# Petition for Writ of Certiorari — Lee v. Eklutna, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition for Writ of Certiorari
- **Published:** January 1, 1988
- **Citation:** 484 U.S. 1041

## Text

fe al
87-642 PRET
| CT 29 yee7

vOSEPH FL SFANIOL JR
Ct Eben

No. 8/7-

IN THE
SUPREME COURT OF THE UNITED STATES

October Term, 1987

LEE, RALPH A. EKLUND

CORA CARR,

JAMES W.

‘
AN
ana

Petitioners,

EKLUTNA, INC., COOK INLET
REGION, INC., UNITED STATES
AMERICA, SECRETARY OF THE
INTERIOR, and DIRECTOR,
RUREAU OF LAND MANAGEMENT,

OF

Respondents.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT
OF APPEALS FOR THE NINTH CIRCUIT

Steven P. Cliver

720 M Street, Suite 20]
Anchorage, Alaska 99501
(907) 276-6106

Counsel for Petitioners

QUESTIONS PRESENTED FOR REVIEW

Ls Jurisdiction under the Quiet
Title Act of 1972 is limited to suits
against the United States concerning land
in which the United States claims an in-
terest, 28 U.S.C. §2409a(a), (e). In
1979 the United States disclaimed all
interest in certain lands when it patent-
ed lands in fee (and not in trust) to
private entities under 43 U.S.C. §1613.
Petitioners thereafter sued these private
patentees to establish petitioners' supe-
rior title under the homestead laws, 43
U.S.C. §161 et seg, invoking jurisdiction
under 28 U.S.C. §1331.

Was it proper for a Court of Appeals
to create a novel requirement that home-
stead claimants must sue the United
States under the Quiet Title Act as an
indispensable party, in whose’ absence

homesteaders' actions against private

patentees could not proceed, thus extend-
ing to private party patentees the bene-
fit of the Quiet Title Act's statute of
limitations, 28 U.S.C. §2409a(g)?

es The Secretary of the Interior
misrepresented the legal status of dis-
puted lands when asked by petitioners
in 1959. If petitioners must sue under
the Quiet Title Act on any of their caus-
es of action, is that Act's statute of
limitations, 28 U.S.C. §2409a(g), tolled
because of the government's active con-
cealment that the lands were subject to

entry under 16 U.S.C. §818?

ii

TABLE OF CONTENTS

QUESTIONS PRESENTED FOR REVIEW
TABLE OF AUTHORITIES

PETITION FOR WRIT OF CERTIORARI
Opinions Below

Jurisdiction

Statutes

STATEMENT

REASONS FOR GRANTING THE WRIT

I PETITIONERS NEED NOT SUE
THE UNITED STATES TO ESTABLISH
THEIR HOMESTEAD TITLES

A. Petitioners' Claims
Against Private Parties
Do Not Require the
United States to be a
Party Defendant.

B. This Court Has Already
Decided That the United
States Is Not a Necessary
Party in Suits Between
Private Parties.

C. The United States Is Not
a Trustee of These Lands.

D. The Quiet Title Act Was
Not Intended to Shield
Patentees From Enforcement
of Superior Title Under
the Public Lands Statutes.

Se

vi

12

16

16

21

26

27

Il PETITIONERS' CLAIMS UNDER ANCSA
§22(b) ARE LIMITED ONLY BY
43 U.S.C. §1632(a). aa

Lid THE QUIET TITLE ACT'S STATUTE
OF LIMITATIONS SHOULD BE
TOLLED BY THE GOVERNMENT'S
MISREPRESENTATIONS OF THE
STATUS OF THE LANDS CLAIMED

BY PETITIONERS. 37
Conclusion 42
APPENDIX la

Order and Second Amended Opinion
of the United States Court of
Appeals for the Ninth Circuit,
April 17, 1987 2a

Amended Opinion of the United States
District Court for the District
of Alaska, February 28, 1986 l6a

Judgement of the United States Court
of Appeals for the Ninth Circuit,
entered 3-10-87 48a

Order denying petition for rehearing
from Second Amended Opinion of
United States Court of Appeals
for the Ninth Circuit,

July 22, 1987 50a
Federal Power Act of 1920, §24;
16 U.S.C. §818 52a
Quiet Title Act of 1972, as amended;
28 U.S.C. §2409a 54a
43 0.8.C. $161 58a
iv

43 U.S.C. $164 e

Alaska Native Claims Settlement Act,
§2(b); 43 U.S.C. §1601(b)

Alaska Native Claims Settlement Act,
§14(g); 43 U.S.C. §1613(g)

Alaska Native Claims Settlement Act,
§22(b); 43 U.S.C. §1621(b)

43 U.S.C. $1632(a)

AS (Alaska Statutes) 9.10.230

58a

6la

TABLE OF AUTHORITIES

Alaska v. Thorson, 91 1I1.D. 331 (1984) 32

Ard v. Brandon, 156 U.S. 537 (1895)

5, 24, 25
Arizona v. California, 298 U.S. 558
(1936) 17
Block v. North Dakota, 461 U.S. 273
(1983) 13, 26, 282 342 38
Bockfinger v. Foster, 190 U.S. 116
(1903) 23, 24
~ Bohall v. Dilla, 114 U.S. 47 (1884) i)
Bourdieu v. Pacific Oil Co.,
299 U.S. 65 (1936) 14, 18
Bowen v. City of New York, 106 S.Ct.
2022 (1986) 38, 39
Cattle Co. v. Becker, 147 U.S. 47 23

Cornelius v. Kessel, 128 U.S.
456 (1888) 24

Daniels v. Wagner, 237 U.S. 547
(1915) 21, 23

Duluth & Iron Range R. Co. v. Roy,
173 U.S. 587 (1899) 8, 9, 24, 25

Economic Development and Industrial
Corp. v. United States, 720
F.2d 1 (lst Cir. 1983) 10, 12, 29

In re Emblen, 161 U.S. 52 (1896) 226 aa

vi

Federal Marine Terminals, Inc. v.
Burnside Shipping Co., Ltd.,

394 U.S. 404 (1969) 9
Garland v. Wynn, 20 How. 6 (1857) 9
Glus v. Brooklyn Eastern District

Terminal, 359 U.S. 232 (1959) 38
Great Northern Ry. v. Reed, 270 U.S.

539 (1926) 9, 24
Holmberg v. Armbrecht, 327 U.S. 392

(1946) 38
Johnson v. Towsley, 80 U.S. (13 Wall.)

72 (1871) 8, 9, 22, 23, 25
Kale v. United States, 489 F.2d

449 (9th Cir. 1973) 25
Kansas v. United States, 204 U.S.

331 (1907) 17
Knapp v. Alexander-Edgar Lumber Co.,

137 U.S. 162 (1915) 23
Larson v. Domestic & Foreign Commerce

Corp., 337 U.S. 682 (1949) 18
Lee v. Johnson, 116 U.S. 48 (1885) 9

Lytle v. Arkansas, 9 How. 314
(1850) 9, 23

McIntyre v. United States, 568 F.Supp.
1 (D.Alaska 1983), aff'd 789 F.2d
1408 (9th Cir. 1986) 11, 20, 24, 25, 26

Marquez v. Frisbie, 101 U.S. 473 22

Vii

Merrill, Lynch, Pierce, Fenner &
Smith, Inc. v. Curran, 456 U.S.
353 (1982) 9

Minnesota v. Hitchcock, 185 U.S.
373 (1962) 17

Moore v. Robbins, 96 U.S. 530
(1877) 9, £240 42

Nichols v. Ryvasy, 809 F.2d 1317
(8th Cir. 1987) 26

Payne v. Central Pacific, 255 U.S.
228 (1921) 9

Payne v. New Mexico, 255 U.S. 367
(1921) 8

Provident Tradesmen's Bank & Trust
Co. v. Patterson, 390 U.S.

102 (1968) 14, 17, 18, 19
Reeves v. Andrus, 465 F.Supp. 1065

(D.Alaska 1979) 4
Shepley v. Cowan, 91 U.S.

330 (1875) te ae
Silver v. Ladd, 74 U.S. 219 (1869) 23
Smelting Co. v. Kemp, 104 U.S. 636 22
Stark v. Starrs, 6 Wall. 402 (1867) 7
Steel v. Refining Co., 106 U.S. 447 22
Turner Co. v. Sawyer, 150 U.S. 578 23

United States v. Atlantic Richfield,
435 F.Supp. 1009 (D.Alaska 1977),
aff'd 612 F.2d 1132 (9th Cir.
1980), cert. den., 449 U.S. 888
(1980) 27

viii

United States v. Beebe, 127 U.S. 338

(1888) 18
United States v. Gammache, 713 F.2d

588 (10th Cir. 1983) 29
United States v. Kubrick, 444 U.S.

111 (1979) 41
United States v. Mottaz, 106 S.Ct.

2224 (1986) kan £96 EO
United States v. Whited & Wheless,

246 U.S. 552 (1918) 29
Wilcox v. Jackson, 38 U.S. 498

(1839) ; 9
Wyoming v. United States, 255 U.S.

489 (1921) 7, 8
Van Wyck v. Knevals, 16 Otto. 360

(1882) 8
Yosemite Valley Case, 15 Wall. 77

(1872) 8
5 U.8.¢. $702 6
Federal Power Act of 1920, §24;

16 U.S.C. §818 ii, 2-5, 8, 39-41
28 U.S.C. $1254(1) 2
28 U.8.€.-$i1233i is -§

Quiet Title Act of 1972;
28 U.S.C. §2409a A, ii, 2, Se
9-13, 15, ahy 24, 27-3h, 33, 35°38, 42

2

43 U.8.C. $161
43 U.S.C. §164 2,

Alaska Native Claims Settlement
Act §2(b); 43 U.S.C. §1601(b)

Alaska Native Claims Settlement
Act §14(g); 43 U.S.C. §1613(g)

Be @e Be thy 15. 32,

Alaska Native Claims Settlement
Act $22(6); 43 U.S.C. Si€2itb)

2, 9, ids Léa»

43 U.S.C. §1632(a)
AS (Alaska Statutes) 9.10.230

Sutherland, Stat. Const., §70.03
(4th Ed.)(Supp. 1987)

6,

aa,

335

2,

2,

35

26

31

36

PETITION FOR WRIT OF CERTIORARI
Petitioners James W. Lee, Ralph A.
Eklund and Cora Carr respectfully pray

that a writ of certiorari issue to review

the judgment and Second Amended Opinion
of the United States Court of Appeals
for the Ninth Circuit entered in this
proceeding.
OPINIONS BELOW
The Second Amended Opinion of the
Court of Appeals is reported at 809 F.2d
1406 and is set forth in the Appendix,
page 2a. The Amended Opinion of the
United States District Court for the
District of Alaska is reported at 629
F.Supp. 721 and appears in the Appendix,
page l6a.
JURISDICTION
The Court of Appeals for the Ninth
Circuit entered a judgment on March 10,

1987. An order denying a petition for

rehearing from its Second Amended Opinion
was entered July 22, 1987. The jurisdic-
tion of this Court is invoked under 28
U.S.C. §1254(1).
STATUTES
This Petition involves the following
statutes: Federal Power Act of 1920 (as
amended), 16 U.S.C. §818; Quiet Title
Act of 1972 (as amended), 28 U.S.C.
§2409a; 43 U.S.C. §161, §164; Alaska Na-
tive Claims Settlement Act §§2, 14(g),
22(b), 43 U.3.C. §§1601, 1613(g),
1621(b), 1632(a); AS (Alaska Statutes)
9.10.230. These statutes are set out
in the Appendix.
STATEMENT
Petitioners!’ in the iate 1950s

staked separate homestead claims to 160--

acre tracts in the Eagle River Valley

1. Mrs. Carr's claim was filed by her late
husband, Warren Carr. The acts of Warren Carr
will be referred to herein as the acts of peti-
tioner Cora Carr.

in Alaska. 43 U.S.C. §§161, 164 provide
that a person shall be entitled to enter
160 acres of land and, upon completion
of residence, cultivation and improvement
requirements, shall be given a patent
for the lands entered. Petitioners per-
formed the statutory requirements’ for
160-acre tracts. CR-87; CR-80; CR-79,
CR-2158.

Parts of each of these tracts were,
prior to 1952, designated as
"pDower-sites" by the Department of the

Interior. 16 U.S.C. §818 (Federal Power

Act of 1920, §24) ("§24 FPA") provides
in part:
Whenever the [Federal Power ]

Commission shall determine that the
value of any lands of the United
States so applied for, or heretofore
or hereafter reserved or classified
aS power Sites, will not be injured
or destroyed for the purposes of
power development by location, entry
or selection under the public-land
laws, the Secretary of the Interior,
upon notice of such determination

shall declare such lands open to lo-
cation, entry, or selection, .. .

The language emphasized by petitioners
was intended to assure that the "not be
injured" determination results in immedi-
ate opening of such lands to homestead
entrymen. Cong. Rec., Vol. 58, pp. 2242-
-2243 (1919). Cf. Reeves v. Andrus, 465
F.Supp. 1065 (D.Alaska 1979).2/

‘In 1952 the Federal Power Commission
determined that the lands here involved
will not be injured or destroyed for
purposes of power development by lo-
cation or entry under the public land
laws, subject to the provision of
Section 24 of the Federal Power Act.
CR-108, Exhibit D to part (D). This was
the "not be injured" determination re-
ferred to in §24 FPA, above. Although

petitioners eventually received patents

to parts of their 160-acre tracts, the

2. There was no legal or practical reason why
petitioners' entry had to await an engineering
survey. Petitioners refrain from elaborating
on this subject because it does not appear mate-
rial to the issues of this petition.

o

BLM refused petitioners their full grant

contained in 43 U.S.C. §164.

Petitioners in 1959 sent a letter
asking the Secretary of the Interior to
look into the matter, the BLM having
advised petitioners that the land was
withdrawn until the Secretary would
release it to them. CR-i0G, Ex. K to

part (Oo). An assistant secretary

\

responded on behalf of the Secretary,

There has been some confusion over
the fact that although the Federal
Power Commission had indicated that
it was no longer interested in the
reserve, the reserve had not been
opened to entry. Any misinformation
is sincerely regretted but the fact
remains that any settlement of the
reserved lands cannot be recognized
under existing law .. . You may
rest assured that we are not going
to take any arbitrary action.

CR-108, Exhibit L to part (D). Lee, Ek-
lund and Carr were ignorant of the actual
terms of §24 FPA. CR-114, Affidavit;

CR-EK-12, Affidavit; CR-159, Affidavit.

They relied on the Secretary's represen-_
tations as to the legal status of the
lands. Id. Petitioners did not suspect
that a statutory violation had caused
the denial of their claims.

Upon discovering their true rights
years later, petitioners in 1979-1982
sued Eklutna and Cook Inlet, to which
entities the lands had then been patented
pursuant to the provisions of the Alaska
Native Claims Settlement Act ("ANCSA"),
43 U.S.C. §1601 et. seq. They filed al-
ternative causes of action against the
United States and federal officers. Jur-
isdiction was grounded on federal ques-
tions, 28 U.S.C. §1331. Alternatively,
petitioners invoked 28 U.S.C. §2409a and
5 U.S.C. §702 to the extent these sta-
tutes might apply.

Petitioners invoked rights and reme-

dies which are settled in federal law,

which petitioners briefly review here
because the courts below did not do so.
When a claimant has complied with the
requirements of the granting statute,
he becomes vested with the equitable ti-

tle to public land, Wyoming v. United

States, 255 G8, 489, 497-498, 507
(1921), of which title "he could not sub-

sequently be deprived". Shepley v. Cowa-

n, 91 U.S. 330, 338 (1875).

Beginning at least with Stark v.
Starrs, 6 Wall. 402, 419 (1867), the law
has been that if the government fails
to issue a patent to the rightful owner
but later conveys the land to subsequent
third parties, that conveyance is charged
with the prior claimant's equitable ti-
tle. The patentee will be declared a
constructive trustee and will be required
by a court of equity to convey the legal

title to the prior claimant. Wyoming,

5

Supra, at 255 U.&. 3503. In 1871, this
was declared to be the "settled doctrine

of this court", Johnson v. Towsley, 80

U.S. (13 Wall.) 72, 85 (1871). In Duluth

& Iron Range R. Co. v. Roy, 173 U.S. 587,

590 (1899) this Court said the principle
was "too well established to need argu-
ment to support or citation of authori-
cy”.

The Secretary's failure to declare
the land open to entry could not prevent
petitioners from receiving the benefits
of §24 FPA. A plaintiff's right to re-
lief is measured by what would have oc-
curred had the BLM timely obeyed the law.

Payne v. New Mexico, 255 U.S. 367, 371

(1921), Wyoming at 255 U.S. 503-504, Van

Wyck v. Knevals, 16 Otto. 360, 367

(1882), The Yosemite Valley Case, 15

Wall. 77, 91 (1872). Remedy is given

accordingly:

If, however, those officers mistake
the law applicable to the facts or
misconstrue the statutes and issue
a patent to one not entitled to it,
the party wronged can resort to a
court of equity to correct the mis-
take and compel the transfer of the
legal title to him as the true owner.
The court in such a case merely di-
rects that to be done which those
officers would have done if no error
of law had been committed.

Lee v. Johnson, 116 U.S. 48, 49 (1885).

Accord, Johnson v. Towsley, 80 U.S. 72,

86 (1871), Bohall v. Dilla, 114 U.S. 47,

51 (1884), Moore v. Robbins, 96 U.S. 530,

535-536 (1877), Duluth, supra, Garland

v. Wynn, 20 How. 6, 8 (1857), Lytle v.

Arkansas, 9 How. 314, 332 (1850), Ard

v. Brandon, 156 U.S. 537, 542-543 (1895),

Great Northern Ry. v. Reed, 270 U.S. 539,

546 (1926).2”

3. These judicially-acknowledged remedies
would exist even had ANCSA contained no savings
provisions such as §§14(g) and 22(b). Wilcox
v. Jackson, 38 U.S. 498, 513 (1839), Payne v.
Central Pacific, 255 U.S. 228, 238 (1921). The
creation of an additional, pre-patent remedy in
the Quiet Title Act did not affect existing reme-

dies against private parties. See Merrill,
Lynch, Pierce, Fenner & Smith, Inc. v. Curran,
456 U.S. 353, 382 n. 66 (1982). Federal Marine

Terminals, Inc. v. Burnside Shipping Co., Ltd.,
394 U.S. 404, 412 (1969).

In the district court no party con-
tended that the United States was an in-
dispensable party to petitioners' causes
of action against the private defendants,
Eklutna and Cook Inlet. The district
court confirmed that the United States
had disclaimed any interest in the lands.
There was no contention or finding that
.a trust existed. The district court held
correctly that the Quiet Title Act of
1972 ("QTA") did not insulate private
parties against petitioners' causes of

action, citing Economic Development and

Industrial Corp. v. United States, 720

F.2d 1, 4 (lst Cir. 1983), 629 F.Supp.
727. The district court, however, dis-
missed some of petitioners' causes of-
action on the theory that they failed
to state a claim for. relief, and
dismissed others on the theory that the

court lacked jurisdiction. 629 F.Supp.

10

721. There was no trial.
The Court of Appeals affirmed. 4/

It did so on the theory, rejected by
the district court, that the QTA barred
all petitioners' causes of action against
private entities. The Court of Appeals
held that, though patent had issued to
third parties and the United States nei-
ther held nor claimed an interest in the
land,

Lee, Eklund and Carr can only proper-

ly establish their asserted entitle-

ment to the disputed lands in direct

proceedings against the United
States. See McIntyre Vv. United

States, 568 F.Supp. 1, 2-3 (D.Alaska
1983), aff'd 789 F.2d 1408 (9th Cir.
1986). The United States is there-
fore an indispensable party to this

action.

809 F.2d at 1411. It further held that

4. On appeal Lee, Eklund and Carr disputed
the district court's theories: (1) that ANCSA
pre-empted this Court's prior decisions on con-
structive trust relief; (2) that ANCSA §14(gq)
was not intended to protect homesteaders; and
(3) that 28 U.S.C. §2409a(g) barred petitioners’
alternative claims against federal defendants
under 28 U.S.C. §2409a and ANCSA §22(b). Peti-
tioners further disputed the district court's
statements that petitioners "signed compromise
agreements” and that Eklund and Carr did not ex-
haust their administrative remedies.

ll

such relief must be sought under the QTA.

809 F.2d at 1409. Relying on these con-
clusions, the Court of Appeals reasoned
that the QTA's 12-year statute of limita-
tions had run in favor of the federal
defendants. It further held that claims
under ANCSA §22(b) were governed by 28
U.S.C. §2409a(g). It did not reach the
other theories offered by the district
court. 809 F.2d 1406.

REASONS FOR GRANTING THE WRIT

The Ninth Circuit has extended the
Quiet Title Act's statute of limitations
to title actions in which the United
States claims no interest. Specifically,
the United States claims no interest in
the lands claimed by petitioners. The
First Circuit has recognized that this
fact renders the QTA's statute of limita-
tions, 28 U.S.C. 2409a(g), inapplicable,

Economic Development, supra, but’ the

12

Ninth Circuit has declined to heed the
OTA's limitation to "real property in
which the United States claims an inter-
est", 28 U.S.C. §2409a(a).

Petitioners seek certiorari review

because proper identification of those
actions which §2409a(g) does not bar is
at least as important as determining
those which are barred by this "condition
on the waiver of sovereign immunity",

as in Block v. North Dakota, 461 U.S.

273, 287 (1983) and in United States v.

Mottaz, 106 S.Ct. 2224 (1986). The Ninth
Circuit's ruling, if left uncorrected,
empowers courts to confer the benefits
of the QTA's statute of limitations on
private transferees, merely by declaring
the United States to be an indispensable
party without a demonstration that the
United States has any interest in the
property, and without examining the pre-

ka

requisites to dismissal expressed in Fed.
g. €iv. Proc. Ruse 29- The result is
extinguishment of rights to enforce valu-
able interests in land unrelated to the
merits of those claims.

Certiorari is appropriate because

decrees can be entered in such cases set-
tling rights, as between private parties,
which would not affect federal interest
in the land which is the subject of the
action. It is the policy of the law that
no action be dismissed for lack of an
"indispensable party" unless a court
Clearly cannot proceed without him. Pro-

vident Tradesmen's Bank & Trust Co. v.

Patterson, 390 U.S. 102-6 119 (1968).

Courts will "strain hard" to avoid dis-
missal, even if an absent party claims
an interest in the subject matter of the

action, Bourdieu v. Pacific Oil Co., 299

U.S. 65, 70 (1936), though in this case

14

it was undisputed that this threshhold

requirement for indispensable party anal-
ysis was not met. The result is a pure
windfall to third party patentees, unre-
lated to petitioners' right to title.

The Court of Appeals' decision is
contrary to the existing decisions of
this Court, is unsupported by the OQTA,
is opposite to the First Circuit's ruling
on the same issue under the QTA, burdens
the United States with defending its pat-
entees' titles, and nullifies the savings
provision of ANCSA §14(g). This Court
should grant review the because the Ninth
Circuit's error is plainly presented and
because its destructive consequences
plainly appear.

S

A

PETITIONERS NEED NOT SUE THE
UNITED STATES TO ESTABLISH THEIR
HOMESTEAD TITLES

A. Petitioners' Claims Against Private

Parties Do Not Require the United States

to be a Party Defendant.

The Ninth Circuit's belief that the
United States is an indispensable party
was gratuitous: (1) the Ninth Circuit
did not question the district court's
finding that the United States had dis-
Claimed all interest, 629 F.Supp. 726;
(2) petitioners' prayers for relief asked
that Eklutna/Cook Inlet be required to
convey title directly to petitioners
(Lee's Third Amended Complaint, CR-158,
page Li? Eklund's Second Amended
Complaint, CR-138, page 11; Carr's Second
Amended Complaint, CR-146, page 11); (3)
the United States did not argue in the
district court that it was an indispens-
able party, though it was already before

16

e

the district homes on separate causes
of action; (4) nor, indeed, did
Eklutna/Cook Inlet claim in the district
court that the United States was an in-
dispensable party to petitioners' causes
of action against Eklutna/Cook Inlet.
Since the United States "claims [no]
interest relating to the subject of the
action", a decree would not "impede [its]
ability to protect that interest”, Fed.
Rules Civ. Proc., Rule 19(a), 28 U.S.C.,
the United States' jurisdictional "ab-
sence" fails to meet the threshold re-

quirement for dismissal. Provident at

396. U.G.+ 226s: “ASS This Court has
reguired a showing that the United States
is the real party in interest, before
requiring that the United States be a

party. Arizona v. California, 298 U.S.

558, 571 (1936), Minnesota v. Hitchcock,

185 U.S. 373 (1902), Kansas v. United

aq

States, 204 U.S. 331, 341 (1907), Larson.

v. Domestic & Foreign Commerce Corp.,

337 U.S. 6862, 691 Rh. Li {ERSSFs ct «

United States v. Beebe, 127 U.S. 338

(1888) (sovereign anti-laches doctrine
applies only if United States is reel
party in interest). Those decisions are
applicable here.

Even had a federal interest existed,
however, the Court of Appeals could not
dismiss the action without considering

whether a decree cculd be written which

would protect such interest. Provident

at 390 U.S..115, Bourdieu at 2355 U.8.

70. The Ninth Circuit considered none
of the other criteria required by Rule
19(b): prejudice to interests of “any
party, whether plaintiff will have a rem-
edy if the action is dismissed, whether
a judgment entered in the United States'
absence would be adequate. Had the Ninth

18

Circuit made such inguiry, it could have
found no reason to dismiss Petitioners'
actions against Eklutna/Cook Inlet.

It is apparent that a judgment en-
tered solely as between Petitioners and
Eklutna/Cook Inlet will be adequate.
That judgment need only order that Eklut-
na convey the legal title to Petitioners.
No act of a federal officer is required.
On the other hand, no remedy has been
shown available to petitioners if the
Ninth Circuit's dismissal is allowed to
stand. The Ninth Circuit's ruling merely
creates a disfavored windfall by prevent-
ing a court from reaching the merits of

petitioners' claims. Provident at 390

0.8. Liz.

The Court of Appeals' novel doctrine
is bad judicial policy. It needlessly
"restrict[s] access to federal courts",
aero ee 200 S.Ct. 2231 n. 9. The no-

19

tion that the United States can "“lend"
the shield of sovereign immunity to a
private patentee has no place in federal
law and derives no support from any past
decisions of federal courts -- with the
sole exception the spurious decision in

McIntyre (below).

The Ninth Circuit's decision imposes
a needless burden of litigation on the
Department of Justice. It encumbers the
United States with an unprecedented and
costly obligation to defend its paten-
tees' titles. The party with the actual
adverse claim of interest, the patentee,
would not control the litigation, since
that control would be in the United
States. Courts will be deprived of the
concrete adversity of interests which
gives focus to litigation, since the par-
ty obligated to defend title, the United
States, has no interest in the outcome.

20

The Ninth Circuit's decision is un-
just. It has deprived petitioners of
valuable property by misapplication of
a concept which bears no relation to the
merits of petitioners claims or to the
interest of any person.

B. This Court Has Already Decided That

the United States Is Not A Necessary Par-
ty in Suits Between Private Parties.

The QTA coordinates with existing
law that a person claiming under the pub-
lic land laws need not and may not sue
the United States to establish his super-
ior title, after the United States has
conveyed the land by patent. He should
sue the patentees directly.

The leading case is Daniels v. Wag-

ner, 237 U.S. 547 (1915), which, like

the present case, was a suit’ for
constructive trust relief against a
private patentee because of the
Secretary's disregard of statute.

21

In addition in the brief for the
appellee in this case various mixed
contentions of law and fact .. .
. Some of them we think t»vo obvious-
ly devoid of merit to require any-
thing but statement. For instance,
the contention that because a patent
of the United States is involved,
therefore the United States is a ne-
cessary party.

247 0:8. @¢ 367. Prior to that, in I

Re Emblen, 161 U.S. 52 (1896) this Court
held that the only remedy available to
a wronged public lands claimant, after
issuance of patent to another party, is
a constructive trust action against the
patentee.

The patent conveys the legal title
to the patentee, and cannot be re-
voked or set aside, except upon judi-
cial proceedings instituted in behalf
of the United States. The only remedy
of Emblen is by bill in equity to
charge Weed [the patentee] with a
trust in his’ favor. All this is
clearly settled by previous decisions
of this court, including some of
those on which the petitioner most
relies. Johnson v. Towsley, 13 Wall.
72; Moore v. Robbins, 96 U.S. 530;
Marquez v. Frisbie, 101 U.S 473;
Smelting Co. v. Kemp, 104 U.S. 636;
Steel v. Refining Co., 106 U.S. 447,

22

1 Sup. Ct. 389; Cattle Co. v. Becker,
147 U.S. 47 13 Sup. Ct. 217; Turner
v. Sawyer, 150 U.S. 578, 586, 14 Sup.
Ct. 192.

161 U.S. at 56-57; emphasis supplied.

Again, in Bockfinger v. Foster, 190 U.S.

116, 125-126, 23 S.Ct. 836 (1903) this
Court reaffirmed the

principle that after the title to
public lands has passed from the Uni-
ted States, that is, after the Land
Department has performed the last
act in the series necessary to pass
the title of the government, the
courts will, as between parties as-
serting conflicting rights in such
lands, determine, by appropriate ju-
dicial proceedings, which of the par-
ties has the better right.

Emphasis supplied. Daniels, Emblen and

Bockfinger flatly contradict the new rule

announced by the Ninth Circuit. See also

Knapp v. Alexander-Edgar Lumber Co., 137

U.S. ic2 (1915), Shepley v. Cowan, 91

U.S. 330, 338 (1875), Johnson v. Towsley,

80 U.S. 72 (1871), Silver v. Ladd, 74

U.S. 219 (1869), Lytle, supra, Moore v.

23

Robbins, 96 U.S. 530 (1878), Duluth &

Iron Range Ry. Co. v. Roy, 173 U.S. 587

(1899), Cornelius v. Kessel, 128 U.S.

456 (1888). This Court in Bockfinger

confirmed that this principle includes
claims under the homestead laws. 23

S.ce. at 8666. See also Ard v. Brandon,

156 U.S. 537 (1895), Great Northern Ry.

Co. v. Reed, 270 U.S. 539 (1926).

These remedies are post-patent reme-
dies, while the QTA deals solely with
claims to land which the United States
retains in public ownership.

The Court of Appeals relied on a

Single case, McIntyre v. United States,

568 F.Supp. 1 (D.Alaska 1983), affirmed
on other grounds, 789 F.2d 1408 (9th Cir.

1986). McIntyre was a district court

decision which rested its conclusion on
the pleadings peculiar to that case. 568

F.Supp. at 203. Petitioners' own

24

pleadings include demands for title di-
rectly from Eklutna/Cook Inlet. See a-
bove, page 16.

The sole authority relied on in Mc-

Intyre was Kale v. United States, 489

F.2d 449, 454 (9th Cir. 1973). Kale did
not purport to decide that relief was
available only by suing the United
States. in fact, Kale relied on Duluth,
supra, one of this Court's decisions af-
firming the right to relief solely as
between private parties.

The Court of Appeals' ruling neces-

sarily implies that all decisions such

as Ard v. Brandon, Johnson v. Towsley,
and others supra, in which the United
States was not a party, had been in er-
ror. According to the Ninth Circuit's
reasoning, these suits were necessarily

suits against the sovereign and, since

prior to the QTA no relief was possible

25

against the sovereign, Block at 461 U.S.

282, relief was granted erroneously. The

Mcintyre decision cannot support so vast

a conclusion.

This Court should grant certiorari

to assert the authority of its existing
decisions.

a The United States Is Not a Trustee

of These Lands.

_—_

The Court of Appeals' citation of

Nichols v. Ryvasy, 809 F.2d 1317 (8th

Cir. 1987) and other cases at 809 F.2d
1411 indicates a woeful misunderstanding
that the United States holds this land
in trust and is therefore an
indispensable party. Ek lutna/Cook
Inlet's patents were issued under ANCSA.
Unlike other statutes conferring - on
native Americans interests in public
land, ANCSA §2(b) states that no trust
is created. The legislative history

26

or

*)

states that ANCSA patents are "in fee

-- not in trust". House Report No.
92-523, 1972 U.S. Code Cong. & Ad. News,
page 2199. See also Conference Report
No. 92-746, at page 2253, and United

States v. Atlantic Richfield, 435 F.Supp.

1009, 1018 (D.Alaska 1977), aff'd 612

P.2@ 1132 (9th Cir. i960}, e@tt. Gen.,

449 U.S. 888 (1980).

This Court should correct the
misconception that ANCSA creates a trust
relationship with the United States.
Rights of United States' citizens under
the homestead law should not be erased
because of this misconception.

D. The Quiet Title Act Was Not Intended
to Shield Patentees From Enforcement of

Superior Title Under the Public Lands
Statutes.

The bar of subsection (g) of 28
U.S.C. §2409a ("Any civil action under

this section .. . ."; emphasis supplied)

27

extends no farther than the scope of sub-

section (a). The Ninth Circuit effec-
tively strips OTA of the limiting words
"real property in which the United States
claims an interest".

This Court should restore to the
OTA the meaning intended by congress.
The QOTA's statute of limitations has a
specific, limited purpose to protect the
public interest against too excessive
a burden on public property and treasury,
and to protect ongoing projects on fed-
eral land. Block at 461 U.S. 285, 290,
Mottazs at i06 &.Ct. 2232. These policy
considerations are absent when the United
States has conveyed title.

Congress has affirmatively directed,
moreover, that the United States should
not be a party in any case after the land
has been patented, regardless of whether

the 12-year period of §2409a(g) has ex-

28

pired. The QTA reads:
(e) If the United States disclaims
all interest in the real property
the jurisdiction of the dis-
trict court shall cease unless it
has jurisdiction . . . on ground o-
ther than and independent of the au-

thority conferred by *. 2s ae
§1346(f)]

§2409a(e) weighs heavily against the
United States being an indispensable par-
ty in title actions after patent of the
land. Congress believed that the United
States should not be a defendant if no
federal interest in the land was at
stake. This is confirmed by §2409a(b)
which gives the government the option
to buy the land. §2409a(b) would be
meaningless if the government has no in-
terest in the land to lose. Likewise,
§2409a(d) requires that a complaint state
the interest claimed by the United States

-- confirming that QTA has no application

° where, as here, the United States has

29

conveyed title to others.
The First Circuit has _ correctly
ruled that

Application of the bar of the Quiet
Title Act of 1972, indeed, does not
give the United States a marketable
title. A transferee under a deed
from the United States would not en-
joy the protection of that statute.

Economic Development & Industrial Corp.

v. United States, 720 F.2d 1, 4 (lst Cir.

1983). See also United States v. Whited

& Wheless, 246 U.S. 552 (1918) and United

States v. Gammache, 713 F.2d 588 (10th

Cir. 1983).
The Ninth Circuit attempted to dis-

tinguish Economic Development but gave

no rationale for requiring a claimant
to sue the United States after the gov-
ernment has parted with title. The Ninth
Circuit's ruling would broadly bar, or
invite courts to bar, any land title ac-
tion against transferees from the govern-

30

ment, regardless of the strength of
plaintiff's claim under a statutory land
grant such as the homestead law, and
regardless of whether the claim is barred
by 28 U.S.C. §2409a(g).>/
If this ruling stands no private
litigation over federally-created land
rights will be possible. Petitioners'
case happens to involve patents to third
party defendants under a statute which
expressly preserves the post-patent
remedies which the Ninth Circuit has now
effectively abrogated. The patents is-
sued to Eklutna/Cook Inlet are "subject
to valid existing rights". CR-12, Ex-
hibits D, E; CR-EK-9, Exhibits T, U; CR--

CA-6, Exhibits, Oy k. This provision

5. To find that the QTA does not apply need
not imply that no statute of limitations applies.
AS 9.10.230 specifically governs constructive
trust suits. It provides a 10-year period from
issuance of patent. Block recognizes that feder-
al courts should consult state law in such situa-
tions. 461 U.S. at 292 n. 28.

31

was required by ANCSA §14(g), 43 U.S.C.
§1613(g).

All conveyances made pursuant to
this chapter shall be subject to val-
id existing rights. ...

This evidences a legislative intent that
the right to enforce pre-existing rights
Survive the issuance of patents. It

charges an ANCSA patent with a homestead-

er's title. Alaska v. Thorson, 91 I.D.

Sai, 339 {i9G41. However, enforcement
of §14(g) necessarily becomes impossible

as a result of the Ninth Circuit's deci-

6/

sion.— This is because jurisdiction un-

der the QTA necessarily ceases upon ei-

ther of two events: (1) when the United

6. Entrymen such as Lee, Eklund and Carr were
the intended beneficiaries of this provision.
See 1971 Code Cong. & Ad. News 2250: "All valid
existing rights, including inchoate rights of
entrymen and mineral locators, are protected.”.
Uncontradicted floor statement in the House of
Representatives shows that it was believed that
ANCSA "protects all presently existing rights
for all citizens, and where substantial untitled
rights exist on lands selected by Natives, those
rights will be protected". Congressman Begich,
Dec. 14, 1971, 117 Cong. Rec. 46789.

32

States conveys title and disclaims inter-
est in the land (§2409a(e)) or (2) lapse
of 12 years from accruai of plaintiff's
Claim (§2409a(g)). (Please see Part III,
however, re tolling of this 12-year peri-
od).

§14(g) rights only arise upon
conveyance of land, but jurisdiction
under the QTA (the only available
jurisdiction, according to the Court of
Appeals) ceases at the selfsame moment
as the conveyance, 28 U.S.C. §2409a(e),
because the United States is now declared
to be an indispensable party. The Ninth
Circuit thus requires persons claiming
title to ANCSA-affected lands to invoke
a non-existent jurisdiction -- implying
that they have no remedy at all after
issuance of patent. Congress could not
have intended ANCSA §14(g) to such a

vacuous result.

33

This gives the United States an ar-
bitrary power in the United States to
defeat rights in land by the mere act
of patenting the land. This amounts to

~an unconstitutional taking of property.
The Court of Appeals was oblivious to
the resulting ‘destruction of statutory
rights. This Court should settle, that
the United States is not a necessary par-

ty after the United States has conveyed

its interest. Grant of certiorari at

this time would clarify and prevent the
confusion in land title litigation that
is certain to ensue from application of
the Ninth Circuit's new rule throughout
the Ninth Circuit's broad geographical
jurisdiction. It has extinguished Peti-
tioners' claims and threatens to extin-
guish the claims of all others similarly
Situated.

34

Il
PETITIONERS' CLAIMS UNDER ANCSA §22(b)
ARE LIMITED ONLY BY
43 U.S.C. §1632(a).
ANCSA §22(b) directs the Secretary
of the Interior anew to issue patents
earned under 43 U.S.C. §164 without

further delay.—/

The Court of Appeals
failed to understand that determinations
under ANCSA are subject to 43 U.S.C.
§1632(a) rather than to- 28 U.S.C.
§2409a(g). §1632(a) requires that an
ANCSA §22(b) court claim must be filed
within two years of the later of October
2, 1980 or the Secretary's final ruling
on the §22(b) claim. All Petitioners'
§22(b) claims were timely filed within
the §1632(a) period.

§1632(a) statute rather than 28

U.8.¢. §2409a(gq) is the applicable

7. #This remedy is cumulative to petitioners'
remedies under existing law and under ANCSA
§14(g). Please see note 3 above.

statute of limitations with respect to
Petitioners’ ANCSA §22(b) claims because
(1) the QTA is inapplicable because the
United States claims no interest in the
lands; and (2) a specific statute of
limitations takes precedence over a
broader statute which might otherwise

apply. Sutherland, Stat. Const. §70.03

(4th Ed.)(Supp. 1987).

Since petitioners' claims were valid
prior claimsd under the homestead laws,
the intent of §22(b) is that they receive
patent evidencing their titles. An ac-
tion to enforce §22(b) against the Secre-
tary of the Interior is not, however,
an action relating to the government's
claim of interest, as required in order
for QTA to apply. §22(b) focusses on
the Secretary's duty rather than the
United States' claim to title. This duty
arose for the first time in 1971 when

36

ANCSA was enacted, and continued until
the Secretary finally made his decision,
which here occurred in 1979. A patent
issued under §22(b) would simply deter-
mine which of the private parties before
the Court deserves the patent. 43 U.S.C.
§1632(a), therefore, is the statute which
Congress intended to apply to such deter-
minations. The misapplication of 28
U.S.C. §2409a(g) to claims under ANCSA
widely affects lands in Alaska. This
Court should grant review to correct the

Ninth Circuit's misconception.

III
THE QUIET TITLE ACT'S STATUTE OF
LIMITATIONS SHOULD BE TOLLED
BY THE GOVERNMENT'S
MISREPRESENTATIONS OF THE
STATUS OF THE LANDS
CLAIMED BY PETITIONERS

The Ninth Circuit has held that 28
U.S.C. §2409a(g) is not subject to
equitable tolling. 809 F.2d 1410. It

37

further held that misrepresentations of
law cannot toll a statute of limitations.
This Court has held that 28 U.S.C.
§2409a(g) should not be construed “unduly
restrictively". Block at 461 U.S. 287;

see also Bowen v. City of New York, 106

S.Ct. 2022 (1986). The federal tolling
doctrine should be applied to §2409a(g)
because that would be consistent with
Congress's intent in enacting QTA. Cf.
Bowen at 106 S.Ct. 2029. Congress pre-
sumably enacted QTA with awareness that
the federal equitable tolling "doctrine
is read into every federal statute of

limitation". Holmberg v. Armbrecht, 327

U.S. 392, 397 (1946). it

The tolling doctrine extends to mis-
representations of law where the repre-
sentations come from a source on which

petitioners were entitled to rely. Glus

v. Brooklyn Eastern District Terminal,

38

359 U.S. 232, 235 (1959). The Secretary
of the Interior told petitioners in writ-
ing that they had no right to these
lands. He further said they could “rest
assured that no arbitrary action will
be taken". Such representations to
homesteaders in Alaska ought to have been
deserving of their reliance.

The Secretary's representations
cannot be reconciled with §24 FPA. §24
is written in especially clear and expli-
cit language. The Secretary's assurances
lulled petitioners into taking no further
action and making no further inquiries.
Petitioners had no reason to suspect that
their loss was the result of a violation
of statute.

The language cited by this Court

in Bowen v. City of New York, 106 S.Ct.

2030, quoting 742 F.2d 738 is applicable
here:

39

All of the class members who per-
mittea their administrative or judi-
cial remedy to expire were entitled
to believe that their Government's
determination of ineligibility was
the considered judgment of an agency
faithfully executing the laws of the
United States. Though they knew of
the denial or loss of benefits, they
did not and could not know that those
adverse decisions had been made on
the basis of a systematic procedural
irregularity that rendered them sub-
ject to court challenge.

This reasoning contradicts the Ninth Cir-
cuit's opinion that petitioners have to
suffer the consquences of the Secretary's
misrepresentations about these lands.
Petitioners could not be expected to know
that there existed a statute, tucked away
in Title 16, that gave them specific le-
gal benefits.

Petitioners' ignorance of §24 was
not mere passive ignorance. They made
diligent inquiry. The misrepresentation

came from a source from which they had

a right to expect better.
40

The Court of Appeals' reliance on

United States v. Kubrick, 444 U.S. lll

(1979) was misplaced. In Kubrick, the

plaintiff failed to inquire into his
rights.

Here, the cabinet-level officer made
a representation that petitioners’ had
no possible rights when the applicable
statute not only permitted, but

commanded, the very officer to whom

claimants addressed their inquiry to al-

low them to enter these lands -- and to
"declare" this fact to them! See §24
FPA. The "mistaken" advice which peti-
tioners received was illegal and against
public policy, and therefore blameworthy.
The element of self-interest is evident.
There exists, therefore, a “sound rea-

son", see Kubrick at 444 U.S. 124 for

making the United States (if the United
States is in fact a defendant) bear the

41

consequences of the Cabinet member's
statements.
Conclusion

This Court should accept this case
for review because the Ninth Circuit's
deviation from sound law negatively af-
fects future litigants with valid land
claims under federal programs as well
as petitioners. Specifically, the Court
of Appeals has relegated Rule 19 to mean-
inglessness. Further, it has abused
the OTA so as to cut back the available
federal jurisdiction. These are major
and fundamental errors. This Court
should take this opportunity to stop pre-
sent and future harm by granting review.

So clear are the errors of the Ninth
Circuit that this Court may well dispose
of this case by summary reversal of the
Court of Appeals' decision to designate

the United States as an indispensable

42

party. Petitioners respectfully recom-
mend, however, that this Court accept
this case for plenary review, since an
opinion from this Court would be useful
to the courts and the public by eliminat-
ing the confusion in public lands law
which will result from the existence of
the Ninth Circuit's published opinion.

Dated at Anchorage, Alaska on the

/ 7 day of October, 1987.

Ba £ len

Steven P. Oliver

720 M Street, Suite 201
Anchorage, Alaska 99501
(907) 276-6106

Counsel for Petitioners

43

=

ae ee

APPENDIX

la

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

W. Lee: RALPH A. EKLUND; No. 86-3651
ORA CARR,
: Plaintiffs-Appellants, D.C. Nos.
- CV-A79-336
i CV-A80-301
‘ UNITED STATES OF AMERICA: q CV-A82-41 1
SECRETARY wthineg INTERIOR; ORDER AND
Director, BUREAU OF LAND
MANAGEMENT: EKLUTN&, INC.: SECOND
hes : neg AMENDED
Cook INLET REGION. INC., OPINION
Defendants-Appellees.
Argued and Submitted
° January 6, 1987—Seattle, Washington

Filed February 9, 1987
. Amended April 17, 1987

Before: Eugene A. Wright, Jerome Farris and
Robert R. Beezer, Circuit Judges.

ae

Opinion by Judge Farris

Appeal from the United States District Court
for the District of Alaska
James M. Fitzgerald, District Judge, Presiding

SUMMARY

® Jurisdiction

Appeal of a district court’s dismissal of land claims against
the United States and two Alaska Native corporations.

l
2a

2 Lee v. UNITED STATES

Affirmed. Petition for rehearing denied and suggestion for
rehearing en banc rejected.

In 1950 the federal Power Commission set aside certain
lands in the Eagle River Valley, near Anchorage, Alaska, as a
possible site for future power projects. In 1952 the Power
Commission determined that the lands would not be injured
by location or entry under the public land laws. Although the
Secretary of Interior could have declared the lands open for
homesteading, it did not. In 1957 appellants James Lee,
Ralph Eklund and Cora Carr located on the lands, expecting
to take title under the homestead laws. In 1959 appellants
sent a letter to the Secretary asking why the Bureau of Land
Management (BLM) had not restored the lands to the public
domain after the Power Commission’s determination. The
Secretary answered that determinations regarding the lands
would have to wait the completion of an engineering survey,
and stressed that the lands were not open to entry. In 1961 the
BLM recorded its survey and rejected the homestead applica-
tions of appellants insofar as the applications conflicted with
the powersite classification. Appellants continued to argue
with the BLM until 1964, when they received patents to all
the lands they had claimed outside the powersite classifica-
tion. The U.S. contends this constituted a compromise in
which disputed issues of proof concerning the unclassified
lands were resolved in their favor in exchange for their agree-
ment to quit asserting claims to the classified lands, but there
is no evidence in the record that the 1964 patents represented
a compromise. In 1971 Congress passed the Alaska Native
Claims Settlement Act. In 1979, pursuant to the Act, the for-
merly classified lands were patented to two Alaska Native
corporations (Native corporations). Appellants filed an
action against the United States and the Native corporations.
The district court dismissed.

[1] The district court correctly ruled that its jurisdiction to
consider the claims against the United States was limited to
whatever jurisdiction was conferred by the Quiet Title Act,

|

3a

Lee v. UNITED STATES 3

28 U.S.C. Sec. 2409a. Congress intended the Quiet Title Act
to provide the exclusive means by which adverse claimants
could challénge the United States’ title to real property. The
court possessed no jurisdiction under the Quiet Title Act to
hear the claims against the U.S., because the U.S. had dis-
claimed all interest in the disputed lands in 1979 when it pat-
ented the lands to the Native corporations. [3] Even if the
United State’s disclaimer of interest was ineffective, the
claims against the U.S. would still be barred by the Quiet
Title Act’s 12-year statute of limitations, [4] which runs from
the date the plaintiff or his predecessor knew or should have
known of the claim of the U.S. to the disputed land. The dis-
trict court correctly concluded that appellants should have
realized by 1961 that the U.S. intended to reject their home-
stead claims. [5] The statute was not tolled by appellant's reli-
ance on the Secretary’s representations that he was under no
duty to remove the powersite classification.

[6] The district court correctly stated the general rule that
even though it lacked junsdiction to consider the claims
against the U.S. it did not necessarily lack jurisdiction to con-
sider claims against the Native corporations, [7] but this case
presents an exception to the general rule. All of the relief that
appellants seeks required the presence of the United States as
a party because in order to challenge the Native corporations’
claim to the land they must establish the validity of their own
claim. The United States is therefore an indispensable party
to this action, [8] and the court’s lack of jurisdiction over the
U.S. claims requires the dismissal of the claims against the
Native corporations.

COUNSEL

Steven P. Oliver, Anchorage, Alaska, for the plaintiffs-
appellants.

4a

4 Lee v. UNITED STATES

David P. Wolf and Diane Smith, Anchorage, Alaska, and
Edward J. Shawaker, Esq., Washington, D.C., for the
defendants-appellees.

ORDER

The opinion filed February 9, 1987, and amended by order
dated March 10, 1987, is further amended per the attached
Amended Opinion.

With the changes reflected in the Amended Opinion, the
panel has voted unanimously to deny appellants’ petition for
rehearing filed February 20, 1987 and amended March 20,
1987. Judges Farris and Beezer have voted to reject the sug-
gestion for rehearing en banc and Judge Wright recommends
rejection.

The full court has been advised of the suggestion for rehear-
ing en banc, and no judge of the court has requested a vote on
it. Fed. R. App. P. 35(b).

The petition for rehearing is denied and the suggestion for
rehearing en banc is rejected.

OPINION
FARRIS, Circuit Judge:

Lee, Eklund, and Carr assert a variety of claims against the
United States and two Alaska Native corporations. All of
their claims are based on the contention that in 1979 the Sec-
retary of Interior conveyed lands that rightfully belonged to
them to the Native corporations. On a motion for summary
judgment, the district court dismissed their claims against the
United States, and all but one of their claims against the

5a

Lee v. UNITED STATES 5

Native corporations, for lack of jurisdiction. It dismissed
their remaining claim against the Native corporations for fail-
ure to state a claim. We affirm.

FACTS

In 1950. the Federal Power Commission, acting under the
Federal Power Act. set aside certain lands in the Eagle River
Valley, near Anchorage, Alaska, as a possible site for future
power projects. In 1952, at the request of the Bureau of Land
Management, the Power Commission determined that the
lands would not be injured for purposes of power develop-
ment by location or entry on the lands under the public land
laws. Following that “no injury” determination, the Secretary
of Interior could have declared the lands open for homestead-
ing and other entry, but did not.

In 1957, Lee, Eklund, and Carr located on lands in the
Eagle River Valley that included some of the lands classified
under the Power Act, with the expectation of taking ‘title
under the homestead laws.’ The Bureau of Land Management
had told them that they could stake homestead claims in the
Valley. The Power Commission, however, had advised them
that the classified lands would be unavailable for homestead-
ing until the Bureau of Land Management formally restored
the lands to the public domain. At the time, the region had
not been surveved. and the boundaries of the classified lands
were not precisely defined.

In 1959, Lee, Eklund, and Carr sent a letter to the Secretary
inquiring as to why, even though the Power Commission had
determined that the classified lands could be made available
to homesteaders, the Bureau of Land Management had not
restored the lands to the public domain. In his letter of _
response, the Secretary told them that specific determinations

1The homestead laws were repealed in 1976 by Pub. L. 94-579, 90 Stat.
2789. o

Sa

6 Lee v. UNITED STATES

regarding the fate of the classified lands would have to await
the completion of an engineering survey, and stressed that the
classified lands were not open to entry. He also said that he
did not intend to revoke the powersite classification. and that
even if he did do so. selection rights to the classified lands
might be given to other groups.

In 1961. the Bureau of Land Management recorded its sur-
vey of the region and issued final decisions rejecting the
homestead applications of Lee. Eklund. and Carr insofar as
the applications conflicted with the powersite classification.
Lee, Eklund. and Carr continued to argue with the Bureau of
Land Management concerning the extent of their homestead
holdings until 1964, when they received patents to all of the
lands that they had claimed outside of the powersite classifi-
cation.

The United States contends that the patenting of the
unclassified lands to Lee. Eklund, and Carr in 1964 consti-
tuted a compromise in which disputed issues of proof con-
cerning the unclassified lands were resolved in their favor in
exchange for their agreement to quit asserting claims to the
classified lands. Accordingly, the United States urges that
Lee, Eklund. and Carr should now be estopped from claiming
title to the classified lands. Lee, Eklund, and Carr argue that
there is no evidence in the record to indicate that their receipt
of patents to the unclassified lands in 1964 represented a
compromise.

In 1971. Congress passed the Alaska Native Claims Settle-
ment Act. 43 U.S.C. $§ 1601-1641 (1982). In 1979, pursuant
to the Settlement Act. the formerly classified lands were pat-
ented to two Alaska Native corporations, Eklutna, Inc. and
Cook Inlet Region, Inc. Lee, Eklund, and Carr subsequently
filed the present actions against the United States and the
Native corporations.

Lee. Eklund, and Carr argue that the disputed lands were
effectively restored to the public domain as a result of the

Lee v. UNITED STATES

Power Commission's “no injurv” determination in 1952.
Consequently. they contend that they began acquiring equita-
ble title to the lands under the homestead laws when thes
entered on and began cultivating the lands in 1957. Alterna-
tively. they argue that section 24 of the Power Act required
the Secretary to declare the lands open to homestead entn
following the Power Commission's “no injury” determina-
tion. and that therefore we should now recognize their claims
to the lands under the homestead laws in order to put them in
the position that they would have occupied if the Secretary
had complied with the law.

Lee. Eklund. and Carr contend in particular that thes

should have received patents to the lands under section 22(b)
of the Settlement Act. which provides that the Secretary shal!
“promptly issue patents to all persons who have made a law -
ful entry on the public lands in compliance with the public
land laws for the purpose of gaining title to homesteads .
43 U.S.C. § 1621(b). They also argue that under section 14(g)
of the Settlement Act, 43 U.S.C. § 1613(g). the conveyance of
the lands to the two Native corporations in 1979 was subject
to their pre-existing homestead rights. They seek a judicial
declaration that Eklutna. Inc. and Cook Inlet Region. Inc. are
constructive trustees holding the disputed lands in trust for
their benefit.

DISCUSSION

We review de novo the district court’s determinations con-
cerning the extent of its subject matter jurisdiction. 4/Ainson
v. United States, 804 F.2d 561, 562 (9th Cir. 1986). We may
affirm on any ground fairly supported by the record. City of
Las Vegas v. Clark County, 755 F.2d 697, 701 (9th Cir. 1985).
We need not consider whether the agreements that Lee.
Eklund. and Carr reached with the Bureau of Land Manage-
ment in 1964 represented a compromise. Regardless of
whether their claims should be estopped by the alleged com-
promise. other factors preclude the claims.

Ca

8 Lee v. UNITED STATES

All of the claims are based on the theory that by entering
upon and cultivating the disputed lands during the vears fol-
lowing the Power Commission's “no injury” determination,
Lee, Eklund. and Carr took sufficient steps as de facto
homesteaders to vest themselves with equitable title to the
lands under the homestead laws. Despite this common thread ae
connecting all of the claims, however, we must analyze the
claims against the United States separately from the claims
against the Native corporations. This is because the Quiet
Title Act. 28 U.S.C.A. 2409a (West. Supp. 1987). applies only
to the former claims.

»)

*)

1) Claims Against the United States

The district court dismissed the claims against the United
States for lack of jurisdiction. Lee v. United States, 629 F.
Supp. 721 (D. Alaska 1985). The court ruled that the claims
were actions against the United States “to secure patent(s] for
the[] disputed homestead entries and to quiet title,” and that
consequently its jurisdiction to consider the claims derived
solely from the Quiet Title Act. /d. at 726 (citing Block v.
North Dakota, 461 U.S. 273 (1983)). It then held that it lacked
jurisdiction to consider the claims because (1) the United
States disclaimed its interest in the lands when it patented
them to the Native corporations in 1979, thus divesting the
court of jurisdiction under section 2409a(e) of the Act, and
(2) even if the disclaimer was for some reason ineffective, the
claims would still be barred by the Act’s twelve-year statute of
limitations. Jd. at 726-27.

{1] The district court correctly ruled that its jurisdiction to
consider the claims against the United States was limited to 5
whatever jurisdiction, if any, was conferred upon it by the
Quiet Title Act. The Supreme Court has held that “Congress
intended the [Quiet Title Act] to provide the exclusive means
by which adverse claimants could challenge the United
States’ title to real property.” Block, 461 U.S. at 286. All of
the claims against the United States concern, either directly

Ca

Lee v. UNiten STATES 9

or indirectly. the United States’ title to the disputed lands.
Accordingly, the district court’s jurisdiction. if any. to hear
the claims against the United States derived exclusively from
the Quiet Title Act. See Veclntyre v. United States, 789 F.2d
1408. 1410-11 (9th Cir. 1986). Lee. Eklund. and Carr argue

. that section 702 of the Administrative Procedure Act. 5
U.S.C. § 702 (1982). creates an independent jurisdictional
basis for their administrative claims against the United

° States. We specifically rejected this argument in A/fc/niyre.
Id.?

[2] The district court possessed no jurisdiction under the
Quiet Title Act to hear the claims against the United States.
The United States disclaimed all interest in the disputed
lands in 1979, when it patented the lands to Eklutna. Inc. and
Cook Inlet Region, Inc. The district court found that the dis-
claimer was “valid and was made in good faith.” Lee, 629 F.
Supp. at 726. The Quiet Title Act expressly provides that “[i]f
the United States disclaims all interest in the real property or
interest therein adverse to the plaintiff at any time prior to the
actual commencement of the trial, which disclaimer is con-
firmed by order of the court, the jurisdiction of the district
court shall cease unless it has jurisdiction of the civil action
or suit on ground[s] other than and independent of the
authority conferred by [the jumsdictional provision of the
Act].” 28 U.S.C.A. § 2409a(e) (West Supp. 1987). The only

“We do not hold, and do not read McIntyre to hold, that the Quiet Title
Act constitutes the exclusive source of jurisdiction for a// claims against the
United States involving the United States’ disposition of public lands. Sec-
uon 2409a(e) of the Act provides that upon the United States’ disclaimer
of interest, jumsdiction in the district court will continue if the court “has
junsdiction ... on ground{s] other than and independent of the authority
conferred by [the jurisdictional provision of the Act].” 28 U.S.C. 2409a(e)
(West Supp. 1987). The Administrative Procedure Act provides junsdic-
tion in cases of administrative wrongdoing. Here, the statute of limitations
had run under both the Acministrative Procedure Act and the Quiet Title
Act before Lee, Eklund. and Carr commenced their actions. See 28 U.S.C.
§ 2401 (1982) and 28 U.S.C.A. § 2409a(g) (West Supp. 1987).

10a

|

10 Lee v. UNITED STATES

alternative basis for jurisdiction that Lee, Eklund. and Carr
have asserted is section 702 of the Administrative Procedure
Act. but they are precluded under \Mc/ntvre from asserting
that basis of jurisdiction. \/clntvre, 789 F.2d at 1410-11.
[3] Even if the United States’ disclaimer of interest in the T
disputed lands was ineffective. the claims against the United
States would still be barred by the Quiet Title Act's twelve- 4
vear statute of limitations. Section 2409a(g) of the Act states.
that “[a]nv civil action under this section shall be barred
unless it is commenced within twelve vears of the date upon
which it is accrued.” 28 U.S.C.A. § 2409a(g) (West Supp.
1987). Congress intended for section 2409a(g) to apply retro-
actively. See Block, 461 U.S. at 286 n.23. See also Grosz vy.
Andrus, 556 F.2d 972. 975 (9th Cir. 1977).

[4] Section 2409a(g) specifically provides that an action

“shall be deemed to have accrued on the date the plaintiff or

his predecessor in interest knew or should have known of the J
claim of the United States” to the disputed land. 28 U.S.C.A.
§$ 2409a(g) (West Supp. 1987). The claims against the United
States accrued as soon as it became clear to Lee, Eklund, and
Carr, or should have become clear to them, that the United
States intended to reject their homestead claims to the classi-
fied lands. We agree with the district court that Lee, Eklund,
and Carr “should have realized by 1961 that the United
States had a conflicting claim to the portions of their home-
stead entries within the Power Site Classification[,] [because
in} that vear the [Bureau of Land Management] issued its sur-
vey covering the disputed lands, published notice of the sur-
vey in the Federal Register, and issued final decisions
rejecting their homestead entries.” Lee, 629 F. Supp. at 727.
At the very latest, Lee. Eklund, and Carr should have known
of the United States’ conflicting claim to the disputed lands
when they submitted their amended homestead applications
in 1964. See id.

Lee v. UNITED STATES 1}

{5} Lee. Eklund. and Carr argue that the Quiet Title Act's
twelve-vear statute of limitations should be deemed to have
been equitably tolled by their reliance on the Secretary's rep-
resentations. arguably incorrect.’ that he was under no duty
to remove the powersite classification. Statutes of limitation.
however, are “triggered by [claimants’] knowledge of the
transaction that constituted the alleged violation. not by their
knowledge of the law.” Blanton y. Anzalone, 760 F.2d 989.
992 (9th Cir. 1985). A claim accrues as soon as a potential
claimant either is aware or should be aware of the existence
of and source of his injury, not when he knows or should
know that the injury constitutes a legal wrong. A different rule
would require insufficient diligence on the part of potential
claimants. See United States v. Kubrick, 444 U.S. 111. 123-24
(1979). Moreover, because the Quiet Title Act's statute of
limitations “is a jurisdictional requirement... . ‘[t]he govern-
ment may not be equitably barred from asserting [it]. ~
McIntyre, 789 F.2d at 1411 (quoting Burns v. United States.
764 F.2d 722. 724 (9th Cir. 1985)).

2) Claims Against Eklutna, Inc. and Cook Inlet Region. Inc.

The district court ruled that even though it lacked jurisdic-
tion to consider the claims against the United States. it did
not necessarily lack jurisdiction to consider the claims against
the Native corporations. Lee, 629 F. Supp. at 727-28. The dis-
trict court noted that “Congress passed the [Quiet Title Act]
as a limited waiver of sovereign immunity for actions to
acquire title from the federal government, . . . not to insulate
private parties who acquire federal lands. such as Eklutna and
Cook Inlet Region. from bona fide actions to challenge their
title.” Jd. at 727.

3See Reeves v. Andrus, 465 F. Supp. 1065, 1070(D. Alaska 1979) (section
24 of the Power Act requires the Secretary “to revoke or modify the power
site classification within a reasonable penod”™ following a “no injury™ deter-
mination by the Power Commission).

~

i2a

i2 Lee v. UNITED STATES

[6] The district court correctly stated the general rule. Ordi-
narily. the fact that a claimant is barred from proceeding
against the United States by the jurisdictional provisions of
the Quiet Title Act does not prevent the claimant from assert-
ing title to disputed lands against non-federal parties. See
. Block, 461 U.S. at 291. See also Economic Development and
Industrial Corp. v. United States, 720 F.2d 1.4 (1st Cir. 1983):
United States v. Gammache, 713 F.2d 588. 592 (10th Cir.
1983).

[7] This case. however. is an exception to the general rule.
because in this case the district court’s lack of jurisdiction
over the claims against the United States does require that the
claims against the Native corporations also be dismissed. All
of the relief that Lee. Eklund. and Carr seek requires the pres-
ence of the United States as a party. In order to challenge the
validity of the Native corporations’ patents to the disputed
lands. Lee. Eklund, and Carr must be prepared to establish
their own entitlement to the lands. “It is not sufficient for one
challenging a patent to show that the patentee should not
have received the patent: he must also show that he. . . is enti-
tled to it.” Kale v. United States, 489 F.2d 449, 454 (9th Cir.
1973). cert. denied, 417 U.S. 915 (1974). Lee. Eklund. and
Carr can only properly establish their asserted entitlement to
the disputed lands.in direct proceedings against the United
States. See McIntyre v. United States, 568 F. Supp. 1, 2-3 (D.
Alaska 1983). afd, 789 F.2d 1408 (9th Cir. 1986). The
United States is therefore an indispensable party to this
action. See Nichols v. Rysavy, 809 F.2d 1317. 1331-34 (8th
Cir. 1987) (United States held to be an indispensable party in
a suit challenging the validity of fee patents issued to Native
Americans): Nichols y. Rysavy. 610 F. Supp. 1245, 1253 (D.
S.D. 1985) (United States held to be an indispensable party
because “the United States .. . issued the fee patent in ques-
tion, thus setting the entire series of events in motion that
resulted in the action.”). See also Nicodemus v. Washington
Water Power Co., 264 F.2d 614, 615 (9th Cir. 1959) (United
States held to be an indispensable party in a suit concerning

l3a

Lee v. UNITED STATES 13

lands held in trust for Native Americans): Cogo v. Central
Council of Tlingit and Haida Indians, 465 F. Supp. 1286.
1291 (D. Alaska 1979) (same). See generally Fed. R. Civ. P.
1 9¢b). In so holding, we recognize that upon different facts the
United States might not be an indispensable party.

[8] It follows from the fact that the United States 1s an indis-
pensable party to this action that the district court's lack of
jurisdiction as to the claims against the United States requires
the dismissal of the claims against the Native corporations.
See Johnson v. Chilkat Indian Village, 457 F. Supp. 384. 388
(D. Alaska 1978) (action dismissed because the court did not
have jurisdiction over the Chilkat Village Council, and any
judgment arrived at in a proceeding to which the Village
Council was not a party would be inadequate). See also Nich-
ols, 809 F.2d at 1331-34.

CONCLUSION

Lee’s. Eklund’s, and Carr’s claims against the United States
all concern title to real property. The district court's exclusive
source of jurisdiction as to such claims is the Quiet Title Act.
Under section 2409a(e) of the Quiet Title Act, the United
States’ disclaimer of interest in the disputed lands in 1979
had the effect of depriving the district court of jurisdiction
over the claims. Even if the disclaimer was ineffective, the
claims would still be barred by the Quiet Title Act’s twelve-
year Statute of limitations. The United States is an indispens-
able party to the present actions, because Lee, Eklund, and
Carr can only properly establish their entitlement to the lands
in direct proceedings against the United States. It therefore
follows, as a direct consequence of the district court's lack of
jurisdiction over the claims against the United States, that the
claims against the two Native corporations must also be dis-
missed.

We express no opinion regarding the district court's inter-
pretation of sections 14(g) and 22(b) of the Settlement Act. 43

14a

14 Lee v. UNITED STaTES

U.S.C. $$ 1613(g) and 1621(b). We also express no opinion as
to the district court’s ruling that the Settlement Act preempts
the common law in the area of disputes brought by third par-
ties against Native corporations concerning lands conveved
under the Settlement Act.

AFFIRMED.

oA
fu

t-'

James W. LEE, Plaintiff,
¥;

UNITED STATES of America, Secretary
of the Intericr, Director, Bureau of
Land Management, Eklutna, Inc., and
Cook Inlet Region, Inc., Defendants.

Ralph A. EKLUND, Plaintiff,
v.
UNITED STATES of America, Secretary
of the Interior, Director, Bureau of

Land Management, Eklutna, Inc., and
Cook Inlet Region. Inc., Defendants.

Cora CARR, Plaintiff,
v.
UNITED STATES of Aimerica, Secretary
of the Interior, Director, Bureau of

Land Management, Eklutna, Inc., and
Cook Inlet Region, Inc., Defendants.

Nos. A79=336 Civil. A80-301 Civil and
A82-411 Civil.
United States District Court,
D. Alaska.

Jan. 28, 1985.
rehearing Denied and Decision
Amended Feb. 28. 19&6.

AMENDED OPINION

FITZGERALD, Chief Judge.

James Lee, Ralph Eklund, and Warren
Carr staked out homestead claims during

16a

the late 1950s in the Eagle River Valley
within the Municipality of Anchorage.
They and their families have had a running
battle ever since with the Bureau of Land
Management (BLM) and assorted other
parties concerning their rights to those
lands. Lee, Eklund, and Cora Carr (War-
ren’s widow) brought these consolidated ac-
tions in 1979-1982 under a variety of statu-
tory and common-law theories, seeking to
gain title to the disputed lands or to recov-
er money damages for inverse condemna-
tion. I hereby dismiss their actions, with
the exception of a single claim raised by
Lee,' for lack of subject-matter jurisdiction
and for failure to state a claim on which
relief can be granted.

FACTUAL BACKGROUND

Lee, Eklund, and Carr staked out their
disputed homestead claims in 1957, and
filed notices of location with the BLM. In
1958-1959, BLM notified them by letter
that significant portions of their homestead
sites fell within federal Power Site Classifi-
cation Number 399, established on March
29, 1950, and therefore were not available
for private use or occupancy. The letters
1. Unlike Eklund and Carr, Lee has raised a

claim against defendants Eklutna, Inc. and

Cook Inlet Region, Inc. under section 14(c) of

the Alaska Native Claims Settlement Act, 43

U.S.C. § 1613(c) (1982). Eklutna and Cook In-

let Region have moved for summary judgment

on Lee's section 14(c) claim, but their motion

was briefed separately and will be ruled upon
by this court in a separate opinion.

>)

indicated that each individual could petition
the Federal Power Commission (FPC) to
restore the lands he sought to public entry,
but noted that such a restoration would not
confer upon him any preference rights in
the lands.

[1] When Lee, Eklund, and Carr peti-
tioned the FPC for restoration of their
lands, they were notified that the FPC had
already made a determination under sec-
tion 24 of the Federal Power Act, 16 U.S.C.
§ 818 (1982), that the value of those lands
as a power site would suffer “no injury” if
opened to selection, entry, or location under
the public land laws. Once this “no-injury”
determination was made, the Secretary of
the Interior was required to modify the
power classification and restore the lands
to public entry within a reasonable time,
unless he identified some other basis for
withdrawing them. See Reeves v. Andrus,
465 F.Supp. 1065, 1070 (D.Alaska 1979).

No restoration order was ever issued by
the Secretary or BLM. In 1959, BLM re-
jected the homestead entries of Lee, Ek-
lund, and Carr on the ground that they
directly conflicted with the Power Site
withdrawal. All three men were notified
of their rights to appeal the decisions re-
jecting their entries to the Director of
BLM. There is no record that any of them
ever filed a formal appeal.

On March 15, 1961, BLM promulgated a
notice that it was filing a platted survey

18a

covering the lands claimed by Lee, Eklund,
and Carr. This notice was published in the
Federal Register on March 23, 1961. See
26 Fed.Reg. 2486 (1961). The survey delin-
eated the boundaries of Power Site Classifi-
cation Number 399 in relation to the home-
stead sites selected by Lee, Eklund, and
Carr, and was filed in the Anchorage BLM
office on April 1, 1961. Soon after its
publication, on April 27, 1961, the BLM
issued final decisions rejecting the entries
of Lee, Eklund, and Carr insofar as they
conflicted with the Power Site withdrawal.’

Although the record indicates that the
three men continued to object to these
BLM decisions, and that Lee even retained
legal counsel in 1963, they never won con-
cessions from BLM concerning the lands
within the Power Site Classification. All
three men signed compromise agreements
with BLM by 1964, which enabled them to
submit their proof of occupancy and to
receive patent to those portions of their
entries outside the Power Site withdrawal.
Thev all filed amended homestead entry
applications excluding the contested lands,
and Eklund was even permitted to apply
for an additional forty-acre parcel, for

2. The BLM vacated these fina! decisions on May
15, 1961 for the sole purpose of a!lowing a more
precise redrawing of the conformance lines for
each individual's homestead entry. The May 15,
1961 decision specifically provided that it was
“not to be construed as granting cny additicnal
rights or concessions to the withdrawn lands as
described in the original order of withdrawals.”

which he received patent in 1972, ostensibly
in heu of the excluded lands within his
original claim.

The lands that Lee, Eklund, and Carr
originally staked within Power Site Classi-
fication Number 399 remained under feder-
al control until the 1970s. In 1974, the
native village corporation of Eklutna, Inc.
(Eklutna), organized pursuant to the Alas-
ka Native Claims Settlement Act (ANCSA),
43 U.S.C. §§ 1601-1641 (1982), filed a land
selection application under ANCSA section
12, 43 U.S.C. § 1611, that included these
disputed lands. In 1979, the United States
issued a patent for the surface estate of
these lands to Eklutna, and a correspond-
ing patent for the subsurface estate to
Ceok inlet Region, Inc. (Cook Inlet Region)
as the native regional corporation in Eklut-
na’s region. See 43 U.S.C. § 1613(f).

Lee, Eklund, and Carr’s widow each
brought actions (which this court consol-
idated) against the United States, the Sec-
retary, the BLM Director, Eklutna, and
Cook Inlet Region, seeking to acquire pat-
ent to these lands. They claim that the
Secretary and BLM violated federal law by
failing to open the Power Site withdrawal
to humesteading after the FPC issued its
“no-injury”’ determination. They further
claim that the federal defendants intention-
al!y misied them concerning the status of
the lands and the procedures to be followed
when they orginally settled the area and
utterapted 29 secure title. They also claim

20a

that their rights to title have been pre-
served as against Eklutna and Cook Inlet
Region through ANCSA sections 14(g), 43
U.S.C. § 1613(g), and 22(b), 43 U.S.C.
§ 1621(b), as well as through the applica-
tion of several common-law theories.

Lee, Eklund, and Carr contend that this
court should order the defendants to issue
them patents to the disputed lands under
its federal-question, mandamus, quiet-title,
and equity jurisdiction, as well as under
jurisdiction derived from the Administra-
tive Procedure Act (APA). The plaintiffs
and defendants have all moved for summa-
ry judgment.’

ANALYSIS

The threshold question in this action is
whether this court has subject-matter juris-
diction over the plaintiffs’ claims. In order
to analyze this question properly, it is nec-
essary to divide the plaintiffs’ claims into
three separate categories: 1) claims to ac-
quire patent from the federal defendants;
2) claims to acquire patent from Eklutna
and Cook Inlet Region; and 3) claims for

3. As noted in footncte 1, the on! claim of the

plaintiffs not addressed in this decision is Lee's

'gim under ANCSA section 14(c), 43 U.S.C.

§ 1013(<). :
2la

money damages against the United States.*

! conclude that the Quiet Title Act (QTA),

28 U.S.C. § 2409a (1982), bars this court

from exercising jurisdiction over the plain-
. tiffs’ claims to acquire patent from the

federal defendants. Moreover, I conclude

that Congress’ enactment of ANCSA
7 preempts the plaintiffs’ common-law claims
against Eklutna and Cook Inlet Region,
and conclude that ANCSA does not provide
this court with subject-matter jurisdiction
or authority to require Eklutna and Cook
Inlet Region to issue patent to the plain-
tiffs. Finally, I conclude, based upon 28
U.S.C. §$§ 1346(a(2) and 1491 (1982), that
this court lacks subject-matter jurisdiction
over the plaintiffs’ claims for money dam-
ages, although the United States Claims
Court may have jurisdiction over those
claims. Thereiore, I dismiss the plaintiffs’
actions.

1. Claims to Acquire Patent From the
Federal Defendants

[2] Despite the variety of legal theories
they espouse, all but one of the plaintiffs’
claims against the federal defendants are
directed at a single objective: to secure

‘ patent for their disputed homestead entries
and to quiet title for those lands in them-

4. After these motions for summary judgment
were fully br.cfed, the plaintiffs moved to
amend their complaints and add claims for
money damages against the United States on an
inverse condenynation thecry.

22a

selves.° The United States Supreme
Court’s decision in Block v. North Daketa,
461 U.S. 273, 103 S.Ct. 1811, 75 L.Ed.2d 840
(1983), requires that all parties bringing
actions against the United States seeking
to secure or quiet title to land must satisfy
the requirements of the QTA. Parties can-
not circumvent the QTA’s jurisdictional and
procedural limitations by “artfully plead-
ing’ such actions under other statutory
provisions or legal theories, or as chal-
lenges to federal administrative action un-
der the APA. /d. at 284-86 and n. 22, 103
S.Ct. at 1818-19 and n. 22; see South Delta
Water Agency v. United States Depart-
ment of Interior, 767 F.2d 531, 541-42 (9th
Cir.1985); see also Nevada v. United
States, 731 F.2d 633, 636 (9th Cir.1984);
McIntyre v. United States, 568 F.Supp. 1,
2 (D.Alaska 1983). Therefore, all the plain-
tiffs’ claims against the federal defendants
that are intended to secure patent to their
disputed homestead entries—regardless of
whether the plaintiffs have classified them
as administrative appeals, mandamus ac-
tions, or suits in equity—must pass muster
under the QTA.

When analyzed under the terms of the
QTA, the plaintiffs’ claims to secure patent
from the federal defendants suffer from
two fatal weaknesses. First, the United

5. The sole exception is the plaintiffs’ inverse
condemnation claim against the United States,
which seeks money damages.

23a

*™

States formally disclaimed all interest in
the disputed lands following their convey-
ance to Eklutna and Cook Inlet Region.
Section 2409a(d) of the QTA provides that:

If the United States disclaims all inter-
est in the real property or interest there-
in adverse to the plaintiff at any time
prior to the actual commencement of the
trial, which disclaimer is confirmed by
order of the court, the jurisdiction of the
district court shall cease unless it has
jurisdiction of the civil action or suit on
ground other than and independent of
the authority conferred by section 1346(f)
of this title [the section providing juris-
diction over QTA actions].

28 U.S.C. § 2409a(d).

[3-5] Since the United States’ convey-
ance of the disputed homestead property
was required under the terms of ANCSA,
there is no question that its disclaimer is
valid and was made in good faith. There-
fore, this court must confirm the United
States’ disclaimer of interest in the dis-
puted lands. See W.H. Pugh Coal Co. v.
United States, 418 F.Supp. 538, 539 (E.D.
Wis.1976). Since no trial has yet com-
menced in this action, under the terms of
section 2409a(d), this court’s jurisdiction
must cease over all the plaintiffs’ claims to
acquire patent from the federal defend-
ants.®
6. The piaintiffs may attempt to argue that their

administrative review and mandamus claims
nrovide an alternative basis for this court to
9:

24a

ml

[6] Second, even without a disclaimer
by the United States, the plaintiffs’ actions
to acquire patent would be barred by the
QTA’s twelve-year statute of limitations,
contained in section 2409a(f):

Any civil action under the QTA shall
be barred unless it is commenced within
twelve years of the date upon which it
accrued. Such action shall be deemed to
have accrued on the date the plaintiff or
his predecessor in interest knew or
should heave known of the claim of the
United States.

28 U.S.C. § 2409a(f). Since the QTA ef-
fects a limited waiver of the United States’
sovereign immunity, its statute of limita-
tions must be strictly construed and will
not ordinarily be subject to equitable toll-
ing. California v. Yuba Goldfields, Inc.,
752 F.2d 398, 396-97 (9th Cir.1985); Neva-
da, 731 F.2d at 634; see also Block, 461
U.S. at 287, 103 S.Ct. at 1819-20; MeJn-
‘ure, 368 F.Supp. at 4.

[7,8] Under the terms of section
2409a(f), the QTA’s twelve-year period of
limitations beyran to run when Lee, Eklund,

retain subject-matter jurisdiction, as required
under section 2409a(d), but this argument runs
directly contrary to the Supreme Court's analy-
sis in Block. In Block, the Supreme Court held
that any action against the United States de-
signed to quiet title must satisfy a// the require-
ments of the QTA. 461 U.S. at 284-86, 103 S.Ct.
at 1818-19. This presumably includes the no-
Gisclaimer requirement imposed by section
2409a(d).

25a

and Carr “knew or should have known of
the claim of the United States” to the dis-
puted lands. 28 U.S.C. § 2409a(f); Guam
v. United States, 744 F.2d 699, 700 (9th
Cir.i984). In determining this date, this
court must employ a test of reasonable-
ness. Yuba Goldfields, 752 F.2d at 396;
McIntyre, 568 F.Supp. at 3. The statutory
period began to run when the three men
reasonably should have known that the
United States had a conflicting claim to the
lancs they sought, regardless of how
strong they believed that claim to be. See
Guam, 744 F.2d at 701; Nevada, 731 F.2d
at 625. “The existence of [even] one un-
contreverted instance of notice [to each of
the men], sufficed to trigger the limitations
pericd.” dJd.; see also Yuba Goldfields,
742 F.2d at 396-97; Guam, 744 F.2d at
701.

{9,10} Under this standard, Lee, Ek-
lund, ana Carr clearly should have realized
by 196i that the United States had a con-
flicting claim to the portions of their home-
Stead eniries within the Power Site Classifi-
cation: that year the BLM issued its sur-
vey covering the disputed lands, published
notice of the survey in the’ Federal Reg-
isver. and issued final decisions rejecting
their homestead entries. See Yuba Gold-
fields, T52 F.2d at 396-97; Guam, 744 F.2d
at 7Ol: Mesntyre, 568 F.Supp. at 4. More-
over, by 1964. when the three men all
reached sigred compromise agreements
with BLM and filed amended homestead

entry applications in accordance with
BLM’s dictates, they indisputably knew of
tne United States’ claim that the with-
Grawn land was not subject to entry under
the public land jaws. Even assuming that
the three men first learned of the govern-
ment’s position in 1964, their quiet title
causes of action against the federal defend-
ants all accrued well over twelve years
before 1979, 1980, and 1982, when they and
their successors filed the present actions.
Therefore, the plaintiffs’ claims to acquire
patent from the federal defendants are all
barred under the QTA’s statute of limita-
tions.

Based either upon the government’s dis-
claimer or the QTA’s statute of limitations,
I must dismiss the plaintiffs’ claims to ac-
quire patent from the federal defendants
for lack of subject-matter jurisdiction.

2. Claims to Acquire Patent From Ek-
lutna and Cook Inlet Region

[11,12] The plaintiffs have also
brought claims against Eklutna and Cook
Inlet Region, seeking title to the disputed
lands under various common-law theories,
including a constructive-trust theory, and
under ANCSA sections 14(g), 43 U.S.C.
§ 1613(g), and 22(b), 43 U.S.C. § 1621(b).
The QTA’s twelve-year statute of limita-
tions does not ber these claims, since under
its plain terms, the QTA applies only to
claims brought “to quiet title against ‘he
United States.” 28 U.S.C. § 2409a (em-

27a

phasis added). Congress passed the QTA
as a limited waiver of sovereign immunity
for actions to acquire title from the federal
government, see Block, 461 U.S. at 287, 103
S.Ct. at 1819-20, not to insulate private
parties who acquire federai lands, such as
Eklutna and Cook Inlet Region, from bona
fide actions to challenge their title. See
generally Economic Development and In-
dustrial Corp., 720 F.2d 1, 4 (1st Cir.1983).

Nor does the QTA operate like an ad-
verse possession statute and automatically
provide Eklutna and Cook Inlet Region
with valid title to the disputed lands as
against the plaintiffs. The Supreme Court
expressly indicated in Block that the QTA
is merely jurisdictional and does not trans-
fer title in dispuied lands even to the Unit-
ed States:

Unlike an adverse possession provision,

§ 2409a(f) does not purpose to effectuate

a transfer of title. If a claimant has title

to a disputed tract of land, he retains

title even if his suit to quiet his title is

deemed time-barred under § 2409a(f). A

dismissal pursuant to § 2409a(f) does not

quiet title to the property in the United

States. The title dispute remains unre-

sclvec. Nothing prevents the claimant

from continuing to assert his title....
Block, 461 U.S. at 291-92, 103 S.Ct. at
1822: accord Economic Development and
Industrial Corp., 720 F.2d at 4. Thus, the
QTA did not divest the plaintiffs of whatev-
er color of title they may have once pos-

sessed in the disputed lands. Since the
QTA does not protect Eklutna and Cook
Inlet Region from suit, the plaintiffs are
free to assert their claims of ownership
against those corporations insofar as other
statutes and common-law principles permit.

[13] The plaintiffs have raised several
common-law claims against Eklutna and
Cook Inlet Region, including a claim that
the disputed lands were wrongfully with-
held from tnem by the federal government,
were wrongfully transferred to Eklutna
and Cook Inlet Region under ANCSA, and
thus are currently being held for them in a
constructive trust by those corporations.
To determine the extent to which common-
law causes of action and remedies are
available to individuals like the plaintiffs,
who claim title to lands contained in ANC-
SA conveyances, it is necessary to examine
the extent to which Congress “spoke direct-
ly” concerning such claims in ANCSA it-
self. See City of Milwaukee v. Illinois,
451 U.S. 304, 313-19, 101 S.Ct. 1784, 1790-
94, 68 L.Ed.2d 114 (1981); see also Texas v.
Pankey, 441 F.2d 236, 241 (10th Cir.1971)
(federal common law applies “{uJntil the
field has been made the subject of compre-
hensive legislation or authorized adminis-
trative standards”). “{W]hen Congress ad-
dresses a question previously governed by
a decision rested on federal common law,
the need for [application of common law]
by federal courts disappears,” City of Mil-
wauxee, 451 U.S. at 314, 101 S.Ct. at 1721;

29a

moreover, “[t]he establishment of ... a
seif-consciouslx comprehensive program by
Congress [for regulating a particular area]
strongly suggests that there is no room for
Courts to attempt to improve on that pro-
gram with federal common law.” /d. at
319, 101 S.Ct. at 1793.

ANCSA’s language, structure, and legis-
lative history indicate that Congress intend-
ed it to provide a comprehensive and final
resolution of all issues relating to native
land claims in Alaska. In enacting ANC-
SA, Congress declared that “‘the settlement
[of those issues] should be accomplished
rapidly, with certainty, ... [and] without
litigation.” 43 U.S.C. § 1601(b) (emphasis
added). Congress viewed ANCSA as con-
Sstituting a complete and detailed “settle-
ment package,” in which Alaska natives
agreed to the extinguishment of all their
claims based upon aboriginal title in ex-
change for fee title to more than 40 million
acres and a cash settlement of about one
billion dollars. H.Conf.Rep. No. 746, 92nd
Cong. 1st Sess. 1, 34 (1971), U.S.Code
Cong. & Admin.News 1971, p. 2192 (empha-
sis origina!); see also United States v. At-
lantic Richfield Co., 612 F.2d 1132, 1134
(9th Cir.), cert. denied, 449 U.S. 888, 101
S.Ct. 244, 66 L.£d.2d 113 (1980). In light
of Congress’ desire to provide a complete,
final, and certain resolution of native land
claims in ANCSA and to minimize the need
for litigation, it seems unlikely that Con-
gress would have authorized large-scale

30a

conveyances of lands to native corporations
without carefully delineating the rights of
other parties to assert claims to those
lands. Allowing private parties to claim
ownership to ANCSA-conveyance lands un-
der a host of common-law theories would
enable them to undermine the ANCSA set-
tlement and to prevent native corporations
from fully enjoying the fruits of the settle-
ment for many years.

Moreover, Congress “spoke directly” in
ANCSA concerning individuals’ rights to
assert claims to ANCSA-conveyance lands
based on prior use and occupancy. At
least four separate, detailed ANCSA provi-
sions address and define these rights. See
43 U.S.C. §§ 1613{c)(1) (primary place of
residence and business); 1613/g) (leases,
contracts. rights-of-way, and easements);
1621(b) (homesteads, headquarters sites,
trade and manufacturing sites, and small
tract sites); 162lic) (mining claims and lo-
cations). According to ANCSA’s legisla-
tive history, Congress believed that “{alll
valid existing rights [to ANCSA-convey-
ance lands], including inchoate rights of
entrymen and mineral locators, are protect-
ed” under ANCSA’s provisions. H.Conf.
Rep. No. 746, at 37, U.S.Code Cong. &
Admin.News 1971, at p. 2229. Congress
plainly did not believe that common-law
remedies would be necessary to supple-
ment ANCSA in order to protect individu-
als’ rights to ANCSA iands, or that parties
should be permitted to assert claims to

3la

ANCSA-conveyance lands that were not ex-
pressly recognized in ANCSA.

[14] Based on the detail with which
ANCSA was drafted and Congress’ inten-
tion to provide a certain and all-encompass-
ing resolution of Alaska native land claims,
I agree with the assessment of the United
States Court of Claims in Cape Fox Corp.
v. United States, 4 Cl.Ct. 223 (1988):

The ANCSA is comprehensive. It sets
out with particularity the rights of the
United States, the natives, the State, and
third parties, with respect to the lands
and revenues to be distributed, and es-
tablished a time frame in which these
rights and duties are to attach.

[15] Since Congress “spoke directly” in
ANCSA concerning individuals’ rights to
assert claims to ANCSA-conveyance lands
and established ‘‘a self-consciously compre-
hensive program” in ANCSA for determin-
ing such rights, I conclude, based upon
City of Milwaukee, that Congress intended
ANCSA to “occupy the field’’ in this area
and to preempt any common-law theories
or other statutory claims that individuals
might assert. See City of Milwaukee, 451
U.S. at 314, 319, 101 S.Ct. at 1793-94. Giv-
en the extensive set of provisions in ANC-
SA delineating the rights of individual
clainiants to ANCSA-conveyance lands, any
attempt to supplement these provisions
with common-law remedies, such es the
constructive-trust theory advanced by the
plaintiffs, would represent an attempt to

alter the comprehensive legislative scheme
adopted by Congress in ANCSA, rather
than to “fill a gap” that Congress has not
occupied, and would therefore be an imper-
missible application of federal common law.
See id. at 324 & n. 18, 101 S.Ct. at 1796 &
n. 18. Thus, I dismiss the plaintiffs’ com-
mon-law claims against Eklutna and Cook
Inlet Region, and hold that the plaintiffs’
claims seeking to recover title to the dis-
puted lands from these corporations must
be expressly based upon provisions con-
tained in ANCSA.

The plaintiffs have brought claims
against Eklutna and Cook Inlet Region un-
der ANCSA sections 14g), 43 U.S.C.
§ 1613(g), and 22(b), 43 U.S.C. § 1621(b).
They claim that these ANCSA provisions
preserve their rights to receive title to their
disputed homestead entries as against the
defendant native corporations. ANCSA
section 22(b) provides that:

The Secretary is directed to promptly
issue patents to al! persons who have
made a lawful entry on the public lands
in compliance with the public land laws
for the purpose of gaining title to
homesteads. headquarters sites, trade
and manufacturing sites, or small tract
sites ... and who have fulfilled all re-
quirements of, the law prerequisite to
obtaining a patent. Any person who has
made a lawfu! entry prior to August 31,
1971, for any of the foregoing purposes
shall be protected in his right of use and

33a

occupancy until all the requirements of
law for a patent have been met....
Provided, that oceupancy must have
been maintained in accordance with the
appropriate public land law....

43 U.S.C. § 1621(b) (emphasis added).
ANCSA section 14(g) provides that:

All conveyances made [to native corpo-
rations], pursuant to [ANCSA] shail be
subject to valid existing rights. Where
‘prior to patent of any land or minerals
under [ANCSA], a lease, contract, per-
mit, right-of-way, or easement (includ-
ing a lease issued under section 6(g) of
the Alaska Statehood Act) has been is-

sued for the surface or minerals covered
under such patent, the patent shall con-

tain provisions making it subject to the
lease, contract, permit, right-of-way, or
easement, and the right of the lessee,
contractee, permittee, or grantee to the
complete enjoyment of all rights, privi-
leges, and benefits thereby granted to
him.
43 U.S.C. § 1613(g) (emphasis added).

{16} Based upon my-analysis and com-
parison of the wording of these two provi-
sions, I conclude that ANCSA section 22(b),
and not section 14(g), was intended by Con-
gress to protect the interests of individuals,
like the plaintiffs, who claim ANCSA-con-
veyance lands based upon their prior entry
and occupancy of those lands “for the pur-
pose of gaining title to homesteads.” The

34a

plain language of section 22(b) refers to
“homesteads,” “the public land laws,” and
“lawful entry”; in contrast, section 14(g)
refers only to “lease{s], contract{s], per-
mit{s], right[s]-of-way, [and] easement{s].”
The two provisions thus address completely
distinct sets of property interests and con-
tractual rights established by the federal
government: section 22(b) addresses those
interests arising out of the operation of the
public land law and four statutory pro-
grams in particular, whereas section 14(g)
addresses those property interests and con-
tractua! rights that the federal government
creates on a case-by-case basis through the
“issufance]” of written authorizations and
agreements.’ There is no reason to believe
that Congress intended section 14(g) to ov-
erlap with section 22(b) and to apply also to
interests arising out of homestead entries,
7. At first glance, another distinction between

section 22(b) and section 14(g) may appear to

be that section 22(b) covers interests leading to

acquisition of title, whereas section 14(g) does

not. However, this distinctiori runs contrary to

the Secretary's interpretation of the two provi-

sions, which is that they both encompass at least

some property inicrests that may eventually ma-
ture or develop into fuil-scale title. See, eg,

Secretarial Order No. 3016 and accompanying
Memorandum, Valid Existing Rights Under the
Alaska Native Claims Settlement Act, 85 Interior
Dec. 1, 5-8 (1977). The correctness of the “2c-
retary s interpretation is unnecessary to resolve
for purposes of the present case, and I anly
conclude now that Congress did not intend to
luciude homesicad entries as property interests
mrotected by section 14(:).

35a

-

when section 14(g) does not mention the
term “homestead,” as section 22(b) does,
and when section 14(g) appears to have
been designed to cover a totally different

: set of property interests.
[17] Moreover, a step-by-step analysis
of the ANCSA conveyance process, includ-
. ing the Secretary’s regulations for adminis-
tering ANCSA conveyances, confirms that
section 14(g) cannot be interpreted to over-
lap with section 22(b) and to apply to home-
stead entries. Under section 22(b), “{t]he
Secretary is directed to promptly issue
natents to all persons who have made a
lawful entry on the public lands in compli-
ance with the [homestead] laws ... and
who have fulfilled all requirements of the
law prerequisite to obtaining a patent’; he
is also directed to “protect in [their] right
of use and occupancy” all “person{s] who
ha({ve}] made a lawful entry prior to August
31, 1971” but who have not yet fulfilled all
the homestead requirements. 43 U.S.C.
§ 1621(b) (emphasis added). Unlike other
ANCSA provisions concerning individuals’
prior existing claims to lands selected un-
der ANCSA, including section 14(g), section
22(b) does not indicate that the lands to
> « which it refers will ever be conveyed. See,
e.g., 43 U.S.C. § 1613(c)(1) (primary places
of residence and business); 43 U.S.C.
+ os § 1613(g) (leases, contracts, permits,
rights-of-way, and easements); 43 U.S.C.
§ 1621(c) (mining claims and _ locations).
This omission, combined with Congress’

36a

use of the word “promptly,” suggests that
Congress intended section 22(b), unlike
many parallel ANCSA provisions, to oper-
ate prior to, rather than following, anv
ANCSA conveyance: it requires the Secre-
tary to assess the validity of potential
clairns that might be raised under the
homestead laws before conveying lands in-
volving such claims to native corporations.

This interpretation of section 22(b) as a
pre-conveyance provision is supported by
the Secretary’s regulations, which provide
that the Secretary will not transfer to a
native corporation any !ands for which he
determines that valid homestead entries
have been made:

Pursuant to sections 14(g) and 22(b) of
the act, a/] conveyances issued under
the act shall exclude any lawful entries
which have perfected under, or are be-
ing :naintained in compliance with, laws
ieading to the acquisition of title, but
shail include lands subject to valid exist-
ing rights of a temporary or !imited na-
ture such as those created by leases (in-
cluding leases issued under section 6(g)
er the Alaska Statehood Act), contracts,
permits, rights-of-way, or easements.

43 CFR § 2650.3-1(a) (emphasis added).
Since the Secretary is required under sec-
tion 22(b) to assess the validity of all poten-
tial homestead claims, and is also required
under his own regulations to exclude from
any ANCSA conveyances those nomestead
claims determined to be valid, it is clear

37a

*)

that he must make the homestead evalua-
tions required under section 22(b) prior to
making any ANCSA conveyances.

In contrast to section 22(b), section 14(g)
is by its very terms a post-conveyance
provision: it imposes obligations upon na-
tive corporations that take effect only once
they receive conveyances of lands that are
subject to “valid existing rights.” See 43
U.S.C. § 1618(g). Since under section 22(b)
and 43 CFR § 2650.3-1(a), the validity of
all homestead-related claims is supposed to
be resolved by the Secretary prior to any
ANCSA conveyance, and since in theory,
no conveyance is supposed to include valid
homestead entries, Congress could not
have intended section 14(g) to apply to
homestead-related claims. Under the
ANCSA convevance process, any “valid”
homestead claim will be segregated by the
Secretary before it can be conveyed, and
will never reach the native corporations.
Conversely, any purported homestead claim
contained in an ANCSA conveyance will
presumatly already have been determined
invalid by the Secretary. Thus, it would be
anomalous for a native corporation to con-
clude that a homestead claim within a con-
veyance it receives is a “valid existing
right” entitled to protection under section
14(z). As a result, section 14(g) cannot
apply to claims based on the homestead
laws.

Congress appears to have had several
strong reasons for choosing to address
claims under the homestead laws in a sepa-

38a

EDITOR'S NOTE

THE FOLLOWING PAGES WERE POOR HARD COPY
AT THE TIME OF FILMING. IF AND WHEN A
BETTER COPY CAN BE OBTAINED, A NEW FICHE

WILL BE ISSUED.

rate provision from claims involving the
property and contractual interests enumer-
ated in section 14(g), and for choosing to
require the Secretary to assess the validity
of all homestead claims prior to convey-
ance, rather than requiring native corpo-
rations to perform this function following
conveyance, as it did with the section 14(g)
property interests. First, the Secretary is
better equipped than the individual native
corporations to assess the validity of home-
stead claims, because of his expertise con-
cerning the intricacies of public land law,
his access to records concerning various
claims, and his prior dealings with various
entrymen. It would create an unnecessary
burden on native corporations’ time and
resources to require them to accumulate
this same information and expertise.

Second, if lands subject to homestead
claims were inciuded in ANCSA conveyanc-
es to native corporations, those lands would
presumably be counted as part of the cor-
porations’ total ANCSA lands entitlement.
Since the corporations would then have to
relinquish all valid homestead entries with-
out receiving any compensating benefit,
they would effectively be deprived of part
of the total benefits to which ANCSA enti-
tled them. In contrast, the property and
contractual interests which section 14(g)
requires the native corporations to adminis-
ter are all revernue-generating: when the
lands subject to section 14(g) leases, per-

39a

bad

mits, options to purchase,* or other inter-
ests are turned over to native corporations,

the corporations will ultimately either re-
tain control of these lands or at least re-
ceive some rent or income in return. See
generally Secretarial Order No. 3016 and
accompanying memorandum, Valid Exist-
ing Rights Under the Alaska Native Claims
Settlement Act, 85 Interior Dec. 1, 8.
Thus, treating homestead claims different-
ly from section 14(g) claims and requiring
the Secretary to exclude any valid home-
stead claims from ANCSA conveyances can
be viewed as an attempt by Congress to
ensure that native corporations receive
their full lands entitlements under ANCSA.
Furthermore, requiring the Secretary, as
opposed to the native corporations, to make
the final determinations concerning the va-
lidity of all homestead claims is especially
appropriate, given the direct economic
stake that native corporations would have
in rejecting homestead claims so that they
would be entitled to retain the lands being

8. The Secretary has concluded that certain op-
trons tG purchase constitute “valid existing
rights’ under section 14(g). Secretarial Order
No. 2016 and cccompanying Memorandum, Val-
id Existing Rights Under the Alaska Naiive
“aims Seitlement Act, 85 Interior Dec. 1, 7-8
(1977). I merely cite options to purchase as an
example of a possible section 14(g) property
interest in this context, and do not mean to
imply any decision at this point as to whether
such opticns are covered under the terms of
section 144).

40a

claimed.?

[18] Based on this analysis, I dismiss
the plaintiffs’ claims against Eklutna and
Cook Inlet Region under ANCSA sections
14(g) and 22(b). The claims by Lee, Ek-
lund, and Carr to the disputed lands are all
exclusively premised upon compliance with
the homestead laws: all three individuals
claim to have originally entered and occu-
pied the contested lands “for the purpose
of gaining title to homesteads.” See 43
U.S.C. § 1621(b). None of the three plain-
tiffs’ claims are based upon any of the
property interests enumerated in section
14(g). As a result, the plaintiffs have
failed to state a claim for which relief can
be granted under section 14(g), and I must
dismiss their section 14(g) claims. See Fed.
R.Civ.P. 12(b)(6).

[19] I dismiss the plaintiffs’ section
22(b) claims against Eklutna and Cook Inlet
Region for lack of subject-matter jurisdic-
tion. By its plain terms, section 22(b) es-
tablishes a duty only on the part of the
Secretary to issue patents to individuals
with valid homestead claims. It does not
establish any duty on the part of native
corporations to individuals claiming lands

9. It should be noted, however, that Congress did
not structure all of ANCSA’s provisions in order
to avoid having native corporations determine
the validity of claims to lands that they might
consider economically valuable. See, e.g., 43
U.S.C. § 1613(c)(1).

4la

based on the homestead laws: as indicated
above, Congress did not intend for native
corporations to be involved in evaluating
the validity of such claims, or to convey
any of the lands they receive under ANC-
SA to those raising such claims. See 43
U.S.C. § 1621(b). As a result, the plain-
tiffs cannot bring any claims against the
defendant native corporations under sec-
tion 22(b).'°

{20] The only defendant that the plain-
tiffs could conceivably sue based upon sec-
tion 22(b) is the Secretary. See id. How-
ever, section 22(b) does not itself contain 2
waiver of the federal government’s sover-
eign immunity, or provide any mechanism
for parties, like the plaintiffs, to obtain
administrative or judicial review of the Sec-
retary’s determinations under that provi-
sion. Therefore, any action that the plain-
tiffs bring against the Secretary based
upon section 22(b) that is designed to ac-
quire patent to the contested lands would
have to be brought under the QTA. See
Block, 461 U.S. at 286 and n. 22, 103 S.Ct.

10. Although I dismiss the piaintiffs’ common-
law and section 22(b) claims against Eklutna
and Cook Iniet Kegion tor lack of subject-matter
jurisdiction, Eklutna has requested that I never-
theless make complete findings of faci on these
claims in case the Court of Appeals disagrees
with my jurisdictional analysis. Such findings
would be purely advisory in light of my conclu-

sions concerning this court's jurisdiction, and |!
therefore decline to make such findings.

42a

at 1819 n. 22 (holding that “Congress in-
tended the QTA to provide the exclusive
means by which adverse claimants could
challenge the United States’ title to real
property,” and that parties claiming title to
lands held by the federal government can-
not bring actions under the APA). Since

the plaintiffs’ claims to acquire title to the
disputed lands from the government were
already barred under the QTA’s twelve-
year statute of limitations before the Secre-
tary made his section 22(b) determination,
sce section 1, supra, I conclude that any
claims by them seeking title based on his
section 22(b) determination are also time-
barred."

11. I conciude that section 22(b) does not extend
the period of limitations for individuals like the
plaintiffs, whose time for initiating actions has
already elapsed under the QTA. Section 22(b)
does not expand the rights of the plaintiffs in
the disputed lands beyond those they had in
1961-1964, when their QTA causes of action
accrued. See section 1, supra. Therefore, the
picintiffs cannot contend that the QTA’s twelve-
vear period started over again when ihe Secre-
ta:¥ madz his section 22(b) determination in the
late 197Cs. Sve Yuba Goldfields, 752 F.2d a
396-S7 (QTA's tweive-year period begins to run
when parties first become aware that the United
Siates may assert a claim to lands they are
claiming: Guam, 744 F.2d at 700-01 (same);
Nevada, 721 F.2d at 635 (same).

The piainniffs may contend that their actions
raise timely section 22(5) claims based on ANC-
SA's iimutat.ons provision for challenges io deci-
sicns mace bv the Secretary, 43 U.S.C. § 1632(a)
(10%2, Section 1632(a) provides that: “a deci-
sina of tne Secretary under ... the Alaska Na-

43a

>

tive Claims Setttement Act shall not be subject
to judiciai review unless such action is initiated
before a court of competent jurisdiction within
two vears after the dav the Secretary's decision
hecomes f:nal or December 2, 1980, whichever
is later: Provided, that the party seeking such
review she!l first exhaust any administrative
appea! richts.” Jd.

Tre negative phrasing of section 1632(a)
(“shall nor be subject te judicial review unless

“. and its reference to ‘court{s] of competent
jurisdiction” indicate that it was not intended
by Congress to create jurisdiction over parties’
claims based on ANCSA or to expand the reme-
dies available to parties beyond those already
available under other provisions. Moreover,
secticn 1632(a)’s legislative history confirms
that it was adopted to limit, rather than extend,
the time for judicial review: Congress noted
that “[dJue to the interwoven nature of entitle-
ments, decisions, and conveyances concerning
land under ... ANCSA, it is desirous that ad-
minisiraiive decisions be absolutely final in
minimum periods of time.” S.Rep. No. 413,
96th Cong., 2d Sess. 291 (1980), reprinted in
1980 U.S.Code Cong.Ad.News 5070, 5235. Con-
gress did not envision the provision as authoriz-
ing judicial review in cases where it was not
already available, but instead stated that “[(t]his
section provides that judicial review be institut-
ed, if at al!, within two years of the date a
Secretarial decision becomes effective.” /d. at
291-93, reprinted in 1980 U.S.Code Cong. and
Ad.News at 5235-36 (emphasis added). Thus,
because at the time of the Secretary's section
22(b) decision, the QTA barred any challenge to
that decision, section 1632(a) does not create an
independent basis for jurisdiction over such a
challenge.

1 note in passing also that section 1632(a)
requires that parties “exhaust any administra-
tive appeal rights” before seeking judicial review
of Secretarial decisions under ANCSA. 43
U.S.C. § 1632{a). The record indicates that of

44a

3. Inverse Condemnation Claims
Against the United States

(21j Lee, Eklund, and Carr have also
brought inverse condemnation claims
against the United States. alleging a ‘‘tak-
ing ' of their property without just compen-
sation. They contend that prior to the Sec-
retarv’s conveyance of the contested lands
to Eklutna and Cook Inlet Region, they had
property rights in those lands that re-
mained intact despite the bar of the QTA.
See generally Block, 461 U.S. at 291-92,
103 S.Ct. at 1822. According to the plain-
tiffs, by conveying those lands under ANC-
SA to the defendant native corporations,
who cannot be sued for title under ANC-
SA’s provisions, the Secretary effectively
extinguished their property rights. It is
these property rights for which the piain-
tiffs have brought inverse condemnation
claims. See generally Hawaii Housing
Authority v. Midkiff, 467 U.S. 229, 104
S.Ct. 2321, 2828-32, 81 L.Ed.2d 186 (1984)
(holding that eminent domain power may
be used to implement land redistribution
program).

Each plaintiff is seeking “in excess of
$10,000” in money damages on their in-
verse condemnation claims. The United
States Claims Court has exclusive jurisdic-
the three plainuffs, only Lee can arguably be
deemed to have exhausted his administrative
appea: rigiits regarding his section 22(b) claims.

45a

tion over actions for money damages
against the United States when the amount
sought is greater than $10,000. 28 U.S.C.

§§ 1491, 1346(a)(2) (1982); Cape Fox Corp.
v. United States, 646 F.2d 399, 401-02 (9th
Cir.1981). Therefore, I must dismiss the
plaintiffs’ inverse condemnation claims for
lack of subject-matter jurisdiction.'*

WHEREFORE, iT IS ORDERED THAT:

1) the plaintiffs’ claims for patent
against the federal defendants are dis-
missed for lack of subject-matter jurisdic-
tion;

2) the plaintiffs’ common-law claims for
patent against defendants Eklutna and
Cook Inlet Region are dismissed for lack of
subject-matter jurisdiction;

3) the plaintiffs’ claims for patent
against defendants Eklutna and Cook Inlet

12. Despite the fact that this court lacks subject-
matter jurisdiction over the plaintiffs’ inverse
condemnation claims, the federal defendants
have requested me to make findings of fact that
could be used by the Claims Court in any subse-
quent action there. However, such findings

would be purely advisory and would undermine
the exclusive jurisdiction of the Claims Court
over the plaintiffs’ inverse condemnation
claims. See Cape Fox Corp. v. United States, 646
F.2d 399, 402 (9th Cir.1981). Therefore, I de-
cline to make such findings.

46a

Region under ANCSA section 14(g) are dis-
missed for failure to state a claim upon
which relief can be granted, and their
claims under ANCSA section 22(b) are dis-
missed for lack of subject-matter jurisdic-
tion; and

4) the plaintiffs’ inverse condemnation
claims against the United States are dis-
missed for lack of subject-matter jurisdic-
tion.

47a

Judgment

UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

JAMES W. LEE; RALPH A. EKLUND;
CORA CARR,

Plaintiffs-Appellants, No. 86-

vs 3651

SECRETARY OF THE INTERIOR;
DIRECTOR, BUREAU OF LAND
MANAGEMENT; EKLUNTNA, INC.;
COOK INLET REGION, INC.,

)
)
)
)
)
)
)
UNITED STATES OF AMERICA; )
)
)
)
)
)
Defendants-Appellees. )

)

CV-A80-301 CV-A79-336 CV-A82-441

APPEAL from the United States
District Court for the ANCHORAGE District
of ALASKA

THIS CAUSE came on to be heard on
the Transcript of the Record from the
United States District Court for the
ANCHORAGE District of ALASKA and was duly
submitted.

ON CONSIDERATION WHEREOF, It is now

43a

here ordered and adjudged by this Court,
that the judgment of said District Court

in this Cause be, and hereby is AFFIRMED.

Filed and entered 03=10-87

FILED
JUL 22 1987
CATHY A CATTERSON CLERK
U.S. COURT OF APPEALS
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT

JAMES W. LEE; RALPH A.

EKLUND; CORA CARR, CA No. 86-
3651
Plaintiffs-
Appellants, BC No. CV-
A80-301
Vv. (District of
Alaska)
UNITED STATES OF AMERICA;
SECRETARY OF THE IN-
TERIOR, DIRECTOR, BUREAU ORDER

OF LAND MANAGEMENT;
EKLUTNA, INC.; COOK INLET
REGION, INC.

Defendants-
Appellees.

mae eee”

Before: WRIGHT, FARRIS, and BEEZER,
Circuit Juges.

The panel as constituted in the
above case has voted to deny the petition
for rehearing filed April 24, 1987.
Judges Farris and Beezer have voted to

reject the suggestion for a rehearing

50a

en banc and Judge Wright recommends
rejection.

The full court has been advised of
the suggestion for an en banc hearing,
and no judge of the court has requested
a.vote on it. Fed. R. App. P. 35(b).

The petition for rehearing is denied
and the suggestion for a rehearing en

banc is rejected.

5la

Federal Power Act of 1920; 16 U.S.C.

§818.

Any lands of the United States included in
any proposed projection under the provisions of
this subchapter shall from the date of filing of
application therefor be reserved from entry, lo-
cation, or other disposal under the laws of the
United States until otherwise directed by the
commission or by Congress. Notice that such
application has been made, together with the

date of filing thereof and a description of the
lands of the United States affected thereby,
shall be filed in the local land office for the dis-
trict in which such lands are located. Whenever
the commission shall determine that the valuc
of any lands of the United States so applied for.
or heretofore or hereafter reserved or classified
as power sites, will not be injured or destroyed
for the purposes of power development by loca-
tion, entry. or selection under the public-land
laws, the Secretary of the Interior. upon notice
of such determination, shall declare such lands
open to location, entry, or selection. for such
purpose or purposes and under such restric-
tions as the Commission may determine. sub-
ject to and with a reservation of the right of
the United States or its permittecs or licensees
to enter upon, occupy, and use any part or al!
of said lands necessary, in the judgement of the
Commission, for the purposes of this sub-
chapter, which right shall be expressly reserved
in every patent issued for such lands: and no
claim or right to compensation shall accrue
from the occupation or use of any of said lands
for said purposes. The United States or any li-
censee for any such lands hereunder may enter
thereupon for the purposes of this subclhapter,
upon payment of any damages to crops. build-
ings, or other improvements caused thereby to

—

52a

the owner thereof, or upon givine a good and
sufficient bond to the United States for the use
and benefit of the owner to secure the payment
of such damages as may be determined and
fixed in an action brought upon the bond in a
court of competent jurisdiction, said bond to be
in the form prescribed by the Commission: Pro-
vided, That locations, entries, selections, or fil-
ings heretofore made for lands reserved as
water-power sites, or in connection with water-
power development, or electrical transmission
may proceed to approval or patent under and
subject to the limitations and conditions in this
section contained: Provided further, That
before any lands applied for, or heretofore or
hereafter reserved, or classified as power sites,
are declared open to location, entry, or selec-
tion by the Secretary of the Interior. notice of
intention to make such declaration shall be
given to the Governor of the State within
which such lands are located, and such State
shall have ninety days from the date of such
notice within which to file, under any statute
or regulation applicable thereto, an application
for the reservation to the State, or any political
subdivision thereof, of any lands required as a
right-of-way for a public highway or as a source
of materials for the construction and mainte-
nance of such highways, and a copy of such ap-
plication shall be filed with the Federal Power
Commission; and any location, entry. or selec-
tion of such lands, or subsequent patent there-
of. shall be subject to any rights granted the
State pursuant to such application.

53a

Quiet Title Act of 1972, as amended; 28
U.S.C. §$2409a.

(a) The United States may be named
as a party defendant in a civil action
under this section to adjudicate a dis-
puted title to real property in which
the United States claims an interest,
other than a security interest or water
rights. This section does not apply to
trust or restricted Indian lands, nor
does it apply to or affect actions which
may be or could have been brought under
sections 1346, 1347, 1491, or 2410 of
this title, sections 7424, 7425, or 7426
of the Internal Revenue Code of 1954,
as amended (26 U.S.C. 7424, 7425 and
7426), or section 208 of the Act of July
10, 1952 (43 U.S.C. 666).

(b) The United States shall n

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385019_1052%3A1. Public record. Not legal advice.
