Detroit Housing Corp. v. United States

55 Fed. Cl. 410, 2003 U.S. Claims LEXIS 43, 2003 WL 1069852
CourtUnited States Court of Federal Claims
DecidedFebruary 27, 2003
DocketNo. 01-38C
StatusPublished
Cited by8 cases

This text of 55 Fed. Cl. 410 (Detroit Housing Corp. 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
Detroit Housing Corp. v. United States, 55 Fed. Cl. 410, 2003 U.S. Claims LEXIS 43, 2003 WL 1069852 (uscfc 2003).

Opinion

OPINION

MEROW, Senior Judge.

Plaintiff, Detroit Housing Corp. (“Detroit Housing”), seeks damages for breach of contract based on its claim that defendant made material misrepresentations regarding property purchased from the United States Department of Housing and Urban Development (“HUD”). Plaintiff claims that defendant failed to disclose a demolition order and represented that the property could be repaired upon receipt of city permits.

The matter is before the court on defendant’s motion to dismiss for lack of subject matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (“RCFC”) or for failure to state a claim upon which relief can be granted pursuant to RCFC 12(b)(4). In the alternative, defendant moves for summary judgment pursuant to RCFC 56. For the reasons stated below, defendant’s motion for summary judgment is GRANTED.

Background

Facts

On or about October 1997, the Secretary of HUD (“Secretary”) acquired property listed at 90 W. Milton, Hazel Park, Michigan (“90 W. Milton”).1 On April 24, 1998, the Secretary listed and advertised the property for sale. The advertisement indicated that the property was sold “AS-IS” and notified buyers that all properties listed “may contain code violations.” App. to Def.’s Mot. to Dismiss (Def.’s App.) at 1. On its face, the advertisement was a solicitation for offers or bids. On May 4, 1998, Detroit Housing offered to purchase 90 W. Milton for $22,369.00 by submitting and signing a “Sales Contract”. HUD signed the contract on May 6, 1998. The sales contract stated that the buyer “is responsible for satisfying itself as to the full condition of the property” and “Seller will not perform repairs after acceptance of this contract.” Def.’s App. at 2. It also contained several “Conditions of Sale,” which stated, in part:

B. Seller makes no representations or warranties concerning the condition of the property, including but not limited to mechanical systems, dry basement, foundation, structural, or compliance with code, zoning or building requirements and will make no repairs to the property after execution of this contract.... Purchaser acknowledges responsibility for taking such action as it believes necessary to satisfy [412]*412itself that the property is in a condition acceptable to it, of laws, regulations and ordinances affecting the property, and agrees to accept the property in the condition existing on the date of this contract. It is important for Purchaser to have a home inspection performed on the property in order to identify any possible defects.
E. Purchaser may not perform repairs nor take possession of the property until sale is closed. Risk of loss or damage is assumed by Seller until sale is closed, unless Purchaser takes possession of property prior thereto, in which case state law shall apply.
P. This contract contains the final and entire agreement between Purchaser and Seller and they shall not be bound by any terms, conditions, statements, or representations, oral or written, not contained in this contract.

Def.’s App. at 3.

In a letter to plaintiff dated May 14, 1998, prior to closing, HUD stated that “This property was sold in an as-is condition. You may not occupy the property nor cause it to be occupied prior to closing and receipt of a certificate of approval/occupancy from the local building department. Permits must be obtained for repair work as required by the city. No repair work can be initiated prior to the sale closing.” Letter from Cheryl A. Martin, Realty Specialist, HUD, to All Housing Services, Inc., (annexed to PL’s Resp.). The sale of the property was closed on June 11, 1998. PL’s Compl. ¶ 11. On June 11, 1998, HUD wrote to the Detroit Edison Company, stating “The above identified property and purchaser are cleared for reinstallation of electrical service. The purchaser must have a copy of the closing statement and proper identification before the installation of service.” Letter from Cynthia Nardecchia, HUD, to Detroit Edison Company. Def.’s App. at 5.

After the closing, plaintiff sought to have Detroit Edison provide electrical power to the property but learned that the city had issued a demolition order dated July 17, 1997. As a result of the demolition order, Detroit Housing was unable to obtain electrical, gas, or water service for 90 W. Milton. The city also denied plaintiffs requests for permits for repairs to the roof, furnace replacement, and new siding. The house located at 90 W. Milton was in fact demolished and the property is now vacant.

Discussion

Standard of Review

Motion to Dismiss Pursuant to RCFC 12(b)(1)

In considering a motion to dismiss, the burden of establishing jurisdiction is on the plaintiff. See McNutt v. Gen. Motors Acceptance Corp. of Indiana, 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936); Rocovich v. United States, 933 F.2d 991, 993 (Fed.Cir.1991); Reynolds v. Army & Air Force Exch. Svc., 846 F.2d 746, 748 (Fed.Cir.1988). In order to evaluate the merits of defendant’s motion asserting lack of subject matter jurisdiction pursuant to RCFC 12(b)(1), the allegations of the complaint must be construed favorably to the pleader. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). However, if the defendant challenges the truth of the jurisdictional facts alleged in the complaint, the court may expand its consideration of evidence beyond the pleadings. Bergman v. United States, 28 Fed.Cl. 580, 584 (1993) (holding that the court may consider evidentiary matters outside the pleadings in deciding motion pursuant to RCFC 12(b)(1)). “The [C]ourt should look beyond the pleadings and decide for itself those facts, even in dispute, which are necessary for a determination of [the] jurisdictional merits.” Pride v. United States, 40 Fed.Cl. 730, 732 (1998) (quoting Farmers Grain v. United States, 29 Fed.Cl. 684, 686 (1993)); see also Cedars-Sinai Med. Ctr. v. Watkins, 11 F.3d 1573, 1584 (Fed.Cir.1993) (when jurisdiction is at issue, the Court is not limited to the pleadings).

Motion to Dismiss Pursuant to RCFC 12(b)(4)

In the event that jurisdiction is present, defendant seeks dismissal of plaintiffs complaint for failure to state a claim, pursuant to RCFC 12(b)(4). This court may not dismiss [413]*413of a complaint for failure to state a cause action “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); Trauma Serv. Group v. United States, 104 F.3d 1321, 1325 (Fed.Cir.1997). This court “must accept plaintiffs factual allegations in the complaint as true, drawing all inferences in favor of the plaintiff.” Ponder v. United States,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Salazar v. United States
Federal Claims, 2022
Franklin-Mason v. United States
126 Fed. Cl. 149 (Federal Claims, 2016)
Clewley v. United States
Federal Claims, 2015
Austin v. United States
118 Fed. Cl. 776 (Federal Claims, 2014)
New Hampshire Flight Procurement, LLC v. United States
118 Fed. Cl. 203 (Federal Claims, 2014)
Threshold Technologies, Inc. v. United States
117 Fed. Cl. 681 (Federal Claims, 2014)
Seay v. United States
61 Fed. Cl. 32 (Federal Claims, 2004)
Franklin Savings Corp. v. United States
56 Fed. Cl. 720 (Federal Claims, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
55 Fed. Cl. 410, 2003 U.S. Claims LEXIS 43, 2003 WL 1069852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-housing-corp-v-united-states-uscfc-2003.