Banisadr Building Joint Venture v. United States

42 Cont. Cas. Fed. 77,188, 38 Fed. Cl. 392, 1997 U.S. Claims LEXIS 116, 1997 WL 401530
CourtUnited States Court of Federal Claims
DecidedJune 11, 1997
DocketNo. 94-41C
StatusPublished
Cited by2 cases

This text of 42 Cont. Cas. Fed. 77,188 (Banisadr Building Joint Venture 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
Banisadr Building Joint Venture v. United States, 42 Cont. Cas. Fed. 77,188, 38 Fed. Cl. 392, 1997 U.S. Claims LEXIS 116, 1997 WL 401530 (uscfc 1997).

Opinion

OPINION

FUTEY, Judge.

This case is before the court on defendant’s motion for summary judgment. Defendant contends that no genuine issues of material fact are in dispute and defendant is entitled to judgment as a matter of law. Plaintiff argues, however, that genuine issues of material fact exist and defendant’s motion should be denied.

Factual Background

On January 23, 1970, defendant and Gulf Reston, Inc., entered into a lease regarding the subject property, which consists of approximately eleven acres of land. In addition, an office building and computer facility were built to meet the special requirements of defendant. Possession and the term of the lease, which contained a restoration clause, commenced on March 1, 1971. In 1976, plaintiff acquired the subject property from Gulf Reston and was recognized as the successor lessor of the subject property.

During defendant’s occupancy of the subject property, alterations were made to, and improvements installed at, the buildings located on the subject property. Plaintiff approved these changes. The parties agree that defendant paid the cost of the alterations it requested. From 1976 until 1991, defendant paid rent to plaintiff on the subject property. The lease expired on February 28, 1991. Thereafter, from 1991 to 1994, defendant compensated plaintiff for its three-year condemnation of the subject property.1 On February 28,1994, defendant quit possession of the subject property.

On February 22, 1995, plaintiff contracted to sell the subject property to the County of Fairfax, Virginia (Fairfax County).2 Fairfax County purchased the subject property in[394]*394tending to demolish the buildings. Plaintiff was aware of this intent at the time of the sale. The subject property was conveyed to Fairfax County on July 12, 1995. The buildings located on the subject property were subsequently destroyed. It is undisputed that plaintiff did not spend any money on restoration costs between the time defendant quit possession of the subject property and the date Fairfax County purchased the subject property.

Plaintiff filed its complaint in this court on January 24, 1994. In the complaint, plaintiff alleges that defendant breached its express contract, the lease, with plaintiff by failing to restore the subject property to the same condition as existed when the lease was entered into in 1970. Based upon this alleged breach, plaintiff claims monetary damages in the amount of $2,667,687 as the diminution in fair market value of the subject property due to defendant’s failure to restore. Plaintiff also requests' attorney fees, costs, and any other relief the court may award.

On December 6, 1996, defendant filed a motion for summary judgment in which defendant asserts that there is no dispute as to any genuine issue of material fact and plaintiffs claim must fail as a matter of law. Plaintiff maintains that a trial is required on the matter of its entitlement to the requested relief. The court heard oral argument on defendant’s motion on April 16,1997.

Discussion

Summary judgment is appropriate when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. RCFC 56; Anderson v. Liberty Lobby Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986). A fact is considered material if it might significantly affect the outcome of the suit under the governing law. Anderson, 477 U.S. at 248, 106 S.Ct. at 2510. The party moving for summary judgment bears the initial burden of demonstrating, by a preponderance of the evidence, either the absence of any genuine issue of material fact or the absence of evidence to support the non-movant’s case. Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2553-54, 91 L.Ed.2d 265 (1986). If the moving party demonstrates an absence of genuine issues of material fact, the burden then shifts to the non-moving party to show that a genuine factual dispute exists. Sweats Fashions, Inc. v. Pannill Knitting Co., 833 F.2d 1560, 1563 (Fed.Cir.1987). Alternatively, if the moving party shows an absence of evidence to support the non-moving party’s case, the burden shifts to the non-moving party to proffer such evidence. Celotex, 477 U.S. at 325, 106 S.Ct. at 2553-54. The court must resolve any doubts over factual issues in favor of the party opposing summary judgment, Litton Indus. Prods., Inc. v. Solid State Sys. Corp., 755 F.2d 158, 163 (Fed.Cir.1985), to whom the benefits of all presumptions and inferences run. H.F. Allen Orchards v. United States, 749 F.2d 1571, 1574 (Fed.Cir.1984), cert. denied, 474 U.S. 818, 106 S.Ct. 64, 88 L.Ed.2d 52 (1985).

In the present case, although plaintiff takes issue with some of defendant’s proposed findings of fact, such disagreement does not raise any genuine issues of material fact. Indeed, plaintiffs factual arguments deal more with the semantics of defendant’s proposed findings rather than their content. All facts that might significantly affect the outcome of the present suit are undisputed. The court therefore may properly resolve this case on defendant’s motion for summary judgment and need only consider whether plaintiff is entitled, as a matter of law, to the damages it seeks.3 See Anderson, 477 U.S. at 247-48, 106 S.Ct. at 2509-10.

[395]*395It is well-settled that, “[w]here there has been a breach of an obligation to restore leased premises to the original condition, [a] plaintiff is entitled to recover the damages [it] actually suffers.” San Nicolas v. United States, 228 Ct.Cl. 223, 617 F.2d 246, 249 (1980). Generally, such damages are measured by the cost of restoration. Id. When, however, the cost of restoration exceeds the diminution in fair market value of the premises, damages are limited to the diminution in fair market value caused by the defendant’s breach. Dodge St. Bldg. Corp. v. United States, 169 Ct.Cl. 496, 341 F.2d 641, 644 (1965); see also San Nicolas, 617 F.2d at 249; Missouri Baptist Hosp. v. United States, 213 Ct.Cl. 505, 555 F.2d 290, 294-95 (1977); Navajo Tribe of Indians v. United States, 9 Cl.Ct. 336, 410 n. 69 (1986). The purpose of this measure-of-damages rule is the avoidance of windfall recoveries. Missouri, 555 F.2d at 294.

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Bluebook (online)
42 Cont. Cas. Fed. 77,188, 38 Fed. Cl. 392, 1997 U.S. Claims LEXIS 116, 1997 WL 401530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banisadr-building-joint-venture-v-united-states-uscfc-1997.