Hamza v. United States

39 Cont. Cas. Fed. 76,687, 31 Fed. Cl. 315, 1994 U.S. Claims LEXIS 94, 1994 WL 187053
CourtUnited States Court of Federal Claims
DecidedMay 13, 1994
DocketNo. 93-591C
StatusPublished
Cited by23 cases

This text of 39 Cont. Cas. Fed. 76,687 (Hamza 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
Hamza v. United States, 39 Cont. Cas. Fed. 76,687, 31 Fed. Cl. 315, 1994 U.S. Claims LEXIS 94, 1994 WL 187053 (uscfc 1994).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge:

This case is before the court on defendant’s motion to dismiss for lack of subject matter jurisdiction pursuant to RCFC 12(b)(1). For the reasons set forth below, defendant’s motion is granted.

Facts

Plaintiff, Hussam T. Hamza, a citizen of Saudi Arabia, owns real property and buildings located in the Kingdom of Saudi Arabia, collectively known as the Hamza Compound. On October 8,1990, plaintiff leased the Ham-za Compound to the United States Government for an annual rental rate of $1,750,000. The Dhahran Area Office (DAO) of the United States Army Corps of Engineers executed the lease in Saudi Arabia in support of Operation Desert Storm. The parties executed the lease for a one year term, from September 30,1990 to September 29,1991; the lease contained an option for defendant to renew for an additional year “provided that notice be given in writing to the LESSOR by the LESSEE not less than sixty (60) days before this lease would otherwise expire.” In addition, paragraph 6 of the lease required that plaintiff notify defendant at least thirty days prior to expiration of the lease if defendant was responsible for restoration of the premises. Restoration involved returning the premises in “as good a condition as that existing at the time of entering” upon the premises, less reasonable and ordinary wear and tear. Under this provision, defendant had the option of either making a monetary settlement with plaintiff or performing the restoration.

[318]*318Pursuant to paragraph 7 of the lease, which gave defendant the right to transfer and assign the lease, defendant notified plaintiff on December 12,1990 of its intent to exercise this right, and on March 20, 1991, executed an Assignment and Transfer Agreement with the Kingdom of Saudi Arabia. Under the Agreement, the Kingdom of Saudi Arabia agreed to perform the duties in the lease, including payment of all rents due. A copy of the Agreement was mailed to plaintiff on March 25, 1991. Nevertheless, on June 19, 1991, following his final inspection of the property, plaintiff notified defendant in writing of defendant’s obligation to repair all damages to the property, as required by paragraph 6 of the lease.

By August 1991, defendant had not exercised the option to renew. As a result, plaintiff informed defendant, in a letter dated August 3, 1991, that according to paragraph 3 of the lease, its failure to notify him constituted automatic renewal of the lease for a second year. Plaintiff then requested the first rental payment for the additional year, one-half of the annual rental rate.

In a letter dated August 4, 1991, DAO disagreed with plaintiffs interpretation and construed paragraph 3 to state that defendant’s silence did not constitute automatic renewal of the lease, but rather, renewal required that defendant notify plaintiff of its desire to exercise the option to renew within sixty days prior to expiration of the lease. DAO argued that defendant’s failure to notify plaintiff indicated that it did not intend to renew the lease. DAO also requested that plaintiff, pursuant to paragraph 6 of the lease, submit an itemized list of damages to the premises and the estimated cost to restore the premises to its condition at the time of the execution of the lease. Plaintiff provided the list of damages and estimates for restoration on August 5, 1991, without mentioning additional rent.

In lieu of performance of its restoration obligation, defendant entered into a supplemental agreement with plaintiff on December 10, 1991, in which defendant exercised its right, under paragraph 6 of the lease, to make a monetary settlement with plaintiff for damages totalling $13,333.34. The provisions of the supplemental agreement at issue here stated that defendant vacated the premises on June 19, 1991, and that the lease was terminated on the date of the execution of the supplemental agreement, December 10, 1991, thereby releasing defendant from further liability.

On March 11, 1992, plaintiff informed defendant, in a letter to Warren Swartz, an attorney with the United States Army Corps of Engineers, Savannah District, whom he believed to be responsible for claims arising out of Desert Storm, that he sought payment from defendant for the period October 1, 1991 through December 10, 1991, the final seventy days of the lease. Plaintiff requested that Swartz contact him to discuss the claim, or forward the letter to the person responsible for processing the claim.

In a meeting held on March 14, 1992 between plaintiff, Lt. Colonel Saud Al-Dabaan, Saudi Arabian Ministry of Defense and Aviation (MODA), and Lt. Colonel Nassir Al-Doussary, a Saudi Arabian Support Unit Officer, Lt. Colonel Saud requested that responsibility for resolving the issue be placed with MODA because the lease was assigned to Saudi Arabia. Plaintiff insisted that his claim was not against Saudi Arabia, but rather, the United States Government.

E.A. Sousa of the United States Corps of Engineers, Dhahran Area Office, Saudi Arabia, sent a memorandum of the March 14, 1992 meeting to Swartz, notifying him that MODA would handle the claim, but would not pay plaintiff because the Saudi Arabian Government previously had reimbursed defendant for plaintiffs claim. The specific reimbursement was the direct result of an agreement between the United States and Saudi Arabia Governments which provided for remuneration by the Saudi Arabian Government of all expenses incurred by the United States as a result of Operation Desert Storm. On March 16, 1992, Sousa executed a requisition voucher internally setting aside funds in the event that either the United States or Saudi Arabia was held liable for plaintiffs claim. Sousa then sent plaintiffs case file to Lt. Colonel Saud Al-Dabaan. On December 14, 1992, a meeting was held between plaintiff, Captain White, and Lt. Colo[319]*319nel Saud Al-Dabaan. A settlement was reached whereby the United States Corps of Engineers agreed to pay plaintiff seventy days’ rent.

Swartz responded to plaintiffs March 11 letter on March 23, 1992, confirming that his office was responsible for entering into leases on behalf of defendant for Operation Desert Storm, and contended that defendant vacated the premises on June 19, 1991, after final inspection of the property. According to defendant, the December 10,1991 supplemental agreement served to identify the damages defendant owed to plaintiff, which were subsequently paid, and unconditionally released defendant and the Kingdom of Saudi Arabia from any other claims arising out of the lease. Therefore, because plaintiff waived his right to make any further claims under the lease against defendant, no rent was due from defendant. Moreover, as a result of the Assignment and Transfer Agreement, the Saudi Arabian Government was the party responsible for the lease. Defendant stated that it would forward the claim to Lt. Colonel Saud Al-Dabaan, the officer responsible for the disposition of any claims against Saudi Arabia.

By letter to Swartz with a copy to Lt. Colonel Saud Al-Dabaan dated April 7,1992, plaintiff maintained that possession of the property was not returned to him and the lease was not terminated until December 10, 1991, seventy days beyond the term of the original lease. Plaintiff further contended that because a contractual agreement did not exist between plaintiff and the Saudi Arabian Government, the Saudi Arabian Government was not responsible for the rent due.

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Cite This Page — Counsel Stack

Bluebook (online)
39 Cont. Cas. Fed. 76,687, 31 Fed. Cl. 315, 1994 U.S. Claims LEXIS 94, 1994 WL 187053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamza-v-united-states-uscfc-1994.