Opinion ID: 174796
Heading Depth: 2
Heading Rank: 1

Heading: jurisdiction

Text: Before addressing the merits of an appeal, this court's first obligation is to assure itself of jurisdiction to do so. 1mage Software, Inc. v. Reynolds & Reynolds Co., 459 F.3d 1044, 1048 (10th Cir.2006). This appeal involves two jurisdictional issues: whether the district court properly exercised subject matter jurisdiction over this action and whether the district court entered an appealable final judgment.
This court sua sponte raised the issue of whether the district court properly exercised subject matter jurisdiction over this action. [4] The court's concern arose from the language of 42 U.S.C. § 2210(n)(2), which provides: With respect to any public liability action arising out of or resulting from a nuclear incident, the United States district court in the district where the nuclear incident takes place ... shall have original jurisdiction without regard to the citizenship of any party or the amount in controversy. At first glance, the statute appears to require proof of a nuclear incident [5] to permit federal subject matter jurisdiction over a PAA action. Even assuming it imposes a jurisdictional requirement, however, closer inspection indicates 42 U.S.C. § 2210(n)(2) is not the sole source of federal jurisdiction over a PAA action. Although the complete history of the PAA need not be repeated, a brief overview of its evolution, which this court described more fully in Kerr-McGee Corp. v. Farley, 115 F.3d 1498, 1503-04 (10th Cir. 1997), is helpful. See also In re TMI Litig., 193 F.3d 613, 624 n. 7 (3d Cir.1999), amended by 199 F.3d 158 (3d Cir.2000); O'Conner v. Commonwealth Edison Co., 13 F.3d 1090, 1095-97 (7th Cir.1994). In 1954, Congress enacted the Atomic Energy Act (AEA) to facilitate a transition from a federal government monopoly over the production and use of atomic materials to a regime in which private industry also would have a role in their production and use. Kerr-McGee Corp., 115 F.3d at 1503. To further encourage private development in the nuclear energy field, Congress amended the AEA in 1957 by enacting the PAA, which creat[ed] specific protections from tort liability for the nuclear industry. Id. At that time, however, Congress opted not to create a federal cause of action for nuclear torts, but instead permitted tort recovery under traditional state causes of action. Id. Accordingly, unless the diversity statute applied or the action resulted from an extraordinary nuclear occurrence, [6] nuclear-related tort claims typically could not proceed in federal court. See In re TMI Litig. Cases Consol. II, 940 F.2d 832, 853 n. 18 (3d Cir.1991). The PAA was amended several times in subsequent years, most notably in 1988 when Congress created a federal cause of action for nuclear torts, thereby expanding federal jurisdiction over such claims. Kerr-McGee Corp., 115 F.3d at 1503. 42 U.S.C. § 2210(n)(2) now provides: With respect to any public liability action arising out of or resulting from a nuclear incident, the United States district court in the district where the nuclear incident takes place ... shall have original jurisdiction without regard to the citizenship of any party or the amount in controversy. Upon motion of the defendant or of the [Nuclear Regulatory] Commission or the Secretary [of Energy], as appropriate, any such action pending in any State court (including any such action pending on August 20, 1988) or United States district court shall be removed or transferred to the United States district court having venue under this subsection. Accordingly, the 1988 Amendments made it clear that any action asserting public liability can be originally filed in or removed to the appropriate federal district court. In doing so, Congress also designated the particular venue in which any such action must be tried if it is to proceed in federal court; i.e., the United States district court in the district where the nuclear incident takes place. These Amendments, however, did not create exclusive federal jurisdiction over PAA actions. Kerr-McGee, 115 F.3d at 1504-05. Indeed, the express language of 42 U.S.C. § 2210(n)(2) makes it clear state courts are free to resolve PAA actions unless a defendant, the Nuclear Regulatory Commission, or the Secretary of Energy opts to remove the action to federal court. As indicated, this court was concerned that 42 U.S.C. § 2210(n)(2) could be read as limiting federal jurisdiction to public liability actions arising out of or resulting from a nuclear incident, thus requiring proof of a nuclear incident as a jurisdictional element. We see no indication, however, that Congress intended 42 U.S.C. § 2210(n)(2) to be the sole source of federal jurisdiction over PAA actions. Rather, Congress expanded federal jurisdiction to ensure that actions involving a nuclear incident can proceed from their inception in federal court, even if the parties cannot otherwise establish the requirements of 28 U.S.C. § 1332. Congress did not, however, eliminate a party's right to proceed in federal court when other jurisdictional bases exist. Accordingly, a plaintiff need not establish a nuclear incident under 42 U.S.C. § 2210(n)(2) in order to proceed in federal court with a PAA action when another basis for federal jurisdiction is present. [7] Indeed, jurisdictional grounds will always exist for a plaintiff's properly pleaded PAA claim. As we previously explained, Congress's 1988 Amendments created a new federal cause of action, known as a public liability action. 42 U.S.C. § 2014(hh) provides: The term `public liability action,' as used in section 2210 of this title, means any suit asserting public liability. A public liability action shall be deemed to be an action arising under section 2210 of this title, and the substantive rules for decision in such action shall be derived from the law of the State in which the nuclear incident involved occurs, unless such law is inconsistent with the provisions of such section. As a result, any suit asserting public liability under 42 U.S.C. § 2210 is a civil action arising under the laws of the United States over which a federal court has subject matter jurisdiction pursuant to 28 U.S.C. § 1331. Accordingly, we need not decide whether the district court had subject matter jurisdiction under 42 U.S.C. § 2210(n)(2), because the district court clearly had subject matter jurisdiction under 28 U.S.C. § 1331. [8]
Having concluded the district court's exercise of subject matter jurisdiction was proper, we now turn to Defendants' motion to dismiss this appeal for lack of subject matter jurisdiction. Specifically, Defendants argue the district court's judgment is not sufficiently final to warrant certification under Federal Rule of Civil Procedure 54(b). Rule 54(b) allows the district court to direct entry of a final judgment as to one or more, but fewer than all, claims or parties so long as the district court expressly determines that there is no just reason for delay. The general rule, however, is that an order which determines liability but leaves damages to be calculated is not final. Harbert v. Healthcare Servs. Group, Inc., 391 F.3d 1140, 1145 (10th Cir.2004). Nonetheless, in Strey v. Hunt International Resources Corp., this court explained that when damages are not allocated to specific class members, the resolution of class liability claims may warrant Rule 54(b) certification if the district court establishes both the formula that will determine the division of damages among class members and the principles that will guide the disposition of any unclaimed funds. 696 F.2d 87, 88 (10th Cir.1982). Here, the district court purported to enter judgment under Rule 54(b), stating the total damages against each Defendant and determining there is no just reason for delaying entry of judgment. The judgment did not, however, distribute the aggregate class award among individual members. Instead the district court attached a Plan of Allocation to the judgment, which provides a thorough framework for determining each individual class member's damages. Having thoroughly reviewed the Plan of Allocation, we conclude it complies with the requirements of Strey. The Plan of Allocation provides for the appointment of a claims administrator, who is directed to determine the proper allocation of damages based on specific data. The claims administrator must determine ownership of each class property as of the relevant dates as well as each property's assessed value based on county property and tax records. This value is to be expressed as a fraction of the total value of all properties within the same category, specifically residential, commercial, or vacant property. The class administrator is directed to use this fraction to determine the total damages to be allocated to each property and make recommendations to the district court based on this calculation. The Plan of Allocation also provides for the distribution of any unclaimed funds. The Plan of Allocation simply requires the application of mathematical principles to a formula involving identifiable property records and the jury's verdict. In doing so, the Plan of Allocation directs the method of allocating damages among the individual class members, while also explaining how unclaimed funds shall be distributed. Contrary to Defendants' argument, the Plan of Allocation does not require resolution of complex issues or calculations. While it is true that certain class members may wish to challenge the ultimate allocation of damages to them, the guidelines provided by the Plan of Allocation are straightforward and mechanical. Moreover, any such challenges would not affect the total damages owed by Defendants, which are clearly identified in the judgment. Consequently, this court concludes the Plan of Allocation's basic formula for determining individual damages sufficiently complies with Strey and the Rule 54(b) judgment entered by the district court is final. Defendants' motion to dismiss for lack of appellate jurisdiction is therefore denied.