Opinion ID: 156182
Heading Depth: 2
Heading Rank: 1

Heading: The Quiet Title Act provides Rosette's exclusive remedy.

Text: 7 On appeal, Rosette argues that its lawsuit is primarily one for declaratory relief. Rosette claims that it is merely seeking a declaration of the United States' authority to regulate the heat in the water which comes from the state-permitted wells. Because the United States purports to hold the authority to regulate the geothermal resources, and because it has exercised this authority, Rosette argues that its lawsuit is, in actuality, a defense to government agency action. Rosette cites the well-settled maxim that limitations do not normally run against a defense, or, in other words, that a statute of limitations may be used only as a shield, not as a sword. See Northern Pac. Ry. v. United States, 277 F.2d 615, 623-24 (10th Cir.1960). Furthermore, Rosette argues that a statute of limitations cannot bar a claim for declaratory relief. 8 In support of these arguments, Rosette cites Luckenbach S.S. v. United States, 312 F.2d 545 (2d Cir.1963). In Luckenbach, the plaintiff sought a declaration of nonliability on a debt claimed by the defendant (but on which the defendant had not filed suit). Id. at 547. The district court granted summary judgment in favor of the defendant, holding that the plaintiff's claim was time-barred. Id. The Second Circuit reversed, explaining that if the underlying claim was not time-barred, then an action seeking a declaration regarding that claim would not be barred either. Id. at 549. Conversely, if the claim underlying a declaratory action was time-barred, then a declaratory judgment action would also be barred. Id. 9 Luckenbach is not helpful to Rosette here. First of all, as discussed below, this is really not a declaratory judgment action but, rather, an action to quiet title to real property in which the United States claims an interest. Second, unlike in Luckenbach, the merits of the underlying claim are time-barred in the instant case. 10 Rosette may characterize its lawsuit as a declaratory judgment action, but it nonetheless seeks a declaration as to the ownership of the geothermal resources. Moreover, Rosette may characterize its lawsuit as a defensive measure, but its lawsuit nonetheless is an affirmative step taken to quiet title to the geothermal resources. As discussed above, the district court found that Rosette's request for declaratory relief leads directly back to the question of title, and, as such, is inextricably linked to that question. The district court reasoned that since the Quiet Title Act contains a limited waiver of sovereign immunity, it provides Rosette's exclusive remedy. We agree with the district court on this point and conclude that the Quiet Title Act controls Rosette's lawsuit. 11 This conclusion is buttressed by the Supreme Court's pronouncement in Block v. North Dakota ex rel. Bd. of Univ. and School Lands, 461 U.S. 273, 103 S.Ct. 1811, 75 L.Ed.2d 840 (1983). In Block, North Dakota sought to resolve a dispute over ownership of the Little Missouri riverbed. Id. at 277-78, 103 S.Ct. at 1814-15. It filed a complaint against the United States, invoking, among other statutes, the Declaratory Judgment Act and the Administrative Procedures Act as jurisdictional bases. Id. at 278, 103 S.Ct. at 1815. The complaint did not mention the Quiet Title Act. Id. The district court, however, required North Dakota to amend its complaint to aver a quiet title claim. Id. At trial, the United States raised the Quiet Title Act's statute of limitations as a defense. The district court found that the statute of limitations did not apply to sovereigns, and it accordingly entered judgment quieting North Dakota's title to the riverbed. Id. at 279, 103 S.Ct. at 1815-16. 12 The United States petitioned for certiorari, and North Dakota cross-petitioned, arguing that even if the Quiet Title Act's statute of limitations did apply, the judgment should be affirmed because the Quiet Title Act did not provide North Dakota's exclusive remedy. Id. at 280, 103 S.Ct. at 1816. The Supreme Court disagreed with North Dakota. The Court first observed that, absent an express waiver of sovereign immunity, suits against the United States are barred. Id. at 280, 103 S.Ct. at 1816. The Court then considered the Senate bill that served as the framework for the Quiet Title Act. It noted that the bill waived immunity when a party asserted an interest in lands the United States claimed. Id. at 282, 103 S.Ct. at 1817. After further consideration of the legislative history, the Court held that Congress intended the [Quiet Title Act] to provide the exclusive means by which adverse claimants could challenge the United States' title to real property. Id. at 286, 103 S.Ct. at 1819. 13 The Quiet Title Act, therefore, is Rosette's only recourse for haling the United States into court on the issue of ownership of the geothermal resources. Insofar as Rosette's current claims are all linked to the question of title, the Quiet Title Act provides the exclusive remedy. Allowing Rosette to maintain a declaratory judgment action under these circumstances would undermine the policies set forth in Block and would render the Quiet Title Act's statute of limitations meaningless. Cf. Nevada v. United States, 731 F.2d 633 (9th Cir.1984) (holding Property Clause claim time-barred under the Quiet Title Act's statute of limitations because claim requires resolution of quiet title issues); 118 East 60th Owners, Inc. v. Bonner Properties, Inc., 677 F.2d 200 (2d Cir.1982) (disallowing declaratory judgment action seeking declaration of nonliability where use of federal declaratory judgment procedure would undermine state substantive statute of limitations policies). Having found that the Quiet Title Act provides Rosette's exclusive remedy, we turn now to a discussion of the Act's statute of limitations. 14