Edwards v. United States

36 Cont. Cas. Fed. 75,822, 19 Cl. Ct. 663, 1990 U.S. Claims LEXIS 76, 1990 WL 21197
CourtUnited States Court of Claims
DecidedMarch 6, 1990
DocketNo. 522-88C
StatusPublished
Cited by25 cases

This text of 36 Cont. Cas. Fed. 75,822 (Edwards 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
Edwards v. United States, 36 Cont. Cas. Fed. 75,822, 19 Cl. Ct. 663, 1990 U.S. Claims LEXIS 76, 1990 WL 21197 (cc 1990).

Opinion

MEMORANDUM OPINION

LYDON, Senior Judge:

In this contract case, plaintiffs seek monetary and equitable relief arising out of a contract they had with defendant, acting through the United States Postal Service (Postal Service), to construct and lease to the government a post office facility at Nags Head, North Carolina. Plaintiffs’ complaint sets forth three separate claims for relief. In count I, plaintiffs seek contract reformation and/or breach of contract damages. In count II, plaintiffs seek an equitable adjustment in the contract price due to unforeseen changes in local ordinances and zoning regulations. In count III, plaintiffs seek specific performance.

Defendant has moved for dismissal of plaintiffs’ first claim on jurisdictional, grounds, and has moved for summary judgment on plaintiffs’ first and second claims. Defendant did not address plaintiffs’ third claim. Plaintiffs oppose defendant’s motions, and, in turn cross move for summary judgment on their first claim for relief. Upon consideration of the submissions of the parties, and oral argument, the court concludes that defendant’s motion for summary judgment should be granted on counts I and II, and plaintiffs’ cross motion [665]*665for summary judgment on count I should be denied.

Facts

In 1983 the Postal Service determined that it needed a new post office facility in the town of Nags Head, Dare County, North Carolina. Postal Service officials decided to implement the “open advertising” method of procuring a location for the facility, in which the bidders own or control the proposed site, as opposed to the “controlled site” method, in which the Postal Service controls the site. Due to the shortage of manpower at the time, Postal Service officials chose the open advertising method because it does not require Postal Service employees to investigate zoning and other requirements pertaining to a proposed site.

After the Postal Service designated the preferred site area for the Nags Head project, it assigned one of its senior real estate specialists, Wallace Nelms (Nelms) to the project. Nelms’ task generally was to investigate, choose and recommend, if necessary, a specific site or sites within the “preferred relocation area” on which to locate the new post office. A “preferred area” is, according to Nelms, an area that will afford the Postal Service all the advantages it needs in delivering the mail and being available to the public.

After Nelms’ assignment to the Nags Head project, he traveled from his Atlanta, Georgia office to Nags Head and contacted Lillie Wyonnia Doll Gray (Gray), Postmistress of Nags Head, whom he had known for at least five years, regarding his assigned duty. Nelms had nothing to do with the determination of the preferred area. His job was to identify sites within the preferred area that might be suitable and available for a postal facility. Gray informed Nelms that she and/or her family controlled a tract of land that was suitably zoned for the project. In this regard, Gray was acting in her personal capacity and as a representative of an estate which owned the land. The land controlled by Gray consisted of approximately 101,059 square feet, which fronted on the west side of the Highway 158 By-Pass. Although the land could not be sold at the time since it ostensibly was in probate proceedings, it could be leased. Nelms observed that the size of Gray’s land was suitable for the new post office.

Nelms did not make any further investigation of Nags Head zoning requirements, but instead relied on Gray’s representation that the land was properly zoned to allow for post office construction. Nelms stated in his deposition that in 1985 it was Postal Service policy to check only for proper zoning, i.e., that it was zoned for a postal facility, on a preferred site before making an award. He also stated that it was not Postal Service policy to check the title to the land. While Nelms did not do an intensive search of the preferred area, he became aware that there were a couple of other sites available therein.

On March 28, 1985, the Postal Service advertised bid specifications for the proposed Nags Head post office facility under the open advertising method. The bid specifications called for bidders to build within a designated preferred area, and to lease to the Postal Service, 3,676 square feet of enclosed building, 390 square feet of platform, 22,462 square feet of parking, driveway and maneuvering, 1,726 square feet of sidewalk, and 13,970 square feet of landscaping, for a total site area of approximately 42,500 square feet, with dimensions of approximately 170 feet X 250 feet.

Persons who requested bidding documents for the Nags Head project received a package containing, inter alia, an Agreement to Lease (lease agreement or contract), and a set of Series F standard plans with specifications printed on them. The lease agreement contained, inter alia, a “Permits and Responsibilities” clause, set forth verbatim in the discussion below, which required the contractor to comply with all applicable federal, state and local laws and regulations in performing the contract.

The Bid Invitation contained provisions warning the bidders of their responsibility for basing their bids on properly zoned property, and for obtaining proper zoning if necessary. The Bid Invitation also em[666]*666phasized that the bidder must own or control the property, and that the successful bidder must furnish water in accordance with federal, state and local laws.

The Bid Invitation was issued on March 28,1985, and required bids to be submitted by April 29, 1985. The “preferred area” was described as being bounded on the north by Sound Side Road, on the south by Highway 64, and on the east and west by the Highway 158 By-Pass.

At this time, Nelms was aware that plaintiffs Willie Edwards (Edwards) and John Dixon (Dixon) were interested in building postal facilities for lease to the Postal Service. Dixon had been a close personal friend of Nelms since 1971, and he was aware of Nelms’ expertise as a Real Estate Specialist for the Postal Service. Indeed, Nelms had assisted plaintiffs on at least one prior post office project, which plaintiffs built in Nashville, North Carolina for lease to the Postal Service. Nelms informed plaintiffs and others that there was a site in the preferred area that would meet the Postal Service’s specifications, in terms of size, zoning and location, and that it might be available for such purposes. According to the deposition of plaintiff Edwards, Nelms told him about the site and said “it was available to put the post office on.” He could not recall Nelms telling him anything else about the matter.1

Although plaintiffs had already built one post office, they were not building contractors by occupation. Dixon was in the restaurant business, and resided in Wilson, North Carolina, and Edwards was a beverage broker, and resided with his wife Rosalyn, who is also a plaintiff, in Rocky Mount, North Carolina. None of the plaintiffs had ever lived in Nags Head, although Edwards owned property there and in other parts of Dare County before and during 1985.

Plaintiffs thereafter contacted Gray and negotiated a “ground lease” agreement for an annual rental of $10,000 for a period of fifteen years, with an option to purchase. Plaintiffs did not seek the assistance of an attorney during this real estate transaction. Neither Nelms nor any postal official acting in an official capacity participated in these negotiations.

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

Related

Park Properties Associates, L.P. v. United States
128 Fed. Cl. 493 (Federal Claims, 2016)
Raytheon Company v. United States
121 Fed. Cl. 135 (Federal Claims, 2015)
Lakeshore Engineering Services, Inc. v. United States
110 Fed. Cl. 230 (Federal Claims, 2013)
Schweiger Construction Co. v. United States
49 Fed. Cl. 188 (Federal Claims, 2001)
Vanalco, Inc. v. United States
48 Fed. Cl. 68 (Federal Claims, 2000)
Price v. United States
46 Fed. Cl. 640 (Federal Claims, 2000)
CTA Inc. v. United States
44 Fed. Cl. 684 (Federal Claims, 1999)
Nutrite Corp. v. United States
43 Fed. Cl. 297 (Federal Claims, 1999)
Rig Masters, Inc. v. United States
42 Cont. Cas. Fed. 77,417 (Federal Claims, 1998)
Crews v. United States
38 Fed. Cl. 10 (Federal Claims, 1997)
Martin v. United States
37 Fed. Cl. 86 (Federal Claims, 1996)
Doe v. United States
37 Fed. Cl. 74 (Federal Claims, 1996)
John Doe v. United States
100 F.3d 1576 (Federal Circuit, 1996)
Sanders v. United States
34 Fed. Cl. 38 (Federal Claims, 1995)
Gates v. United States
40 Cont. Cas. Fed. 76,753 (Federal Claims, 1995)
Dairyland Power Cooperative v. United States
38 Cont. Cas. Fed. 76,492 (Federal Claims, 1993)
A.S. McGaughan Co. v. United States
37 Cont. Cas. Fed. 76,239 (Court of Claims, 1991)
Spalding & Son, Inc. v. United States
37 Cont. Cas. Fed. 76,174 (Court of Claims, 1991)
Blackwell v. United States
37 Cont. Cas. Fed. 76,164 (Court of Claims, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
36 Cont. Cas. Fed. 75,822, 19 Cl. Ct. 663, 1990 U.S. Claims LEXIS 76, 1990 WL 21197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edwards-v-united-states-cc-1990.