Tamarind Resort Associates v. Government of the Virgin Islands , 138 F.3d 107 ( 1998 )


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  •                                                                                                                            Opinions of the United
    1998 Decisions                                                                                                             States Court of Appeals
    for the Third Circuit
    3-9-1998
    Tamarind Resort v. Govt of V.I.
    Precedential or Non-Precedential:
    Docket 97-7020
    Follow this and additional works at: http://digitalcommons.law.villanova.edu/thirdcircuit_1998
    Recommended Citation
    "Tamarind Resort v. Govt of V.I." (1998). 1998 Decisions. Paper 41.
    http://digitalcommons.law.villanova.edu/thirdcircuit_1998/41
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    Filed March 9, 1998
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    No. 97-7020
    TAMARIND RESORT ASSOCIATES, A U.S. Virgin Islands
    Joint Venture consisting of TAMARIND RESORT
    CORPORATION, a Delaware Corporation, CULLIGAN
    PORSCHE, INC., a New York Corporation
    v.
    GOVERNMENT OF THE VIRGIN ISLANDS
    Tamarind Resort Associates ("TRA"),
    Appellants
    Appeal from the District Court of the Virgin Islands
    (Division of St. Thomas)
    (D.C. Civ. No. 95-cv-00010)
    Argued
    December 9, 1997
    Before: SLOVITER, STAPLETON and MANSMANN,
    Circuit Judges.
    (Filed March 9, 1998)
    George H.T. Dudley, Esquire
    Henry L. Feuerzeig, Esquire
    Charles E. Engeman, Esquire
    Dudley, Topper & Feuerzeig
    Law House
    1A Frederiksberg Gade
    Charlotte Amalie, St Thomas
    USVI 00804
    Everett C. Johnson, Jr., Esquire
    (ARGUED)
    Leonard A. Zax, Esquire
    Mary E. Britton, Esquire
    Latham & Watkins
    1001 Pennsylvania Avenue, N.W.
    Suite 1300
    Washington, D.C. 20004
    COUNSEL FOR APPELLANT
    TAMARIND RESORT
    Julio A. Brady, Esquire
    Paul L. Gimenez, Esquire
    Gary M. Alizzeo, Esquire (ARGUED)
    Office of Attorney General of
    Virgin Islands
    Department of Justice
    48B-50 Kronprindsens Gade
    Charlotte Amalie, St Thomas
    USVI 00802
    COUNSEL FOR APPELLEE
    OPINION OF THE COURT
    MANSMANN, Circuit Judge.
    After the Government of the Virgin Islands denied
    Tamarind Resort Associates ("TRA") a Coastal Zone
    Management Act ("CZMA") permit in order to develop Hans
    Lollik Island, TRA brought suit against the Government in
    the District Court of the Virgin Islands alleging breach of
    contract, temporary and permanent unconstitutional
    2
    takings, and violation of TRA's constitutional rights to due
    process and equal protection. The district court granted
    summary judgment for the Government on the breach of
    contract claim and, treating the constitutional claims as an
    administrative writ of review, affirmed the Board of Land
    Use Appeals' decision denying TRA a coastal zone permit.
    In this appeal, we are asked to determine whether
    summary judgment was appropriate on TRA's breach of
    contract claim. In addition, we must examine the extent to
    which the District Court of the Virgin Islands has
    jurisdiction to decide writs of review and determine if the
    district court erred in reviewing TRA's constitutional claims
    in its appellate capacity.
    Because we agree with the district court that the
    agreement is unambiguous and that the Government did
    not breach the agreement by applying the CZMA to TRA, we
    will affirm the district court's grant of summary judgment
    on the breach of contract claim. With respect to the
    remaining constitutional claims, however, we find that the
    district court erred in treating those claims as a writ of
    review and therefore will remand for the district court to
    consider TRA's constitutional claims under its original,
    federal question jurisdiction.
    I.
    Great Hans Lollik Island is a 500 acre uninhabited island
    located approximately two miles off the coast of St. Thomas.
    In 1964, when the Island was owned by Hans Lollik
    Corporation, the Corporation and the Government of the
    Virgin Islands entered into an agreement which was
    enacted into law as Act No. 1145, 1964 V.I. Sess. Laws
    120, and amended by Act No. 1327, 1965 V.I. Sess. Laws
    47, and Act No. 1883, 1967 V.I. Sess. Laws 53. The
    agreement contains a provision identifying it as
    "contractual and proprietary in nature."1
    _________________________________________________________________
    1. The district court applied principles of contract interpretation rather
    than canons of statutory construction in interpreting the agreement
    pursuant to our rationale in West Indian Co., Ltd. v. Government of the
    Virgin Islands, 
    844 F.2d 1007
    , 1016-17 (3d Cir. 1988). The parties have
    not disputed this ruling on appeal. For the reasons articulated by the
    district court, we also will interpret the agreement under basic contract
    principles.
    3
    Under the agreement, the Government approved "the use
    of Hans Lollik Island for the purposes of a Hotel, Marina
    and Housing Project" and provided for the lease of certain
    Government land to construct a marina and related
    facilities. The agreement states that the initial development
    objective is to construct a hotel "with accommodations for
    no less than fifty (50) rooms . . . together with a further
    development plan calling for the construction of
    approximately one hundred and fifty (150) major
    residences." The agreement also contains language that
    mirrors the Contract Clause of Article I, S10, cl. 1 of the
    United States Constitution which states that "the
    Government will not adopt any legislation impairing or
    limiting the obligations of this contract."
    In October of 1978, the Government enacted the Virgin
    Islands Coastal Zone Management Act, V.I. Code Ann. tit.
    12, SS 901-914 (1982 & Supp. 1997) in order to harmonize
    the goals of environmental protection and economic
    development. V.I. Code Ann. tit. 12, S 903(b)(1)-(11); see
    also Virgin Islands Conservation Soc'y, Inc. v. Virgin Islands
    Bd. of Land Use Appeals, 
    881 F.2d 28
    , 29 (3d Cir. 1989).
    The general purpose of the CZMA was to set up a
    comprehensive program for the management, conservation,
    and orderly development of the coastal area. West Indian
    Co., Ltd. v. Government of the Virgin Islands, 
    844 F.2d 1007
    , 1011 (3d Cir. 1988); see also V.I. Code Ann. tit. 12,
    S 903(b)(4). Under the CZMA, development of the coastal
    zone may only be accomplished by obtaining a permit from
    the Coastal Zone Management Commission ("CZMC"). V.I.
    Code Ann. tit. 12, SS 904 and 910. The CZMA also provides,
    however, that "[n]othing herein contained shall be
    construed to abridge or alter vested rights obtained in a
    development in the first tier coastal zone prior to the
    effective date of [this Act]." V.I. Code Ann. tit. 12, S 905(f).
    Hans Lollik Island is located in the first tier coastal zone
    and is subject to CZMA restrictions absent a vested right in
    development obtained prior to February 1, 1979, the
    effective date of the CZMA.
    TRA is a joint venture established in the Virgin Islands
    comprised of Tamarind Resort Corporation, a Delaware
    corporation, and Culligan Porsche, Inc., a New York
    4
    corporation. In 1990, TRA purchased Hans Lollik Island.
    TRA is the successor-in-interest to the 1964 agreement
    between the Government and Hans Lollik Corporation.
    TRA developed a plan to construct an 800-unit resort on
    the island including a 150 unit hotel. TRA submitted an
    application to the CZMC for a permit. The CZMC rejected
    TRA's application. TRA thereafter submitted a plan for a
    675-unit development, including a 150 unit hotel and 525
    residences consisting of 160 major residences and 365
    villas or condominium-style homes.
    The CZMC held public hearings on TRA's revised plan at
    which many speakers voiced opposition to the development.
    The CZMC ultimately denied TRA a permit for construction
    of the 675-unit proposal in a detailed decision setting forth
    its extensive findings and conclusions.
    TRA appealed the CZMC decision to the Board of Land
    Use Appeals. The Board affirmed the CZMC's decision
    rejecting TRA's permit application. TRA then brought this
    action against the Government in the District Court of the
    Virgin Islands asserting claims for breach of contract,
    temporary and permanent unconstitutional takings, and
    violation of TRA's constitutional rights to due process and
    equal protection. TRA moved for summary judgment on the
    breach of contract and the due process and equal
    protection claims and the Government cross moved for
    summary judgment on all claims. The district court granted
    summary judgment in favor of the Government on TRA's
    breach of contract claim and, treating TRA's remaining
    constitutional claims as an administrative writ of review,
    affirmed the Board of Land Use Appeals' decision denying
    TRA's permit application. This timely appeal followed.
    II.
    We review the district court's order granting summary
    judgment on TRA's breach of contract claim de novo. Ideal
    Dairy Farms, Inc. v. John Labatt, Ltd., 
    90 F.3d 737
    , 743 (3d
    Cir. 1996).
    5
    A.
    Under the law of the Virgin Islands, interpretation of an
    integrated agreement is to be determined as a question of
    law by the court if it does not depend on the credibility of
    extrinsic evidence or a choice of reasonable inferences to be
    drawn from extrinsic evidence.2 Restatement (Second) of
    Contract S 212(2) (1981). Any determination as to meaning
    should be made in light of the relevant evidence, but after
    the transaction has been examined in its entirety, the
    words of an integrated agreement are the most important
    evidence of intention. 
    Id. at S
    212, cmt. b. It is axiomatic
    that where the language of a contract is clear and
    unambiguous, it must be given its plain meaning. 
    Id. at S
    202(3)(a).
    In addition, "[i]t is a fundamental principle of contract
    law that ``disputes involving the interpretation of
    unambiguous contracts are resolvable as a matter of law,
    and are, therefore, appropriate cases for summary
    judgment.' " Hadley v. Gerrie, 
    124 B.R. 679
    , 683 (D.V.I.),
    aff 'd, Gas House, Inc. v. Unicorp American Corp., 
    952 F.2d 1392
    (3d Cir. 1991)(table decision)(citing Reed, Wible and
    Brown v. Mahogany Run Dev. Corp., 
    550 F. Supp. 1095
    ,
    1099 (D.V.I. 1982)). We have consistently embraced the
    basic common law principle that a contract is
    unambiguous if it is reasonably capable of only one
    construction. See, e.g., Sumitomo Mach. Corp. of America,
    Inc. v. AlliedSignal, Inc., 
    81 F.3d 328
    , 332 (3d Cir. 1996);
    _________________________________________________________________
    2. The agreement does not provide what law governs its interpretation,
    but because the agreement relates to property within the Virgin Islands,
    was performed in the Virgin Islands, and was entered into by the
    Government of the Virgin Islands, we will apply Virgin Islands law. The
    Virgin Islands Code establishes the sources of law for the Islands as
    follows:
    The rules of the common law, as expressed in the restatements of
    the law approved by the American Law Institute, and to the extent
    not so expressed, as generally understood and applied in the United
    States, shall be the rules of decision in the courts of the Virgin
    Islands in cases to which they apply, in the absence of local laws
    to
    the contrary.
    V.I. Code Ann. tit. 1, S 4 (1967).
    6
    American Flint Glass Workers Union, AFL-CIO v. Beaumont
    Glass Co., 
    62 F.3d 574
    , 581 (3d Cir. 1995). We therefore
    will affirm a grant of summary judgment in a breach of
    contract action only where the contract is unambiguous
    and the moving party is entitled to judgment as a matter of
    law.
    B.
    TRA bases its breach of contract claim on the assertion
    that the Government breached the agreement by requiring
    TRA to obtain a CZMA permit prior to developing Hans
    Lollik Island. TRA contends that in applying the CZMA to
    TRA, the Government impaired TRA's rights under the
    agreement in breach of its covenant to refrain from
    adopting any legislation impairing or limiting the
    obligations of the agreement. In order to determine whether
    application of the CZMA impairs TRA's contractual rights
    for purposes of summary judgment, we must first
    determine what rights the agreement grants TRA and/or
    whether the agreement is ambiguous as to the contractual
    rights to which TRA is entitled.
    The agreement contemplates an initial development on
    Hans Lollik Island of a hotel with a minimum offifty rooms
    and approximately one hundred and fifty major residences.
    In addition, the agreement provides that:
    In regard to questions of land use and the zoning laws,
    the Government has satisfied itself and does hereby
    determine that the use of the respective sites in
    question for purposes of a Hotel, Marina and Housing
    Project are approved. The Government will further,
    consistent with the public interest, issue such
    certificates, licenses and permits and take such other
    action as may be required of it under any safety, health
    and related laws, and any rulings and regulations in
    connection therewith.
    The Government contends that the agreement granted TRA
    the right to use the Island for purposes of a Hotel, Marina,
    and Housing Project, but that the agreement did not grant
    TRA unlimited discretion to develop the Island for that use.
    By contrast, TRA contends that the Government granted it
    7
    a vested right to develop Hans Lollik Island on any scale
    above the specified minimum levels contemplated by the
    agreement. We find TRA's interpretation of the agreement to
    be unreasonable.
    Prior to the agreement, Hans Lollik Island was zoned as
    R-10 under the Virgin Islands Zoning and Subdivision Act
    which permitted one or two family residential use only.
    Under the plain language of the agreement, the
    Government granted TRA an exception to the R-10 zoning
    classification by approving the use of the Island for
    purposes of a Hotel, Marina, and Housing Project. In light
    of the entire transaction between the parties, the only
    reasonable interpretation of the agreement is that it granted
    TRA the right to use the property for commercial purposes
    but did not grant TRA unlimited discretion to develop the
    property for that use.
    This interpretation is further supported by the fact that
    the Government only agreed to issue necessary permits for
    development if the proposed development was consistent
    with the public interest. Under TRA's interpretation of the
    agreement, the Government would have no discretion to
    deny TRA the appropriate permits for development. Were we
    to accept TRA's interpretation, the phrase ``consistent with
    the public interest' would be rendered nugatory, which is
    an interpretation to be avoided. See Restatement (Second)
    of Contracts S 203(a)(1981)(stating that "an interpretation
    which gives . . . effective meaning to all the terms is
    preferred to an interpretation which leaves a part .. . of no
    effect").
    In addition, the plausibility of TRA's interpretation is
    further undermined by the agreement's silence on
    discretional development limits. For example, while the
    agreement contemplates the development of a hotel with a
    minimum of fifty rooms and approximately one hundred
    and fifty major residences, the agreement does not set a
    maximum size limit. The agreement, however, does contain
    an integration clause which specifies that the agreement
    "constitutes the entire agreement of the parties." It is
    therefore evident from the agreement that the parties had
    no understanding as to a maximum level of development.
    8
    The agreement's silence on a maximum development
    level, however, does not indicate, as TRA contends, that
    TRA was granted unlimited discretion to develop the Island.
    Both parties have relied on United States v. Winstar Corp.,
    
    116 S. Ct. 2432
    (1996), to support their respective positions
    on this point. Winstar construed the unmistakability
    doctrine, a canon of contract construction which provides
    that "a contract with a sovereign government will not be
    read to include an unstated term exempting the other
    contracting party from the application of a subsequent
    sovereign act." 
    Winstar, 116 S. Ct. at 2456
    . It is somewhat
    unclear after the Winstar plurality opinion as to the type of
    contract to which the unmistakability doctrine applies. See
    Yankee Atomic Elec. Co. v. United States, 
    112 F.3d 1569
    ,
    1578-79 (Fed. Cir. 1997)(noting that plurality found the
    doctrine inapplicable to risk of loss shifting contracts but
    that remaining five justices agreed that the doctrine's
    application is unrelated to the nature of the underlying
    contract). It is clear, however, that one of the basic
    principles underlying the doctrine is the concern that it
    would be unreasonable to presume, in the absence of an
    express contractual provision, that a sovereign intended a
    contractual waiver of a basic sovereign power. See generally
    
    Winstar, 116 S. Ct. at 2477
    (Scalia, J., concurring)(stating
    that "[w]hen the contracting party is the government . . . it
    is simply not reasonable to presume . . . that the sovereign
    [promises] that none of its multifarious sovereign acts,
    needful for the public good, will incidentally disable it or
    the other party from performing one of the promised acts.");
    Merrion v. Jicarilla Apache Tribe, 
    455 U.S. 130
    , 148
    (1982)("[t]o presume that a sovereign forever waives the
    right to exercise one of its sovereign powers unless it
    expressly reserves the right to exercise that power in a
    commercial agreement turns the concept of sovereignty on
    its head, and we do not adopt this analysis.").
    Based on this basic principle and under the specific facts
    of this case, we find TRA's position that the Government
    granted TRA unlimited discretion to develop the Island,
    thereby relinquishing its power to regulate that
    development, to be unreasonable in light of the fact that the
    agreement does not contain any language to that effect.
    Accordingly, because the agreement does not speak to a
    9
    maximum limitation on development and does not explicitly
    or implicitly grant TRA the right of unlimited development,
    the Government was at liberty to restrict TRA's
    development by applying the CZMA to TRA.3
    Our decision in West Indian Co., Ltd. (WICO) v.
    Government of the Virgin Islands, 
    844 F.2d 1007
    (3d Cir.
    1988) is instructive on this point. In WICO, we examined
    the relationship between contractual obligations and
    general police powers. WICO brought suit against the
    Government of the Virgin Islands for a violation of the
    contract clause of the United States Constitution after the
    Government enacted a Repeal Act which purported to
    repeal a Second Addendum to a settlement agreement
    between the Government and WICO that exempted WICO
    from the CZMA. WICO, 
    844 F.2d 1013-14
    .
    We noted that the threshold inquiry in such a case is
    whether the state law has operated as a substantial
    impairment of a contractual relationship. 
    Id. at 1021.
    We
    held that the Repeal Act substantially impaired WICO's
    contractual rights under the Second Addendum by
    attempting to withdraw WICO's right to be free for a limited
    time from CZMA restrictions. In completing our analysis,
    we held that the Repeal Act was invalid because there was
    no legitimate public purpose for the regulation's substantial
    impairment.4 Significantly, we noted that:
    _________________________________________________________________
    3. TRA also argues that the CZMA, by its own terms, does not apply to
    development of the Island because the agreement granted TRA a vested
    right to develop prior to the effective date of the CZMA. As properly
    noted
    by the district court, the Board's interpretation of the CZMA does not
    relate to TRA's breach of contract claim but is more appropriately
    analyzed in connection with a potential writ of review. Accordingly, we
    will discuss this portion of TRA's argument in Part III in connection with
    TRA's constitutional claims.
    4. We applied the following three-step analysis from the Supreme Court's
    decision in Energy Reserves Group, Inc. v. Kansas Power & Light Co.,
    
    459 U.S. 400
    , 411-12 (1983): (1) whether the state law substantially
    impairs the contractual relationship; and if so (2) whether the state has
    a significant and legitimate public purpose for the regulation; and if so
    (3) whether the adjustment of rights and responsibilities of the
    contracting parties is based on reasonable conditions and is of a
    character appropriate to the public purpose justifying adoption of the
    regulation. 
    WICO, 844 F.2d at 1021
    . We held that the Repeal Act was
    invalid because there was a substantial impairment in WICO's
    contractual relationship and because the Repeal Act could not be
    justified by a significant public purpose. 
    Id. at 1021-22.
    10
    We hold only that the Repeal Act is invalid. We do not,
    of course, hold that the police power of the Virgin
    Islands with respect to WICO's [land] was exhausted
    when the Second Addendum was approved. WICO is
    obviously not immune from generally applicable police
    power measures not inconsistent with the Second
    Addendum. Moreover, if conditions materially change
    so as to create a substantial problem that could not be
    foreseen in 1982, it may be that generally applicable
    land use regulations could validly alter the manner in
    which WICO may utilize its property.
    
    Id. at 1022-23.
    In accordance with WICO, TRA is not immune from
    Government regulations that are not inconsistent with
    TRA's contractual rights under the agreement. Because we
    hold that the agreement is unambiguous and grants TRA
    the right to use the Island for commercial purposes but
    does not grant TRA unlimited discretion to develop the
    Island for that use, the Government's application of the
    CZMA to TRA does not impair any of TRA's contractual
    rights. Accordingly, summary judgment was appropriately
    granted in favor of the Government on TRA's breach of
    contract claim.
    III.
    With respect to TRA's constitutional claims, we exercise
    plenary review over the district court's decision to examine
    these claims in an appellate capacity. See Union Pacific R.R.
    Co. v. Ametek, Inc., 
    104 F.3d 558
    , 561 (3d Cir.
    1997)(stating that "[t]his court exercises plenary review over
    matters of jurisdiction."). In order to evaluate the propriety
    of the district court's decision, we must first examine the
    boundaries of the jurisdiction currently conferred upon the
    District Court of the Virgin Islands.
    A.
    Our analysis of the jurisdictional boundaries of the
    District Court of the Virgin Islands must begin with Article
    IV, Section 3 of the United States Constitution, which
    11
    grants Congress the power to designate the jurisdiction of
    the district court and the territorial court. Brow v. Farrelly,
    
    994 F.2d 1027
    , 1032 (3d Cir. 1993). Congress first
    exercised this power in 1936 by enacting the Revised
    Organic Act, 48 U.S.C. SS 1541-1645 (1994). 
    Id. The 1936
    Revised Organic Act was subsequently replaced by the more
    comprehensive Revised Organic Act of 1954. The Revised
    Organic Act acts as the constitution of the Virgin Islands
    and as such defines the jurisdictional boundaries of the
    Virgin Islands courts. 
    Id. Section 1612
    of the 1954 Revised Organic Act confers
    upon the District Court of the Virgin Islands federal
    question jurisdiction as well as original jurisdiction over
    questions of local law subject to the exclusive jurisdiction of
    local courts over civil actions where the amount in
    controversy is less than $500. Revised Organic Act of July
    22, 1954, ch. 558, SS 22-23, 68 Stat. 506 (1955) (amended
    1978, 1984); 
    Brow, 994 F.2d at 1032
    . In addition, section
    1613 of the 1954 Revised Organic Act provides that local
    courts shall share concurrent jurisdiction over all actions
    conferred upon them by local law. Revised Organic Act of
    July 22, 1954, ch. 558, S 23, 68 Stat. 506 (1955) (amended
    1978, 1984); 
    Brow, 994 F.2d at 1032
    n.2.
    In 1984, Congress amended the Revised Organic Act and
    effectively eliminated the District Court of the Virgin
    Islands' original jurisdiction over local matters. Congress
    amended section 1612(b) by granting the district court only
    original jurisdiction over federal questions, diversity actions
    and any local matters "the jurisdiction over which is not
    then vested by local law in the local courts of the Virgin
    Islands." 48 U.S.C. S 1612(b)(1994). In addition, Congress
    amended section 1611(b) to permit the Virgin Islands
    legislature to vest jurisdiction in the local courts over all
    matters in which any court established by the United
    States does not have exclusive jurisdiction. 
    Id. at S
    1611(b).
    We have interpreted section 1611 as amended as
    empowering the Virgin Islands legislature to completely
    divest the district court of its original jurisdiction over local
    actions. Estate of Thomas Mall, Inc. v. Territorial Court of
    Virgin Islands, 
    923 F.2d 258
    , 262-64 (3d Cir. 1991).
    12
    In 1990, the Virgin Islands legislature exercised this
    power and divested the district court of its jurisdiction over
    all local civil matters effective October 1, 1991. V.I. Code
    Ann. tit. 4, S 76(a) (1997). We have held that this 1990
    enactment not only stripped the district court of its original
    jurisdiction over local matters when a complaint is filed in
    the district court, but also divested the district court of its
    jurisdiction to determine writs of review appealing local
    administrative determinations. Moravian Sch. Advisory Bd.
    of St. Thomas V.I. v. Rawlins, 
    70 F.3d 270
    , 273 (3d Cir.
    1995). Specifically, we held that the Virgin Islands
    legislature implicitly repealed the general Virgin Islands
    provision which establishes writs of review as civil actions,
    V.I. Code Ann. tit. 5, S1421, to the extent that provision
    confers writ of review jurisdiction upon the district court
    over local matters. 
    Id. B. The
    district court examined TRA's constitutional claims
    in its appellate capacity based on the premise that TRA
    could have brought those claims via a writ of review in the
    district court pursuant to V.I. Code Ann. tit. 12,
    S 913(d)(1982). Section 913(d) is a provision of the CZMA
    which provides that a petition for writ of review may be filed
    in the district court pursuant to the general Virgin Islands
    writ of review provisions by any person aggrieved by the
    denial of an application for a coastal zone permit. V.I. Code
    Ann. tit. 12, S 913(d). Under the rationale of Moravian and
    because the general Virgin Islands writ of review provisions
    have been implicitly repealed as they apply to the district
    court's jurisdiction to decide writs of review over local
    matters, section 913 of the CZMA is similarly invalid as it
    applies to the district court's former writ of review
    jurisdiction. TRA therefore could not have brought a writ of
    review in the district court under section 913(d) of the
    CZMA. Accordingly, the district court erred in reviewing
    TRA's constitutional claims in its appellate capacity.
    At oral argument, the Government stated that it was
    unopposed to our remanding TRA's constitutional claims.
    Because the district court should examine TRA's
    constitutional claims under its original jurisdiction in the
    13
    first instance, we will remand for the district court to
    determine whether there are any genuine issues of material
    fact relating to these claims that would preclude summary
    judgment.5
    IV.
    We conclude that because the Agreement unambiguously
    grants TRA the use of Hans Lollik Island for commercial
    purposes but does not grant TRA unlimited discretion in
    development, the Government did not breach the
    Agreement by applying CZMA restrictions to TRA. We will
    therefore affirm that portion of the district court's order
    that granted summary judgment on Count I. We alsofind
    that the district court erred in examining Counts II, III, and
    IV under its former writ of review jurisdiction, and therefore
    remand for further proceedings consistent with this
    opinion.
    A True Copy:
    Teste:
    Clerk of the United States Court of Appeals
    for the Third Circuit
    _________________________________________________________________
    5. As previously noted, TRA has asserted on appeal that the CZMA by its
    own terms does not apply to TRA because the Agreement granted TRA a
    vested right in development prior to the effective date of the CZMA. The
    district court interpreted this claim as a writ of review challenge to the
    CZMC's decision to deny TRA a CZMA permit. While we hold that the
    district court does not have original jurisdiction over writs of review,
    on
    remand the district court should determine whether it would be
    appropriate to exercise supplemental jurisdiction over any writ of review
    claims fairly made by TRA. See City of Chicago v. International College of
    Surgeons, ___ S. Ct. ___, ___ 
    1997 WL 76450
    , *7 (1997)(holding that
    district court had supplemental jurisdiction over claims challenging
    administrative decision once case was properly removed based on
    original jurisdiction arising from constitutional claims).
    14