Hall v. Kunzig

331 F. Supp. 1163, 1971 U.S. Dist. LEXIS 12856
CourtDistrict Court, S.D. Florida
DecidedJune 15, 1971
DocketCiv. No. 71-560
StatusPublished
Cited by1 cases

This text of 331 F. Supp. 1163 (Hall v. Kunzig) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Kunzig, 331 F. Supp. 1163, 1971 U.S. Dist. LEXIS 12856 (S.D. Fla. 1971).

Opinion

ATKINS, District Judge.

Pursuant to the order of this Court dated April 21, 1971 the processing of this cause was put on an expedited schedule. All motions of the Defendant pursuant to Rule 12 of the Federal Rules of Civil Procedure were to have been filed in sufficient time to be brought on for hearing on May 10, 1971. The parties were directed to prepare a joint stipulation of facts upon which each party would move for summary judgment. Each party has so moved for summary judgment, argument of counsel was heard June 2, 1971 and the Court is otherwise fully advised in the premises. This memorandum opinion is issued in lieu of findings of fact and conclusions of law.

In its motion for summary judgment the defendant has presented several questions which more properly should have been brought before the Court through a motion to dismiss. The Court does not strike these grounds for violation of its order of April 2, 1971; rather it denies them on their merits. Although the individual plaintiffs have not demonstrated their right to go forward with this cause, by virtue of the appearance of the City of Coral Gables in the Amended Complaint as a plaintiff, the Court finds that there is standing in the City to sue and that it has the right to seek review of the administrative action of this defendant and that neither the United States of America nor the government’s contractor, Maston G. O’Neal, Jr., need be joined as parties defendant. Therefore, the Court must reach the merits.

Plaintiffs allege that the defendant (hereafter to refer to both the Administrator or the General Services Administration) has violated the procedures established by the statutes and regulations governing his behavior by disposing of government property without first giving the City the opportunity to request it for its uses. Defendant answers by alleging that pursuant to Title 40 U.S. C.A. Section 601 et seq. he is authorized to use “excess property” as a medium of exchange in the performance of his responsibility to acquire land for use as sites, or additions to sites, for public buildings authorized to be constructed.

The contract between the defendant and his contractor purports to be a contract of exchange; i. e., an exchange of the Biltmore properties for certain sites in other states for which the defendant has a requirement. The sole issue before the Court is whether the defendant has violated the statutes and regulations which control his actions in dealing with public property under his control.

The Court assumes without deciding that the Public Buildings Act of 1959, being a more specific and definitive Act of Congress, when read in conjunction with the Public Buildings Act of 1949, the Federal Property Act of 1949, and their respective legislative histories, au[1165]*1165thorizes the defendant, or his sub-ageneies, to utilize excess property as a medium of exchange in acquiring sites which are within his authority to acquire. Although neither the Acts themselves nor their respective legislative histories demonstrate with clarity the true intent of Congress, it is clear that the overriding concern of Congress is for the achievement of the most economical system for acquiring, managing and disposing of federal property. It is less clear, but still apparent, that Congress intended to grant to the defendant as broad authority as needed to achieve this end. Therefore, under proper circumstances, it appears that the defendant could “dispose” of federal property by use of an exchange contract without invoking the disposal procedures established by his own regulations. 41 C.F.R. 101-47. Again the Court reiterates that it is not deciding this point.

A reading of the contract of exchange (Exhibit 39, Stipulation of Facts, filed June 2, 1971) reveals that it is not the type of exchange contract contemplated by the Public Buildings Act of 1959. The contract specifically states that the§ Biltmore properties have been placed in the charge of the defendant for disposal and later refers to the Federal Property Act of 1949 as one of the authorizing pieces of legislation. This is totally inconsistent with the theory of the case the defendant now urges upon the Court.

The contract does not provide for an exchange of the Biltmore properties for properties owned by the contractor. There is no affirmative or positive duty on the part of the contractor either to obtain title to, or convey title to the defendant of, any property whatsoever. In fact the contemplation of the contract is that the defendant will perform all of the negotiations leading to the acquisition of the proposed sites and the contractor appears only in the capacity of either supplying the funds to consummate the purchase or condemnation or to reimburse the United States Treasury for funds expended by the defendant in purchasing the property. In all events, at the conclusion of the eighteen (18) month life of the contract of exchange, the contractor is obligated to pay to the defendant the sum of two million five hundred ninety thousand two hundred fifty dollars ($2,590,250.00) less any cash payments made to, or the value of any property conveyed to, the defendant.

The coincidence of the lack of duty on behalf of the contractor and the requirement to pay a sum certain in all events compels the Court to the conclusion that the subject contract is not and was not intended to be a contract of exchange. See generally, 30 Am.Jur.2d Exchange of Property §§ 1, 3 (1967); 13 Fla.Jur. Exchange of Property §§ 2, 3 (1957); Edwards v. Baldwin Piano Co., 79 Fla. 143, 83 So. 915 (1920). The Biltmore properties provided the defendant with a ready source of funds. Under normal circumstances the defendant could not acquire any properties without a prior Congressional authorization and appropriation. Therefore this type of contract of exchange could not be utilized to avoid control by Congress. Exhibits 36 and 38 to the June 2, 1971 Stipulation of Facts belie this principle in the ease sub judice. The Griffin, Georgia proposed site had an estimated cost of $237,-500 when it was listed as a desirable site for acquisition under the contract of exchange which was more expensive than the appropriated funds for that site. The comment of the Regional Administrator was that utilization of exchange procedures would “preclude possible revision of the Prospectus and additional funding.” Exhibit 36. Indeed the U.S. Treasury would be spared the discharge of monies but expenditures would be made without Congressional approval.

Exhibit 38 reveals that there was a desire on behalf of legal counsel to amend the contract “to include that Mr. O’Neal would satisfy any deficiency judgments for tracts acquired through condemnation, that Mr. O’Neal accept contracts with owners which would obligate the Government in excess of available funds or for projects where no appropriated funds have been authorized * * * ” [1166]*1166These clauses do appear in the final contract thus allowing the defendant to acquire not only sites which are more expensive than the approved plan permits but sites for which no approval at all has been given by Congress. This again involves expenditures without prior Congressional approval.

The Court is reinforced in its view by item 36 of the June 2, 1971 Stipulation of Facts.

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

Related

O'Neal v. City of Coral Gables
294 So. 2d 102 (District Court of Appeal of Florida, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
331 F. Supp. 1163, 1971 U.S. Dist. LEXIS 12856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-kunzig-flsd-1971.