BILOXI MARSH LANDS CORPORATION v. United States
CourtUnited States Court of Federal Claims
Date FiledAugust 10, 2026
Docket12-382
JudgeRyan T. Holte
StatusPublished
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Full Opinion
In the United States Court of Federal Claims
No. 12-382
(Filed: 10 August 2026)
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BILOXI MARSH LANDS *
CORPORATION, et.al., *
*
Plaintiffs, *
*
v. *
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THE UNITED STATES, *
*
Defendant. *
*
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Camilo K. Salas, III, Salas & Co., L.C., with whom were Michael G. Stag, Ashley M.
Liuzza, and Matthew D. Rogenes, Stag Liuzza L.L.C., all of New Orleans, Louisiana, for
plaintiffs.
Erik Van de Stouwe, Trial Attorney, with whom were Young Kang, Trial Attorney, and
Adam R. F. Gustafson, Principal Deputy Assistant Attorney General, Environment & Natural
Resources Division, Department of Justice, all of Washinton, DC, for defendant.
OPINION AND ORDER
HOLTE, Judge.
Plaintiffs Biloxi Marsh Lands Corporation (“Biloxi”), Lake Eugenie Land &
Development, Inc. (“Lake Eugenie”), Borgnemouth Realty Co., Limited (“Borgnemouth”), The
Livaudais Company, LLC (“Livaudais”), Terre Aux Boeufs Land Co., Inc. (“Terre Aux
Boeufs”), and Vincent Marshlands, LLC (“Vincent Marshlands” or “Vincent”) (collectively,
“plaintiffs”), allege the United States permanently took their properties for public use through
inverse condemnation, without providing them just compensation, in violation of the United
States Constitution, federal statutes, and certain servitudes granted by plaintiffs and assigned to
the United States. Further, plaintiffs alleged the United States was liable for damage to
plaintiffs’ estates under the contracts granting a servitude to construct an outlet canal on their
properties. The government filed its Motion for Summary Judgment on 22 November 2024
arguing plaintiffs’ takings and contract claims are barred by this court’s six-year statute of
limitations and lack merit regardless. After revisions, plaintiffs filed their Cross-Motion for
Partial Summary Judgment on the issue of liability on 22 April 2025 addressing the same issues.
The Court held oral argument on the Cross-Motions for Summary Judgment on 4 November
2025 in New Orleans, Louisiana. For the following reasons, the Court grants in part and denies
in part the government’s Motion for Summary Judgment, and denies plaintiffs’ Cross-Motion for
Partial Summary Judgment on the Issue of Liability.
I. Factual Background
The factual background of this case was previously outlined in the Court’s 19 January
2021 Opinion and Order: 1
A. The Mississippi River Gulf Outlet
In the 1940s there were three primary water navigation routes in southeast
Louisiana: the Inner Harbor Navigation Canal (“IHNC”), the Gulf Intracoastal
Waterway (“GIWW”), and the Mississippi River. Pls.’ Corrected Mem. Submitted
(1) in Opp. to the U.S.’ Mot. for Summary Judgment on the Issue of the Timeliness
of Pls.’ Takings Claims; and (2) in Supp. of Pls.’ Cross-Mot. for Summary
Judgment on the Same Issue, ECF No. 110, (“Pls.’ Mot. for Partial Summ. J.”), Ex.
39 at 3-40 (Mississippi River Gulf Outlet (MGRO) Ecosystem Restoration Plan,
Final Environmental Impact Statement (June 2012)). In 1956, Congress authorized
construction of a fourth route—the Mississippi River Gulf Outlet (“MRGO”). Pls.’
Mot. for Partial Summ. J., Ex. 2 at 1 (U.S. Army Corps of Engineers, MRGO
Design Memorandum No. 1-B). The 76-mile-long, 36-foot-deep, 650-foot surface
width, and 500-foot bottom width channel would soon connect the INHC and the
38-foot depth contour in the Gulf of Mexico. Id. at 1–3. The purpose of the MRGO
“was to increase commerce by providing a direct connection between the port of
New Orleans and the Gulf of Mexico.” St. Bernard Parish Gov. v. United States,
887 F.3d 1354, 1357 (Fed. Cir. 2018).
In March of 1956, the Port of New Orleans (“the Port”) became the
designated non-federal sponsor of the MRGO. Pls.’ Mot. for Partial Summ. J., Ex.
2 at 1 (U.S. Army Corps of Engineers, MRGO Design Memorandum No. 1-B). As
such, Port Commissioners pursued acquisition of lands and obtained acts of
assurance of local cooperation, which included the furnishing of all lands,
easements, rights-of-way, and spoil disposal areas by the State of Louisiana. Id. at
6.
In April of 1958, the Department of the Interior, in a draft preliminary report
prepared for the Army Corps of Engineers (“USACE” or “the Corps”), predicted
ecological damage would result from the construction and operation of the MRGO.
See United States Mot. for Summary Judgment and Supporting Mem., ECF No. 99,
(“Gov. Mot. Summ. J.”), Ex. 1, at 8 (citing U.S. Department of the Interior, An
Interim Report on Fish and Wildlife Resources as Related to Mississippi River-Gulf
1
At oral argument, the Court invited the parties to note any disputes they may have with the facts as the Court
described them in its 2021 Order. In a JSR following oral argument, the government noted two disputes with the
Court’s recitation of the facts related to the 1958 Department of the Interior Draft Preliminary Report and the 1986
Water Resources Development Act (“WRDA”). See 22 January Joint Status Report at 1–5, ECF No. 293. Plaintiffs
disagreed with the government’s disputes. See id. at 5–9. Neither the Draft Preliminary Report nor the 1986
WRDA impact the Court’s decision on the parties’ cross-motions for summary judgment in this opinion. While the
Court does not address these disputes today, the parties remain free to raise these factual issues if they become
relevant in a future proceeding.
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Outlet Project, Louisiana and an Outline of Proposed Fish and Wildlife Studies
(1958)). In the report, the Secretary of the Department of the Interior wrote the
Secretary of the Army, noting “the project is of great concern to fish and wildlife
conservationists” and “the project plans had not been investigated by fish and
wildlife conservation agencies, as contemplated in Wildlife Coordination Act of
August 14, 1946.” Id. (emphasis added in the government’s brief).
Without further agency investigation, the Corps began construction of the
outlet in 1958, dredging shallow bays, coastal marshes, and cypress swamps. Pls.’
Mot. for Partial Summ. J., Ex. 51 at 2 (U.S. Army Corps of Engineers, MRGO Deep
Draft De-authorization Study: Executive Summary). Construction of the MRGO
cut through Bayous Bienvenue, Dupre, La Loutre, and the Bayou La Loutre Ridge
and resulted in the direct connection of Lake Borgne to the Gulf of Mexico through
Breton Sound. Pls.’ Mot. for Partial Summ. J., Ex. 39 at 3-40 (Mississippi River
Gulf Outlet (MGRO) Ecosystem Restoration Plan, Final Environmental Impact
Statement (June 2012)). In 1965, Congress authorized construction of a hurricane
protection levee along the south bank of the MRGO. Pub. L. No. 89-298, 79 Stat.
1073 (Oct. 27, 1965).
The Corps completed construction of the MRGO in 1968. St. Bernard
Parish Gov., 887 F.3d at 1357. From 1968 to 2009, the MRGO provided deep
water vessels direct access from the Gulf of Mexico to the Port of New Orleans.
Pls.’ Resp./Opp. to the U.S.’ Mot. to Dismiss the Compl. for Lack of Jurisdiction,
ECF No. 14 (“Pls.’ Resp. to Mot. to Dismiss”), Ex. 2, pt. 1 at iv (U.S. Army Corps
of Engineers, Integrated Final Report to Congress and Legislative Environmental
Impact Statement for the MRGO Deep-Draft De-authorization Study (November
2007)); Pls.’ Mot. for Partial Summ. J., Ex. 51 at 2 (U.S. Army Corps of Engineers,
MRGO Deep Draft De-authorization Study: Executive Summary). The MRGO
extended approximately 70 miles from Breton Sound to eastern New Orleans,
traversing wetlands and marshes in Plaquemines, St. Bernard, and eastern Orleans
Parishes. Pls.’ Mot. for Partial Summ. J., Ex. 39 at 3-28 (Mississippi River Gulf
Outlet (MGRO) Ecosystem Restoration Plan, Final Environmental Impact
Statement (June 2012)). The MRGO provided a pathway for large ships to do
business at the Port and created jobs reliant on the channel. Id. at 3-40–3-41. With
those ships and jobs, however, came saltwater and damaging ecological change to
the area surrounding the MRGO. Pls.’ Resp. to Mot. to Dismiss, Ex. 2, pt. 1, at iv
(U.S. Army Corps of Engineers, Integrated Final Report to Congress and
Legislative Environmental Impact Statement for the MRGO Deep-Draft De-
authorization Study (November 2007)).
B. Environmental Damage and Restoration: Reports and
Legislation
Construction of the MRGO converted and eliminated thousands of acres of
wetlands. Id. at iv. The “[m]ost significant environmental effects occurred in the
first 20 years after the MRGO [was] constructed.” Pls.’ Mot. for Partial Summ. J.,
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Ex. 56 at 43 (U.S. Army Corps of Engineers, MRGO Studies). In the first 20 years,
construction destroyed 2,500 acres of wetlands and erosion along the banks of the
newly constructed MRGO destroyed an additional 4,220 acres. Id.
In October 1972, Coastal Environments, Inc., prepared an Environmental
Baseline Study for the St. Bernard Parish Police Jury. See Gov. Mot. for Summ. J.,
Ex. 19 (St. Bernard Parish Policy Jury, Environmental Baseline Study (October
1972)). The purpose of the study was “to provide an environmental baseline of [St.
Bernard] parish as it currently exists, taking into consideration cultural and natural
factors that have modified the landscape . . . [and] to set management guidelines
for the system and provide a basis upon which future modifications to the
environment can be judged with a high degree of predictability concerning probable
impact.” Id. at 2. In relation to the MRGO, the study stated:
Of all navigation channels in coastal Louisiana, the [MRGO] has
probably had the greatest environmental impact. . . . Construction
of the channel destroyed 23,606 acres of marsh and shallow nursery
areas—17,058 acres of spoil deposition and 6,548 acres by
deepening.
Secondary effects are equally serious. The channel has greatly
altered the hydrology and water chemistry of adjacent estuarine
areas. The large cross-section of the area provides an avenue of
ingress and egress for runoff tidal waters. Changes in salinity are
well-documented. Recording stations in the vicinity of the channel
show significant changes after the canal was opened (about 1959)
and completed (1962).
. . . The thick sequence of poorly consolidated sediment through
which the channel was excavated has created highly unstable bank
conditions and massive slumping is common. . . . The result of this
condition has been a continuous and costly program of maintenance
dredging. Undesirable effects of this dredging include increased
turbidity and the impact on fauna and flora of spoil disposal.
Id. at 86–88, 93 (internal citation omitted). According to the 1972 study, “signs of
deterioration [were] evident in the death of trees and opening up of water bodies”
and the “change in water regime seems to be the main cause of deterioration.” Id.
at 65–66. The study states, “[t]he MRGO has introduced higher salinities into the
study area” and cites drastic changes in parts per thousand at Lake Borgne stations
BDL and I-3 “from an average surface salinity of 3.0 ppt in 1959–61 to 10.4 ppt in
1962–64, an increase of over three times.” Id. at 66.
In 1982, Coastal Environments, Inc., prepared an additional study. See Gov.
Mot. for Summ. J., Ex. 18 (St. Bernard Parish Police Jury, St. Bernard Parish: A
Study in Wetland Management (1982)). The study explains, “[o]ne of the major
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causes of wetland deterioration in St. Bernard Parish appears to be closely related
to the proliferation of deep navigation and drainage canals connecting the Gulf and
interior wetlands.” Id. at 117. The study continues, “[s]ome of the more noticeable
primary and secondary environmental impacts often attributable to canals
[include] . . . saltwater intrusion, . . . erosion . . . and consequent loss of marshlands,
. . . loss of stable, lower salinity estuarine nursery areas, [and] loss of biological
diversity as nonsalt-tolerant [sic] species are squeezed out by higher salinities.” Id.
In November 1984, the Corps prepared a study of the area. See Pls.’ Mot.
for Partial Summ. J., Ex. 40 (U.S. Army Corps of Engineers, Louisiana Coastal
Area, Louisiana—Land Loss and Marsh Creation—Initial Evaluation Report
(November 1984)) (“1984 Initial Evaluation Study”). Therein, the Corps stated
“[t]he marshes are disappearing at the alarming rate of 39.6 square miles per year
due to compaction, subsidence, sea level rise, erosion, saltwater intrusion, and
man’s activities. The land loss trend is expected to continue and, by year 2040,
about 1,000,000 acres of wetlands could disappear beneath the gulf.” Id. at
Syllabus. The study presented “the findings of the initial evaluation study of plans
to reduce land loss and create marsh in the coastal area of Louisiana.” Id. at 1. The
Corps noted “[a]s a result of the analysis of changing conditions, the needs and
opportunities and concerns of Federal, state, and local interests, . . . objectives were
established.” Id. at 62. These objectives included: “Create marsh to offset losses”;
“[e]nhance marsh vegetative growth to reduce marsh losses and increase the
nutrient and detritus supply for fish and wildlife production”; and “[r]educe
subsidence, erosion, and saltwater intrusion to reduce marsh losses.” Id.
In 1986 Congress enacted the Water Resources and Development Act
(“WRDA”), which in part instructs the “Secretary of USACE to determine the need
for modifications in the structure and operations of [the MRGO] for the purpose of
improving the quality of the environment . . . .” Pls.’ Mot. for Partial Summ. J. at
25. In 1988, the Corps conducted a reconnaissance study of the MRGO’s bank
erosion and erosion-related problems in Orleans and St. Bernard Parishes,
Louisiana. Id. at 8–9. The purpose of the study was to:
[D]efine the extent of erosion and erosion-related problems
projected to occur in the study area; identify opportunities to
implement potential solutions to the defined problems; appraise
Federal interest in potential solutions[;] . . . determine, based on the
appraisal, whether planning should proceed beyond the
reconnaissance phase into more detailed feasibility phase
considerations; estimate the time and cost required to complete
feasibility phase studies if Federal interest is indicated; and assess
the level of interest and support of non-Federal interests in the
identified potential solutions to defined problems.
Pls.’ Mot. for Partial Summ. J., Ex. 7 (Mississippi River-Gulf Outlet St. Bernard
Parish, La.—Bank Erosion—Reconnaissance Report, February 1988) (“1988
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Reconnaissance Report”) at 2–3. The Corps warned of erosion if there were no
remedial actions:
The unleveed banks of the MRGO will continue to erode in the
absence of remedial action. Currently, banks of the unleveed
reached are retreating at rates from five to over 40 feet per year. The
average rate of retreat of the north bank in the 41-mile land cut
portion of the waterway is 15 ft per year. Failure to reduce bank
erosion will result in a significant increase in the required
maintenance dredging of the waterway in the future. Annual
average maintenance dredging requirements are projected to
increase six-fold within the next 15 years (by the year 2002).
Id. at 30–31.
In 1990, Congress passed the Water Resource Development Act of 1990,
directing the Secretary of the Army to “include environmental protection as one of
the primary missions of the Corps of Engineers in planning, designing,
construction, operating, and maintaining water resources projects” and stating the
Corps shall have “an interim goal of no overall net loss of the Nation’s remaining
wetlands base, as defined by acreage and function, and a long-term goal to increase
the quality and quantity of the Nation’s wetlands, as defined by acreage and
function.” Water Resource Development Act of 1990, Pub. L. No. 101-640, tit. III,
§ 307(a), 104 Stat. 4604 (1990) (codified at 33 U.S.C. § 2317) (“1990 WRDA”).
Additional legislation in 1990 included the Coastal Wetlands Planning, Protection
and Restoration Act (the “Breaux Act”), which directed the Corps to establish a
comprehensive plan to restore Louisiana wetlands and called for the development
of annual lists of “priority projects” which would “provide for the long-term
conservation of [Louisiana’s] wetlands . . . .” Pls.’ Mot. for Partial Summ. J., Ex.
42 at 3–4 (1994 MRGO Bank Erosion Reconnaissance Report). In 1993, a task
force submitted a plan to restore and prevent further loss of Louisiana wetlands by
“increas[ing] sediment and freshwater input into coastal estuaries” so as to “restart
the natural processes of land building and maintenance.” Pls.’ Mot. for Partial
Summ. J., Ex. 41 at 9 (1993 Louisiana Coastal Wetlands Restoration Plan). The
task force behind the 1993 Louisiana Coastal Wetlands Restoration Plan developed
a “comprehensive approach to restore and prevent the loss of coastal wetlands in
Louisiana” by using hydrologic restoration, shoreline protection, marsh creation
with dredged materials, and marsh management. Id. at 4, 9.
The Breaux Act required the Corps to establish a comprehensive plan to
restore Louisiana wetlands exclusively. Pls.’ Mot. for Partial Summ. J. at 39. The
act authorized 143 projects to “create, protect, or restore over 120,000 acres of
wetlands in coastal Louisiana” and dedicated $40 million annually to restoring
wetlands in Louisiana and was still being implemented through 2001 or later. Id.
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In 2000, the Environmental Protection Agency (“EPA”) suggested closure
of the MRGO at the Bayou LaLoutre Ridge and offered a 10-year program to
restore and manage wetland resources, including freshwater diversions into the
Central Wetlands area. Pls.’ Mot. for Partial Summ. J., Ex. 45 at 2–3 (U.S. Army
Corps of Engineers, Louisiana Coastal Area (LCA), Louisiana, Ecosystem
Restoration Study (November 2004)). The report recognized the substantial land
erosion caused by the MRGO and declared “[a]s long as the MRGO remains
authorized to provide deep-draft navigation, ecosystem protection measures are
critically needed to minimize further wetland loss and preserve the opportunities
for future restoration.” Id. at 2. Recommendations by the report included
construction of rock breakwaters along the shores of the MRGO, the beneficial use
of dredged material for marsh creation, freshwater introduction, barrier island
restoration, and “channel modification to develop a suite of measures to stabilize
and maintain important estuarine components. Id. at 3.
Four years later, the Corps’ “Louisiana Coastal Area, Ecosystem
Restoration Study” disclosed the “rate of wetland loss in the area is accelerating”
and “rapid action is required to protect the integrity of the southern Lake Borgne
shoreline and to prevent continued erosion of the MRGO channel banks from ocean
going vessel wakes.” Pls.’ Mot. for Partial Summ. J., Ex. 45 at 32 (U.S. Army
Corps of Engineers, Louisiana Coastal Area (LCA), Louisiana, Ecosystem
Restoration Study (November 2004)). In the same 2004 study, the Corps proposed
building “38 miles of rock breakwaters to prevent the merger of the MRGO into
Lake Borgne, facilitating wetland creation by using dedicated dredging and/or
beneficial use of dredged materials behind the breakwaters, and freshwater
introduction into the marsh through Mississippi River diversions.” Id. The Corps’
“Operations and Maintenance Bank Protection” program completed, scheduled, or
proposed installation of foreshore protection, dredged material retention, and
articulated mattress along over 90 percent of the length of the MRGO. Pls.’ Reply
Br. Submitted (1) in Opp. to the U.S.’ Mot. for Summary Judgment on the Issue of
the Timeliness of the Pls.’ Takings Claims and (2) in Supp. of Pls.’ Cross-Mot. for
Summary Judgment on the Same Issue, ECF No. 135, (“Pls.’ Reply Br. Opp’n”),
Ex. 57 at 1.
C. The MRGO After Hurricane Katrina
“Hurricane Katrina was ‘one of the most devastating hurricanes that has
ever hit the United States, generating the largest storm surge elevations in the
history of the United States.’” St. Bernard Parish Gov., 887 F.3d at 1358 (quoting
In re Katrina Canal Breaches Consol. Litig., 647 F.Supp.2d 644, 678 (E.D. La.
2009)). Katrina caused severe shoaling in the MRGO, which in turn drastically
changed the channel depth of the outlet. Pls.’ Mot. for Partial Summ. J., Ex. 51 at
3 (U.S. Army Corps of Engineers, MRGO Deep Draft De-authorization Study:
Executive Summary). After the 2005 Hurricane season, the MRGO was not
navigable as a deep draft waterway. Id. Dredging to restore the outlet to its
originally authorized dimensions would have cost over $133 million. Id. To avoid
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re-dredging, the Corps limited its maintenance of the outlet to provide for only one-
way traffic. Id. at 7. The Corps thereafter stopped all maintenance dredging of the
MRGO in 2006, thereby halting the beneficial use of dredged materials programs.
Pls.’ Mot. for Partial Summ. J. at 3. In light of the damage to the MRGO and the
high cost of fixing the damage, the Corps recommended total closure of the MRGO
by erection of a rock dike across its entire width and the construction of other “rock
dikes that protect wetlands along the MRGO.” Pls.’ Mot. for Partial Summ. J., Ex.
51 at 13 (U.S. Army Corps of Engineers, MRGO Deep Draft De-authorization
Study: Executive Summary).
In 2007, the Corps stated in a report to Congress “habitat shifts caused by
saline waters brought in by the MRGO might have caused . . . 3,350 acres of
fresh/intermediate marsh and 8,000 acres of cypress swamp [to be] converted to
brackish marsh and 19,170 acres of brackish marsh and swamp [to] become saline
marsh.” Pls.’ Mot. for Partial Summ. J., Ex. 52 at iv (Integrated Final Report to
Congress and Legislative Environmental Impact Statement for the Mississippi
River-Gulf Outlet Deep-Draft De-authorization Study). In addition, the Corps
noted “[b]ank erosion along the MRGO has been estimated to occur at rates of
between 27 and 38 feet per year” and “[b]etween 1964 and 1996, 5,324 acres of
marsh have been lost adjacent to the MRGO channel . . . .” Id.
The Corps announced a plan in 2007 to close the MRGO by 9 July 2009
because of the cost associated with repair and the potential for great ecological
harm. Pls.’ Resp. to Mot. to Dismiss, Ex. 2, pt. 1 at 3 (U.S. Army Corps of
Engineers, Integrated Final Report to Congress and Legislative Environmental
Impact Statement for the MRGO Deep-Draft De-authorization Study (November
2007)). The Corps further published plans outlining ongoing, scheduled, and
proposed restoration efforts to bolster the wetlands areas affected by the MRGO.
Id. at 6–7. Congress again passed the WRDA in 2007 and authorized restoration
projects paired with a federally funded study. The projects required a non-federal
partner to agree to bear costs alongside the federal government, but no such partner
came forward. Id.
On 2 October 2008 the Corps announced it was developing a
“comprehensive ecosystem restoration plan to restore the areas affected by the
MRGO navigation channel.” Intent to Prepare a Draft Environmental Impact
Statement for the Mississippi River-Gulf Outlet Ecosystem Restoration Feasibility
Study, 73 Fed. Reg. 57,340, 57,341 (Sep. 23, 2008). The announcement included
the following goals:
(1) Physically modifying the MRGO channel and restoring areas
affected by the channel; (2) restoring natural ecosystem features to
reduce damage from storm surge; (3) measures preventing saltwater
intrusion into the waterway; (4) measures protecting, restoring or
increasing wetlands to prevent saltwater intrusion or storm surge;
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(5) measures reducing risk of storm damage to communities by
preventing or reducing wetland losses or restoring wetlands.
Id. The Corps officially de-authorized the MRGO from the Gulf Intracoastal
Waterway to the Gulf of Mexico in accordance with the 2007 WRDA on 5 June
2008. Amended Compl., ECF No. 37 (“Am. Compl.”), Ex. 2 at xvii–xviii. The
outlet officially closed on 9 July 2009. Id.
Congress and the President directed the Corps to develop a full range of
flood control, coastal restoration, and hurricane protection measures exclusive of
normal policy considerations for South Louisiana through the Coast 2050 Plan, the
2004 LCA Plan, the Breaux Act, and the 2007 WRDA. See Pls.’ List of Citations
and Excerpts in Chronological Order Which Correspond to Each of the Agreed
Subunits in a “Justifiable Uncertainty” Analysis, ECF No. 165 (“Pls.’ Supp.
Paper”) at 8–9, 27–28. These directions included the creation of a long-term,
comprehensive plan “for protecting, preserving, and restoring Coastal Louisiana
ecosystem.” Pls.’ Mot. for Partial Summ. J., Ex. 49 (U.S. Army Corps of
Engineers, Lake Borgne – Mississippi River Gulf Outlet Shoreline Protection
(PO-32), St. Bernard Parish, Louisiana, Final Design Report (December 2004)).
The Corps separated project goals into two categories in its 2012 Final
Feasibility Report: “geomorphic” and “habitat specific.” Pls.’ Reply Br. Opp’n,
Ex. 55 at S-12 and S-13 (U.S. Army Corps of Engineers, Mississippi River Gulf
Outlet (MRGO) Ecosystem Restoration Plan: Final Feasibility Report (June 2012))
(“2012 Feasibility Report”); see also Pls.’ Mot. for Partial Summ. J., Ex. 39, at
ES-1 (Mississippi River Gulf Outlet (MGRO) Ecosystem Restoration Plan, Final
Environmental Impact Statement (June 2012)). In the category dedicated to
habitat-specific goals, the Corps stated one goal is “to restore historic salinity
conditions in the study area, restore native habitat acreages impacted by the MRGO
and their ecosystem functions, and increase the year-round spatial coverage of
critical landscape features that provide hurricane and storm surge damage risk
reduction in the study area.” 2012 Feasibility Report at S-12 and S-13.
D. Plaintiffs’ Land Ownership
Property owners collectively lost thousands of acres of land since
construction of the MRGO. Pls.’ Resp. to Mot. to Dismiss., Ex. 2, pt. 1 at iv (U.S.
Army Corps of Engineers, Integrated Final Report to Congress and Legislative
Environmental Impact Statement for the MRGO Deep-Draft De-authorization
Study (November 2007)). Plaintiffs are six property owners with land in the area
around the MRGO who allege the Corps, through the construction and maintenance
of the MRGO, took their land “for public use without exercising the power of
eminent domain and without providing plaintiffs just compensation in violation of
the U.S. Constitution.” Am. Compl. at 1.
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The United States obtained servitudes from landowners, including
plaintiffs, which permitted use of land within 1,500 feet from the channel’s original
centerline. Id. at 4. Specifically, plaintiff Biloxi granted to the United States “a
right of entry in and to any and all lands [it] owned . . . in that portion of the Parish
of St. Bernard, State of Louisiana, lying south and east of Bayou La Loutre, for the
purpose of such dredging and spoil disposal operations.” Id. at 5–6. At about the
same time—the exact date being unknown at this time due to the destruction of
records at the St. Bernard Parish Court House caused by Hurricane Katrina in
2005—plaintiffs Lake Eugenie, Borgnemouth, Livaudais, and Vincent Marshland
granted to the Port similar 1,500-foot-wide servitudes, on land owned by these
companies, for the construction and maintenance of the MRGO. Id. at 6; see also
Gov. Mot. for Summ. J., Exs. 1–4 (four plaintiffs’ complaints, later consolidated as
the present case). Each plaintiff also granted to the Port a right of entry and
temporary spoil disposal servitudes, which the Port assigned to the United States
through the Corps. Id.
Plaintiffs own separate pieces of land throughout the affected region. See,
e.g., Am. Compl. at 3–7. Plaintiffs Biloxi and Lake Eugenie own property in the
Biloxi Marsh and have their principal places of business in Metairie, Louisiana.
Am. Compl. at 6. Plaintiff Terre Aux Boeufs also owns property in Biloxi Marsh
complex, plus a separate plot south of the MRGO. Gov. Mot. for Summ. J., Ex. 3
at 4 (Compl., Terre Aux Boeufs Land Co., Inc., 15-710, ECF No. 1 (July 8, 2015).
Terre Aux Boeufs’s business operates out of New Orleans, Louisiana. Id. at 3. The
property Borgnemouth owns consists of around 7,000 acres and includes Proctor’s
Point, the coastline peninsula landmark cutting into Lake Borgne. Gov. Mot. for
Summ. J., Ex. 2 (Compl., The Borgnemouth Realty Co., Limited and The Livaudais
Company, L.L.C. v. U.S. 14-3, ECF No. 1 (January 2, 2014). Borgnemouth’s two
tracts of land span from Proctor’s Point to the MRGO and southwest of the MRGO.
Id. at 9. The land Livaudais owns consists of two tracts “located just north of and
adjacent to” the land Borgnemouth owns. Id. at 5. Livaudais also owns an
undivided one-sixth interest in the area known as the Golden Triangle. Id.
Borgnemouth and Livaudais operate out of Meraux, Louisiana. Id. at 3. Vincent
Marshlands is based in Harahan, Louisiana. Gov. Mot. for Summ. J., Ex. 4.
Vincent Marshlands owns an undivided one-half interest in the Chalmette
Meadows Property the MRGO touches. Id. Trinity Church, a Louisiana nonprofit
corporation (“Trinity Church”); the Rector and Visitors of the University of
Virginia, a Virginia public corporation (“University of Virginia”); and the
Administrators of Tulane Educational Fund, a Louisiana nonprofit corporation
(“Tulane University”) formed Vincent Marshlands in October 2008 to manage their
respective one-third shares of an undivided one-half interest in the Chalmette
Meadows Property. Id. Hugh E. Vincent and Frank B. Hayne, Sr. acquired the
Chalmette Meadows Property in December 1916. Id. Upon his death, Hugh E.
Vincent left his undivided interest to these three entities. Id.
Biloxi Marsh Lands Corp. v. United States, 152 Fed. Cl. 254, 260–68 (2021) (Holte, J.).
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II. Procedural History
The procedural history of this case is as much a quagmire as the marshlands at issue. On
15 June 2012, plaintiffs Biloxi and Lake Eugenie filed a complaint alleging the government’s
permanent taking of plaintiffs’ property without just compensation in violation of the Takings
Clause of the Fifth Amendment to the United States Constitution. See Compl. ¶ 1, ECF No. 1.
The government filed a motion to dismiss on 31 August 2012. See Gov’t’s Mot. to Dismiss,
ECF No. 9. On 24 June 2013, the then-assigned judge denied the government’s Motion to
Dismiss, stating “[p]laintiffs are not clearly without our jurisdiction” as “whether the statute of
limitations has run depends on questions of predictability and mitigation” not well addressed at
the motion to dismiss stage. Order Denying Mot. to Dismiss at 3, ECF No. 18.
Plaintiffs filed an amended complaint on 29 October 2013. See Am. Compl., ECF No.
37. This case was consolidated with Borgnemouth Realty Co. v. United States, No. 14-3, on 22
July 2015 and further consolidated with Terre Aux Boeufs Land Co., Inc. v. United States, No.
15-710—which was already consolidated with Vincent Marshlands, LLC et al. v. United States,
No. 15-711—on 30 January 2018. See Order Granting Mot. to Consolidate, ECF No. 59; Order
Consolidating Related Matters, ECF No. 91; Order Consolidating Cases, Vincent Marshlands,
No. 15-711, ECF No. 14. Both parties then filed motions for summary judgment. See Gov’t’s
Motion for Summ. J., ECF No. 99; Pls.’ Mot. for Partial Summ. J., ECF No. 105.
On 29 July 2019, this case was reassigned to the undersigned Judge. See Order
Reassigning Case, ECF No. 136. The Court held oral argument on the motions for summary
judgment in Washington, DC, on 29 June 2020. See Order Granting Mot. to Am. Schedule, ECF
No. 156. On 19 January 2021, the Court granted-in-part and denied-in-part the government’s
motion for summary judgment and denied plaintiffs’ motion for summary judgment. See Biloxi
Marsh Lands Corp. v. United States, 152 Fed. Cl. 254 (2021). In that Order, the Court analyzed
the timeliness of plaintiffs’ takings claims according to seven categories of land. See id. at
310–11. As the Court explained, “[w]hen a taking occurs through gradual processes, two
applicable doctrines assist in determining when the statute of limitations begins to run:
stabilization and justifiable uncertainty.” Id. at 269 (citations omitted). The Court explained,
“the ultimate question in a justifiable uncertainty analysis is whether “the landowners [did or]
did not know when or if their land would be permanently destroyed.” Id. at 312 (emphasis and
alteration in original) (citation and internal quotations omitted). The Court found “[f]or
categories One, Two, Three, Four, Six, and Seven of land, plaintiffs have been able to establish
justifiable uncertainty may” apply, id., but “landowners in Category Five could have only been
justifiably uncertain until as late as 1996,” so the statute of limitations only could have run “as
late as 2002,” id. at 300 (citation omitted). Accordingly, the Court granted the government’s
motion for summary judgment as to category five because plaintiff’s 2012 complaint could not
have come within the jurisdictional statute of limitations. See Biloxi, 152 Fed. Cl. at 310. As for
the remaining categories, the Court held it “cannot definitively say whether or not the
government’s actions created justifiable uncertainty as to the permanency of the alleged
government taking.” Id. at 312 (citation omitted).
On 17 February 2021, plaintiff filed a motion for partial reconsideration of the Court’s 19
January Order, asking the Court “hold that the objective standard must be applied throughout the
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entire analysis of the timeliness of the plaintiffs’ claims and actual knowledge of the Corp’s
activities around the MRGO is not required.” See Pls.’ Mot. for Partial Reconsideration at 14,
ECF No. 169. The Court denied the motion on 27 October 2021, holding “[f]or purposes of
statute of limitations accrual, determining justifiable uncertainty is a two-part inquiry: (1)
whether a landowner’s subjective knowledge of the government’s promises or actions caused the
landowner to be uncertain about the taking’s permanence; and (2) whether government promises
or actions caused the landowner an objectively reasonable uncertainty of the taking’s
permanence.” See Biloxi Marsh Lands Corp. v. United States, 156 Fed. Cl. 301, 319 (2021)
(emphasis in original).
After the Court’s 27 October 2021 Order denying reconsideration, the parties resumed
discovery related to plaintiffs’ claims. See 3 Nov. 2021 Order, ECF No. 200. On 20 September
2023, after additional discovery, the parties proposed a schedule to complete discovery and
submit briefing on summary judgment again regarding: (1) the timeliness of plaintiffs’ takings
claims “left unresolved” in the Court’s 19 January 2021 Order; and (2) legal issues related to
plaintiffs’ contract claims. See 20 Sept. 2023 Joint Status Report (“JSR”) at 1–2. The Court
adopted the parties’ proposed briefing schedule. See 16 Oct. 2023 Order, ECF No. 222.
The government filed its currently pending Motion for Summary Judgment on 22
November 2024. See Gov’t’s Mot. for Summ. J. (“Gov’t’s MSJ”), ECF No. 244. Plaintiffs
initially filed a response and cross-motion for partial summary judgment on 30 December 2024.
See Pls. Mot for Partial Summ. J., ECF No. 253; Pls.’ Response to Gov’t’s MSJ., ECF No. 252.
Plaintiffs later filed the currently pending and combined Revised Response to the Government’s
Motion for Summary Judgment and Cross-Motion for Partial Summary Judgment on the issue of
liability on 22 April 2025. See Pls.’ Rev. Resp. to the Gov’t’s MSJ and Mot. for Partial Summ. J
on the Issue of Liability (“Pls.’ Rev. MSJ”), ECF No. 274. The government filed its response
and reply on 16 May 2025. See Gov’t’s Reply in Support of Mot. for Summ. J. and Opp. to Pls.’
Rev. MSJ (“Gov’t’s Reply”), ECF No. 276. Plaintiffs filed their reply on 13 June 2025. See
Pls.’ Reply in Support of Cross-Mot. for Partial Summ. J. (“Pls.’ Reply”), ECF No. 279. The
Court held oral argument on the cross-motions for summary judgment in New Orleans,
Louisiana on 4 November 2025. See 23 Sept. Order Setting Oral Argument, ECF No. 280.
Shortly after oral argument, the Court ordered the parties to submit a JSR to address any
factual disputes the parties had with the Court’s recitation of facts in its 2021 Order and to
supply additional authority related to plaintiffs’ privity of contract with the government. See 5
Nov. 2025 Order, ECF No. 284. After three extensions and one correction, the parties filed the
JSR on 22 January 2026. See 22 Jan. 2026 JSR, ECF No. 293.
III. Parties’ Arguments
A. The Government’s Argument Plaintiffs’ Fifth Amendment Claims are
Untimely
The government first argues all plaintiffs’ Fifth Amendment claims are untimely because
the Court held in 2021 all their claims stabilized in 1988, thus triggering accrual of the 6-year
statute of limitations. See Gov’t’s MSJ at 15–16, 29, 37, 50–51, 57, 60–63, 67, 68. The
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government asserts plaintiffs’ claims are untimely by decades unless plaintiffs can demonstrate
the doctrine of “justifiable uncertainty” applies to delay accrual of the statute of limitations. See
id. According to the government, “justifiable uncertainty arises only if the Corps actually
undertakes some mitigation activity to redress the government-caused damage or commits itself
to undertake such mitigation activity.” Id. at 16 (citation omitted). The government further
contends “[m]ere consideration of potential projects to achieve some environmental goal cannot
support a claim of justifiable uncertainty because considering possible projects does not commit
the United States to any mitigation activities.” Id. (cleaned up). The government argues
plaintiffs “lacked subjective knowledge of government remediation actions or promises to