Dureiko v. United States

62 Fed. Cl. 340, 2004 U.S. Claims LEXIS 254, 2004 WL 2212083
CourtUnited States Court of Federal Claims
DecidedSeptember 29, 2004
DocketNo. 97-44C
StatusPublished
Cited by3 cases

This text of 62 Fed. Cl. 340 (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, 62 Fed. Cl. 340, 2004 U.S. Claims LEXIS 254, 2004 WL 2212083 (uscfc 2004).

Opinion

OPINION

HORN, Judge.

BACKGROUND

Plaintiffs are owners and operators of the Pine Isle Mobile Home Park (Pine Isle), located in Homestead, Florida. Southern Florida was declared a disaster area, and Pine Isle was declared uninhabitable after a severe hurricane. The Federal Emergency Management Agency (FEMA) offered to remove debris from mobile home parks in Southern Florida, without charge, if mobile home park owners would lease space for FEMA’s trailers to provide temporary housing for displaced individuals. Joseph Du-reiko set aside mobile home lots at his Pine Isle Mobile Home Park for temporary housing, at a rental cost to FEMA of $240.00 per month, per lot. The parties stipulated that a total of 101 leases were signed by FEMA and Mr. Dureiko.

Mr. Dureiko signed a right of entry permit, dated September 16, 1992, to allow the United States Army Corps of Engineers (the Corps) to enter Pine Isle and remove debris. The permit was witnessed by Steele Beller, a Corps employee. Other than Mr. Beller’s signature as a witness, no government signature appears on the right of entry permit. Mr. Dureiko also signed an undated release. The release states that, in consideration of the removal of debris from Pine Isle, Mr. [342]*342Dureiko released the county, state and federal government and their contractors “from all claims of whatever nature arising from such demolition and removal.”

Plaintiffs’ complaint in this court alleges that, prior to allowing use of Pine Isle by the government for temporary housing, concerns were expressed to FEMA and Corps personnel by Pine Isle personnel as to the “manner and method of debris removal.” Plaintiffs allege that FEMA and Corps personnel promised that the clean up crew at Pine Isle would use rubber-tired equipment; would preserve the infrastructure of the park, including mobile home pads, driveways and utilities; that utilities would be repaired or replaced to code; and that Pine Isle would be restored to the “same or better condition” Pine Isle was in prior to the arrival of the hurricane.

The Corps contracted with Phillips & Jordan, Inc. to remove debris at Pine Isle. Plaintiffs’ complaint alleges that, contrary to the promises made by FEMA and the Corps, contractor Phillips & Jordan used equipment with caterpillar-type treads rather than rubber-tired equipment, and that Phillips & Jordan “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’ claims are now on review following a remand from the United States Court of Appeals for the Federal Circuit, Dureiko v. United States (Dureiko III), 209 F.3d 1345, 1352-53 (Fed.Cir.2000). Originally, plaintiffs filed an agency claim for damage to Pine Isle, which was denied by the Corps. Pine Isle then filed suit against Phillips & Jordan, a contractor for the Corps of Engineers, and the United States in the United States District Court for the Southern District of Florida. The District Court dismissed the claims against the United States as barred by the Disaster Relief and Emergency Assistance Act (Stafford Act), which immunizes the federal government against claims arising from discretionary acts during disaster relief. The District Court also dismissed the claims as barred by the Federal Tort Claims Act, which similarly immunizes the government from tort claims arising from discretionary acts. See Dureiko v. Phillips & Jordan Inc. (Dureiko I), No. 95-1441, 1996 WL 825402, at *1-2 (S.D.Fla. Apr. 29, 1996) (citing the Stafford Act, 42 U.S.C. § 5148 (1994) and the Federal Tort Claims Act, 26 U.S.C. § 2680(a) (1994)).

Pine Isle then filed suit against the United States in this court, alleging breach of contract (count one), a taking in violation of the Fifth Amendment (count two), inverse condemnation in violation of the Fifth Amendment (count three) and “fraud in the inducement” (count four), seeking damages in excess of $2,000,000.00.

This court dismissed plaintiffs’ complaint. See Dureiko v. United States (Dureiko II), 42 Fed.Cl. 568, 582 (1998). Count one (breach of contract) was dismissed based on the Stafford Act, the doctrine of collateral estoppel, and a release of claims by plaintiffs. On appeal, however, the United States Court of Appeals for the Federal Circuit rejected the reasoning of the United States District Court for the Southern District of Florida and this court regarding the applicability of the Stafford Act in this case. On reviewing a motion to dismiss, factual allegations in a complaint are accepted as true. According to the Circuit decision, if, as Pine Isle alleged, FEMA contracted for the clean up of Pine Isle, that contract and its required clean up standards would serve as the equivalent of a federal statute or regulation which prescribed the course of action to follow, removing the discretion required by the Stafford Act to immunize government actions. See Dureiko v. United States (Dureiko III), 209 F.3d at 1352-53.

In dismissing the plaintiffs’ complaint, this court also relied on the doctrine of collateral estoppel, or issue preclusion, as to whether FEMA and Corps supervision of contractor Phillips & Jordan during disaster relief at Pine Isle came under the discretionary function exception of the Stafford Act. As noted, the discretionary function exception previously also had been litigated and decided, adversely to plaintiffs, by the United States [343]*343District Court for the Southern District of Florida in Dureiko I. See Dureiko v. Phillips & Jordan Inc. (Dureiko I), 1996 WL 825402 at *2; Dureiko v. United, States (Dureiko II), 42 Fed.Cl. at 578-80. On appeal, however, the Appeals Court rejected the applicability of the doctrine of collateral estoppel in this instance, narrowly finding that the District Court had addressed the government’s discretionary function issue only as to Pine Isle’s tort claim in District Court, and not as to other claims. See Dureiko v. United States (Dureiko III), 209 F.3d at 1354-55.

This trial court also viewed the release signed by Mr. Dureiko as barring plaintiffs’ claims, rejecting Pine Isle’s assertions that the release was entered into only under duress or as the result of undue influence. See Dureiko v. United States (Dureiko II), 42 Fed.Cl. at 577-78. On appeal, the Federal Circuit affirmed in part, rejecting Pine Isle’s duress and undue influence arguments, but found the language of the release to be ambiguous, and summary judgment, therefore, not appropriate. Dureiko v. United States (Dureiko III), 209 F.3d at 1357. Because the Federal Circuit judges identified ambiguity in the release, the case was remanded to this trial court to determine “whether the extrinsic evidence supports Pine Isle or the government’s interpretation of the release.” Id. at 1358.

The Federal Circuit also held that the trial court had properly dismissed Pine Isle’s Fifth Amendment taking (count two) and inverse condemnation (count three) claims. See id. at 1358-59; Dureiko v. United States (Dureiko II), 42 Fed.Cl. at 578-81.

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Bluebook (online)
62 Fed. Cl. 340, 2004 U.S. Claims LEXIS 254, 2004 WL 2212083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dureiko-v-united-states-uscfc-2004.