Dalaly v. United States

31 Cont. Cas. Fed. 71,394, 3 Cl. Ct. 203, 1983 U.S. Claims LEXIS 1651
CourtUnited States Court of Claims
DecidedAugust 15, 1983
DocketNo. 585-80L
StatusPublished
Cited by7 cases

This text of 31 Cont. Cas. Fed. 71,394 (Dalaly 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
Dalaly v. United States, 31 Cont. Cas. Fed. 71,394, 3 Cl. Ct. 203, 1983 U.S. Claims LEXIS 1651 (cc 1983).

Opinion

OPINION

MEROW, Judge:

This case is before the court on motions for summary judgment filed by both parties. At issue is plaintiff’s monetary claim based upon the failure of the General Services Administration (GSA) to recognize the validity of a purported lease by the government of certain property owned by plaintiff. No material issues of fact exist on the issue of liability.

Background

Plaintiff owned a building located at 11201 East Jefferson Avenue, Detroit, Michigan. In 1968, GSA leased this building for five years. In 1972, the Social Security Administration (SSA) in Detroit required additional office space and plaintiff was contacted for the purpose of securing this space.

The government officer who conducted most of the negotiations for this space with plaintiff was Mr. Marion Colvin, an SSA employee who was detailed to GSA as a “realty specialist.” Mr. Colvin had been given a “crash” course in real estate so that he could aid GSA in procuring the necessary space.

During his training, Mr. Colvin was instructed that he had no authority to enter into a lease for the government without the approval of his superiors. The material submitted in support of the pending motions includes the affidavit and deposition of Mr. Victor J. Martello, a GSA “Supervisory Realty Specialist,” located in Chicago, Illinois, who was in charge in the Detroit program. Mr. Martello testified that at the relevant time only GSA employees having at least a GS-11 rating1 were authorized to enter into five year leases. The normal process was to have a proposed lease forwarded to the Chicago GSA office and, if approved, mailed to the lessor.2

In the instant ease, plaintiff had several meetings with Mr. Colvin to discuss the proposed lease of additional space. At the first meeting, the local SSA district manager for “Detroit East” attended. ’ Mr. Col-vin testified, in his deposition submitted in this matter, that the manager wanted to lease additional space in plaintiff’s premises in the blighted location involved because “its probably the best available in the whole area.” By a letter dated September 5,1973, addressed to Mr. Colvin, plaintiff submitted a proposal to lease for five years additional space to the government (4,585 square feet). [205]*205Mr. Dalaly stated that “I am constructing the space larger than required because it makes best use of the property.”

On September 20, 1973, GSA issued a “Solicitation For Offers” for a five year lease of 3,569 net usable square feet in Detroit, Michigan. The solicitation noted that the space was required “on 1/1/74 or sooner * * *.”

On October 9, 1973, plaintiff submitted a “Proposal to Lease Space to the United States of America” (GSA Form 1364). His proposal was to lease 4,559 square feet of office space at 11201 E. Jefferson Avenue, Detroit, Michigan, for five years at an annual rental of $25,519.

At some point during this period, Mr. Colvin and Mr. Dalaly met and plaintiff was then given a document purporting to be a copy of a partially executed Standard Form 2, U.S. Government Lease for Real Property. The document bore a lease number, “GS-05BR-11840,” but no date in the adjoining space provided therefor. The form recites the leasing of “4585 square feet of net usable space being the entire one story building located at 11201 East Jefferson, Detroit, Michigan 48214.” The lease term is stated as “beginning on February 1, 1974 through January 31, 1979, * * The annual rent is listed as “$25,-519.00.” The document bears a typed signature of “Joseph H. Dalaly” and a handwritten signature of “Victor J. Martello,” together with the title “Acting Chief Acquisition Branch.”

Mr. Colvin, in his statements and deposition, has indicated that this document was intended to be a “sample” lease. Mr. Colvin was aware that plaintiff intended to use the document to aid in obtaining a loan to begin construction of the contemplated additional lease area proposed.3

In the absence of any approval of his construction plans, on July 24,1974 plaintiff met in Chicago, Illinois with Mr. Peter Hebert, supervisory realty specialist, acquisition branch, space management division, GSA. At this time he produced the copy of the lease provided to him by Mr. Colvin. At that time, Mr. Martello examined the lease form and denied executing such a document.

By a letter dated July 26,1974 addressed to Mr. Hebert, plaintiff asserted that “In September 1973 I negotiated with the Social Security representatives in Detroit a rental contract for additional space at 11201 E. Jefferson Avenue, * * *.” Because of ensuing delays, plaintiff indicated that it would be necessary “to change the annual rental to $30,000 annually, to recover increased costs.”

In subsequent communications to GSA and in response to discovery in this action, Mr. Colvin admits signing Mr. Martello’s name to the lease form he gave plaintiff for sample purposes.

On December 24, 1974, GSA issued a new solicitation for offers, No. GS-05BR-12106, to satisfy the additional Detroit office space needs of SSA.

In May 1975 plaintiff met with GSA officials in Chicago, Illinois to assert his position, premised upon the form provided by Mr. Colvin, that he had a lease for the additional office space at 11201 E. Jefferson Avenue, Detroit, Michigan.

■ By a letter dated June 24, 1975, GSA advised plaintiff that all offers received in response to solicitation No. GS-05BR-12106 would be rejected.

In August 1975 GSA initiated an investigation into the circumstances surrounding the form provided to plaintiff.

By a letter dated October 21,1975 to GSA in Chicago, Illinois, plaintiff again stated his position that he had a valid lease and noted that over two years had elapsed since it was sent to him. Mr. Dalaly requested [206]*206an explanation for the delay in approving the building plans “so that we may resolve the problem and then commence the completion of the added facilities.”

In response, GSA informed plaintiff that an investigation had been initiated and “when the investigation is completed, we will inform you of what action we propose to take.”

Plaintiff continued to lease the existing facilities at East Jefferson Avenue to GSA until 1979. The instant action was filed on October 27, 1980. Following completion of pretrial requirements, a trial was scheduled in Detroit, Michigan but was cancelled at the request of the parties to proceed by motion for summary judgment.

DISCUSSION

In order to recover in this action for breach of a purported lease agreement, plaintiff must first establish the existence of a valid lease contract with the United States. 28 U.S.C. § 1491; Slobojan v. United States, 136 Ct.Cl. 620 (1956); Schoenbrod v. United States, 187 Ct.Cl. 627, 410 F.2d 400 (1969); Grundy v. United States, 2 Cl.Ct. 596 (1983).

The administrator of GSA is authorized to enter into lease agreements “for the accommodation of Federal agencies in buildings * * *.” 40 U.S.C. § 490(h)(1).

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Bluebook (online)
31 Cont. Cas. Fed. 71,394, 3 Cl. Ct. 203, 1983 U.S. Claims LEXIS 1651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dalaly-v-united-states-cc-1983.