Vieux Carre Property Owners Residents & Associations v. Brown

                  United States Court of Appeals,

                          Fifth Circuit.

                           No. 93-3344.

  VIEUX CARRE PROPERTY OWNERS RESIDENTS AND ASSOCIATIONS, INC.,
Plaintiff-Appellant,

                                v.

         Lloyd Kent BROWN, Colonel, Defendant-Appellee.

                          Dec. 19, 1994.

Appeal from the United States District Court for the Eastern
District of Louisiana.

Before REAVLEY and JONES, Circuit Judges, and JUSTICE*, District
Judge.

     EDITH H. JONES, Circuit Judge:

     The City of New Orleans' Vieux Carre Commission, the New

Orleans City Planning Commission, and the New Orleans City Council

all approved the site for a world-class aquarium and riverfront

park in 1987.   That year a group of landowners in the Vieux Carre

National Historic Landmark District—the French Quarter—disgruntled

with the "historic impact" of the project, filed suit to arrest its

construction.   Relying on the Rivers and Harbors Act, 33 U.S.C. §

403, which was designed to protect the navigable waterways of the

United States, and the regulations found in 33 C.F.R. §§ 320

through 330, the plaintiffs have managed to survive two prior

dismissals of their action by the district court by appeal to this




     *
      District Judge of the Eastern District of Texas, sitting by
designation.

                                 1
court.1     Despite our reluctance to accept fully the reasoning of

the   district    court,    we    find   no    barrier      to   terminating       this

litigation     since   no    meaningful       relief   to    the      plaintiffs    is

presently possible.

      The park project, properly characterized as "inconsequential,"

fell within the scope of the Corps' nationwide permit process.

Although the Corps' conceded omission of compliance with its

internal historical review regulation renders the park's permit

technically flawed, neither the regulations nor the RHA authorizes

Vieux Carre to remedy that problem.

                                         I.

          The two previous opinions by this court have significantly

narrowed the      issues.        Ultimately,    the    Vieux     Carre's     fate    is

predetermined by the level of historic review properly imported

into the provisions of the Rivers and Harbors Act (RHA).2                    Although

the RHA might appear to constitute an odd vehicle to resolve a

dispute over      historic    impact,     the   provisions       of    the   Act    are

triggered because some structures involved in the project were

built on the Bienville Street Wharf.                   The RHA prohibits all

activities affecting the course, condition, location, or capacity

of any navigable water unless authorized by a permit issued by the

Army Corps of Engineers.          Vieux Carre II, 948 F.2d at 1439 n. 2.

      1
      See Vieux Carre Property Owners v. Brown, 948 F.2d 1436
(5th Cir.1991) (Vieux Carre II ); Vieux Carre Property Owners,
Residents & Associates, Inc. v. Brown, 875 F.2d 453 (5th
Cir.1989), cert. denied, 493 U.S. 1020, 110 S.Ct. 720, 107
L.Ed.2d 739 (1990) (Vieux Carre I ).
      2
       33 U.S.C. § 403 et seq.

                                         2
Vieux Carre I determined that only the park (in contrast to the

aquarium) segment of the project could obstruct navigable capacity

in waters of the United States so that it alone required a permit

from the Corps.    Vieux Carre I, 875 F.2d at 462.3

         That conclusion the Corps no longer contests.              Not all

permits are created equal, however;        the burden on the Corps of

assessing historical impact may vary considerably as a repercussion

of the precise type of permit required.        Specifically, the Corps is

authorized to issue two types of permits, individual and general.

Vieux Carre II, 948 F.2d 1436 n. 3;        33 CFR § 325.5(a).         If an

individual    permit   is   necessary,   the    formal   historic    review

consultation procedures mandated by Congress in Section 106 of the

National Historic Preservation Act (NHPA) are triggered.              Vieux

Carre I, 875 F.2d at 464.      The Corps concedes that this type of

historic impact analysis was never undertaken.           Nevertheless, a

form of general permit that authorizes specific types of activities

without prior particularized approval of the Corps—the nationwide

permit—was designed to expedite endeavors with inconsequential

effects on the RHA concerns.     See 33 C.F.R. § 330.1 (stating that

nationwide permits "are designed to allow certain activities to

occur with little, if any, delay or paperwork"). Projects exempted

from the individual permit requirement by virtue of the nationwide

permit merely demand minimal, informal consideration of historical

impact.     Vieux Carre I, 875 F.2d at 465 ("nationwide permits

     3
      More precisely, this court held that the Corps' conclusion
that the aquarium project would not affect navigation was not
arbitrary and capricious. Id.

                                    3
authorizing truly inconsequential activities are not trigger[s]" of

the NHPA).

     In the Corps' judgment the construction of the park satisfied

the criteria     for    sanction     under    the   nationwide   permit.       The

district    court    held   on    remand     that   this   conclusion   was   not

arbitrary or capricious, and in accord with this court's directive

the district court further inquired whether the park project was

"so inconsequential that it does not trigger NHPA."                Vieux Carre

II, 948 F.2d at 1448.       Inferring that the proper measure of whether

an activity is consequential is its impact on navigation, the court

held that since the park spawned no effect on navigation the Corps

need not activate the procedures demanded by the NHPA.

         Although Vieux Carre challenges these conclusions in this

appeal, its more cogent assaults address the district court's

deductions    from     these     premises.      Indeed,    the   crux   of    this

protracted litigation assumes that the district court correctly

resolved the NHPA question.                Instead, the enigmatic question

persists as to whether the § 330.5(a)(3) nationwide permit is—or

ever was—valid "given that the Corps did not follow its own

regulations at § 330.5(b)(9)."4            Vieux Carre II, 948 F.2d at 1449.

     4
         33 C.F.R. § 330.5(b)(9) (1986) provides in relevant part:
             That, if the activity may adversely affect historic
             properties which the National Park Service has listed
             on, or determined eligible for listing on, the National
             Register of Historic Places, the permittee will notify
             the district engineer. If the district engineer
             determines that such historic properties may be
             adversely affected, he will provide the Advisory
             Council on Historic Preservation an opportunity to
             comment on the effects on such historic properties or
             he will consider modification, suspension, or

                                        4
Simply, the Corps' "conce[ssion] that it did not evaluate the

historic impact of either phrase of the project"5 violates even an

interpretation of section 330.5(b)(9) demanding solely pro forma

consideration.6

     The    district     court   held    for    the   second   time   that   the

completion of the project rendered this difficulty moot.                     Once

again,     this   decision   did    not       technically   comply    with   our

instructions      on   remand.     Nevertheless,      the   interpretation    we

ascribe to the Rivers and Harbors Act is of little more avail to

the plaintiffs.

                                        II.

     We proceed in this trilogy by first affirming the district

court's careful treatment of the "appropriateness" of a nationwide


            revocation in accordance with 33 C.F.R. § 325.7.
     5
      Vieux Carre I, 875 F.2d at 465.
     6
      The district court ventured to finesse this complication by
reexamination of the issue. Applying an exception to the "law of
the case" doctrine, the court concluded that the Fifth Circuit's
determination "that the Corps concedes that it did not evaluate
the historic impact of either phase if the project", see Vieux
Carre I, 875 F.2d at 465, has no support in the record, thereby
rendering it clearly erroneous. Upon reexamination, the district
court held that the Corps had complied with the regulation. In
particular, the court relied upon Colonel Brown, district
engineer for the Corps, who testified that he and his staff has
discussed the impact of the park project on the French Quarter
and judged that no adverse impact would result. Although a
review of the record in Vieux Carre I does leave the appropriate
interpretation of the "concession" open to debate, the Corps had
several procedures at its disposal five years ago to bring this
misunderstanding to the attention of the original panel of this
court. Without an unequivocal departure from the record,
revision at this late date of settled issues is imprudent in
light of the superior knowledge of the original panel of the
context of the "concession," and the risk of undermining the
litigation decisions the parties adopted in reliance upon it.

                                         5
permit and its assessment of the activities as "inconsequential."

         The Corps determined that the riverfront park project fell

within § 330.5(a)(3) of its nationwide permit program.7           The court

found that there was no construction beneath the wharf, and the

dimensions of the wharf did not change.         Critically, its maritime

purpose as a general cargo wharf was preserved.        Since an agency is

afforded    "substantial   deference"   when    it   interprets    its   own

regulations, Lyng v. Payne, 476 U.S. 926, 939, 106 S.Ct. 2333,

2341, 90 L.Ed.2d 921 (1986), our inquiry is confined to whether

this judgment was arbitrary or capricious.           Considering that the

Corps' jurisdiction emanates from effects on navigable water,

evaluating whether the park resulted in a deviation in the original

plan or a different use for the wharf from the perspective of the

wharf's maritime function is perfectly reasonable.                Hence the

changes     affecting   landward   surface     are   not   ineligible    for

authorization by means of a nationwide permit.

           Similarly,    the   district      court     properly      gauged

"inconsequentiality" by reference to the project's impact "on the


     7
         The § 330.5(a)(3) nationwide permit provides in relevant
             part: The repair, rehabilitation, or replacement of
             any previously authorized, currently serviceable,
             structure or fill, or of any currently serviceable
             structure or fill constructed prior to the requirement
             for authorization, provided such repair,
             rehabilitation, or replacement does not result in a
             deviation from the plans of the original structure or
             fill, and further provided that the structure or fill
             has not been put to uses differing from uses specified
             for it in any permit authorizing its original
             construction.

     33 C.F.R. § 330.5(a)(3) (1986) (emphasis added).

                                    6
RHA concerns," i.e., the obstruction of navigable waters.                  See

Vieux Carre I, 875 F.2d at 465.        In this respect, the fact that the

project had no effect on the ability of the wharf to function in

its "navigational" capacity proves crucial.          Finally, even if the

decision on consequentiality should have considered the park's

historic impact separately from its impact on navigable waters,

appellants have not carried their burden of demonstrating that the

Corps' decision was arbitrary and capricious.             With the exception

of an occasional reference to the increased traffic and congestion

attributable to the development of the aquarium and park project,

appellants failed to identify any specific relationship between the

park's development and historic preservation consequences for the

French Quarter.8       Consequently, no justification is apparent for

disturbing the district court's conclusion that the Corps properly

denominated the park project under its nationwide permit system.

                                      III.

         Because of the vitality of the Corps' concession that it did

not follow its own historical impact regulation, § 330.5(b)(9), the

permit    authorizing    the   park   project,    albeit    appropriate,   is

defective.      Compliance with section 330.5(b)(9), requiring the

consideration     of    adverse   historical     impact    by   the   district

engineer, is a "condition" of activity licensed via the nationwide

permit scheme.    See 33 C.F.R. § 330.5(b) ("Conditions").            Since no


     8
      Recall that any increased traffic and congestion would be
relevant only to the extent it could be tied to the development
of the park as the aquarium is beyond the jurisdiction of the
Corps. See Vieux Carre I, 875 F.2d at 463.

                                       7
individualized permit was ever sought for the park project, no

valid authorization exists.        33 C.F.R. § 330.1 ("Failure to comply

with a condition does not necessarily mean the activity cannot be

authorized but rather that the activity can only be authorized by

an   individual    or   regional   permit.")    "Without   a      valid   and

appropriate permit, the park project is unlawful under RHA § 10."

Vieux Carre II, 948 F.2d at 1443 n. 22.

          Although this corollary manifests a ring of importance, the

"unlawful" shibboleth does not advance the cause of the Vieux

Carre. Indeed, the fact that the park is illegal may expose others

to draconian consequences,9 but the RHA statutory scheme does not

assign enforcement prerogatives to these plaintiffs.

      The Vieux Carre cannot pursue an injunction to ameliorate the

violation of RHA § 10.      California v. Sierra Club, 451 U.S. 287,

294, 101 S.Ct. 1775, 1779-80, 68 L.Ed.2d 101 (1981) (RHA does not

provide private right of action). Moreover, this court has already

rejected the suggestion that the Corps could be compelled to

enforce the statute.     Vieux Carre I, 875 F.2d at 457 ("[N]o statute

requires the Corps to enforce the RHA provision that Vieux Carre
                                                           [10]
claims was violated here.      In fact, 33 U.S.C. § 406           explicitly

      9
      These are criminal statutes. See 33 U.S.C. § 406 (persons
violating this title are guilty of a misdemeanor punishable by a
term of imprisonment not exceeding one year and a fine of $500-
2,500).
      10
      "[T]he removal of any structures or parts of structures
erected in violation of the provisions of the said sections may
be enforced by the injunction of any district court exercising
jurisdiction in any district in which such structures may exist,
and proper proceedings to this end may be instituted under the
direction of the Attorney General of the United States." 33

                                      8
vests that authority in the Attorney General.")11              And patently the

Attorney General may not be obliged to prosecute any offenders.

Diamond v. Charles, 476 U.S. 54, 64-65, 106 S.Ct. 1697, 1704, 90

L.Ed.2d 48 (1986) (in American jurisprudence a private citizen

lacks a judicially cognizable interest in the prosecution or

non-prosecution of another).

     The Army Corps of Engineers is not, however, left unbridled.

Other parties, concerned with exposure to criminal liability, must

be motivated in the future to seek an after-the-fact permit.                   For

example, a need or desire for new construction or a modification of

the park project may arise.           As section 401 makes it unlawful "to

construct or commence the construction" of a structure without the

designated approval, only the foolhardy would proceed in such a new

venture in disregard of the statutory penalty.                 To issue such a

"valid" permit, the Corps could not circumvent the historical

review    process.      If     the   contemplated   activity      warranted    the

simplified     approach        of    the    nationwide   permit     only     brief

consultation    would     be    implicated;       otherwise,      complete    NHPA

treatment would be necessary.12

                                           IV.



U.S.C. § 406.
     11
       Interestingly, it is the Department of Justice that has
been defending the position of the Army Corps against the Vieux
Carre.
     12
      Since the Corps cannot modify, suspend, or revoke a permit
that does not exist, § 325.6(a) has no application. No need
arises, therefore, to answer the difficult question whether or
not permits "expire." See Vieux Carre II, 948 F.2d at 1444.

                                            9
     For these reasons, we AFFIRM the judgment of the district

court.

     JUSTICE, District Judge, dissenting:

     I   wholly   agree   with   the   majority    opinion,   save   for   its

ultimate conclusion that no meaningful relief is now available to

plaintiff-appellant Vieux Carre.            Vieux Carre I plainly hold that

Vieux Carre "has standing to assert its claim for a declaratory

judgment against the Corps." Vieux Carre Property Owners v. Brown,

875 F.2d 453, 459 (5th Cir.1989).           The majority opinion is clearly

contrary to Vieux Carre I in this respect, and apparently fails to

give recognition to the law of the case doctrine.               North Miss.

Communications v. Jones, 951 F.2d 652, 656 (5th Cir.1992), cert.

denied, --- U.S. ----, 113 S.Ct. 184, 121 L.Ed.2d 129 (1992).

     I would reverse and remand this case, in order that Vieux

Carre may pursue the remedy made available to it under Vieux Carre

I.




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