Hele v. United States

100 Ct. Cl. 289, 1943 U.S. Ct. Cl. LEXIS 46, 1943 WL 4213
CourtUnited States Court of Claims
DecidedJune 7, 1943
DocketNo. 45473
StatusPublished
Cited by3 cases

This text of 100 Ct. Cl. 289 (Hele 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
Hele v. United States, 100 Ct. Cl. 289, 1943 U.S. Ct. Cl. LEXIS 46, 1943 WL 4213 (cc 1943).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

The plaintiff sues for the value of improvements on a tract of land which he leased, under an instrument designated as a license, from the Panama Canal on March 21, 1923. The license was cancelled on November 30, 1939, under a provision thereof, which reads as follows:

The licensee agrees that if at any time it shall become necessary for the United States to occupy the whole or any portion of the land covered by this license, it shall have the right to enter upon and take possession of said land without further compensation to the licensee than the reasonable value of the improvements made by the licensee upon the said tract, the said value to be determined in such manner as the Governor of the Panama Canal may direct.

However, section 1308 of Title 48 of U. S. C., which is part of the Act of February 27, 1909, c. 224, secs. 1, 2, 3, and 5 (35 Stat. 658) provides:

* _ * * all. leases shall be made subject to the provision that if at any time it shall become necessary, notwithstanding, for the United States to occupy or use any portion of the leased lands, it shall have the right to so do without further compensation to the lessee than for the reasonable value of the necessary improvements made upon said tracts by the lessee, the same to be determined by the courts of the Canal Zone.

The license executed provided for determination of the value of the improvements “as the Governor of the Panama Canal may direct”; the Act authorizing the license provided for the determination of this value “by the courts of the Canal Zone.”

The parties are conclusively presumed to have known of the provisions of the Act, and they are not presumed to have entered into a contract contrary to its terms. If possible, the contract must be construed to have been entered into in con[292]*292formity with, the Act. It can be so construed, and so construed it provides that, in the first instance, the value is to be determined “in such manner as the Governor of the Panama Canal may direct,” but if the parties cannot agree on this value, then it is to be determined “by the courts of the Canal Zone.”

When the Governor took possession of the land he determined that the value of the improvements was $818.00. Plaintiff says that this determination was grossly erroneous, and that the improvements were in fact worth $12,562.89. He refused to accept the sum offered, but the Governor did not then refer the matter to the courts as he was required to do, and he has never paid nor tendered the reasonable value, determined in the prescribed manner. Plaintiff, therefore, brings this suit to recover what he claims is the true value.

The defendant has filed a plea to the jurisdiction of this court on the ground that only the courts of the Canal Zone have the right to determine the value of the improvements and, hence, that this court has no jurisdiction of this suit.

Upon repossession of the lands, an obligation was cast on the Governor to pay the “reasonable value” of the improvements. This obligation has not been discharged, nor has the Governor made a tender of this “reasonable value.” He did tender an amount which he said was the value of the improvements, but he has never tendered nor offered to pay the value fixed by the contract. That value was the reasonable value as determined by the courts of the Canal Zone. That value has never been determined and, hence, there could have been no offer to pay it.

The defendant’s obligation to pay has never been discharged. It could not be discharged until the value was determined. The determination of the value was the first step toward the discharge of the defendant’s obligation. It has never taken this step. It has not discharged the obligation the contract imposed upon it, and, hence, the plaintiff has a right of action in this court, under section 145 of the Judicial Code, to enforce this obligation to pay “the reasonable value” of the improvements.

Nor does the provision of section 1308 of Title 48 of the U. S. Code for the determination of this value by the courts [293]*293of the Canal Zone take away jurisdiction from this court to render judgment for defendant’s breach of contract to pay the value of the improvements. It was the obligation of the defendant to submit the question of the reasonable value to the courts of the Canal Zone as a preliminary to the discharge of its obligation to pay the reasonable value as thus determined. It is for this breach of defendant’s obligation to pay this value that plaintiff sues. No jurisdiction was expressly conferred on the courts of the Canal Zone to entertain a suit by the plaintiff to recover for breach of the contract to pay this reasonable value. The Act merely provided that the reasonable value was to be determined by the courts of the Canal Zone. Upon this determination the contract required the Governor to pay the value thus determined, but if he failed or refused to pay, it was not provided that the plaintiff might bring suit in the courts of the Canal Zone for this breach of contract. But it is plain that this court has such jurisdiction.

The situation is analogous to proceedings by the United States to acquire lands. If the land owner refuses to accept a sum offered, the United States must institute suit in a District Court to condemn the land. But if the Government takes the lands, without having instituted condemnation proceedings, under a promise, express or implied, to pay for the lands, and if it fails to discharge this obligation, the land owner must sue in a court of claims.

So it is here. As the first step toward the discharge of its obligation to pay the reasonable value of the improvements, the Governor was required to submit to the courts of the Canal Zone the question of the reasonable value. But if he failed or refused to do this, the plaintiff’s remedy would seem to be in a court of claims for breach of contract.

But if an intention can be found in the Act to confer on the courts of the Canal Zone jurisdiction of a suit by plaintiff for breach of contract, we certainly do not think that it was intended to make this jurisdiction exclusive. It can hardly be said that when jurisdiction to render a judgment against the United States is only impliedly conferred, if at all, on a special court of limited jurisdiction, not having general jurisdiction of suits against the United States, that it [294]*294was intended to take away jurisdiction' from that court especially created by Congress to hear and- determine suits against the sovereign.

When the United States first consented to be sued generally, jurisdiction was not conferred on United States courts in general, but on a special tribunal created to hear and determine such suits. For thirty years it was the consistent policy of Congress to lodge jurisdiction of suits against the United ^ States exclusively in this court. In 1887 the Tucker Act conferred on the District Courts, sitting as courts of claims, concurrent jurisdiction of suits in which the amount involved was small. But of suits of larger amounts exclusive jurisdiction remains in this court. Even of suits of smaller amounts it has,concurrent jurisdiction.

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Related

Anthony Grace & Sons, Inc. v. The United States
345 F.2d 808 (Court of Claims, 1965)
Hele v. United States
103 Ct. Cl. 472 (Court of Claims, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
100 Ct. Cl. 289, 1943 U.S. Ct. Cl. LEXIS 46, 1943 WL 4213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hele-v-united-states-cc-1943.