Gould v. United States

157 Ct. Cl. 594, 1962 U.S. Ct. Cl. LEXIS 113, 1962 WL 9335
CourtUnited States Court of Claims
DecidedMay 9, 1962
DocketNo. 324-55
StatusPublished

This text of 157 Ct. Cl. 594 (Gould 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
Gould v. United States, 157 Ct. Cl. 594, 1962 U.S. Ct. Cl. LEXIS 113, 1962 WL 9335 (cc 1962).

Opinion

Per Curiam :

This case was referred pursuant to Pule 45 to Paul H. McMurray, a trial commissioner of this court, with directions to make findings of fact and recommendations for conclusions of law. The commissioner has done so in a report filed February 8,1961. Exceptions to certain of the commissioner’s findings were taken by plaintiff, briefs were filed by both parties and the case was submitted to the court on oral argument by counsel. Since the court is in agreement with the findings and recommendations of the trial commissioner, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Plaintiff is therefore not entitled to recover and his petition will be dismissed.

It is so ordered.

OPINION OE THE COMMISSIONER

Plaintiff, an individual who, during the period involved in this action, was trading as Capitol School of Typéwriter Mechanics, a school authorized to train veterans under programs administered by the Veterans Administration, is claiming additional compensation for the education and training of veterans pursuant to Public Law 346, 58 Stat. 284, and applicable regulations issued by the Veterans Administration (hereafter referred to as VA).

Although this is a trial de novo, it should be pointed out that plaintiff’s claim was previously given two reviews at the administrative level, the first before a Hearing Examiner and the second before the Veterans’ Education Appeals Board, on which occasions both plaintiff and defendant were represented by counsel. Much testimony was taken and briefs prepared for consideration by the administrative agency before the final administrative determination was [596]*596made. Based upon a careful analysis of the evidence before the Veterans’ Education Appeals Board and the conclusion reached by that agency and other evidence introduced in this cause, it is my opinion that the Board’s findings were correct.

I shall deal with the agreed issues in the case in the order set out in the Pretrial Memorandum of the Trial Commissioner under date of April 25,1960.

I

Was the VA Obligated to Pay for Tuition or Other Expenses of Trainmg Veterans Who Enrolled m the Course, Took a Certai/n Amount of Training, and Left the School Before the VA Actually Issued a Certificate of Eligibility.

When the plaintiff’s school entered into an agreement to train a veteran without first having determined that the veteran was eligible to receive the training at the expense of the VA, such veteran was required to sign a contract with the plaintiff whereby the veteran agreed in effect that he (the student) was obligated to pay all of the costs of his training if they were not paid for by the VA. The following language was used:

I am a Veteran, entitled to educational Training under the “GI” Bill and agree to execute all necessary forms to secure payment of all charges by the Government. Until such liability is accepted by the Government, I understand and agree that I am personally responsible in full for all tuition and other charges (not to exceed $500.00) and in the event of rejection by the Government, I agree to comply with one of the above three plans immediately.

The last sentence in the quotation referred to the methods of paying the tuition.

Included in the “Financial Regulations” on the reverse side of the registration form was a paragraph numbered 8, which provided as follows:

Courses are planned for a specific number of students and so budgeted by the Institution. Accordingly, after a course is commenced, all Fees must be paid as agreed and no refunds can be made.

[597]*597The plaintiff’s school also required that a deposit of $10 be made by each student who registered for a course of training, and this fee was in addition to the tuition charge of $500 per student for the course offered, namely, Typewriter Repairman Course. There was an additional charge of $5 required of those students who paid the tuition in installments. Plaintiff has not established entitlement to any compensation under this issue either by records and documents submitted or through oral testimony.1

II

Were the Bates Paid by the VA in Contracts VA-lUr-vr-llfl, V30WV-lJp, and with Supplements Thereto., Fair and Reasonable.2

Plaintiff has insisted that the rates paid of $.5175 and $.361 should have been $.56 and approximately $.52, respectively, per student hour.

With respect to this second issue, namely, the matter of fair and reasonable rate of tuition under the two contracts in suit, it is found that the rate paid for the first period, July 1,1948, through August 31,1949, of $.5175 per student hour, was fair and reasonable on the basis of the record presented. The rate for the final period of the school’s operation, from September 1, 1949, to September 30, 1950, was much lower, namely, $.361 per student hour. However, plaintiff had reluctantly accepted that rate in a negotiated contract, and it became the customary rate for this final period involved in the suit.

III

Was There an Established or Customary Bate of $.5175 in Existence at the Time the Bate Was Reduced to $.361.

No customary rate of tuition was established pursuant to the requirements of Public Law 266, 63 Stat. 631, by reason of the existence of two contracts covering a period of only [598]*59814 months. Accordingly, the last contract in a series of contracts covering a period of 24 months or more was the one which allowed a tuition rate of only $.361 per student hour (contract Y3012Y-214). This conclusion is in line with the findings made in two prior decisions of this court: National School of Aeronautics, Inc. v. United States, 135 Ct. Cl. 343; Germain School of Photography, Inc. v. United States, 150 Ct. Cl. 841.

IY

Did the VA Become the Guarantor T>y Statute (Public Laws 3I¡£ and 16) for Cost of Veteran Training Toy Asswtning the Written Contractual Relationship Existing Between the Veteran Students and Plaintiffs School at the Time the Training of Such Veterans Was Taken Over by the VA.

On the record presented there can be but one answer to this issue, namely, the VA did not become a guarantor by statute (Public Laws 346 or 16) for all the costs incurred by plaintiff’s school in training veterans. There were some very important conditions and requirements which had to be met by or on behalf of each student before the YA became obligated for his training costs. First, eligibility to receive such training had to be established by compliance with the law and applicable regulations. Second, an agreement or binding contract had to exist between the school and the VA before there could be a proper assumption of the costs of training involved. The extent of the costs assumed is limited to those which have a legal basis, i.e., customary rate established pursuant to law, charges which have been agreed upon between the school and the YA, or charges found by the VA under appropriate circumstances to be fair and reasonable in cases where no contract exists.

Plaintiff has failed to prove entitlement to recover any amount under any of the issues presented.

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Related

National School of Aeronautics, Inc. v. United States
142 F. Supp. 933 (Court of Claims, 1956)
Germain School of Photography, Inc. v. United States
150 Ct. Cl. 841 (Court of Claims, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
157 Ct. Cl. 594, 1962 U.S. Ct. Cl. LEXIS 113, 1962 WL 9335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gould-v-united-states-cc-1962.