C.P. Squire Contractors, Inc. v. The United States of America v. District of Columbia Redevelopment Land Agency, Third Party

716 F.2d 865, 1983 U.S. App. LEXIS 13655
CourtCourt of Appeals for the Third Circuit
DecidedAugust 30, 1983
DocketAppeal 83-644
StatusPublished
Cited by12 cases

This text of 716 F.2d 865 (C.P. Squire Contractors, Inc. v. The United States of America v. District of Columbia Redevelopment Land Agency, Third Party) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.P. Squire Contractors, Inc. v. The United States of America v. District of Columbia Redevelopment Land Agency, Third Party, 716 F.2d 865, 1983 U.S. App. LEXIS 13655 (3d Cir. 1983).

Opinions

SKELTON, Senior Circuit Judge.

The decision of the United States Claims Court, 1 Cl.Ct. 615, dated November 5,1982, dismissing the complaint is affirmed.

This is the second time that this case has been appealed. The first appeal was to a predecessor court, the United States Court of Claims, which issued a final order on July 25,1980, remanding the case to its trial division for further proceedings. C.P. Squire Contractors, Inc. v. United States, 224 Ct.Cl. 765, 770 (1980). Further proceedings were held in the Court of Claims Trial Division in accordance with the order. Subsequently, the case was transferred to the United States Claims Court in accordance with the Court Improvement Act of 1982. Thereafter, the Claims Court entered an appealable order dismissing the complaint. The Petitioner (appellant here) C.P. Squire Contractors, Inc., has appealed the case to this court. The United States (appellee) has invoked the “law of the case” doctrine, citing Northern Helex Co. v. United States, 634 F.2d 557 (Ct.Cl.1980), contending that we are bound by the order of the Court of [867]*867Claims cited above as the law of the case on this appeal. We agree as to the issues considered by that court and disposed of by its order. Those issues, as well as the nature of the case, are set forth in the order of the court which we quote in pertinent part as follows:

“This case concerns the extent of defendant’s liability under 42 U.S.C. § 1452b. The case is before the court on defendant’s motion for summary judgment. For the reasons set out below, there exists a dispute as to facts material to disposition of defendant’s motion. We therefore dismiss defendant’s motion. However, to properly frame the issues, we also define the scope of plaintiff’s potential recovery.

Pursuant to 42 U.S.C. § 1452b, the Secretary of the Department of Housing and Urban Development (HUD) was authorized to make low-interest rehabilitation loans, commonly known as “Section 312 loans,” to the owners and tenants of certain designated properties. The goal was to encourage such persons to rehabilitate their properties by affording them the financial means to do so. In carrying out this function, the Secretary of HUD was authorized “to delegate to or use as his agent any Federal or local public or private agency or organization to the extent he determines appropriate and desirable to carry out the objectives of [42 U.S.C. § 1452b].” 42 U.S.C. § 1452b(f). The Secretary designated the District of Columbia Redevelopment Land Agency (RLA) to assist HUD in making such loans within the District of Columbia. This was accomplished by having HUD and RLA enter into a contract denominated “Agreement for Public Body Approval of Section 312 Rehabilitation Loans” (the Agreement). Section 1 of the Agreement in relevant part provided that:

* * * The Purpose of this Agreement is to extend to the Public Body authority to approve, in accordance with the regulations, policies, and requirements (hereinafter called “Regulations”) of the Secretary, certain applications for Section 312 loans, subject to verification by the Secretary of funds availability for an approved loan.

RLA was a “Public Body” within the meaning of this Agreement. HUD prepared a Rehabilitation Financing Handbook (Handbook) which prescribed the policies, procedures, and requirements to be followed by public bodies in, among other things, approving loans. The scope of RLA’s authority to act as HUD’s agent is therefore defined and limited by the Agreement and Handbook considered together.

To the extent here relevant, the Section 312 loan program in the District of Columbia apparently functioned as follows. If an eligible homeowner was interested in applying for such a loan, RLA would first prepare a construction contract. This document contained a description of the rehabilitation work to be done, indicated the source of payment would be a Section 312 loan, and also incorporated by reference a document entitled “General Conditions for Rehabilitation, Part I.” Copies of the contract were sent to contractors interested in performing such rehabilitation work. The contractors would in turn indicate the price at which they would perform the described work. After such bids had been received, RLA would aid the homeowner in selecting an acceptable contractor. RLA acting on behalf of HUD pursuant to the delegation of authority in Section 2 of the Agreement would next approve the homeowner’s application for the Section 312 loan.1 However, Section 2 also provided such approval was not valid until HUD had first determined [868]*868funds were available from which to make the loan and had notified RLA to that effect. Section 3 of the Agreement required such notification to be in writing.2 Thus, only after receipt of such written notification would loan approval become effective and a valid and enforceable loan arise between HUD and the homeowner. RLA would next (1) inform the homeowner his loan was approved and (2) have the homeowner and the selected contractor execute the construction contract. Following contract execution, actual rehabilitation work would commence.

Apparently in accordance with this procedure, plaintiff entered into a total of 14 such contracts. Work was allegedly performed under only nine of the contracts. Per plaintiff, with respect to these nine, pursuant to oral and written change orders authorized by RLA, plaintiff was directed to and did perform additional work not originally called for under such contracts. Plaintiff insists it has not been paid for such additional work and seeks to recover payment from HUD. Plaintiff also contends that because it was not paid for this work it lacked sufficient funds to even commence performance on the other five contracts. Plaintiff therefore also seeks damages for its inability to perform these contracts. Because of the interdependent nature of plaintiff’s claims and without passing on their merits, it can potentially recover with regard to the latter five contracts only if HUD was in fact obligated to pay for the additional work allegedly performed.

Assuming plaintiff did perform additional work, it is possible for it to recover at least in part. Each of the contracts signed by plaintiff apparently incorporated by reference General Conditions for Rehabilitation, Part I (General Conditions). Section 108.C of such General Conditions authorized additional work to be performed pursuant to change orders approved by RLA and set forth' the procedure to be followed by RLA in approving such orders. Section 108.C was arguably promulgated pursuant to a delegation of authority from HUD. As previously indicated, the scope of authority delegated to RLA was in part defined by the Handbook. Chapter 19 of the Handbook set out the general conditions which public bodies were authorized to include in rehabilitation construction contracts.

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Bluebook (online)
716 F.2d 865, 1983 U.S. App. LEXIS 13655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cp-squire-contractors-inc-v-the-united-states-of-america-v-district-ca3-1983.