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J OHN R. SAND & GRAVEL CO. v. UNITED STATES

Certiorari to the United States Court of Appeals for the Federal Circuit

Who sued who?
John R. Sand & Gravel Co. sued the United States, specifically, the Environmental Protection Agency.

Who is John R. Sand & Gravel Co.?
It is a mining company.

Why did the company sue the EPA?
The EPA moved some fences on the company's land. John R. thought the government interference was so bad that it sued to recover lost land value.

John R. Sand & Gravel sued the government? Can it do that?
If you want to sue the United States, you have to be very careful. CLARINET Esq. does not recommend it as a general rule. The government prefers not to be sued. Also, the government rarely loses. Just to begin a lawsuit, plaintiffs require a waiver of the government's immunity. The waiver amounts to a statute that permits the lawsuit.

In this instance, a statute does waive the government's immunity. The statute permits a lawsuit for monetary damages brought in the Federal Court of Claims. But the statute also limits the time to bring the lawsuit to within 6 years from the time that the case could have been brought.

How did this case make it to the Supreme Court?
The government won in front of the Federal Court of Claims. The Federal Court of Claims ruled that the government didn't have to pay John R. for anything. This was mostly because John R. did not have a winning argument that the government should owe it the money.

In the meantime, when the case first began, the government argued that the statute of limitations applied to John R.'s claims. Because a statute of limitations prevents old claims from being litigated, this could have been a winning argument. But, during this litigation, the government later conceded that it thought the statute of limitations did not apply to some of the claims. Thus, the Federal Court of Claims "reached the merits" and decided the case based on the facts, not the statute of limitations.

Not surprisingly, the company appealed. This appeal was to the younger half-brother of the Circuit Courts of Appeal - the Federal Court of Appeals for the Federal Circuit. The Federal Circuit did not reach the merits. Instead, without either of the parties to the suit raising the issue, the Federal Circuit decided the case based on the statute of limitations.

The decision surprised John R. Sand & Gravel - the government had admitted that the statute of limitations didn't apply. Once someone admits something in litigation, that is usually the last word. It was a dead issue. So the statue of limitations issue had risen like a zombie from the dead and eaten the brains of the company's arguments in front of the Court of Appeals.

Displeased with the statute of limitations zombie, John R. Sand & Gravel appealed to the Supreme Court of the United States to try to put the zombie back in its grave.

Who won?
The United States of America/EPA.

How did the Supreme Court decide?

The Court was asking this question: Did the Federal Circuit Court of Appeals make a mistake when it decide that the statute of limitations applied, even though the government didn't seem to care if it did?

A statute of limitations usually says something simple like: "Plaintiffs must bring claims for money damages within 6 years." As simple as this sounds, the application isn't quite so simple. The tension in this case is between two concepts for determining what a statute of limitations is intended to do.

The first concept is that defendants can't be called in to court for "stale" claims. Like bread and moldy cheese, plaintiffs' lawsuits can get too old. The physical evidence is old or lost, and the witnesses don't remember as well. Besides if this was really an issue – shouldn't the plaintiffs get right on it and complain? The unfairness here is to defendants, who just didn't keep track of the plaintiffs and their troubles. This gives defendants the right to get the case tossed out.

But, on the other hand, defendants just can't just raise this issue after the case is almost over. After all, if plaintiffs have spent time and money litigating this case, and a defendant brings this up after the trial, well, that's just not fair to the plaintiff. The defendant let the case go on and didn't assert its right to be free of the lawsuit. The defendant gave up the statute of limitations defense.

The second concept is that statutes of limitations is designed to place limits on immunity. This is a system related goal. A claim against the government can't just sit, otherwise it gets in the way of the people who do follow the requirements of the statute of limitations. Congress wants the claims over with and out of the way for the next claim – there are other people in line that bothered to file their claims in a timely way.

So, for this second kind of statute of limitations, the defendants' failure to protect their rights isn't really important. The purpose of the statute is to limit the court's power to hear cases that are untimely; not just provide defendants with an additional reason not to be sued.

The Supreme Court decided that this statute of limitations was the second kind. So, the government wins on the point it had decided it had lost in front of the Court of Claims.

Why is this a "jurisdictional statute of limitations?"

The Court gave several different reasons to reach its conclusion First, it noted that some very old cases, from 1883 & 1887 had interpreted the statute this way. Second, the Court noted that the statute's language had not changed (enough) to decide that Congress had decided to revise the meaning. Another case from 1957, which the Court decided after Congress modified the statute, pretty much restated the rule from the very old cases. Finally, the Court decided that when a recently decided case (from 1990) said that the Court would adopt “a more general rule” regarding statutes of limitations, the "general rule" didn't include this statute of limitations.

The Court quotes the old chestnut: "[I]n most matters it is more important that the applicable rule of law be settled than it be settled right."

So what's the big idea?
Old precedent trumps new precedent when the new precedent doesn't actually change the old precedent, and the old precedent isn't net worse than keeping the law the same.

No one said that the big ideas in law were always sexy.

Who disagreed?
Justice Stevens & Justice Ginsberg each dissented.

What did Justice Stevens complain about?
Justice Stevens has been on the Court a long time. He wrote a concurring opinion to that case from 1990. And he views the 1990 case as indistinguishable. The case held that there would be a general rule that would apply to all statutes of limitations. He read it that the general rule was that the Court would no longer interpret statutes of limiations as jurisdictional. If there was any confusion left, he would go with the more recent case.

In essence, he thought that the statute of limitations zombie was buried in 1990, and the Court's opinion has brought it back to life.

What did Justice Ginsberg complain about?
She agrees with Justice Stevens, and goes even further. She believes that those older cases should be rejected even if there hadn't been a more recent case that already overruled them. Mainly, the different precedents confuse trial courts, and the lower courts will apply the rules in an inconsistent way.

She also complains that the Court inconsistently applies the doctrine of stare decisis for this case, and not for other cases. Her examples include Leegin Creative Leather Products Inc. v. PSKS Inc. and Bowles v. Russell decided in 2007. In those cases, the Court overruled very old precedents and rejected the argument that stare decisis applies. She does not mince words in her complaint about the way the Court is applying the venerable old doctrine of stare decisis:

“[T]he Court’s decision to adhere to [the very old cases at issue here]—while offering nothing to justify their reasoning or results—is, to say the least, perplexing. After today’s decision, one will need a crystal ball to predict when this Court will reject, and when it will cling to, its prior decisions interpreting legislative texts.”

Although CLARINET Esq. wonders if she would have been happier if the Court had actually explained the case on terms other than past precedent.

What is the quotable quote?
“Some statutes of limitations . . . seek not so much to protect a defendant's case-specific interest in timeliness as to achieve a broader system-related goal, such as facilitating the administration of claims, limiting the scope of a governmental waiver of sovereign immunity, or promoting judicial efficiency.”

What is the most lawyerly sentence?
“[The] presumption [against jurisidictional statutes of limitations] seeks to produce a set of statutory interpretations that will more accurately reflect Congress' likely meaning in the mine run of instances where it enacted a Government-related statute of limitations.≵

What did the zombie do next?
Being free to wander the streets of Washington, D.C. the zombie attempted to eat the brains of the numerous politicians and government officials. Unfortunately, it failed to find a suitable meal.

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