Alde, S.A. v. United States

28 Fed. Cl. 26, 1993 U.S. Claims LEXIS 304, 1993 WL 84490
CourtUnited States Court of Federal Claims
DecidedMarch 24, 1993
DocketNo. 91-1382C
StatusPublished
Cited by27 cases

This text of 28 Fed. Cl. 26 (Alde, S.A. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alde, S.A. v. United States, 28 Fed. Cl. 26, 1993 U.S. Claims LEXIS 304, 1993 WL 84490 (uscfc 1993).

Opinion

OPINION

NETTESHEIM, Judge.

This case is before the court on cross-motions for summary judgment. Plaintiff, a Dominican Republic corporation, seeks compensation for damage and loss of income resulting from the seizure of plaintiffs aircraft by the U.S. Customs Service. Plaintiff claims that an implied-in-fact bailment contract was created when the aircraft was seized or that the seizure of the aircraft constituted a taking without just compensation. Argument is deemed unnecessary.

FACTS

Although the parties disagree as to the legal significance of the underlying facts, the substance of the facts material to resolution of the cross-motions is not in dispute. On March 2, 1989, the U.S. Customs Service (the “Customs Service”) seized a 1953 McDonnell Douglas DC-3 aircraft (“the aircraft”), Registration No. 18477A, belonging [28]*28to Aide, S.A. (“plaintiff”), for failure to request landing rights for the aircraft in violation of 19 U.S.C. § 1436 (1988).1

By letter dated March 13,1989, Mamie E. Pollock, District Director for the Customs Service, San Juan, Puerto Rico, notified plaintiff that it would have to pay a $1,500.00 administrative penalty, $96.24 in seizure costs, and $602.58 in storage costs before the aircraft would be remitted. In addition, plaintiff was required to submit a “Hold Harmless Agreement” prior to remittance. On the same date, the Customs Service applied to the United States District Court for the District of Puerto Rico for a warrant to seize the aircraft. In the affidavit attached to the Customs Service’s application for the warrant, agent Roberto Jusino stated that plaintiff’s aircraft had been seized previously for landing rights violations and was suspected of violating United States Export Declaration laws, in particular, 22 U.S.C. § 401 (1988).2 The warrant was issued and the aircraft was seized again the same day pursuant to the warrant. Also on March 13, 1989, plaintiff was issued a Custody Receipt for Retained or Seized Property for the aircraft and its contents. The aircraft was later transferred on March 27, 1989, to the Northrop Aviation facility in San Juan, Puerto Rico, for storage.

On April 12, 1989, the Customs Service informed plaintiff of its right to petition for relief from the aircraft’s forfeiture. By letter dated April 26, 1989, counsel for plaintiff officially requested that judicial forfeiture proceedings be commenced by the United States Attorney’s Office. The Customs Service responded on June 5, 1989 by informing plaintiff’s counsel that plaintiff was required to post a $5,000.00 bond in accordance with 19 U.S.C. § 1608 before the case would be referred to the U.S. Attorney’s Office. In a letter to Ms. Pollock, Aug. 25, 1989, counsel for plaintiff posted the $5,000.00 bond and again requested that the matter be referred to the U.S. Attorney’s Office for commencement of judicial forfeiture proceedings.

Throughout this exchange plaintiff’s aircraft continued to be stored at Northrop’s San Juan facility. The course of the proceedings, however, was changed on September 25, 1989, when nature intervened in the form of Hurricane Hugo. The hurricane caused extensive damage to much of the seized property stored there. Plaintiff’s aircraft was one of the items to fall victim to the hurricane. Northrop later reported that the aircraft was also damaged by theft shortly after the hurricane struck.

On February 19, 1990, plaintiff petitioned the United States District Court for the District of Puerto Rico for the return of the aircraft. Since the motion was not opposed by the Customs Service, the district court granted it. This order was amended on April 19, 1990, to require the Customs Service to return plaintiff’s $5,000.00 bond and to absorb storage and maintenance costs in addition to returning the aircraft. By letter dated March 26, 1990, the Customs Service informed plaintiff that the aircraft would be returned, but the Customs Service required plaintiff to pay storage and seizure costs. It also denied liability for any damage to the aircraft caused by Hurricane Hugo. The Customs [29]*29Service notified plaintiff by letter on May 4, 1990, that the aircraft would be returned “as is.” When plaintiff failed to take custody of the aircraft, this notice was repeated on February 28, 1991.

Plaintiff took possession of the aircraft on March 28, 1991. Plaintiff then filed an administrative claim with the Customs Service for $299,585.00 for damage to the aircraft. The claim was denied by the Regional Commissioner on October 22, 1991.

Plaintiff filed its complaint in the United States Claims Court, now the Court of Federal Claims, on August 22, 1991, claiming damages totalling $299,585.00 for breach of an implied-in-fact bailment contract or for a taking of private property without just compensation.

DISCUSSION

Defendant contends that plaintiff must establish that an implied-in-fact contract existed between the Customs Service and itself to support jurisdiction over the claim. According to defendant, plaintiff cannot prove either that the Customs Service’s actions in seizing the aircraft constituted an offer for bailment, or that plaintiff accepted this offer. With regard to the taking claim, defendant asserts that an unlawful seizure does not constitute a taking as recognized by the Constitution. Seizures executed for the purpose of instituting forfeiture proceedings are not takings in a constitutional sense.

Plaintiff responds that an implied-in-fact bailment contract may be inferred from conduct and that “a subjective meeting of the minds to all aspects of the implied-in-fact contract” need not exist. Plf’s Br. filed Feb. 16, 1993, at 3. The action of the Customs Service, i.e., giving a receipt to plaintiff which described the condition of the aircraft at the time of seizure as “fair” and the subsequent payment of the administrative fine by plaintiff, evinced an offer and acceptance of a bailment contract. Plaintiff claims that paying the fine and posting the required bond were voluntary actions that manifested its agreement to comply with the Customs Service’s conditions for return of the aircraft. Plaintiff had a right to expect that if it complied with these conditions that it would receive its property in the condition described on the receipt.

Plaintiff asserts that the Customs Service’s agents had authority to bind the Government in contract. It claims that Ms. Pollock’s letter informing plaintiff of its rights was “in itself evidence of her actual authority.” Plf’s Br. filed Feb. 16, 1993, at 9. The inventory officers who issued the receipt for the aircraft had authority “to create receipts giving to Aide evidence of an implied-in fact contract.” Id. In addition, Blanca Moran, Assistant U.S. Attorney Fernandez, and District Court Judge Fuste “had the authority to acknowledge the existence and enforce the obligations between the parties.” Id. at 9-10.

As for the taking claim, plaintiff asserts that the Customs Service’s actions were so egregious as to constitute a taking.

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Cite This Page — Counsel Stack

Bluebook (online)
28 Fed. Cl. 26, 1993 U.S. Claims LEXIS 304, 1993 WL 84490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alde-sa-v-united-states-uscfc-1993.