United States v. County of San Diego

The United States appeals the district court’s grant of summary judgment in favor of the County of San Diego. We review de novo the district court’s grant of summary judgment. Atwood v. Newmont Gold Co., 45 F.3d 1317, 1320 (9th Cir.1995). We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

I

BACKGROUND

General Atomics, a private scientific research firm, conducts nuclear fusion research for the United States Department of Energy as part of a national program. The research is performed using a large nuclear device that is housed on General Atomics’ property. Athough General Atomics maintains,'operates, and helps with the design of the nuclear device, the device is the personal property of the Department of Energy. The Department of Energy also retains control over access to the nuclear device and the right to terminate General Atomics’ contract. In exchange for its services, the government pays General Atomics a sizeable fee. General Atomics also provides, for a fee, information and services to the fusion research technology market.

After a routine audit conducted for the 1978 and 1979 tax years, the County determined that General Atomics has a possessory interest in…