Dureiko v. United States

42 Fed. Cl. 568, 1998 U.S. Claims LEXIS 299, 1998 WL 884982
CourtUnited States Court of Federal Claims
DecidedDecember 9, 1998
DocketNo. 97-44C
StatusPublished
Cited by5 cases

This text of 42 Fed. Cl. 568 (Dureiko 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
Dureiko v. United States, 42 Fed. Cl. 568, 1998 U.S. Claims LEXIS 299, 1998 WL 884982 (uscfc 1998).

Opinion

OPINION

HORN, Judge.

The above-captioned case comes before the court on the defendant’s motion to dismiss pursuant to Rule 12(b)(1) and Rule 12(b)(4) of the Rules of the United States Court of Federal Claims (RCFC). The plaintiffs filed a complaint against the United States which seeks damages in excess of $2,000,000.00 for compensatory and consequential damages, including loss of revenue, and punitive damages. Plaintiffs claim that in the aftermath of Hurricane Andrew the Federal Emergency Management Agency (FEMA) and the United States Army Corps of Engineers (the “Corps”) caused damage to the plaintiffs’ property by improperly supervising the debris removal process and subsequent remedial work at the Pine Isle Mobile Home Park owned by the plaintiffs. Plaintiffs present four counts to the court in their complaint: (1) “breach of contract” premised upon an alleged agreement between FEMA and the plaintiffs regarding the manner and means of debris removal; (2) a “governmental taking of private property for public use” in violation of the Fifth Amendment to the United States Constitution in that the debris removal denied the plaintiffs “economically viable use of its property;” (3) “inverse condemnation” of plaintiffs’ property also in violation of the Fifth Amendment to the United States Constitution “[tjhrough ... regulatory conduct and by permitting and participating in [570]*570the wholesale destruction” of plaintiffs’ property; and (4) “fraud in the inducement” in that plaintiffs allege FEMA and the Corps induced the plaintiffs to enter into a lease agreement when the government “had no intention of fulfilling their promise of allowing only rubber-tired equipment into the park.”

FACTS

The plaintiffs are composed of: (1) Joseph Dureiko as Trustee of the Joseph E. Dureiko Restated and Amended Revocable Trust Agreement and as Trustee of the Arlene M. Dureiko (Deceased) Restated and Amended Revocable Trust Agreement, together the owner of the property at issue; and (2) Southern Pine Isle Corporation, a Florida Corporation with its principal place of business in Dade County, Florida (Southern Pine Isle Corp.). Southern Pine Isle Corp. leases the property at issue from the two trusts and, in turn, owns and operates a mobile home park, Pine Isle Mobile Home Park (Pine Isle), on the premises located in Dade County at 28600 S.W. 132nd Avenue in Homestead, Florida.

On August 24, 1992, Hurricane Andrew caused severe and extensive damage to the mobile homes and property located at Pine Isle and shortly thereafter the region was declared a disaster area by the United States federal government. Pine Isle was declared uninhabitable by Metropolitan Dade County, and the mobile homes that were damaged or destroyed were ordered to be removed. It is uncontested, that FEMA and the Corps were authorized to participate in recovery, reconstruction and assistance activities for the area impacted by Hurricane Andrew. Shortly after the hurricane in the month of August, FEMA representatives entered Pine Isle seeking to lease mobile home sites or lots, for FEMA trailers to be temporarily occupied by persons displaced by the hurricane. These proposed leases were to commence subsequent to the time that Pine Isle would complete its own cleanup of the property. The plaintiffs allege that the government, acting through FEMA, then offered to cleanup Pine Isle at the government’s expense in exchange for the right to lease mobile home sites.

The plaintiffs allege that prior to entering into an agreement with FEMA, park management “expressed concerns with and inquired as to the manner and method of debris removal” and that they “expressly stated” requirements for debris removal including (i) the use of rubber-tired equipment and not caterpillar track equipment, (ii) preservation of the park infrastructure, including utilities, pads and driveways, (iii) the hand-picking and hand-raking of debris near utilities, pads and driveways, (iv) the repair or installation of the utilities pursuant to the Dade County Code, and (v) restoration of the property to the extent “that everything would be ‘back up and running’ and in the same or better condition than it was before the hurricane.” Moreover, the plaintiffs allege that in a meeting with Pine Isle management, the Corps “confirmed and ratified all of the conditions of the agreement” listed above along with a stated intent to oversee the cleanup efforts to be conducted by a government contractor. It appears that these conditions may have been incorporated into the Task Order, and conveyed through the government agencies involved to the contractor hired by the government to undertake debris removal, Phillips & Jordan, Inc. (Phillips & Jordan).

The complaint also alleges that Pine Isle executed an agreement with the government that granted FEMA the right to lease sites or lots in exchange for the cleanup of the mobile home park at the government’s expense.1 The plaintiffs’ complaint further alleges that a “simple memorandum” was executed between FEMA and Pine Isle that documented the promise by Pine Isle to lease over 100 of the mobile home lots to FEMA.2 [571]*571In addition, an undated “Release for Demolition of Mobile Home Park and Removal of Debris” was signed and executed by a representative of FEMA and Joseph Dureiko, on behalf of Pine Isle. This release states in pertinent part:

The undersigned hereby certifies and warrants that he is the owner or authorized agent of the owner [of] the following described mobile home park:
Pine Isle MHP
28600 SW132 Ave
Homestead, FL 33023
which has been declared uninhabitable under Chapter 17C of the Code of Metropolitan Dade County, Florida.
In consideration for Dade County or the federal government’s undertaking the demolition of mobile homes and removal of the debris from the above mobile home park, the undersigned hereby releases Dade County, State of Florida, and the United States Government, and their respective officers, employees and contractors from all claims of whatever nature arising from such demolition and removal.

On or about September 3,1992, the Corps entered into a contract, DALW 17-92-C-9518, with Phillips & Jordan to perform debris removal in Dade County, Florida. Task Order No. 4, specifically outlining the debris removal terms that Pine Isle sought, was provided to the contractor by the government on or about September 17, 1992. During the cleanup process that followed, the Corps provided supervision over the debris removal contractor, Phillips & Jordan, through a Corps’ contracting officer’s representative. However, plaintiffs state in their complaint that:

In fact, in derogation of the express terms of the contract, (Task # 4) Phillips & Jordan’s employees indiscriminately crushed, tore out, obliterated, destroyed, and removed nearly everything above- and below-ground at Pine Isle, including but not limited to above- and below-ground utilities, concrete mobile home pads, concrete patios, asphalt paving, structures, vegetation and top soil all of which had survived Hurricane Andrew.

Plaintiffs allege that “the Corps and FEMA personnel either failed to observe, or observed and failed to halt, in contravention of the express terms of the contract, the destruction of improvements and property at Pine Isle ...

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Related

Dureiko v. United States
62 Fed. Cl. 340 (Federal Claims, 2004)
Schweiger Construction Co. v. United States
49 Fed. Cl. 188 (Federal Claims, 2001)
CTA Inc. v. United States
44 Fed. Cl. 684 (Federal Claims, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
42 Fed. Cl. 568, 1998 U.S. Claims LEXIS 299, 1998 WL 884982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dureiko-v-united-states-uscfc-1998.