Chavez v. United States

35 Cont. Cas. Fed. 75,741, 18 Cl. Ct. 540, 1989 U.S. Claims LEXIS 222, 1989 WL 129828
CourtUnited States Court of Claims
DecidedOctober 27, 1989
DocketNo. 392-87C
StatusPublished
Cited by12 cases

This text of 35 Cont. Cas. Fed. 75,741 (Chavez 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
Chavez v. United States, 35 Cont. Cas. Fed. 75,741, 18 Cl. Ct. 540, 1989 U.S. Claims LEXIS 222, 1989 WL 129828 (cc 1989).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge:

This action came before the court on defendant’s motion for summary judgment pursuant to RUSCC 56. Defendant maintained that because plaintiff Richards orally contracted with officers of the United States Department of Agriculture who were not authorized to contract under the program involved in this case, no express or implied-in-fact contract existed.

FACTS

Plaintiff, Tags Richards, claimed that the United States refused to pay for services rendered on an irrigation project in Lincoln County, New Mexico. He asserted that defendant, acting through the Soil Conservation Service (SCS) and the Agricultural Stabilization and Conservation Service (ASCS) of the United States Department of Agriculture, entered into an oral contract with him in May of 1981 under the Agricultural Conservation Program, 16 U.S.C. § 590a et seq. (1982), whereby he was commissioned to repair and replace a portion of the Ambrosio Chavez irrigation pipeline. Plaintiff further asserted that his contract with defendant did not rest solely on the oral assertions of SCS but also on the alleged request of the ASCS. Plaintiff also claimed that the repairs were made for the benefit of SCS and ASCS, and that the ASCS had agreed to pay for the work completed by plaintiff.

The Amended Complaint recited in relevant part:

3. In the spring of 1980, certain land owners in Lincoln County, New Mexico who owned land and water rights along the so-called Ambrosio Chavez Ditch were approached by representatives of the Soil Conservation Service of the United States Department of Agriculture, all agents and employees of the Defendant United States, with a proposal to construct for those land owners a new underground pipeline to replace the surface ditch which had previously supplied water for the land owners crops for a number of years. Said agents and employees of the Defendant obligated the United States to pay virtually all of the cost of construction of the new pipeline. The land owners agreed to the proposal.
4. All of the design work for the new underground line was performed by agents and employees of the Defendant.
5. The Plaintiff Tags Richards is a general contractor in the State of New Mexico, and was hired to construct the underground pipeline.
6. In the spring of 1981, due to failures in and problems with the delivery of water from the underground pipeline, the United States, acting by and through its agents in both the Soil Conservation Ser[542]*542vice and the Agricultural Stabilization and Conservation Service, entered into an oral contract with the Plaintiff Tags Richards to repair and replace a portion of the line in approximately May of 1981. The repair and replacement work was properly and timely performed and completed by the Plaintiff Tags Richards in the summer of 1981.
7. But for the promises of payment made by representatives of both the SCS and ASCS, the Plaintiff Tags Richards would not have undertaken nor performed the work that was performed.

For this work, which apparently was timely and properly performed, plaintiff claimed a right to payment of $13,833.20.

Plaintiff Richards and Agricultural Plaintiffs 1 originally filed suit in the United States District Court for the District of New Mexico seeking relief under the Federal Torts Claims Act. The district court dismissed Richards’ claim sua sponte for lack of jurisdiction. Niccum v. Lyng, No. 87-0042C, slip op. at 1 (D.N.M. June 18, 1987). Agricultural Plaintiffs and Richards filed suit in this court six months after filing in the district court while the district court still had the claims of the Agricultural Plaintiffs under consideration. In response to a motion by defendant to dismiss per 28 U.S.C. § 1500 (1982), the claims of the Agricultural Plaintiffs were dismissed with prejudice because they were participants in a previously filed still active case in the district court. Because Richard’s cause of action sounded in implied contract rather than in tort, this court retained jurisdiction over his claim. Chavez v. United States, 14 Cl.Ct. 212, 216 (1988).

Subsequent thereto, defendant filed a motion to dismiss Richards’ claim under RUSCC 12(b) alleging that because neither the SCS nor the ASCS nor its officers and employees had authority under the Agricultural Conservation Program, governing the Ambrosio-Chavez pipeline project, to enter into contracts on behalf of the defendant, no contract existed. Defendant maintained that even if an agent of either service had been present at the time of creation of the purported contract, the United States is not bound by the unauthorized acts of its employees and that any party contracting with the government bears the risk of accurately ascertaining whether the individual or agency purporting to act for the government is operating within the bounds of their respective authority. Federal Crop Ins. Corp. v. Merrill, 332 U.S. 380, 384, 68 S.Ct. 1, 3, 92 L.Ed. 10 (1947); Thanet Corp. v. United States, 591 F.2d 629, 635, 219 Ct.Cl. 75 (1979).

The court considered defendant’s motion to dismiss under the standards of W.R. Cooper Gen. Contractor v. United States, 843 F.2d 1362, 1364 (Fed.Cir.1988) and Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974), and “concluded that there [was] a ‘possible basis on which the non-movant might prevail.’ ” Chavez v. United States, 15 Cl.Ct. 353, 360 (1988) (quoting Cooper, 843 F.2d at 1364).2 It appeared to the court that a federal officer or employee could have been present at the meeting which allegedly gave rise to the oral contract. Furthermore, even if no person in attendance at the meeting had contracting authority as claimed by defendant, under the equitable powers applied by the Federal Circuit in United States v. Amdahl, 786 F.2d 387 (Fed.Cir.1986), plaintiff might have performed his services under an implied-in-fact contract.

Defendant then filed the present motion for summary judgment on the grounds that there is no genuine issue as to any material fact and defendant is entitled to judgment as a matter of law. Defendant maintained that plaintiff has failed to establish an en[543]*543forceable express or implied-in-fact contract with the government. Defendant stated that the government employees had no authority to enter into the contract and the government received no benefit. Plaintiff refuted defendant’s contentions, stating that the government employees had the authority to enter into the contract. Plaintiff also stated that there was a contract implied-in-fact because defendant received a benefit from the plaintiff.

DISCUSSION

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Bluebook (online)
35 Cont. Cas. Fed. 75,741, 18 Cl. Ct. 540, 1989 U.S. Claims LEXIS 222, 1989 WL 129828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chavez-v-united-states-cc-1989.