Cebe Farms, Ind. v. United States

83 Fed. Cl. 491, 2008 U.S. Claims LEXIS 235, 2008 WL 3895500
CourtUnited States Court of Federal Claims
DecidedAugust 20, 2008
DocketNo. 05-965 C
StatusPublished
Cited by4 cases

This text of 83 Fed. Cl. 491 (Cebe Farms, Ind. 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
Cebe Farms, Ind. v. United States, 83 Fed. Cl. 491, 2008 U.S. Claims LEXIS 235, 2008 WL 3895500 (uscfc 2008).

Opinion

OPINION AND ORDER

MARGARET M. SWEENEY, Judge.

Before the court are Defendant’s Motion for Judgment Upon the Pleadings (“motion”) and Plaintiffs’ Cross-Motion to Amend (If Necessary) and Opposition to Defendant’s Motion for Judgment Upon the Pleadings (“cross-motion to amend and opposition”). In this case, plaintiffs seek just compensation under the Fifth Amendment to the United States Constitution or, alternatively, damages for breach of contract or violation of a money-mandating regulation “arising from the destruction of uninfected genetically unique and irreplaceable breeder chickens and eggs as part of [the United States Department of Agriculture’s (“USDA”) ] effort to stop the spread of and eradicate Exotic Newcastle Disease (END) following an outbreak in Southern California” in 2002. Compl. ¶ 1. Plaintiffs allege that the USDA failed to adequately compensate them for the destruction of three breeds of colored broiler chickens that are now extinct. Id. ¶ 2. Specifically, plaintiffs assert four causes of action against defendant: (1) breach of contract to pay the appraised value of plaintiffs’ chickens and eggs as indemnity; (2) breach of contract to pay per egg and per bird values agreed by the USDA; (3) violation of regulations requiring payment of appraisal as indemnity; 1 and (4) just compensation under the Fifth Amendment. Id. ¶¶ 60-70.

In its motion, filed pursuant to Rule 12(e) of the Rules of the United States Court of Federal Claims (“RCFC”), defendant argues that plaintiffs’ first two causes of action “do not allege that plaintiffs contracted with Government representatives with authority to bind the Government,” Def.’s Mot. J. Pleadings (“Def.’s Mot.”) 5, that plaintiffs’ third [493]*493cause of action is “not subject to judicial review” pursuant to 7 U.S.C. § 8306(d)(2)(C) (2000), id. at 6-7, and that the USDA’s determination that plaintiffs’ chickens and eggs were diseased—a determination that permitted it to act pursuant to its statutory and regulatory police powers—precludes plaintiffs from pursuing their fourth cause of action for just compensation, id. at 7-9. Consequently, defendant maintains that plaintiffs have failed to state a claim upon which relief may be granted. Id. at 1.

Plaintiffs, however, assert that defendant’s motion is wrought with “mischaracterization[s] (or perhaps oversimplification[s]) of the claims made and issues presented by the Complaint.” Pls.’ Cross-Mot. Amend (If Necessary) & Opp’n Def.’s Mot. (“Pls.’ Cross-Mot. & Opp’n”) 8. They argue that their claims “are not only properly pled and properly before the Court, ... they are meritorious.” Id. at 9. Therefore, according to plaintiffs, “judicial review is not only appropriate but critical” in this case. Id. at 32. For the reasons set forth below, defendant’s motion is granted in part and denied in part, and plaintiffs’ cross-motion to amend is granted.

I. LEGAL STANDARDS

An RCFC 12(c) motion “is designed to provide a means of disposing of cases when the material facts are not in dispute between the parties and a judgment on the merits can be achieved by focusing on the content of the competing pleadings____” 5C Charles Alan Wright & Arthur R. Miller, Federal Practice & Procedure § 1367 (3d ed.2004) (discussing Fed.R.Civ.P. 12(c)) (footnote omitted). Courts “have routinely construed a motion to dismiss for failure to state a claim filed after the answer as a motion for judgment on the pleadings,” and the “legal standard applied to evaluate a motion for judgment on the pleadings is the same as that for a motion to dismiss.” Peterson v. United States, 68 Fed. Cl. 773, 776 (2005). Thus, judgment on the pleadings “is appropriate where there are no material facts in dispute and the [movant] is entitled to judgment as a matter of law.” N.Z. Lamb Co. v. United States, 40 F.3d 377, 380 (Fed.Cir.1994). Where the government moves the court for judgment on the pleadings, “each of the well-pled allegations in the complaint[ ] is assumed to be correct, and the court must indulge all reasonable inferences in favor of the plaintiffs.” Atlas Corp. v. United States, 895 F.2d 745, 749 (Fed.Cir.1990); accord Johns-Manville Corp. v. United States, 12 Cl.Ct. 1, 14 (1987) (construing the predecessor rule to RCFC 12(c) and stating that “[f]or purposes of ruling on a motion for judgment on the pleadings, the traditional standard is that a court must assume that all well-pleaded facts in the nonmovant’s pleading are true and that all controverted assertions of the movant’s pleadings are false”). The court’s ruling “is based on the substantive merits of the claims and defenses as alleged in the non-movant’s pleadings.” J.M. Huber Corp. v. United States, 27 Fed.Cl. 659, 662 (1993).

A motion for judgment on the pleadings is similar to a motion for summary judgment. See 5C Wright & Miller, supra, § 1369 (noting similarities between the two motions). As discussed above, all factual inferences are drawn in favor of the nonmoving party, as is the case with a motion for summary judgment. See id. If matters outside the pleadings are presented to and not excluded by the court, then “the motion shall be treated as one for summary judgment and disposed of as provided in RCFC 56, and all parties shall be given reasonable opportunity to present all material made pertinent to such a motion by RCFC 56.”. 2 RCFC 12(c).

II. THE PARTIES’ MOTIONS

A. Plaintiffs’ First and Second Causes of Action

In their cross-motion to amend and opposition, plaintiffs state that their complaint “suf[494]*494fíciently places Defendant on notice that it is alleging that its employees had the requisite authority to have bound the government in contract.” Pls.’ Cross-Mot. & Opp’n 24. Nevertheless, plaintiffs seek to amend their complaint in order to respond to defendant’s claim that the complaint lacks an “express allegation that the government witnesses named in the Complaint ‘had the express or implied authority to bind the Defendant.’” Id. at 23. Defendant states that it “would not oppose a motion to amend the complaint to include allegations that specifically-identified Government representatives with whom plaintiffs entered into agreements possessed the authority to bind the United States.” Def.’s Reply Pl’s Resp. Def.’s Mot. (“Def.’s Reply”) 3. The court finds that justice requires amendment of plaintiffs’ complaint, see RCFC 15(a), because an amended complaint would adequately address defendant’s challenge. Cf. W & D Ships Deck Works, Inc. v. United States, 39 Fed.Cl. 638, 648 (1997) (stating that “dismissal is appropriate where it is obvious that amendment of the complaint would not rectify its deficiency”). Given that defendant consents to amendment, it will not suffer any prejudice flowing therefrom. Accordingly, the court grants plaintiffs’ cross-motion to amend and denies defendant’s motion as it relates to plaintiffs’ first and second causes of action.

B. Plaintiffs’ Third Cause of Action

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Cite This Page — Counsel Stack

Bluebook (online)
83 Fed. Cl. 491, 2008 U.S. Claims LEXIS 235, 2008 WL 3895500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cebe-farms-ind-v-united-states-uscfc-2008.