# Opposition Brief — Mobil Oil Corp. v. Board of Trustees of the Internal Improvement Trust Fund of Florida

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_2378%3A2

## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1987
- **Citation:** 479 U.S. 1065

## Text

NO. 86-823 | ae

IN THE SUPREME COURT OF THE: UNITED STATES
OCTOBER TERM, 1986

MOBIL OIL CORPORATION, Petitioner,
Vv.
BOARD OF TRUSTEES OF THE INTERNAL

IMPROVEMENT TRUST FUND OF THE
STATE OF FLORIDA, Respondent.

ON PETITION FOR A WRIT OF CERTIORARI
TO THE SUPREME COURT OF FLORIDA

BRIEF FOR RESPONDENT IN OPPOSITION

Robert A. Butterworth PARKER D. THOMSON
Attorney General Counse ecord
The Capitol Cloyce L. Mangas,Jr.
Tallahassee, FL 32301 THOMSON ZEDER
BOHRER WERTH &

Lee R. Rohe RAZOOK

Acting Gen. Counsel 4900 Southeast

Florida Department Financial Center

of Natural Resources 200 South Biscayne

3900 Commonwealth Boulevard
Boulevard Miami, Florida

Tallahassee, FL 32303 33131-2363
(305) 350-7200

James R. Hubbard,P.A. Attorneys for
2900 S.W. 28 Ct. Respondent
Miami, FL 33133

QUESTIONS PRESENTED

All courts below assumed, for
purposes of ruling on summary judgment
and on three certified questions arising
therefrom, that the disputed lands in
this quiet title action were and are
sovereignty (equal footing) lands which
passed to the State at statehood.

La Whether determinations
as to the character of land under the
Swamp and Overflowed Lands Act of 1850,
43 U.S.C. § 982 et seg., are, as a matter
of federal law, conclusive against the
State and the State’s Trustees with re-
spect to its sovereignty lands in quiet
title actions brought by a private claim-
ant.

a Whether a State judicial
decision, which holds, as a matter of
state law, that the State’s Trustees’
swamp and overflowed lands deeds to pri-

adn

vate parties do not include the State’s
sovereignty lands below the high water
mark of navigable rivers, contravenes
the Due Process Clause of the Fourteenth

Amendment as an unconstitutional taking.

aiin

PARTIFS TO THE PROCEEDINGS

The parties to the proceedings
in the Supreme Court of Florida are
listed in the caption. Pet. ii. Peti-
tioner Mobil Oil Corporation is a subsi-
diary of Mobil Corporation. Id. Respon-
dent Board of Trustees of the Internal
Improvement Trust Fund of the State of
Florida, consists cf seven trustees
(the Governor, Secretary of State, Attor-
ney General, Comptroller, State Treasu-
rer, Commissioner of Education, and
Commissioner of Agriculture, and their
Successors in office). Fla. Stat.
§253.02(1) (1985). The State of Florida
and the Florida Department of Natural
Resources, named defendants in the trial
court, are real parties ininterest. Pet.
App. 42a. ee Filia. Stat. §253.001,

(1985). See generally App. D, infra, 66a

nel.

~iii-

“Coastal Petroleum was a defen-
dant in the Florida trial court but did
not perfect an appeal of the final judg-
ment in favor of Mobil Oil Corporation.”

Pet. iis

96"21

atgn

TABLE OF CONTENTS

TABLE OF AUTHORITIES .. .

OPINIONS FERIUW 2. s« 2 4+ s 8 8s

JURIGDICIION 2 « « « »

CONSTITUTIONAL AND STATUTORY
PROVISIONS INVOLVED. .... .

yt vg oo) 8 y ir ier omer fee eee ne cena

REASONS FOR DENYING
‘eats Re 6 as 8 ae we re Se a ree

I.

PETITIONER’S ARGUMENTS ARE
WITHOUT MERIT, WHETHER OR

NOT THE DECISION BELOW WAS
CUE 6 ell ll hl lk

A. The Statutory
CAR EON vn 6 sa oes
B. The Constitutional
Ouestion .« « « «
ik» THE COURT BELOW FULLY
CONSIDERED AND CORRECTLY
DECIDED THE THREE CERTIFIED
QUESTIONS OF STATE LAW
per eee oe! sa Se ee ee
Ri The First Certified
ie a es a a eg
B. The Second Certified
SSC SB i eS aes
is The Third Certified
Ousetion. « . * . * >. > . . * * * . 24, 49
Uni Vv. on,
ape Weems 2 (23935) . . 1. sw wee 49, 50
d Vv. od nell,
wee Wems BOR (2938)... . 2 45
United States Trust Co. v.
New Jersey, 431 U.S. 1 (1977),
° j , 431 U.S. 975
(1977) . . . . . . . . . . . . 55-56
W Vv Vv » 253
OMe mM OMEMEED 5 5 6 5 tt ek 36
W. Vv bo
Commi j , 85 U.S. (18
mesae) S7 (2873) . . . 2 ee - 44
Wi Vv. . an 6.8.

(13 Pet.) 498 (1839) ... 78, 24, 32

wi , :
ppiiiamson-County Reaional

Bank, UVebe » 205 §.Ct.
PPMP eT SC “oe «¢ 4. See 38
Wi 4

Tribe, 442 U.S. 653 (1979),
On remand, 614 F.2d 1153
(8th Cir. 1980), cert.

denied, 449 U.S. 825, on

523

F.Supp. M54 (N.D. Iowa
1981), rev’d, 707 F.2a
304 (8th Cir. 1982), on
remand, 578 F.Supp. 1191
(N.D. Iowa 1984), cert.
Genied, 465 U.S. 1025

-xiii-

(1984), cert. denied,
465 U.S.. 1300 C004): 5c ss s [6

Wisconsin v. Baker, 698
F.2€ 1323 (7th Cir. 1983)
ee ee ee ee oe ee ee oe es ee te Bay) 29%. O28

Wright v. Roseberry,
352 U.e, O86 C3067) «ce 6328, 27, Fi

UNITED STATES CONSTITUTION:
U.S. Const. amend. VV... 20, 37-38

U.S. Const. amend. XIV,
Ss 2 & es « + BS 20) 23, J7738; 40

UNITED STATES STATUTES:

28 U.S.C. § 1257(3)
Sie A A aoe Pores Pete, © PE Fg |:

43 U.S.C. § 982, et seg.
(Swamp and Overflowed Lands
bet Gf 3080) 45-0 5. & soe se wr dy 3

5 Stat. 742 (1845)
(Act of Statehood for Iowa
Se TVIGFION) 666 ee we ee Se ES

9 Stat. 519 (1850),

codified as amended, 43

U.S.C. §§ 982-84 (Swamp

and Overflowed Lands Act

OP Sees sae er es « Be 2 Be

9 Stat. 519, §§ 1,4 (1850),

codified as amended, 43

ee OR oe > ere eee ce ee a ee a 8
9 Stat. 519, § 2 (1850),

Coat tiad, 43 U.8.C..§ 963 . « « 2 + 8

-xiv-

UNITED STATES TREATIES

Treaty of Amity, Settlement,

and Limits (between United
States and rastiehiesl 8 Stat.
nae ean as

SUPREME COURT RULES
S.C Mm. 31.4. 6.
FLORIDA CONSTITUTION:

Fla. Consett. art. ZX, § ii
(“Sovereignty Lands”).

LORIDA STATUTES, LAWS,
AND _ RULES:

Fla. Stat. § 197.228(2)
(1981), renumbered,

Fla. Stat. § 253.141(2)
P.O

Fla. Stat. § 253.03(1) (b)
Bie Ss Sa Se we

Filia. Stat. Ch. 712
(1985) (Marketable Record
TIGLG BEG) s « & ws -&) |6ES,

1851 Fla. Laws Ch. 332.

1854 Fla. Laws Ch. 610
(enacted Jan. 1855),
codified, Fla. Rev. Stat.
§§ 428-429 (1892), amended,
Fla. Laws Ch. 7304, (1917),
codified as amended, Fla.
Stat. § 253.01-.02 (1985).

1913 Fla. Laws Ch. 6451.

232

32,

31

44

10

43

1917 Fla. Laws Ch. 7304
codified, Fla. Stat.
$§ 253.12(1) (1906) . . 5->-

———————_———

(prior to 1969). The Florida Supreme
Court had explicitly so held at least as
early as 1908. Gerbing, supra,56 Fla.
at 612, 47 So. at 356.33

The Second Certified Question.
The decision below, in response to the
second certified question, held that
the doctrine of legal estoppel or estoppel
by deed does not apply to the 1883 swamp
and overflowed lands deed, and consequent-

ly does not bar the Trustees’ assertion

33 In 1979 the United States Dis-
trict Court for the Northern District of
Florida, inInternational Minerals, supra,
a diversity jurisdiction case, reached
the same conclusions as to the Trustees’
lack of title and authority prior to
1969. See text infra App. D, infra.

The Fifth Circuit had held,
at least as early as 1896, that title
disputes between private “laimants and
the Trustees over the Peace River belonged
in State court and must be decided by
State law. Florida v. Charlotte Harbor
Phosphate Co., supra.

-46-

of title to sovereignty lands in the lower
Florida courts. %4

Mobil asserts that the ”“funda-
mental doctrine of legal estoppel” ought
to apply here. Pet. 22. Mobil mistaken-
ly asserts, “[{T]here is no doubt these

principles were [previously] deemed fully

34 In so holding, the Court below
observed, "This question was-~ also
addressed and answered in Martin, as
the quotations above show.” Pet. App.
7a:

Not only is there no legal

estoppel to the Trustees’ claim

of ownership in sovereignty

lands, but the Trustees are pro-

hibited by case law from
surrendering state title to

sovereignty lands based on a

prior conveyance of swamp and

overflowed lands. .. . The

fact that a deed of swamp and

overflowed lands does not expli-

citly exempt sovereignty lands

from the conveyance does not

show that the Trustees intended

to convey sovereignty lands

encompassed within the swamp

and overflowed lands’ being

conveyed. .. . Martin, 93
Fila. at 569-73, ii2 &S6. at
285-87.

Pet... Apo. 7a: -agcord, App... 0; J2ptra,
54a-55a.

-47-

applicable by the Florida Supreme Court
against a claim that the conveyance erro-
neously included ‘sovereignty lands.’
Pet. 22 (brackets added and citations
omitted). The Florida estoppel cases
relied upon by Mobil in the petition
are all distinguishable on their facts,

as demonstrated in Coastal Petroleum

CO. v. International Minerals & Chemical

Corp., supra. 25
In 1927 the Florida Supreme

Court held in Martin that a Swamplands
grantee takes with Gouble notice, "The

grantee takes with notice that the convey-

35 Rpt. in Trustees’ Br.,

iV, App. 9 (App. D, infra, 34a-63a).
Mobil’s Florida counsel here represented
defendants in that case. Mobil’s counsel]
of record in this Court represented these
defendants in a Subsequent consolidated
appeal of a later injunction in that case.
see generally v

U. i- mi » 695 F.2d 1314,
1315, 1319 (llth Cir. 1983) (App. E,
infra, 63a-84a) (holding, inter alia,
that , Supra, con-
stituted a non-appealable interlocutory
Order).

-48-

iN

ance of swamp and overflowed land does
not in law cover any sovereignty lands,
and that the trustees of the Swamp and
overflowed lands as such have no authority
to convey sovereignty lands.” 93 Fla.
at 3570, 112 So. at 285-86 (emphasis
added).

The Secretary of the Interior
himself has never Claimed, and would
not claim, power to convey by patent to
a state sovereignty lands always owned,

ey definition, by that state. This Court

has always so held.36 tn holding that

36 “(B)jecause control over the
property underlying navigable waters is
So strongly identified with the sovereign
power of the government, United States
Vv. Oregon, [295 U.S. 1, 13 (1935)}, it
will not be held that the United States
has conveyed such land except because
of ‘some international duty or public
exigency.’” Vv P
450 U.S. 544, 552 (1981) (quoting United

Vv » 270 U.S. 49,
55 (1926)).

Indeed, "The State is probably
correct in stating that Congress could
not, without making provision for payment
Ol compensation, pass a law depriving a

-49-

the Trustees are not estopped to assert
and attempt to prove that the disputed
Peace River lands are in fact sovereignty
lands, the decision below does no more
than reflect the same concern for the
Sovereign rights of the State’s people
and the same rules of deed construction
that have been long recognized by this

Court, 37

State of land vested in it by the Con-

Stitution.” Vv
461 U.S. 273, 291 (1983).

37 See, e.g., United States v.
Oregon, supra, at 14 (strong presumption
against alienation of sovereignty lands) ;

; Ww s S2 8.
(16 Pet.) 367, 410-11 (1842) (principle
that people of each State in their sove-
reign character own all their navigable
waters dates j :
“subject only to their rights since sur-
rendered by the Constitution to the gen-
eral government”).

» 36 U.S. (11 Pet.)
420 (1837) (state charter grants must
be construed narrowly; no implied rights
of private grantees assumed; ambiguities
must be construed in favor of State).

-50-

In the procedural posture here,

as in the Northern District of Florida

in 1979 in International Minerals, supra,

at 9-10:

Unlike Odom, it has not yet
been determined whether the
lands in dispute are non-sover-
eign and therefore indisputably
capable of conveyance to private
parties. If sovereign, it is
evident that the Trustees were
wholly without authority to
alienate them until 1969, a date
subsequent to the conveyances
to defendants’ predecessors in
interest. The state may not
be estopped by the unauthorized
acts of its officers.

There is another, perhaps
even more compelling reason
why the Trustees’ deeds cannot
work an estoppel against the
State of Florida. The deeds
contain no indication that
the state intended to convey
title to sovereign lands. . .
- It is clear, however, that
under the public trust doctrine
the intent to alienate trust
property must be clearly stated.

, Supra. ...
Estoppel by deed is therefore
inapplicable.

(App. D, infra, 54a-55a) (some case cita-

tions omitted).

-5l-

The Third Certified Question.

“The final certified question is whether
the Marketable Record Title Act (MRTA),
Chapter 712, Florida Statutes, operates
to divest the state of title to sover-
eignty lands.” Pet. App. 7a-8a. The
court below answered this question in
the negative, "“conclud[{ing] that the
legislature did not intend to make MRTA
applicable to sovereignty lands.” Pet.

App. 9a, 38

38 The court below noted language
to the contrary in that court’s prior
decision in Odom v. Deltona Corp., 341
So.2d 977 (Fla. 1976), which had been
relied upon by Mobil and the lower Florida
courts in this case. The decision below
analyzed Odom, determined ” (tjhis reliance
[on Odom) is misplaced,” Pet. App. 8a,
concluding that Odom was entirely distin-
guishable on its facts (based on Odom’s
“factual determination that the small
lakes and ponds at issue were non-navig-
able, non-sovereignty lands”). Id. The
decision below explained, "The state-
ments [in Odom} concerning the effect
of MRTA on navigable waterbeds were dicta
and are non-binding in the instant case
inasmuch as there were no navigable water-
beds at issue in Odom.” Id. That court
also observed that its post-Odom decision

-52-

After examining (in response
to the first two certified questions)
“the well established law that prior
conveyances did not convey sovereignty
lands encompassed within Swamp and over-
flowed lands being conveyed,” Pet. App.
9a, the decision below “assume[d] that
the legislature knew this well-established
law when it enacted MRTA.” Id.

Mobil disputes the assumption
of the court below, but the decision
below affords ample support for its inter-
pretation of MRTA in light of the consti-
tutional codification of the public trust
doctrine in the Florida Constitution:

We are persuaded that had the

legislature intended to revoke
the public trust doctrine by

in Askew vy. Sonson, 409 So.2d 7 (Fla.

1981), nd lor to th n
this action, expressly “declined to rule

‘on the question whether the title to what
had been sovereignty lands could be per-
fected by MRTA prior to the effective
date of the 1978 amendment. ’ id. (Askew)
at 9.” Pet. App. 8a.

-53-

;

making MRTA applicableto sover-
eignty lands, it would have,
by special reference to sover-
eignty lands, given some indica-
tion that it recognized the
epochal nature of such restora-
tion. We see nothing, in the
act itself or the legislative
history presented to us sug-
gesting that the legislature
intended to casually dispose
of irreplaceable public assets.
The legislative Purpose of
Simplifying and facilitating
land title transactions does
not require that the title to
navigable waters be vested in
private interests.

Pet. App. 9a.

Mobil and amicus Florida Land
Title Association, Inc. (“FLTA”) argue,
in effect, that the court below overruled
its 1976 decision in Odom, Supra. This
is not correct as the decision below
explained, noting the specific reservation
of the issue in its 1981 decision in

Askew v. sonson, supra. Pet. App. 8a.

But even if one concluded the decision

below did overrule Odom, decided ten years

-54-

earlier, no rights of Mobil (Or FLTA)
are denied or impaired. 39

CONCLUSION

The Florida Supreme Court thus
correctly decided the three certified

questions of state law before £¢.*°

39 A trial on the issue of naviga-
bility vel non is hardly more difficult
in 1987 than it was in the late 1970s
when Mobil and other phosphate interests
litigated the same issues with the same
parties over the same Peace River in
Sundry state and federal courts.

Moreover Mobil did not act in
reliance on Odom. See also App. D, infra,
34a-62a. See generally, App. E., infra
82a. Mobil purchased the subject land
before Odom was decided and commenced
this action after the Florida Supreme
Court in Askew v. Sonson, supra, specially
declined to rule whether Odom applied
in light of its factual context (small
ponds and lakes) and the statute (Section
198.228(2), Florida Statutes (1975) )
which applied to that factual context.

40 This Court has long held “the
laws which subsist at the time and place
of the making of a contract, and where
it is to be performed, enter into and
form a part of it, as if they were ex-
Pressly referred to or incorporated in
its terms.” E.g., United States Trust
Co. v. New Jersey, 431 U.S. S¢. ae Tis 17

-55-

ae

Neither that court nor the lower Florida
courts consicered the putative federal
Questions Presented in the petition.
Nor should this Court consider them.
The ostensible statutory Question Pre-
sented is nothing more than a failed
attempt to recast Mobil’s tautological
argument under Section 197.228(2), Florida
Statutes (1981). Independently, the
petition, in its framing of the supposed
constitutional Question Presented, denies

the record, ignores both Florida precedent

(1977) (citing prior decisions of the
Court), reh’g denied, 431 U.S. 975 (1977).
Mobil’s predecessor had record and con-
structive notice of this Court’s decision
in Barney v. Keokuk, 94 U.S. (4 Otto 324)
(1877), which held that the state’s title
included the beds of all waters, which
upon admission to the union, were actually
navigable, whether or not they were
affected by the tide. Therefore Mobil’s
predecessor knew or should have known
in 1883 that no federal patent could
have conveyed sovereignty lands to the
State. see State ex rel. State Lana
Board v. Corvallis Sand and Gravel a
283 Or. 147, 582 P.2a 1352, 1356 (1978)
(On remand from this Court).

-56-

and the nature of this action, and suffers
from an erroneous major premise. Mobil
can claim no uncompensated taking has
occurred, in that, (i) Mobil has not
yet been, and indeed may never be, dives-
ted of title to the Peace River Property
on trial, and (ii) Mobil has not “sought
compensation [for a taking] through the
procedures the State has provided for
doing so. . ..” MacDonald at 3121.

For the foregoing reasons,
the petition for a writ of certiorari
should be denied.

Zs/_ PARKER D. THOMSON

PARKER D. THOMSON

Counsel of Record
Cloyce L. Mangas, Jr.
THOMSON ZEDER BOHRER WERTH
& RAZOOK
4900 Southeast Financial Center
200 South Biscayne Boulevard

Miami, Florida 33131-2363
(305) 350-7200

Robert A. Butterworth
Attorney General

The Capitol
Tallahassee, FL 32301

-57 In Re Car-

ter, 618 F.2d 1093, 1100 (5th Cir. 1980),
citing Gully v. First Nat’l Bank in Meri-
Sian, 299 0.8. 109, 112, 57 8.€é. $6,
97, 81 L.Ed. 70 (1936). In order to
determine whether the claim arises under
the Constitution or laws of the United
States, we lcok to the complaint unaided
by anticipated defenses and with due
regard to the real nature of the claim.
Maxwell, 638 F.2d at 35; Gully, 299 U.S.
at 113, 57 $.Ct. at 98. “A suit te en-
force a right which takes its origin in
the laws of the United States is not
necessarily, or for that reason alone,

one arising under those laws, for a suit

5 The Eleventh Circuit has adopted
as binding precedent decisions rendered
by the former Court of Appeals for the
Fifth Circuit before the close of business
on September 30, 1981. Bonner v. City
of Prichard, 661 F.2d 1206 (11th Cir.
1981) (en banc).

~i3a~

does not so arise unless it really and
substantially involves a dispute or
controversy respecting the validity,
construction or effect of such a law,
upon the determination of which the result
depends. This is especially so of a
suit involving rights to land acquired
under a law of the United States.” Heirs

of Burat v. Bd. of Levee Comm’rs, 496

F.2d 1336, 1342 (5th Cir.), cert. denied,
419 U.S. 1049, 95 S.Ct. 625, 42 L.Ed.2d
644 (1974), quoting Shulthis v. McDougal,
225 U.S. 5361, S69, 32 5.Ct. 704, 706,
$6 L.EG. 1205 (i912).

Acknowledging these precepts,
the parties differently characterize
Mobil’s pleading. Pointing to the reply
counterclaim’s challenge to Florida’s
acquisition of title to the disputed
lands as sovereignty lands, the Trustees
and Coastal argue that Mobil’s claim
turns on a federal question, namely,

-l4a-

the navigability of the Peace River on
March 3, 1845, the date Florida was ad-
mitted to the Union. If the Peace River
was navigable at that date, title to
the lands beneath the river passed from
the United States to the State of Florida
under the equal footing doctrine® and
were received by Florida as sovereign
lands. The passing of title under the
equal footing doctrine, the argument
continues, is a federally created right
which is governed by federal law; thus,
the navigability of the Peace River on

March 3, 1845, is a substantial federal

6 Under the equal footing doc-
trine, “the new States ... have the
same rights, sovereignty and jurisdic-
tion . . . as the original States possess
within their respective borders.” Mumford
v. Wardwell, 6 Wall. 423, 436, 18 L.Ed.
756 (1867). Pollard’s Lessee v. Hagan,
3 How. 212, 11 L.Ed. 565 (1845), held
that under the equal footing doctrine,
new states, upon their admission to the
Union, acquire title to the lands under-
lying navigable waters within their boundaries.

-15a-

ae

question supporting federal subject matter
jurisdiction.

Mobil maintains that its reply
counterclaim involves a mere title dispute
between Florida land claimants, each of
whom derives its claim from the State,
so that Florida law, and not federal law,
governs the controversy. While federal
law may determine the navigability of
waters for the limited purpose of ascer-
taining whether title to a riverbed passed
from the United States to Florida when
Florida became a state, once title has
passed, as the parties agree has occurred
here, Florida law governs any subsequent
claim to the property.

In its denial of Mobil’s motion
to remand, the district court embraced
the characterization advanced by the
Trustees and Coastal:

The navigability of the

waterbodies in issue in 1845
and the location of the ordinary

-16a-

high water line of the water-
bodies in 1845, if they were
navigable, are issues to be
determined by federal law.
Additionally, in this case
the determination of these
federal questions is a condition
precedent to a declaration of
Mobil’s rights of ownership
with respect to the lands which
it claims through various deeds
and patents. Mobil correctly
states that a determination
of whether the property in
question was transferred into
private ownership is a state
question, which must be deter-
mined in accordance with State
law, necessarily involving
the State test of navigability.
However, Mobil ignores’ the
essential and initial neces-
sity for a determination of
the federal questions raised
by its declaratory action before
the State questions may even
be reached.

Mobil’s “counterclaim” can
thus be seen to have brought
this action within the original
jurisdiction of this Court as
an action “arising under” fec-
eral law. Mobil’s declaratory
claim seeks fundamentally to
resolve whether the sovereignty
Claim of the Trustees and
Coastal, upon which the conver-
sion claim is based, is valid.
A determination of the validity
of the sovereignty claim depends
on the navigability of the

~./4a~

rivers in issue at statehood,
a federal question.

(citations omitted).

Clearly enough, Mobil does not
allege that the Peace River was not
navigable in fact on March 3, 1845, and
that the disputed property is therefore
not sovereignty land. The appellees cite

United States v. Oregon, 295 U.S. 1, 55
$.cCt. 610, 79 L.Ed. 1267 (1935), and

United States v. Utah, 283 U.S. 64, 51

S.Ct. 438, 75 L.Ed. 844 (1931), for the

proposition that the question whether a
river is navigable so that the submerged
lands pass to a state at statehood is a
federal question supporting federal
jurisdiction. Those cases were property
contests between the United States and
a state. We do not question that when
the United States and a state dispute
whether submerged land has passed to a

state under the equal footing doctrine

-18a-

or remains federal land, navigability
is a federal question. In order to ascer-
tain whether Mobil’s claim, with due
regard to its real nature, presents a
substantial controversy respecting the
validity, construction, or effect of
federal law, however, we must identify
the role which the asserted federal ques-
tion plays in the present controversy.
The disputed property was deeded
by the State of Florida to Mobil’s
predecessor in interest in 1862, and the
state held title to the property at the
time of the conveyance. Title had passed
to the state by one of two means: either
Florida acquired the lands under the equal
footing doctrine at statehood on March 3,
1845, because the Peace River was then
navigable, or Florida acquired the lands
in 1850 under the Swamp and Overflow Lands
Grant Act, 9 Stat. 520, now codified at
43 U.S.C.§ 982 (1976). If the state

-19a-

acquired the lands under the equal footing
doctrine in 1845, they were received as
sovereignty lands; otherwise, they were
not. Florida law treats sovereignty
lands differently than other lands:
sovereignty lands, unlike other lands,
are held by the state in public trust
and are subject to certain restrictions
on alienation.

The position of the Trustees
and Coastal is that the Peace River was
navigable on March 3, 1845, so that the
state received the disputed lands as
sovereignty lands and the 1862 deed did
not, under Florida law, convey the prop-
erty to Mobil’s predecessor in interest.
Mobil’s position is that the Peace River
was not navigable on March 3, 1845, so
that the state received the disputed
lands in 1850 as nonsovereignty lands,

and the 1862 deed, under Florida law,

-20a-

conveyed the property to Mobil’s pre-
decessor in interest.

The sole significance in this
case of the navigability of the Peace
River in 1845 is that the State of Florida
elects to denominate lands acquired from
the United States under the equal footing
doctrine as sovereign lands and to re-
strict the alienability of those lands.
The federal question relied on by the
appellees is a mere criterion which Flor-
ida chooses to adopt as the determinant
of a rule of state real property law.
In 1862, before the state deeded the
disputed property to Mobil’s predeces-
sor in interest, the state was at absolute
liberty, so far as federal law was con-
cerned, to treat the property as it
wished. If the property was subject to
restrictions on alienation, those
restrictions were imposed by state law.
That the state chose to look to the equal

-2la-

footing origin of the lands as fixing
forever their sovereign character is no
predicate for federal jurisdiction.
Properly viewed, then, the
question which is asserted to support the
jurisdiction of the district court is
incidental to Mobil’s claim and not at
its essence; nor does the fact that a
determination of navigability may resolve
the controversy alter our conclusion.

The whole foundation of the
duty is [state] law, which at
its sole will incorporated
the other law as it might incor-
porate a document. The other
law or document depends for
its relevance and effect not
on its own force but upon the
law that took it up, so ‘
the cause of action arises
wholly from the law of the
State. . . . The mere adoption
by a State law of a United
States law as a criterion or
test, when the law of the United
States has no force proprio
vigore, does not cause a case
under the State law to be also
a case under the law of the
United States. .. .

-22a-

ith v. Kansas Cit itle & Trust Co.,

255 U.S. 180, 214-15, 41 S.Ct. 243, 250,

65 L.Ed. 577 (1921) (Holmes, J.,
dissenting).

The decision of the Supreme

Court in Oregon ex rel State Land Bd. v.

Corvallis Sand & Gravel Co., 429 U.S.

363, 97 S.Ct. 582, 50 L.Ed.2d 550 (1977),

strongly supports our holding. There,
the State of Oregon had brought a state
court ejectment action against an Oregon
corporation over the ownership of two
portions of land underlying the navigable
Willamette River. One portion had been
within the riverbed since Oregon’s admis-
sion to the Union, while the other had
only later become part of the riverbed
because of changes in the river’s course.
The Oregon courts took the view that
federal common law controlled the dispute
because the extent of a state’s sovereign
right under the equal footing doctrine

-23a-

was a federal question. On this basis,
they awarded the first portion to the
state and the second to the corporation.

On certiorari, the Supreme Court
vacated the judgment and remanded, holding
that ownership of the disputed lands
should be decided solely as a matter of
Oregon law and not federal common law,
because application of federal common
law was required neither by the equal

footing doctrine nor by any other

principle of federal law. So holding,
the Court overruled Bonelli Cattle Co. .
v. Ari ma, 414 U.S. 313, 94 S.Ct. 517,

38 L.Ed.2d 526 (1973), and repudiated
Bonelli’s holding that the nature of
the title conferred by the equal footing
doctrine is governed by federal common
law. 429 U.S. at 369-70, 97 S.Ct. at
586-587. ‘*”Although federal law may fix
the initial boundary line between fast
lands and the riverbeds at the time of

-24a-

a State’s admission to the Union, the
State’s title to the riverbed vests abso-
lutely as of the time of its admission
and is not subject to later defeasance
by operation of any doctrine of federal
common law.” Id. at 370-371, 97 S.Ct.
at 5687. Most significantly here, the
Court reaffirmed that:

[W]henever the question in
any Court, state or federal,
is, whether a title to land
which had once been the property
of the United States has passed,
that question must be resolved
by the laws of the United
States; but... whenever,
according to those laws, the
title shall have passed, then
that property, like all other
property in the state, is sub-
ject to state legislation; so
far as that legislation is
consistent with the admission
that the title passed and vested
according to the laws of the
United States.

Id. at 377, 97 S.Ct. at 590, quoting

Wilcox v. Jackson, 13 Pet. 498, 517, 10

L.Ed. 264 (1839) (emphasis in original).

-25a-

The Trustees and Coastal would
limit Corvallis to title disputes in which
the parties agree that the lands pre-
viously acquired by the state were ac-
quired as sovereignty lands. The Supreme

Court in Corvallis foreclosed this inter-

pretation of its decision. The Court
held that state law governs the disposi-
tion of property held by a state regard-
less of whether or not the state acquired
the property as sovereignty land under
the equal footing doctrine:

Thus, if the lands at
issue did pass under the equal-
footing doctrine, state title
is not subject to defeasance
and state law governs subsequent
dispositions.

* * * * * *

A similar result obtains
in the case of riparian lands
which did not pass under the
equal footing doctrine. This
Court has consistently held that
state law governs issues relat-
ing to this property, like
other real property, unless
some other principle of federal
law requires a different result.

-26a-

429 U.&. at 378, 97 $.Ct. at 591.

The appellees insist that the
pivotal issue in this case is indeed, as
Corvallis requires, "whether a title to
land which had once been the property of
the United States has passed,” because
the principal controversy is whether the
Trustees acquired title to the disputed
lands in 1845 under the equal footing
doctrine, or in 1850 as swamp and overflow
lands. But there is no question in this
case whether, in the sense obviously
intended by Corvallis, title to the dis-
puted land has passed; the parties agree
that it has. The issue is whether, under
Florida law, the 1862 deed to Mobil’s
predecessor conveyed the disputed cane
erty. That Florida chooses to answer
this question by inquiring by what means
it initially acquired title to the prop-

erty does not alter the fact that this

=27a°

is a case in which, title having passed
to the state, state law controls.

A case bearing more directly
on the collateral relationship between
the navigability of the Peace River in
1845 and the present controversy is Mil-
ler’s Executors v. Swann, 150 U.S. 132,
14 8.Ct. 52, 37 &.BG@. 1628 (e692). In
Swamn, Congress had granted public lands
to che State of Alabama to aid in the
construction of railroads. The Act grant-
ing the land provided explicit conditions
governing any further conveyance by the
State. The State conveyed the land to
a railroad company, retaining a mortgage
whose terms paralleled the conditions
imposed by Congress. Upon the bankruptcy
of the railroad, the State and a vendee
of the railroad both claimed a certain
parcel of land, disputing whether the
railroad had sufficiently complied with

the conditions of the Act of Congress

-28a-

(as incorporated in the mortgage) to
give it the power to convey to the third
party claimant. The Alabama Sunreme
Court determined that the conditions
had not been met, and that the State
was entitled to the land. On appeal to
the United States Supreme Court, the
Court concluded that it was without
jurisdiction to hear the matter for want
of a federal question:

Now, whether [the Supreme Court
of Alabama’s] was a correct
construction or not of the
act [conveying the land to
the railroad] and the reserva-
tion of the mortgage, is a
purely local question, and
involves nothing of a federal
character. The question is not
what rights passed to the state
under the acts of congress,
but what authority the railroad
company had under the statute
of the state. The construction
of such a statute is a matter
for the state court, and its
determination thereof is binding
on this court. The fact that
the state statute and the mort-
gage refer to certain acts of
congress as prescribing the rule
and measure of the rights grant-
ed by the state does not make

-29a-

the determination of such rights
a federal question. A_state
may prescribe the procedure
in the federal courts as the
rule of practice in i:s own
tribunals: it may authorize
the disposal of its own lands
in accordance with the provis-
ions for the sale of the public
lands of the United States;
and in such cases an examina-
tion may be necessary of the
acts of congress, the rules
of the federa courts

the practices of the land de-
partment, and yet the questions
for decision would not be of
a federal character. The in-
quiry along federal lines is
only incidental to a determi-
nation of the local question
of what the state has required

and prescribed. The matter
decided is one of state rule
and practice. The facts by

which that state rule and prac-
tice are determined may be of

a federal origin.

Id. at 136-37, 14 S.Ct. at 54 (emphasis
added).

We find nothing in the case law

since Swann that causes us to question

its currency, see, e.g., Moore v. Chesa-

peake & Ohio Ry. Co., 291 U.S. 205, 54

S.Ct. 402, 78 L.Ed. 755 (1934); Morris

v. Danna, 411 F.Supp. 1300 (D. Minn.

-30a-

1976), aff’d, 547 F.2d 436 (8th Cir.
1977), or its obvious applicability to
this case.

Our conclusion that the district
court has no jurisdiction of this case
comports with the fact that there is no
federal interest whatever in the resolu-
tion of this controversy. Federal law
is appropriately indifferent to Florida’s
invocation or application of a federal
test of navigability as a precondition
to determining a question of state law.
The appellees direct us to United States

v. Holt State Bank, 270 U.S. 49, 55-56,

46 S.Ct. 197, 199, 70 L.Ed. 465 (1926),
in which the Court held that "Navig-
ability, when asserted as the basis of
a right arising under the Constitution
of the United States, is necessarily a
question of federal law to be determined
according to the general rule recognized

and applied in the federal courts.

-3la-

To treat the question as turning on the
varying local rules would give the Con-
stitution a diversified operation where
uniformity was intended.” Here, not as
in Holt State Bank, neither party asserts
navigability as the basis of a right
arising under the Constitution or laws
of the United States. Moreover, no uni-
form interpretation of federal law is
intended or needed when the federal law
exerts no force proprio vigore but is
merely set up by the state as a criterion

by which to decide a state law question.

Pee

We hold, then, that the district
court lacks jurisdiction of this case.
The judgment appealed in No. 81-5533 is
vacated, and on receipt of the mandate

the district court shall remand the case

-32a-

to the state court. The injunction ap-
pealled in No. 81-5812 is dissolved.*

VACATED, with instructions.

6867-98.6

. We note that on October 15,
1981, the district court extended the
injunction in this case to apply to
American Cyanamid Company which is
involved in a similar lawsuit against
Coastal. American Cyanamid Company’s
appeal of that injunction is now pending
before this court in Case No. 81-6061.

-33a-

APPENDIX D

IN THE UNITED STATES DISTRICT
COURT FOR THE NORTHERN DISTRICT
OF FLORIDA
TALLAHASSEE DIVISION

COASTAL PETROLEUM )
COMPANY, et al.,

)

)
vs. TCA 77-0946

Plaintiffs,

INTERNATIONAL MINERALS
& CHEMICAL CORPORATION, )

Defendant. )

COASTAL PETROLEUM )
COMPANY, et al.,

Plaintiffs,
vs. TCA 77-0971

U.S.S. AGRI-
CHEMICALS, )

Defendant. )

-34a-

COASTAL PETROLEUM )
COMPANY, et al.,

Plaintiffs,
vs. )TCA 77-0972

SWIFT AGRICULTURAL )
CHEMICALS
CORPORATION, )

Defendant. )

COASTAL PETROLEUM )
COMPANY, et al.,

Plaintiffs,
vs. TCA 77-0973

AGRICO CHEMICAL
COMPANY, )

Defendant. )

COASTAL PETROLEUM )
COMPANY, et al.,

Plaintiffs,
Vs. TCA 77-0974

W. R. GRACE &
COMPANY, )

Defendant. )

-35a-

COASTAL PETROLEUM )
COMPANY, et al.,

Plaintiffs,
vs. TCA 77-0975

AMERICAN CYNAMID
=

Trustees to Coastal which forms the basis
for Coastal’s claim here. The issue
was solely one of construction of the
lease instrument. The court concluded
that, since Lake Hancock was not one of
the bodies cf water specifically named
in the lease, the submerged lands covered
by the lease did not include those lying
beneath Lake Hancock.

The following passage appears
in the Burns opinion:

It is admitted that Lake
Hancock is not mentioned in
any of the lease documents
but is a sovereign body of
navigable water meandered by
the government and within the
jurisdiction of the Trustees.
It is also admitted that Lake
Hancock is the headwater of
Peace River and flows through
natural channels into the Gulf
of Mexico. Lake Hancock does
not flow directly into Cohanzy
Creek which flows into Peach
Creek which empties into Peace
River. The southern portion
of Peace River, from its mouth
northward to the line between
Townships 38/39, is meandered
and within the jurisdiction of
the Trustees. However, Peace

-58a-

River north of Township 38/39

is not meandered and does not
belon to th State. That

ls, Peace River for a distance
of 40 miles south of Lake Han-
cock is _ in private ownership.

(emphasis supplied)

194 So.2d at 74. Defendants claim that

Since both plaintiff and the State of

Florida were parties to Burns, they should
be bound by the determination that the
Peace River north of the line between
Townships 38 and 39 is privately owned
and collaterally estopped to re-litigate
this question.

In a diversity action state
law governs the applicability of the
doctrine or collateral estoppel. See

Breeland v. Security Insurance Co., 421
F.2d 918 (5th Cir. 1969); Annotation,

State or Federal Law as Governing Applica-

bility of Doctrine of Res Judicata or

Collateral Estoppel in Federal Court

Action, 19 ALR Fed. 709, § 3(a), and cases

cited therein. The general ruies relating

-59a-

to collateral estoppel in Florida are

set out in Mobile Oil Corp. v. Shevin,
354 So.2d 372 (Fla. 1977):

Collateral estoppel, or estoppel
by judgment, is a judicial
doctrine which in general terms
prevents identical parties
from relitigating issues that
have previously been decided
between them. The essential
elements of the doctrine are
that the parties and issues
be identical, and that the
particular matter be fully
litigated and determined in a
contest which results in a
final decision of a court of
competent jurisdiction.

354 So.2d at 374.

For at least two reasons col-
lateral estoppel cannot be applied in
this case. First, the parties are not
identical to those in Burns. Although
both Coastal and State of Florida were
parties to Burns, the defendants were
not.

Second, it is clear that the
question of state ownership of the Peace
River north of Townships 38/39 was not

-60a-

an issue in Burns and thus was not “fully
litigated and determined.” As noted
above, the only question on appeal was
wheti.er Lake Hancock was included within
the terms of Coastal’s mineral lease.
Neither navigability nor sovereign owner-
ship of the river was directly presented
as an issue. The statement of the court
concerning private ownership of a portion
of the river was mere dicta, since it
was not necessary to the question of
construction of the lease.* State ex
rel. Biscayne Kennel Club v. Board of
Business Regulation, 276 So.2d 823, 826

(Fla. 1973).
ORDER

It is ORDERED AND ADJUDGED:

4 Additionally, it is now obvious,
after Odom, that the Burns court’s
conclusion was erroneous as a matter of
law. A lack of meandering creates a
rebuttable, not aconclusive, presumption
of non-navigability.

-6la-

1. The rulings made above
concerning Qdom v. Deltona Corp., 341
$0o.2a 977 (Fla. 1977), and Burns v. Coast-
al Petroleum Co., 194 So.2d 71 (Fla.
lst D.C.A. 1967), shall govern the further
course of this litigation.

2 On or before February l,
1979, counsel for all parties shall submit
proposed agenda for the conduct of further
discovery in these cases.

DONE AND ORDERED this 10th
day of January, 1979.

wi
WILLIAM STAFFORD
UNITED STATES DISTRICT JUDGE

103-1

-62a-

APPENDIX E
UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT

Nos. 81-6083, 81-6094,
- - 4.

COASTAL PETROLEUM COM- )
PANY, a Florida Corpora-
tion, and The United )
States Army Corps of
Engineers, The State of )
Florida Department of
Natural Resources and )
The Board of Trustees

of the Internal Improve- )
ment Trust Fund of

the State of Florida, )

Plaintiffs-Appellees, )
Vv. )

U.S.S. AGRI-CHEMICALS, )
A DIVISION OF UNITED
STATES STEEL CORPORA- )
TION, a Delaware Cor-
poration authorized to )
do business in Florida,

Defendant-Appellant,

COASTAL PETROLEUM COM-
PANY and The State of )
Florida Department of
Natural Resources and )
The Board of Trustees
of the Internal Improve- )
ment Trust Fund of the
State of Florida, )

Plaintiffs-Appellees, )

-63a-

Vv.

INTERNATIONAL MINERALS
& CHEMICAL CORPORATION,

Defendant~-Appellant,
COASTAL PETROLEUM COM-
PANY, a Florida Corpora-
tion,

Plaintiff-Appellee,
The State of Florida,
Department of Natural

Resources, etc., et al.,

Involuntary
Plaintiffs-Appellees,

Vv.

W.R. GRACE & COMPANY,
a Florida Corporation,

Defendant-Appellant.
COASTAL PETROLEUM COM-
PANY, a Florida Corpora-
tion,

Plaintiff-Appellee,

The State of Florida
Department of Natural
Resources,

Involuntary
Plaintiffs,

-64a-

SWIFT AGRICULTURAL )
CHEMICALS CORP.,

a Delaware corporation, )
authorized to do busi-
ness in Florida, now )
Estech General Chemicals
Corporation, )

Defendant-Appellant. )

Appeals from the Ur.ited States District
Court for the Northern District of
Florida

Jan. 17, 1983
Before HILL and HENDERSON, Circuit
Judges, and GARZA, Senior Circuit Judge:

JAMES C. HILL, Circuit Judge:

This is a consolidated appeal
of four cases. Defendants are appealing
the propriety of an injunction issued by
the district court, and that court’s
conclusion that subject matter jurisdic-
tion existed. For the reasons stated

below we reverse.

-65a-

HISTORY

The basis of this case is a
title dispute involving a complex )roce-
dural history which we will only briefly
summarize. In 1976, Mobil Oil Corpo‘ation
[hereinafter Mobil] filed suit in aFlor-
ida State Court seeking a decla‘ation
of its rights under an oil explo’ation
agreement it had with Coastal Pet’oleum
Company [hereinafter Coastal}. oOastal
filed several counterclaims incuding
one alleging Mobil’s conversion of phos-
phate ore from certain rivers in Fbrida.
Coastal, was joined in its counterlain,
by the Board of Trustees of the Irnernal
Improvement Trust Fund of the Stite of
Florida and the Department of Mtural

Resources! {hereinafter collectively

1 The Board of Trustees wasmerged
into the Department of Natural Resources
in 1975 by Florida Statute, chapter 75-
22. Since then the legislature hs made

-66a-

referred to as Trustees].

Mobil filed a reply counterclaim
seeking a declaration of the parties’
rights based upon an 1862 deed granted
by the Trustees to. Mobil’s predecessor
in interest which raised the issue of the
navigability of certain waters in Florida
that were in dispute. Based upon Mobil’s
counterclaim, Coastal and the Trustees
removed the action to federal court as-
serting federal question jurisdiction.
Coastal’s and the Trustees’ allegation
of federal question jurisdiction is based
upon the contention that Mobil’s reply
counterclaim raised the issue of whether

the Peace River was a navigable body of

it clear that the Trustees are still a
viable independent agency, holding title
to certain lands and having the authority
to control those lands. Laws of Florida
Ch. 79-255 § 1 (1979). It is clear from
the legislative history that the merger
took nothing away from this agency and
was undoubtedly effectuated for admini-
strative convenience.

-67a-

water. Their position derives from the
State’s acquisition of Peace River and
the lands beneath it back in 1845 when
Florida was admitted to the Union. If,
at the time of the statehood, the Peace
River was navigable, then the lands passed
from the United States to Florida as
sovereign lands under the equal footing
doctrine.* If the state received these
lands as sovereign lands, then, according
to Coastal and the Trustees, the 1862
deed leasing these lands to Mobil’s prede-
cessors in interest was invalid. Whether

the Peace River was navigable on the

- The equal footing doctrine
states: “the new States .. . have the
same rights, sovereignty and jurisdiction

- .- - aS the original States possess
within their respective borders.” Mumford
v. W WwW , 6 Wald. C73 VU.G.) 423, 18
L.Ed. 756 (1867). According to Pollard’s
Lessee v. Hagan, 3 How. (44 U.S.), 212,
11 L.Ed. 565 (1845), under the equal
footing doctrine, upon admission to the
Union, new States acquire title to the
lands underlying navigable waters within
their boundaries.

-68a-

date Florida was admitted to the union,
according to Coastal and the Trustees,
presents a substantial federal question.
The appellees argue that the passing of
title is a federally created right which
should be governed by federal law.
Mobil, however, contends that
the Peace River was not navigable at
the time of statehood, and therefore,
the lands did not pass to Florida as
sovereignty lands. Mobil suggests that
Florida received the lands in 1850 under
the Swamp and Overflow Lands Grant Act,
9 Stat. 520, codified at 43 U.S.C. § 982
(1976). Accordingly, Mobil maintains
that its reply counterclaim does not
raise the issue of the navigability of
the Peace River, but rather a typical
title dispute between Florida land claim-
ants, each of whom derived its claim
from the State. Because this is only a
title dispute concerning Florida law,

-69a-

there should be no federal question juris-
diction.

Prior to any determination by
the district court as to the viability
of Coastal’s and the Trustees’ claim of
federal question jurisdiction, Coastal
filed suits, similar to its conversion
suit against Mobil, against five other
mining companies four of which were based
on both federal question? and diversity

of citizenship’? jurisdiction. The five

3 28 U.3.G. -§ SO9Rtes - FEES)
provides:

The district courts shall have
original jurisdiction of all
civil actions arising under
the Constitution, laws, or
treaties of the United States.

4 28. B.8:€. -§.4352(03— (2976)
provides in pertinent part:

The dist” .ct courts shall have
original jurisdiction of all
civil actions where the matter
in cuwntroversy exceeds the
sum or value of $10,000, exclu-
sive of interest and costs,
and is between--(1) citizens
of different states. ...

-70a-

mining companies were: American Cyanamid
Company, USS Agri-Chemicals, Estech Gen-
eral Chemical Corporation, International
Minerals and Chemical Corporation and
W.R. Grace and Company.

Coastal’s new contention of
diversity of citizenship was based on
its belief that the Trustees, although
an agency of the State, were sufficiently
independent from the state as to qualify
them as a citizen. If the Trustees are
a citizen of the state of Florida, then
complete diversity exists entitling them
to subject matter jurisdiction in the
federal court. Subsequent to Coastai’s
initiation of the suits in federal court,
four of the six mining companies initiated
quit title actions in the Florida state
court system. Coastal then sought and
obtained an injunction issued from the
district court which extended to all

six mining companies, enjoining all part-

“Fia@-

ies from instituting any lawsuit, in
state or federal court, involving any
of the issues to be considered in the
cenversion suits. Mobil and American
Cyanamid Company appealed the issuing
of the injunction to the Eleventh Circuit
and both companies have succeeded in
dissolving the injunction as it pertains
to them.°

The remaining four defendants
are challenging the propriety of the same
injunction issued by the district court
and are appealing that court’s conclusion
of the existence of subject matter juris-

diction.
FEDERAL QUESTION JURISDICTION

The @Gistrict court’s order

5 Mobil Oil Corp. v. Coastal
Petroleum, 671 F.2d 419 (llth Cir.),
cert... denied, U.S. , 163 §.Ct.
300, 74 L.Ed.2G 281 (1982) ; Coastal Petro-

leum v. American Cyanamid Co., 673 F.2d
1343 (llth Cir. 1982).

-72a-

concluding that federal question juris-
diction existed was issued prior to this
court’s opinion in Mobil Oil Corporation
v. Coastal Petroleum Company, 671 F.2d
419 (llth Cir. 1982). In Mobil, where
the identical title disputes were raised,
this court concluded that the “question
of title to land which depended upon
whether state land was subject to restric-
tions on alienation did not present a
federal question merely because the issue
of whether the river was navigable was
involved. ...” Id. at 424.

Because we have concluded that
federal question jurisdiction did not
exist in Mobil, we also conclude that
there is no federal question presented
as against the remaining four mining
companies. Although Coastal attempts
to assert other reasons upon which federal
question jurisdiction exists, we find

the arguments without merit.

-73a-

DIVERSITY JURISDICTION

For purposes of diversity juris-

diction a state is not a citizen of any
state. Postal Telegraph Cable Co. v.
Alabama, 155 U.S. 482, 15 S.Ct. 192, 39
L.Ed. 231 (1894); seeC. Wright, A. Miller
andE. Cooper, Federal Practice and Proce-
dure: Jurisdiction § 3602 n.13 (1975).
Whether the Trustees are considered a
"State” for purposes of diversity, or
whether they qualify as a separate and
independent agency is the threshold ques-
tion. If the Trustees are considered
part of the State so that they are not
a “citizen” within the meaning of § 1332,
then complete diversity would not exist.
See Strawbridge v. Curtis, 7 U.S.
(3 Cranch) 267, L.Ed. 435 (1806).

This court, in Aerojet-General
Corporation v. Askew, 453 F.2d 819 (5th

Cir. 1971), resolved the question of

-74a-

whether the Trustees qualify as being

sufficiently independent to be considered
a “citizen” for purposes of diversity
jurisdiction. In Aerojet, suit for spe-
cific performance was brought against
the Trustees and the Florida State Board
of Education. The court, after examining
Florida law, and in determining whether
the Board could rely on the eleventh
amendment state immunity doctrine, con-
cluded that “this suit does not constitute
an action against the State of Florida
and is, therefore, not barred by the
eleventh amendment to the United State
Constitution, as to either of the two
state boards in question.” Id. at 830,
see Farrugia v. Askew, 371 F.Supp. 736
(N.D. Florida 1973). Although the deter-
mination made by the court in Aerojet
concerned eleventh amendment immunity,
we conc ude that the analysis for deter-
mining the Board’s status as a “citizen”

-75a-

for the purposes of diversity is the
same. The court in Aerojet relied heavily
on the fact that the appropriate Florida
statutes had vested title to the land
in question with the Trustees. Similarly,
in the instant case, title of the land
in dispute has been vested with the Trust-
ees. ©

The district court used a multi-
factor analysis in holding that the Trust-
ees are sufficiently separate and indepen-
dent from the state so as to confer “citi-
zen” status upon then. These factors
have been approved by this circuit and
are as follows: (1) whether the agency
can be sued in its own name; (2) whether

the agency can implead and be impleaded

6 Florida Stat. § 253.12(1)
states: “Except submerged lands hereto-
fore conveyed by deed or statute, the
title to all sovereignty tidal and sub-
merged bottom lands .. . and all submer-
ged lanes owned by the state... is
vested in the Board of Trustees of the
Internal Improvement Fund.”

-76a-

in any competent court; (3) whether the
agency can contract in its own name;
(4) whether the agency can acquire, hold
title to, and dispose of property in
its own name; and (5) whether the agency
can be considered a "body corporate”
having the rights, powers and immunities

incident to corporations. See cC.H. Leav-

all_ and Co. v. Board of Commissions of

Port of New Orleans, 424 F.2d 764 (5th

Cir. 1970); Central Stikstof Verkoopkan-

tor, N.V. v. Alabama State Docks Depart-

ment, 415 F.2d 452 (5th Cir. 1969).
Because the state has vested title of
the land in the Trustees and because
the Trustees have acted and continue to
act aS a separate and distinct entity
from the state, we hold that the trustees
are a citizen within the meaning of diver-
Sity jurisdiction under 28 U.S.C. § 1332

(1976).

-77a-

THE INJUNCTION

Having established that juris-
diction exists, we turn to the merits
of this case, the issuance of an injunc-
tion. Under the anti-injunction statute:
“kh court of the United States may not
grant an injunction to stay proceedings
in a state court except as expressly
authorized by an Act of Congress, or
where necessary in aid of its jurisdic-
tions, or to protect to effectuate its
judgments.” 28 U.8.¢. § 22863 (i376).
The district in granting the injunction
stated:

At this stage of the litiga-
tion . . . it would be imprudent
to have the same issues litigat-
ed in state courts; the issue
should be tried one time by
one court in order to save
both time and expense and avoid
duplicitous litigation. No
party should be allowed to
circumvent this court’s rulings
by filing quiet title actions
in state court. The court
determines that an injunction
is necessary in aid of its

-78a-

jurisdiction.

The anti-injunction statute
has been interpreted very narrowly by
the Supreme Court. / According to the
Fifth Circuit, the phrase “where necessary
in aid of its jurisdiction” “should be
interpreted narrowly, in the direction

of federal non-interference with orderly

state proceedings.” T. Smith & Sons,

Inc. v. Williams, 275 F.2d 397, 407 (5th
Cir. 1960). This court has clearly stated

that an “action may be proved simultane-
ously in state and federal court and
the federal court cannot enjoin the state
even if the federal suit was filed first.”
Carter v. Ogden Corp., 524 F.2d 74, 76
(Sth Cir. 1975).

The district court, in issuing

7 See Mitchum v. Foster, 407
UeSe 240, 9a &.CC. 22391, 32 Le EG.24

(1972); Atlantic Coast Line R.R. Co. v.
Brotherhoo fe) ocomotive ngineers,
3938 U.S. 281, 90 §$.Ct. 1739, 26 L.Ed.2a
234 (1970).

-79a-

the injunction haa concluded that’ featral
question jurisdiction existed. Based
upon this conclusion, the court desired
not to have the same issues litigated
both in state and federal court particu-
larly when there was a substantial federal
questicn being raised. We have not con-
cluded that there is no federal question.
This case now comes into the federal
court based solely upon diversity of
citizenship. We, therefore, reverse
the district court’s issuing of the in-
junction.

The issues now remaining in
the Coastal suit involve questions depen-
dent entirely upon state law. Under
the Erie doctrine, when a federal court
is adjudicating rights created by the
state, based solely on diversity of citi-
zenship, the federal court, in effect,
becomes just another state court for the
purposes of determining the outcome of

-80a-

the case.® Accordingly, the district
court, in this instance, would now be
compelled to apply state law in the same
manner as the state court. Therefore,
there is no longer any compelling need
for federal jurisdiction and no compelling
need for the court to issue an injunction
to protect is jurisdiction. Whether
the injunction would have been proper
assuming federal question jurisdiction
existed is not an issue presently before
this court and therefore, we do not reach
the merits of this question.

Coastal and the trustees contend
that the district court also issued the
injunction to effect or protect its judg-
ment. The appellees argue that there
was a final judgment in this case in

need of protection. Their contention

8 see Guaranty Trust Co. v. York,
326 U.S. 99, 108, 65 S.Ct. 1464, 1469,

89 L.Ed. 2079 (1944); see also C. Wright,
Federal Courts § 55 256 (3d ed. 1976).

-8ia~

is based on the district court’s order

of January 10, 1979. This order resulted
from the appellant’s request that an
early ruling on special legal issues be
granted by the court. Appellants put
forth several defenses which they asserted
would resolve many of the issues, citing

Odom_v. Deltona Corp., 341 So.2d 977

(Fla. 1977) as precedent. The court
reviewed the briefs submitted by all
parties and concluded that several of
*he defenses raised by the appellants
were without merit. The court ordered
its ruling pertaining to these defenses
to govern the rest of the litigation.
This order is simply a non-
appealable interlocutory order. To fit
into the “protect and effectuate judgment”
exception, the order must be a final
judgment. See International Association

of Mechanics and Aerospace Workers v.

Nix, 512 F.2a€ 125, 129-33 (5th Cir. 1975).

-82a-

The word “judgment” is defined as “any
order from which an appeal lies.” Federal
Rule Civil Procedure 54. According to

Southern Methodist University Association
v. Wynne and Jaffe, 599 F.2d 707 (5th

Cir. 1979),

28 U.S.C. § 1291 empowers the
courts of appeal to hear “ap-
peals from all final decisions
of the district courts.” Gen-
erally, this means ”all decision
by the District Court that
‘ends the litigation on the
merits and leaves nothing for
the court to do but execute
the judgment.’” Southern Metho-
dist, 599 F.2d at 711 citing
Coopers and Lybrand v. Livesay,
437 U.S. 463, 98 S.Ct. 2454,
57 L.Ed.2d 351 (1978), quoting
Catlin v. United States, 324
U.S. 229, 233, 65 $.Ct. 631i,
633, 89 L.Ed. 911 (1945).

An early order given prior to
trial, eliminating certain defenses,
does not constitute a final judgment
within the meaning of § 2283. This order
has not eliminated the need for a trial
on the merits nor has it resolved many

of the remaining factual and legal ques-

-83a-

tions.

Because we find that the issuing
of the injunction does not fall within
any of the recognized exceptions to the
Anti-Injunction statute, we -conclude
the district court abused its discretion
and we reverse, dissolving the injunction.

REVERSED.

98-8

-84a-

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385011_2378%3A2. Public record. Not legal advice.
