total or partial occupation of property, physical invasions of property, and dispossession of property. Id. at 147-152. In Horne v. Department of Agriculture, 576 U.S. 351 (2015), for example, the United

States physically took raisins by requiring growers to

set aside a portion of their crop subject to government

control, regardless of whether the United States acquired actual possession of the raisins. Id. at 361-362.

By contrast, regulatory takings governed by Penn

Central arise from “regulations that restrict an

owner’s ability to use his own property.” Cedar Point,

594 U.S. at 148.

18

When “the government has physically taken property for itself or someone else,” this Court applies a

“simple, per se rule: The government must pay for

what it takes.” Cedar Point, 594 U.S. at 148-149. The

government can defend against paying just compensation only by establishing that its action was “consistent with longstanding background restrictions on

property rights.” Id. at 160. That inquiry is not an

exception to the Takings Clause; it is instead an application of the principle that the government does not

“take a property interest when it merely asserts a ‘preexisting limitation.’” Ibid. (quoting Lucas, 505 U.S. at

1028-1029) (emphasis added).

2. Petitioner alleged a physical taking under this

Court’s decisions. The United States has never disputed that petitioner “acquired a valid, appropriative

property right in the beneficial use of ” up to 144,630

acre-feet of water per year. App., infra, 9a. That right

was “fixed in quantity” by California law. Colorado v.

New Mexico, 459 U.S. 176, 179 n.4 (1982). Petitioner

already received less than its full legal entitlement because of limited water levels in the river. C.A. App.

25-26. As a result of the government’s challenged action, petitioner now gets even less: The United States

has asserted a priority to use the water under the Endangered Species Act, forcing petitioner to surrender

part of its share. Petitioner was required to plead and

prove no more.

This Court has long held that the United States

physically takes water rights by reallocating water

away from its rightful owner, including through:

a wartime requisition order to a power plant

for water that was owed to a mill by contract,

International Paper, 282 U.S. at 407-408;

19

construction of a dam that deprived landowners

of floodwaters to which they had a right under

state law, Gerlach, 339 U.S. at 752-755; and

upstream diversion of water at a dam that “entail[ed] a taking of water rights below the

dam,” Dugan, 372 U.S. at 623.

Those decisions establish a physical taking on the

face of petitioner’s complaint. In reallocating some of

petitioner’s physical water for federal purposes, the

United States imposed a “servitude” on petitioner’s

property right to use that same water. Dugan, 372 U.S.

at 625 (citation omitted). That is a classic physical

taking. “[I]t is hard to see what more the Government

could do to take the use.” International Paper, 282 U.S.

at 407. Whatever justification the United States had

to invoke the Endangered Species Act, that public use

could justify only “appropriation” paired with just

compensation—not “expropriation.” Gerlach, 339 U.S.

at 753.

Cedar Point confirms that petitioner’s claim asserts a physical taking, not a regulatory taking. By

repurposing water that petitioner was otherwise entitled to withdraw and use, the United States “has physically taken property for itself ” and has not merely regulated petitioner’s “ability to use [its] own property.”

594 U.S. at 149. The government did far more than

regulate petitioner’s use of the water. It prevented petitioner from taking possession of the water in the

first place and instead redirected the water to the public use of promoting the migration of steelhead trout.

App., infra, 25a. Just as the United States could not

issue an uncompensated mandate that raisin growers

surrender a portion of their produce to a federal program, Horne, 576 U.S. at 361-362, it cannot issue an

uncompensated mandate that petitioner dedicate a

20

portion of its water to a public purpose. Petitioner is

never getting that water back, so the United States

must pay for what it took.

Nor has the United States ever invoked a murky

“background restrictio[n]” to blur petitioner’s appropriative rights. Cedar Point, 594 U.S. at 160. Although

the Court has held that the United States can claim

water under its “reserved rights” as “‘necessary for

the beneficial uses of [federal] government property’”

and under its “navigation servitude,” California v.

United States, 438 U.S. 645, 662 (1978) (quoting

United States v. Rio Grande Dam & Irrigation Co.,

174 U.S. 690, 703 (1899)), the government never contended that either exception applies here. This Court

has refused, moreover, to permit the United States to

“pervert its navigation servitude into a right to destroy [water] rights.” Gerlach, 339 U.S. at 737; see,

e.g., Kaiser Aetna v. United States, 444 U.S. 164, 180

(1979) (requiring just compensation for imposition of

navigational servitude beyond traditional scope).

In short, petitioner alleged a physical taking of its

water rights under this Court’s decisions. Review is

necessary to ensure that the courthouse doors remain

open to petitioner and countless other people who possess water rights across the country.

B. The Federal Circuit Flouted Cedar Point

For Physical Takings Of Water Rights

In attempting to circumvent this Court’s waterrights decisions in International Paper, Gerlach, and

Dugan, the Federal Circuit ran headlong into Cedar

Point. It posited several purported bases to distinguish

those precedents and deny a physical taking here, but

none can be reconciled with this Court’s framework for

physical takings. Its published decision now threatens

21

to render Cedar Point meaningless for water-rights

claims against the United States.

1. The Federal Circuit held that a physical taking

would occur if the United States “completely cut off

[petitioner’s] access to the water,” but not where (as

here) the United States appropriated only part of petitioner’s water rights. App., infra, 11a (emphasis

added). Thus, even though the government requisitioned nearly 50,000 acre-feet of water from 2017 to

2021, the court held that no physical taking occurred

because petitioner still got some fraction of the water

that it was entitled to divert.

That total-versus-partial distinction contravenes

Cedar Point. There, this Court explained that “the size

of an appropriation * * * bears only on the amount of

compensation,” not on the existence of a physical taking. 594 U.S. at 153 (citing Loretto v. Teleprompter

Manhattan CATV Corp., 458 U.S. 419, 436-437 (1982)).

Here, too, the amount of water that the United States

commandeered from petitioner affects only how much

the federal government must pay, not the threshold

question whether the government’s appropriation

should be analyzed as a physical or regulatory taking.

The government’s “formal demand” that petitioner

dedicate to a public use a sizable “percentage” of water

that it was entitled to divert (approximately 32%) is a

per se taking. Horne, 576 U.S. at 362; see id. at 355

(holding that United States had to pay just compensation for requiring growers to set aside 47% and 30% of

their raisin crops in successive years).

The Federal Circuit’s effort to confine the physicaltakings framework to total takings also defies this

Court’s water-rights precedent. The court of appeals

noted that International Paper involved a complete

deprivation of water. App., infra, 10a-11a. But Inter-

22

national Paper did not hold that the Takings Clause

requires a complete taking. To the contrary, Dugan

later held that the “partial taking of water rights”

likewise triggers the United States’ obligation to pay

just compensation. 372 U.S. at 625 (emphasis added).

The “extent” of the taking goes only to the amount of

compensation owed, not to the existence of a taking.

Id. at 626; see Tee-Hit-Ton Indians v. United States,

348 U.S. 272, 273 n.1 (1955) (“A partial taking is compensable.” (citing Gerlach, 339 U.S. at 739)). That was

the law long before the Court confirmed the principle

in Cedar Point. Now it is a dead letter for claims

against the United States under the decision below.

The court of appeals’ approach is also unworkable

and will invite government manipulation of property

rights. Determining whether all of a water-rights

holder’s property has been taken requires identifying

the denominator. Is the unit of analysis the set of

rights conferred by each separate legal instrument for

each body of water, or all water the property owner

can access in the aggregate? And is the relevant window a day, a year, or a decade? The Federal Circuit’s

arbitrary all-or-nothing approach incentivizes the

government to invent ways to spin massive expropriation as less than all one has to give.

2. The Federal Circuit also held that a government order to return water that was already diverted

is a physical taking but that a government order to

give up water that a person is legally entitled to divert

is a regulatory taking. App., infra, 11a-13a. That

made-to-order, before-or-after distinction likewise has

no basis in this Court’s physical-takings framework or

the cases addressing takings of water rights.

This Court has never suggested that the categorical mandate to pay just compensation for the physical

23

appropriation of property depends on whether the

government requires an owner to hand over his property or instead intercepts the property on the way to

its owner. In Webb’s Fabulous Pharmacies, Inc. v.

Beckwith, 449 U.S. 155 (1980), for example, this Court

held that the Takings Clause required the government to pay just compensation for taking the interest

that was earned on a court-administered interpleader

fund but owed to creditors whose claims would later

be determined. Id. at 161-164. That the funds were

“held temporarily by the court” instead of being in

their ultimate owners’ possession made no difference

to the analysis. Id. at 164; see, e.g., Tyler, 598 U.S. at

639 (holding that government must return excess

value of property to taxpayer after sale).

The Federal Circuit’s before-or-after distinction is

also insupportable as a matter of text and common

sense. The guarantee of just compensation applies

whenever the government takes property for a public

use—whether the government pries property from a

person’s fingers or intercepts property he owns while

on the way to him. U.S. Const. Amend. V. Nor is there

any reason that the Takings Clause should turn on

the happenstance of whether the United States uses

postal agents to seize a check in the mail, instructs the

sender to change the mailing address to the Treasury,

or orders the recipient to hand over the check after

opening the envelope. The government cannot avoid

physical-takings liability by intercepting property before it reaches the hands of the person with a legal

entitlement to it.

Water is no exception to that rule. In International Paper, the United States requisitioned water

from the plaintiff by ordering a third party (a power

company) to redirect the water before it reached the

24

plaintiff. 282 U.S. at 405-406. In Gerlach, the United

States took water rights by building a dam that prevented flooding from occurring in the first place, leaving the plaintiffs’ lands “parched” and “barren.”

339 U.S. at 730. And in Dugan, the United States had

to pay just compensation for actions “occur[ring] upstream” that deprived downstream users of water that

they were entitled to use. 372 U.S. at 625. Each case

refutes the court of appeals’ suggestion that the government takes water rights only by requiring the

plaintiff to hand over actual water molecules in its

possession.

The court of appeals suggested that appropriative

rights, in contrast to riparian rights, “vest” only once

the owner has “physically diverted water” on a particular occasion. App., infra, 13a. That contrived limitation has no basis in “state law” or “‘traditional property law principles.’” Tyler, 598 U.S. at 638 (citation

omitted). Under California law, an appropriative right

“consists not so much of the fluid itself as the advantage of its use.” Eddy v. Simpson, 3 Cal. 249, 252

(1853); see Cal. Water Code § 102. Petitioner’s rights

to divert up to 144,630 acre-feet annually thus “vested”

under California law when it “acquired” them under

its license and permit, not when each drop of water

reached petitioner’s canal and facilities. United States

v. State Water Resources Control Board, 182 Cal. App.

3d 82, 101 (1986) (emphasis added). An appropriative

right is a “vested right to take and divert from the

same source, and to use and consume the same quantity of water annually forever.” Arizona, 283 U.S. at

459; see Wyoming v. Colorado, 259 U.S. 419, 459 (1922)

(appropriative right creates a “continuing right to divert and use the water” (emphasis added)). The United

States has physically taken that right regardless of

25

whether it commandeers water before it reaches its

owner or afterward.

The court of appeals’ contrary conclusion squarely

conflicts with Dugan. The court asserted that Dugan

addressed only riparian rights. App., infra, 13a. But

the plaintiffs in Dugan were holders of “riparian as

well as other types of water rights,” including “appropriative” rights. 372 U.S. at 614, 619. The United

States itself told this Court that “[t]he present case is

concerned with the riparian and appropriative rights”

in the San Joaquin River. Pet. Br. at 7, Dugan, supra

(No. 62-31). And the evenhanded treatment of water

rights in Dugan honors the longstanding “federalism”

tenet that “each State ‘may determine for itself

whether’” to grant appropriative or riparian rights

without any federal thumb on the scales. California

v. United States, 438 U.S. 645, 648, 663 (1978) (citation omitted). The court of appeals’ holding that appropriative rights are uniquely vulnerable to federal

expropriation upends the settled federal/state balance

in water law and jeopardizes state-law water rights

throughout the arid West.

3. The Federal Circuit suggested that International Paper, Gerlach, and Dugan can be disregarded

because they did “not acknowledge any distinction between physical and regulatory takings” and predated

this Court’s articulation of the regulatory-takings

framework in Penn Central. App., infra, 13a. That

effort to dilute takings doctrine also defies Cedar

Point.

Cedar Point reaffirmed that “Penn Central has no

place” in addressing “physical appropriation[s] of

property.” 594 U.S. at 149. The Court repudiated an

attempt to reconceptualize retroactively earlier cases

involving physical invasions as regulatory takings.

26

Id. at 158 (citing United States v. Causby, 328 U.S.

256 (1946), and Portsmouth Harbor Land & Hotel Co.

v. United States, 260 U.S. 327 (1922)). Cedar Point

shielded traditional takings doctrine from Penn Central incursions because, whatever one thinks of regulatory takings, the “physical takings jurisprudence is

‘as old as the Republic.’” Id. at 147 (quoting TahoeSierra Preservation Council, Inc. v. Tahoe Regional

Planning Agency, 535 U.S. 302, 322 (2002)).

The court of appeals attempted the same forbidden revisionist relabeling of past cases. App., infra,

13a. Dugan analogized the “[i]nterference with or

partial taking of water rights” to the “interference or

partial taking of air space over land” in Causby and

Portsmouth. 372 U.S. at 625. The takeaway is unmistakable: Appropriations of water rights, like invasions of the right to exclude, remain physical takings

that categorically require just compensation. Ibid.

“[T]he complexities of modern society” do not undermine such historically grounded takings decisions but

instead “only reinforce the importance of safeguarding

the basic property rights that help preserve individual

liberty.” Cedar Point, 594 U.S. at 158.

4. Finally, the Federal Circuit treated this case

differently because the taking arose from regulatory

action under the Endangered Species Act, while International Paper, Gerlach, and Dugan “did not arise

from a regulation.” App., infra, 13a. But the “essential question is not, as the [Federal] Circuit seemed to

think, whether the government action at issue comes

garbed as a regulation (or statute, or ordinance, or

miscellaneous decree).” Cedar Point, 594 U.S. at 149.

What matters is “whether the government has physically taken property for itself or someone else—by

whatever means.” Ibid. As this Court recently made

27

clear, the Takings Clause “constrains the government

without any distinction between legislation and other

official acts.” Sheetz v. El Dorado County, 601 U.S.

267, 277 (2024).

The court of appeals tried to dress up the taking

in regulatory-speak as a “nonpossessory government

activity merely requiring that more Santa Clara River

water, whether flown through the fish ladder or not,

remains in the river.” App., infra, 12a. The United

States, however, cannot escape paying just compensation for water it requisitions by sidestepping the procedural safeguards it must observe in “formally condemn[ing]” property. Cedar Point, 594 U.S. at 147.

Under the Takings Clause, “property rights ‘cannot be

so easily manipulated.’” Id. at 155 (quoting Horne,

576 U.S. at 365). The United States has asserted a

“servitude” for the public use of water to facilitate

fish migration even though petitioner possesses superior rights to the water under California law. Dugan,

372 U.S. at 625 (citation omitted). Through that action, the United States physically appropriated a sizable portion of petitioner’s water rights. That the government self-servingly refuses to acknowledge that it

is engaged in physical appropriation only adds insult

to property owners’ injury.

That conclusion respects the proper function of the

Takings Clause. Congress enacted the Endangered

Species Act “to halt and reverse the trend toward species extinction, whatever the cost.” TVA v. Hill, 437 U.S.

153, 184 (1978). That was Congress’s choice to make.

But long before legislation to safeguard animal species, the People made the foundational choice in the

Bill of Rights who must bear that cost: the United

States, not property owners like petitioner.

28

II. THE QUESTION PRESENTED IS EXCEPTIONALLY

IMPORTANT AND RECURRING

The Federal Circuit’s decision exposes water rights

to uncompensated partial takings, so long as the government manages to intercept water before it reaches

its rightful owner. Because the Federal Circuit has exclusive appellate jurisdiction over the Court of Federal

Claims, the decision below also promises to have spillover effects across all kinds of physical-takings claims

against the United States. Those weighty legal and

practical implications warrant this Court’s intervention.

A. The question presented is exceptionally important. W.H. Auden was being realistic (if unromantic) in observing, “Thousands have lived without love,

not one without water.” States developed and then

reaffirmed appropriative property rights to encourage

much-needed investments “in long-term improvements” that capture water and allow people to survive

in the arid West. Richard Epstein, Property Rights in

Water, Spectrum, and Minerals, 86 U. Colo. L. Rev.

389, 402 (2015). As the United States commandeers

ever-scarcer water to support the ever-growing demand of various federal priorities, the protections of

the Takings Clause become even more vital.

Because the United States (like everyone) needs

water for itself, the question presented also implicates

a recurring fact pattern. The Federal Circuit routinely

hears claims that the United States has taken water

rights. E.g., City of Fresno v. United States, 124 F.4th

876, 896-897 (Fed. Cir. 2024), petition for cert. pending,

No. 25-266 (filed Sept. 5, 2025); Baley v. United States,

942 F.3d 1312, 1331 (Fed. Cir. 2019); Estate of Hage v.

United States, 687 F.3d 1281, 1288-1290 (Fed. Cir.

2012); CRV Enterprises, Inc. v. United States, 626 F.3d

29

1241, 1246-1248 (Fed. Cir. 2010); Casitas Municipal

Water District v. United States, 543 F.3d 1276, 1290

(Fed. Cir. 2008); Washoe County v. United States,

319 F.3d 1320, 1326 (Fed. Cir. 2003). Without this

Court’s review, the decision below will supply the

framework for a host of claims that the United States

has taken water rights without paying just compensation.

The contrived limitations that the Federal Circuit

adopted under the Takings Clause already are distorting physical-takings claims against the United

States. Plaintiffs are now pigeonholed into seeking

just compensation only if the United States “completely cut[s] off [the plaintiffs’] access to water.” Russell & Elizabeth Reid Family Trust v. United States,

— Fed. Cl. —, 2025 WL 2527572, at *9 (Sept. 3, 2025).

The United States has wielded the decision below aggressively in arguing that a plaintiff may seek just

compensation only when required to return “the ‘particular molecules of water’ that reach” the plaintiff ’s

property. Id. at *6. And that case is just the tip of the

iceberg—for both the cases to come and the ones that

will never be filed when the United States takes some,

but not all, of the water that a person is entitled to

divert.

Shunting such claims into the regulatory-takings

framework is no solution at all. As an initial matter,

water rights should not be “balanced away” under

Penn Central when the government appropriates water for its own use. Cedar Point, 594 U.S. at 158. But

the consequences are even worse because many will

be locked entirely out of court while permit applications remain in regulatory limbo. As this Court knows

well, similar permitting processes “can be arduous,

30

expensive, and long.” Army Corps of Engineers v.

Hawkes Co., 578 U.S. 590, 601 (2016).

Here, for example, the Service noted that petitioner had expended “eight years of effort” to obtain

an incidental-take permit as of 2016. C.A. App. 54. Yet

the completion of that process was then (and remains

now) “years off.” Ibid. Conditioning access to court on

the vagaries of the serpentine permitting process is

yet another attempt to “relegat[e] the Takings Clause

‘to the status of a poor relation’ among the provisions

of the Bill of Rights.” Knick v. Township of Scott,

588 U.S. 180, 189 (2019) (citation omitted). Whether

or not that approach is proper for regulatory-takings

claims, it is intolerable to tie up traditional physicaltakings claims indefinitely in agency red tape.

The Federal Circuit lost sight of the principle that

the Takings Clause “was designed to bar Government

from forcing some people alone to bear public burdens

which, in all fairness and justice, should be borne by

the public as a whole.” Armstrong v. United States,

364 U.S. 40, 49 (1960). Granting review and holding

that petitioner pleaded a physical taking of its water

rights would ensure that the United States pays compensation to petitioner and numerous others with

similar rights—and perhaps thinks twice about taking water rights in the first place.

B. The Federal Circuit’s workarounds to Cedar

Point also invite abuse of property rights by the

United States across the full range of physical takings. Plaintiffs seeking more than $10,000 in “just

compensation under the Takings Clause” must bring

their claims in “the Court of Federal Claims in the

first instance” outside of rare circumstances where

“Congress has withdrawn the Tucker Act grant of jurisdiction in the relevant statute.” Horne v. Department

31

of Agriculture, 569 U.S. 513, 527 (2013) (citation omitted); see 28 U.S.C. § 1491(a)(1). The Federal Circuit, in

turn, has exclusive appellate jurisdiction over decisions

of the Court of Federal Claims. 28 U.S.C. § 1295(a)(3).

Under the decision below, the United States has a new

array of arguments to evade paying just compensation

under the Takings Clause.

The message sent by the decision below is clear:

Be thankful when the government leaves you anything at all. For example, the government can now

walk right up to the line of taking all of a person’s

property interest—say, 75% of water that someone

had a right to use, 90% of wheat that someone had a

right to harvest, or 99% of oil that someone had a right

to extract—so long as it does not “completely cut off

[the person’s] access” to the property. App., infra, 11a.

Such percentage games might be de rigueur under

Penn Central. But they should “ha[ve] no place” when

it comes to physical takings. Cedar Point, 594 U.S. at

149.

Because the Federal Circuit’s rule also depends on

whether the government intercepts property before a

person can exercise his rights or instead requires the

“return” of property, the government can avoid the

physical-takings framework merely by planning its appropriations in advance and commandeering property

before it is received by its owner. App., infra, 11a. If a

person steals a package from a delivery truck just as it

arrives at its destination, a federal prosecutor would

call that theft. E.g., 18 U.S.C. § 659. But in the Federal Circuit’s view, the federal government can do the

same thing without even engaging in a physical taking. This Court has stressed that “property rights ‘cannot be so easily manipulated.’” Cedar Point, 594 U.S.

at 155 (quoting Horne, 576 U.S. at 365). But even

32

minimal bureaucratic foresight now will allow the

United States to sidestep the Takings Clause.

Exacerbating the injury, the Federal Circuit’s decision breathes new life into long-defunct efforts to exempt the administrative state from physical-takings

safeguards. The court of appeals purported to recognize that “[g]overnment action that physically appropriates property is no less a physical taking because it

arises from a regulation.” App., infra, 7a (quoting Cedar Point, 594 U.S. at 149). But the court held only

pages later that this case should be analyzed as a regulatory taking because the appropriation of water

rights “ar[o]se from a regulation” under the Endangered Species Act. Id. at 13a. That escape hatch from

Cedar Point should be welded shut as soon as possible.

C. This Court regularly grants review of important

issues over which the Federal Circuit has exclusive nationwide jurisdiction. See, e.g., Soto v. United States,

605 U.S. 360, 367 (2025) (procedures for seeking military benefits); Feliciano v. Department of Transportation, 605 U.S. 38, 44 (2025) (standard for military pay

in Merit Systems Protection Board); Thryv, Inc. v.

Click-To-Call Technologies, LP, 590 U.S. 45, 52 (2020)

(reviewability of determinations by Patent Trial and

Appeal Board). That exclusive jurisdiction stymies

the development of a square circuit conflict and gives

the Federal Circuit the final say until this Court intervenes.

Takings litigation is a prime example of a context

where the Federal Circuit’s errors will reverberate nationwide until this Court intervenes. See pp. 30-31,

supra. Certiorari is appropriate to determine whether

the Federal Circuit has properly applied this Court’s

decisions under the Takings Clause to claims against

the United States. E.g., Arkansas Game and Fish

33

Commission v. United States, 568 U.S. 23, 31 (2012);

see also, e.g., Gerlach, 339 U.S. at 725 (certiorari to

the Court of Claims, whose appellate jurisdiction was

later transferred to the Federal Circuit); International

Paper, 282 U.S. at 399 (same). The Federal Circuit’s

exclusive jurisdiction over appeals from the Court of

Federal Claims creates an even more pressing need to

resolve the question presented correctly.

III. THIS PETITION IS AN IDEAL VEHICLE

This case offers a clean opportunity to resolve the

question presented. The United States has never disputed that petitioner has a property right under its

license and permit to divert and use water. App., infra, 9a. Nor has the United States ever disputed that

petitioner would have had a right to divert and use

the water that was instead reallocated to the instream use of facilitating steelhead trout migration.

Ibid. And the Federal Circuit squarely resolved petitioner’s argument that the United States’ interference

with the water rights should be analyzed as a physical

rather than a regulatory taking. Id. at 10a-13a.

This case also vividly illustrates the harmful consequences of the Federal Circuit’s departures from

this Court’s decisions. Petitioner’s efforts to “diver[t]

water” from the Santa Clara River are critical because

the groundwater basins in petitioner’s territory experience “‘overdraft’—meaning that more water is being

taken out than is replaced by natural processes.” City

of San Buenaventura v. United Water Conservation

District, 3 Cal. 5th 1191, 1198 (2017). If petitioner

does not replenish its basins, saltwater may “intru[de]

into the fresh groundwater supply,” making the water

undrinkable and unsuitable for agriculture. Ibid.; see

C.A. App. 25. This case demonstrates that the harms

34

from the Federal Circuit’s rule are anything but hypothetical.

*****

Fish are important, but not more so than Fifth

Amendment rights. If the United States wishes to appropriate water rights for a “public use,” U.S. Const.

Amend. V, it can do so. But the Takings Clause guarantees that the United States must provide “just compensation” for the property rights it took from petitioner. Ibid. This Court should grant review and make

clear that it meant what it said in Cedar Point.

CONCLUSION

The petition for a writ of certiorari should be

granted.

Respectfully submitted.

FRANK S. MURRAY

FOLEY & LARDNER LLP

3000 K. Street, N.W.

Suite 600

Washington, D.C. 20007

DAVID T. RALSTON, JR.

DAVID T. RALSTON, JR., ESQ., PLLC

6510 Rockland Drive

Clifton, VA 20124

THOMAS H. DUPREE, JR.

Counsel of Record

JONATHAN C. BOND

GIBSON, DUNN & CRUTCHER LLP

1700 M Street, N.W.

Washington, D.C. 20036

(202) 955-8500

TDupree@gibsondunn.com

PATRICK J. FUSTER

GIBSON, DUNN & CRUTCHER LLP

333 South Grand Avenue

Los Angeles, CA 90071

Counsel for Petitioner

October 27, 2025

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.