City of Alexandria v. United States

31 Cont. Cas. Fed. 71,678, 3 Cl. Ct. 667, 1983 U.S. Claims LEXIS 1600
CourtUnited States Court of Claims
DecidedOctober 20, 1983
DocketNo. 560-82L
StatusPublished
Cited by9 cases

This text of 31 Cont. Cas. Fed. 71,678 (City of Alexandria 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
City of Alexandria v. United States, 31 Cont. Cas. Fed. 71,678, 3 Cl. Ct. 667, 1983 U.S. Claims LEXIS 1600 (cc 1983).

Opinions

OPINION

NETTESHEIM, Judge.

In this breach of contract action, plaintiff, the City of Alexandria (“plaintiff” or the “City”), seeks the difference between the price it paid for a parcel of surplus government real property and a lesser price allegedly agreed upon under a prior contract of sale for the same parcel. Although arguing that this claim is not appropriate for summary disposition due to contested issues of material fact, the City takes the position that if the case proceeds on summary judgment the Government should be estopped from denying the existence of the earlier contract or of an intervening contract, also for a lesser price than the City finally paid. As a final alternative, the City seeks interest on an earnest money deposit given for the first contract.

This case is now before the court after argument on defendant’s motion for summary judgment on the issue of the existence of an express contract, as opposed by plaintiff, and on plaintiff’s motion for summary judgment on the issue of estoppel, as opposed by defendant. Defendant cross-moved on this issue in oral argument. Plaintiff also moved orally, over opposition, for summary judgment based on a contract implied in fact.

FACTS

In its opposition to defendant’s motion for summary judgment, the City identified twelve issues of allegedly disputed facts which precluded summary judgment. Although, as defendant argues, most of these issues are either conceded or immaterial, the following recitation considers all salient facts in the light most favorable to the City, the non-moving party, and resolves all doubts against the Government, as the mov-ant. See Lehner v. United States, 1 Cl.Ct. 408, 412 (1983) (NETTESHEIM, J.) (citing cases).

The Invitation To Offer at $925,000

On November 8, 1977, the General Services Administration (“GSA”) determined the King’s Warehouse site (“the lot”) in Old Town Alexandria, Virginia, to be surplus government property. Section 203(a) of the Federal Property and Administrative Services Act of 1949, 63 Stat. 385 (1949) (codified as amended at 40 U.S.C. § 484(a) (1976)), empowers the Administrator of GSA to supervise and direct sales of such property. The Administrator’s authority to dispose of surplus real property has been delegated to the Federal Property Resources Service (the “FPRS”), part of GSA’s central office, which, in turn, has delegated its authority to the regional administrators.

[669]*669After an unsuccessful attempt to acquire the lot by a historic preservation grant, the City informed GSA, on November 17, 1978, of its desire to purchase the lot by negotiated sale pursuant to 40 U.S.C. § 484(e)(3)(H).1 Carlton Brooks (“Brooks”), Director, Real Property Division of the FPRS, replied on November 30 informing plaintiff that “negotiated sales of surplus Federal real property are based on the property’s market value and subject to Congressional review. We are proceeding to obtain the necessary clearances within GSA and will send the City an offer as soon as possible.”

The clearances included both the GSA Administrator’s and the FPRS’s approval of the National Capital Region’s (the “Regional Office”) disposal plan for the lot. On May 16, 1979, the FPRS authorized the Regional Office to negotiate a sale of the lot to the City at not less than the lot’s appraised value of $790,000. If such a price could be negotiated, an explanatory statement was to be prepared for the Administrator of GSA to submit to the Senate Committee on Governmental Affairs and the House Committee on Government Operations (the congressional oversight committees), as required by 40 U.S.C. § 484(e)(6).2 According to plaintiff, these advance clearances prove that if the contract subsequently negotiated had been submitted to the FPRS for review, it would have been approved.

On June 22,1979, Regional Administrator Walter V. Kallaur (“Kallaur”) sent the City an invitation to offer, pursuant to 41 C.F.R. § 101-47.304-4 (1978), on a form styled “Offer For Purchase” (“OFP”). The OFP identified the City as the “offeror” in the transaction and recited both that the offer- or offered to purchase the lot for $925,000 cash and that the “Offer for Purchase of Government Property” was subject to the “General Terms Applicable to Negotiated Sales” in the attached GSA Form 2041 and to special terms set forth in the OFP. Form 2041 contained a “Rescission” clause, which provided in part:

b. An explanatory statement ... will be submitted to the appropriate committees of the Congress ... and the offer probably will not be accepted by the Government until after the proposed disposal has been considered by such committees ....
c. Any recission, [sic] pursuant to a or b, above, will be without liability on the part of the Government other than to return the earnest money deposit without interest.

In his June 22,1979 cover letter, Regional Administrator Kallaur requested that the City “review the Offer and, if it is acceptable to you, return two executed copies together with the necessary resolutions and a 10 per cent earnest money deposit.” The City has characterized the cover letter and the OFP as an offer by GSA to sell the lot to plaintiff.

Negotiation of the Sale

On August 6, 1979, a meeting took place between Kallaur and Brooks and city officials. At this meeting Kallaur agreed to give plaintiff sufficient time to respond to the OFP so that it could gain the City Council’s approval at the next council meeting on September 11. The City expressed a desire to file another application to acquire the lot free under a historic preservation grant. Kallaur agreed by letter dated August 7, 1979, that if the application were [670]*670successful “or if the City wishes to withdraw its offer before December 31,1979, we will allow the withdrawal. Otherwise, I will proceed with the sale of the property to the City.” Kallaur stated in deposition that he did not mean that he would wait until December 31 to process the offer. “We would process it any time prior to that date whenever they submitted it, if that is what they indicated to us that that is what they wanted to do.”

GSA’s Handbook for Disposal of Surplus Property, which contains instructions and procedures for the disposal of surplus real property, provides in part:

If at the time of the submission of the explanatory statement to the committees the appraisal of the property would be more than nine months old, the regional office shall have that appraisal updated

PBS P. 4000.1-113e (Apr. 19, 1977). This handbook was not in the public domain. The appraisal on which the $925,000 price was based was due to expire on December 16,1979, under this guideline. At the meeting on August 6, 1979, city officials were not told that the offer at $925,000 no longer would be viable if the explanatory statement had not been submitted to Congress by December 16. The GSA officials, however, did advise city officials that the current appraisal would expire in December and the price might then go up, but that if plaintiff submitted the OFP before the deadline the property would be sold to the City for $925,000.

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Bluebook (online)
31 Cont. Cas. Fed. 71,678, 3 Cl. Ct. 667, 1983 U.S. Claims LEXIS 1600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-alexandria-v-united-states-cc-1983.