Buffalo & Fort Erie Public Bridge Authority v. United States

65 F. Supp. 476, 106 Ct. Cl. 731, 1946 U.S. Ct. Cl. LEXIS 62
CourtUnited States Court of Claims
DecidedMay 6, 1946
Docket45744
StatusPublished
Cited by9 cases

This text of 65 F. Supp. 476 (Buffalo & Fort Erie Public Bridge Authority v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buffalo & Fort Erie Public Bridge Authority v. United States, 65 F. Supp. 476, 106 Ct. Cl. 731, 1946 U.S. Ct. Cl. LEXIS 62 (cc 1946).

Opinion

LITTLETON, Judge.

Plaintiff is successor to the Buffalo and Fort Erie Public Bridge Company which constructed and opened to traffic in June 1927 an international toll bridge, known as the Peace Bridge, across the Niagara River between Buffalo, New York, and Fort Erie, Ontario. Plaintiff assumed possession and management of all properties of the Buffalo and Fort Erie Bridge Company and received conveyance of all the latter’s personal and real assets in May 1934. For the purposes of this proceeding the separate ownership and operation of the bridge and its adjacent buildings by the two separate legal entities is a purely formal one. In the determination of the issues the operation of the properties may be treated as a continuous one in plaintiff from the beginning of construction of the bridge until the filing of the present claim.

Plaintiff brought suit September 1, 1942, to recover the amount of $92,500, representing $15,425 per annum for the six years immediately preceding the filing of its petition herein, as the fair and reasonable value for the continued use and occupancy by defendant during such period of the space and facilities furnished by plaintiff during said six years to the Customs and the Immigration Services of the United States Government in the buildings owned by plaintiff located at the American approach to the Peace Bridge, in the city of Buffalo, New York. In the briefs plaintiff asks judgment for $60,000 at a fair use or rental value of $10,000 a year from September 1, 1936 to August 31, 1942.

The space and facilities used by the two Services at the Peace Bridge are comprised principally of office space in the Terminal Building at the end of the bridge, along with the necessary heat, electricity, water, window washing, janitor’s service and sup *478 plies, and the use of certain furniture and equipment, all of which were provided by plaintiff. In addition to such space and facilities the Customs Service also had exclusive occupancy of a separate warehouse and the benefit of daily cleaning of same in excess of ordinary janitor service, required by the use in which it was employed by defendant.

Plaintiff predicates its right to recover in this court upon (1) an implied contract on the part of the Government to pay plaintiff reasonable compensation by way of rental for the space and facilities furnished to and used by the two Services; (2) the annual Appropriation Acts of Congress for the six years involved in this suit providing lump sum appropriations by Congress for the general maintenance and operation of the two Services, including rent of buildings occupied by the two Services, viewed in pari materia with the act of Congress of June 26, 1930, chap. 617, sec. 1, 46 Stat. 817, 19 U.S.C.A. § 68, the two together constituting an authorization and expression of intent that the Treasury and the Labor Departments should pay the fair and reasonable value of the space occupied by the Customs Service and the Immigration Service, respectively, at points along the Canadian and Mexican borders where no Federal buildings were available, and where buildings adapted or suitably located for the enforcement of the customs and immigrations laws were available for rental.

The findings show that during the period involved in this claim budget estimates specifying sums for rental of space generally for the use of the Immigration and Customs Services, respectively, were presented biennially to Congress, such specified sums being sufficiently large to have included, as to each service, payment of such an amount of rent at yearly rental values for the quarters and services here involved, as set forth in finding 11, which we have found to be reasonable, and that during such period Congress annually provided lump sum appropriations to cover1 such estimates.

It is contended by defendant, first, that there was never any meeting of minds between the parties on the question of payment of rent, and hence there was no implied contract upon which plaintiff can recover; and, second, that the right to control the expenditures of a lump sum appropriation is discretionary with the administrative officer in the absence of a mandatory direction by Congress to the contrary, and no such direction was present in the appropriation acts compelling the two Services to enter into a rental arrangement with plaintiff.

The two Services have occupied the buildings and have enjoyed the use of the facilities in question, since the opening of ‘the Peace Bridge in 1927, at all times with the consent of plaintiff, subject to its express demand for rental in and subsequent to July 1938. No lease or agreement in writing was ever entered into for such occupancy. During all such time no rent or other monetary compensation was ever paid on behalf of either of the Services for such use. No express promise was ever made, by any representative of either of the two Services qualified to bind the Government thereby, that rent would be paid. On the other hand no promise was ever made by plaintiff or its predecessor to furnish the buildings or facilities rent free. Under these circumstances it is our duty to determine whether there may be fairly implied in the facts of the case an obligation or undertaking to compensate plaintiff for the use of its property.

It is obvious, from the evidence offered, that when the Peace Bridge was constructed and opened to traffic in 1927 no particular thought was given at that time to the matter of obtaining current rent for the use of the buildings and facilities constructed and made available for use of the Customs Service and the Immigration Service of the United States. The matter of rent was discussed earlier (findings 2 and 3), but not with any official having authority to bind the Government. It was taken for granted that the presence of customs and immigration officials would be, necessary in the operation of the bridge. This is apparent in the fact that the Bridge Company’s plans and drawings provided for buildings to house the two Services. And, knowing that the bridge could operate most effectively only through the presence of the proper officers of the two Serv *479 ices, it was only natural that these plans and drawings should be submitted, as they were, to the local representatives of the Services for their approval. It was also natural for the Bridge Company to assume that these local officials might have suggestions to make as to how its plans might be changed to provide quarters more suitable for their operations. However these matters did not estop the Bridge Company or plaintiff from demanding reasonable rental for such facilities when the bridge was opened, or later. No requirement rested on the Bridge Company to provide the facilities as a condition to its right to build and operate the bridge.

The question of payment of rent by the Services came into these early discussions, but they were only in the way of preliminary discussion and were not, so far as appears from the evidence, intended by either of the parties to be definitive of their respective rights, or in the nature of a 'meeting of minds on the subject. The Bridge Company’s primary thought at the time was to get the bridge into operation with adequate customs and immigration service available to attract the maximum volume of traffic to the bridge.

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Cite This Page — Counsel Stack

Bluebook (online)
65 F. Supp. 476, 106 Ct. Cl. 731, 1946 U.S. Ct. Cl. LEXIS 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buffalo-fort-erie-public-bridge-authority-v-united-states-cc-1946.