Tucker Act

John R. Sand & Gravel Co. v. United States

Issues

Whether the statute of limitations in the Tucker Act limits the subject matter jurisdiction of the U.S. Court of Federal Claims?

 

John R. Sand & Gravel Co. (“JRS”) brought a takings claim against the United States government in the U.S. Court of Federal Claims pursuant to the Tucker Act. The United States filed a motion to dismiss the action, claiming that JRS filed the suit after the Tucker Act’s six-year statute of limitations expired. The United States Court of Federal Claims denied the motion to dismiss. The U.S. Court of Appeals for the Federal Circuit vacated the decision of the lower court because it found that the Court of Claims lacked jurisdiction to hear the claim, even though neither party raised the issue of jurisdiction; it was raised by a group of interested third parties in an amicus brief.  The Federal Circuit, agreeing with the amicus brief, dismissed the case, finding that the statute of limitations was a jurisdictional issue that the court could raise sua sponte, or on its own, and that JRS brought the claim too late. JRS argues that the plain language of the statute shows that the statute of limitations is not a jurisdictional issue and the court could not raise the issue sua sponte.  JRS relies on the legislative history of the Tucker Act to support its point. Conversely, the United States government argues that because the statute of limitations is part of Congress’s waiver of sovereign immunity, it does limit the jurisdiction of the court. While the issue in this case is narrow, the Court’s decision may help in delineating where the Court draws the line between which issues are jurisdictional and which are not.

Questions as Framed for the Court by the Parties

The statute of limitations in the Tucker Act, 28 U.S.C. § 2501, provides: “Every claim of which the United States Court of Federal Claims has jurisdiction shall be barred unless the petition thereon is filed within six years after such claim first accrues.”  The question presented is:  Whether the statute of limitations in Tucker Act limits the subject matter jurisdiction of the U.S. Court of Federal Claims.

In 1969, John R. Sand & Gravel Co. (“JRS”) signed a 50 year lease for a 158-acre tract of land in Michigan. John R. Sand & Gravel Co. v. United States, 457 F.3d 1345, (Fed. Cir.

Acknowledgments

The authors would like to thank Professor Kevin Clermont for his insights into this case.

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United States v. Clintwood Elkhorn Mining Co.

Issues

Must a taxpayer seek repayment and interest of unconstitutionally levied taxes only through IRS Tax Code administrative remedies, or may a taxpayer alternatively bring claims for damages and interest under the Tucker Act, which applies a less restrictive statute of limitations?

 

The Clintwood Elkhorn Mining Company sought to recover export tax payments after a federal court found the 1978 tax unconstitutional. Clintwood filed timely administrative refund claims under the IRS Tax Code within its three-year statute of limitations, and received repayments with interest for 1997 to 1999. However, Clintwood also filed an Export Clause damages claim for tax payments from 1994 to 1996 under the Tucker Act, which has a longer six-year statute of limitations. The government argued that the Tax Code provides the exclusive remedy for such refunds, while Clintwood argued that the Tucker Act alternative best remedies the government's unconstitutional taxation. The Court of Federal Claims found that Clintwood was entitled to receive damages, but not interest, under the Tucker Act. On appeal, the Federal Circuit awarded Clintwood both damages and interest for its 1994 to 1996 payments. The Supreme Court will determine whether Clintwood can file claims for repayment of unconstitutional taxes under the Tucker Act, and whether these alternative claims include interest awards. In addition to affecting the outcome of similar pending cases, the Court's decision will likely affect all taxpayers by determining the amount of reimbursement for taxes later found to be unconstitutional.

Questions as Framed for the Court by the Parties

Whether a taxpayer who would have been entitled to file a tax refund action in federal court to seek a refund of taxes (and interest thereon), but who failed to satisfy a statutory prerequisite to such an action (namely, the filing of a timely administrative refund claim) and is therefore barred from bringing such an action, may obtain a refund, and interest thereon, through an action directly under the Constitution pursuant to the Tucker Act, 28 U.S.C. 1491(a)?

In 1978, Congress passed a law taxing coal exports from United States mines. Clintwood Elkhorn Mining Company v. United States, 473 F.3d 1373, 1374 (Fed. Cir. 2007); 26 U.S.C.

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