Fernandez de Iglesias v. United States

96 Fed. Cl. 352, 2010 U.S. Claims LEXIS 954, 2010 WL 5176664
CourtUnited States Court of Federal Claims
DecidedDecember 22, 2010
DocketNo. 08-464C
StatusPublished
Cited by7 cases

This text of 96 Fed. Cl. 352 (Fernandez de Iglesias 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
Fernandez de Iglesias v. United States, 96 Fed. Cl. 352, 2010 U.S. Claims LEXIS 954, 2010 WL 5176664 (uscfc 2010).

Opinion

OPINION AND ORDER

FUTEY, Judge.

This matter comes before the Court on the motion of defendant, the United States, for partial summary judgment, under Rule 56 of the Rules of the United States Court of Federal Claims (“RCFC”). Defendant leased a residence in Juárez, Chihuahua, Mexico from plaintiff, Maria Sandra Fernandez de Iglesias. According to plaintiff, defendant failed to vacate at the end of the lease, and plaintiff demands compensation for the amount of time defendant held over.

The question of when defendant vacated the premises is not at issue in this motion. Instead, defendant seeks resolution of four legal issues. Under Mexican law, plaintiff claims two upward adjustments in the amount of monthly rent. The first adjustment is loosely based on a statute that allows a landlord to increase the rent if a tenant extends a lease. The second adjustment is based on plaintiffs belief that rent may be adjusted upwards if the actual square footage of a residence exceeds the square footage stated in the lease. The final two issues in the motion are based on domestic law and concern the amount of judgment interest and attorney’s fees plaintiff would be due, if she prevails.

Additionally, plaintiff moved on November 12, 2010 for leave to amend her complaint. Defendant filed a i’esponse in opposition on November 26, 2010, and plaintiff replied on December 6, 2010.

I. Background

A. The Original Lease

The parties executed a lease on October 24, 1997 for a residence located in Juárez, [355]*355Chihuahua, Mexico, with a monthly rent of $1,800. The lease ran from November 1, 1997 to October 31, 2000 and included an option for the tenant to renew the lease “under the[ ] same terms and conditions including rental” for two additional periods of three years each.1 In order to exercise this option, the tenant was required to give the landlord written notice at least thirty days prior to the expiration of the lease.

The lease covers a “house ... which includes: 3 bedrooms, 3 bathrooms, 1 half bathroom, 1 living room, 1 dining room, 1 kitchen, 1 family room, 1 TV room, 1 laundry room, 1 maids [sic] quarters. TOTAL NET: 1658 SQ. FT.”2 Plaintiff alleges that the actual size of the property was much larger: 4,380.91 square feet.

The lease contains two other relevant provisions. Under Article 15, disputes are subject to the procedures of the Contract Disputes Act of 1978 (“CDA”), 41 U.S.C. § 601 et seq. (2006), and interest on a judgment is set at the standard CDA rate. A choice of law provision in Article 16 specifies that “[t]he terms of this lease shall be construed in accordance with the local laws governing the site of the premises leased hereunder.”3 Since the premises are located in the state of Chihuahua, Mexico, those laws apply to construction of the lease.

B. Renewals of the Lease and Defendant’s Alleged Failure to Vacate

Defendant has twice renewed the lease. The parties first renewed the lease on November 28, 2000, and agreed to extend the lease from November 1, 2000 through October 31, 2003. This extension was “under the same terms and conditions” and at the same level of rent as the original lease.4 After this renewal term expired, the parties again agreed to renew the lease, and, on January 9, 2004, executed a renewal for the period of November 1, 2003 through February 29, 2004. This renewal also kept the rent at $1,800, although Contracting Officer Harrison Ford later found that defendant failed to pay rent for this second renewal period.5 Both renewals allowed defendant to terminate the lease for convenience “at any time” with thirty days’ notice.6

Defendant unsuccessfully attempted to renew the lease for a third time. According to plaintiff, on April 26, 2004, Robert Loveless, defendant’s local contracting officer, faxed plaintiff two documents. The first, a Memorandum of Agreement to Renew Lease, contained a. renewal agreement for the period of March 1, 2004 through April 15, 2004; Loveless had signed this document and left a blank for plaintiff to sign. The second, a Termination and Acquittance of Lease, stated that the lease had been terminated and the premises returned as of April 15, 2004. Loveless had also signed this document and left a blank for plaintiffs signature. Defendant contends that plaintiff did not receive the renewal agreement before April 26, 2004 because plaintiff refused to accept delivery of the agreement on February 27,2004.

On April 13, 2004, Rogelio Martinez, one of defendant’s employees, told plaintiff the property would be returned on April 15, 2004. Plaintiff asked when rent would be paid and was told it would be paid later. Plaintiff then demanded that all further communications be made in writing. Defendant asserts that it did actually vacate the premises on April 15, 2004, but admits that the keys and garage door opener were not returned until October 16, 2007. According to defendant, it was unable to return these earlier because plaintiff refused to accept possession of the premises, but plaintiff disputes this.

Beginning in April 2004, plaintiff made numerous demands for unpaid rent from the government. On August 23, 2004, plaintiff submitted a CDA claim for $26,200, which the contracting officer apparently failed to answer.7 Plaintiff also made contact with [356]*356numerous officials to attempt to resolve the dispute, including multiple contracting officers at the consulate in Juárez and United States Congressman Silvestre Reyes, who then contacted Assistant Secretary of State Paul V. Kelley.

After a series of mostly unproductive communications between the parties regarding the unpaid rent, plaintiffs attorney, Michael Cohen, met with Contracting Officer Ham-son Ford at the United States Consulate in Juárez in July 2007. Later that month, Ford, Cohen, and an inspector visited the property, which appeared in good condition. In August 2007, plaintiff filed a second CDA claim and sent Ford a demand for payment of $613,672.07. Ford denied all but $11,426.31 of this claim on September 26, 2007. He did allow a claim for rent from November 1, 2003 through April 15, 2004, along with interest on that unpaid rent. Ford found that the government attempted to return the premises on April 15, 2004 but plaintiff refused to accept delivery of the premises or payment for rent due. The decision informed plaintiff of her right to appeal to the Court of Federal Claims within twelve months of the decision. On October 16, 2007, plaintiff received a cheek for $11,426.31, as well as the keys to the property.

C. Procedural History

Plaintiff filed suit in the Court of Federal Claims on June 25, 2008. After some discovery, defendant filed on August 7, 2009 the summary judgment motion presently before the Court. Plaintiff filed a response objecting. to summary judgment on October 22, 2009, to which defendant replied on November 6, 2009. Plaintiff, without leave of Court, filed a sur-reply on November 23, 2009, which the Court allowed to be filed the following day. At plaintiffs request, each party took the deposition of the opposing expert, and the parties filed supplemental briefs after those depositions.

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Cite This Page — Counsel Stack

Bluebook (online)
96 Fed. Cl. 352, 2010 U.S. Claims LEXIS 954, 2010 WL 5176664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fernandez-de-iglesias-v-united-states-uscfc-2010.