Hoch v. United States

33 Fed. Cl. 39, 1995 U.S. Claims LEXIS 56, 1995 WL 129683
CourtUnited States Court of Federal Claims
DecidedMarch 27, 1995
DocketNo. 93-553C
StatusPublished
Cited by18 cases

This text of 33 Fed. Cl. 39 (Hoch 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
Hoch v. United States, 33 Fed. Cl. 39, 1995 U.S. Claims LEXIS 56, 1995 WL 129683 (uscfc 1995).

Opinion

ORDER

MILLER, Judge.

This matter is before the court on defendant’s motion to dismiss for lack of jurisdiction pursuant to RCFC 12(b)(1). Defendant asked for summary judgment in the alternative, and plaintiff cross-moved for summary judgment. The issue is whether 28 U.S.C. § 524(c) (1988 & Supp. V 1993), mandates the payment of awards to informants, thereby allowing the court to exercise jurisdiction over plaintiffs action for compensation. Argument is deemed unnecessary.

FACTS

The following facts, undisputed except where noted, replicate some of the background set forth in an earlier order issued in [40]*40this case denying, in part, defendant’s motion to dismiss on jurisdictional grounds, Hoch v. United States, 31 Fed.Cl. 111 (1994). Jerry Lee Hoch (“plaintiff”) became a confidential informant for the United States Drug Enforcement Administration (“DEA”) in late 1985 or early 1986.1 Plaintiff worked primarily with DEA’s Miami Division Office; however, sometime prior to July 27, 1991, plaintiff also assisted DEA’s Newark Division Office by facilitating an illegal drug transaction involving Keith Mantell. As a result of the transaction, Mr. Mantell was convicted, and DEA seized real and personal property worth approximately $1 million. Thereafter, a DEA agent advised plaintiff that he would receive an informant award under the Department of Justice Assets Forfeiture Fund established under 28 U.S.C. § 524(c) (1988 & Supp. V 1993).

The Attorney General has authorized DEA’s Deputy Assistant Administrator for Operations to exercise discretion in paying informant awards from the Assets Forfeiture Fund. No written guidelines instruct the Deputy Assistant Administrator for Operations when it is proper to confer informant awards; rather, unwritten agency practice governs this decisionmaking process. Specifically, the Special Agent in Charge at the relevant Field Division Office submits an award request and a written recommendation justifying the request. The Deputy Assistant Administrator for Operations relies upon the written recommendation and determines whether to authorize or deny payment of an award without investigation. If the Deputy Assistant Administrator for Operations approves an award, DEA headquarters issues a check to the appropriate Field Division Office.2 Informants must receive payment in person, with twó DEA agents present.

In this case, after DEA seized Mr. Man-tell’s property, Special Agent in Charge at DEA’s Newark Division Office, Donald L. Ashton, contacted DEA’s Deputy Assistant Administrator for Operations, Ronald J. Caffrey. Pursuant to 28 U.S.C. § 524(c)(1)(B), Mr. Ashton recommended that plaintiff receive a $50,000.00 award from the Assets Forfeiture Fund. Following agency practice, Mr. Caffrey relied on Mr. Ashton’s written recommendation and exercised his discretion by approving the award. DEA headquarters issued a check in the amount of $50,000.00 on April 3,1992, and forwarded the check to the Newark Division Office on April 9, 1992. A DEA agent subsequently informed plaintiff that a check was available in the Newark Division Office, but plaintiff did not attempt to pick up the check.3

During the period in which DEA headquarters was processing plaintiff’s award, Group Supervisor of DEA’s Miami Division Office, George Papantoniou, learned that, during March 1992, plaintiff had engaged in suspicious activity. Mr. Papantoniou investigated and, on or about April 8, 1992, concluded that plaintiff intended to sell the drug ephedrine unlawfully. Based on this information, Mr. Papantoniou and agents in DEA’s Miami Division Office determined that plaintiff had breached a duty of trust. Therefore, DEA’s Miami Division Office deactivated plaintiff and contacted Mr. Ash-ton to recommend that DEA withhold plaintiffs pending award.4

[41]*41On May 28, 1992, Mr. Ashton returned plaintiffs uncollected check to the new Deputy Assistant Administrator for Operations, Harold D. Wankel. Mr. Ashton explained the recent developments and withdrew the earlier request for award. Mr. Wankel, who had never heard of an instance wherein DEA had withheld an approved check that had not been collected, consulted DEA’s Office of Chief Counsel to ascertain the legality of such action. DEA’s Office of Chief Counsel responded that DEA procedures and guidelines specifically did not address this question, but “advised ... [Mr. Wankel] that the discretion provided by section 524 permitted the DEA not to confer an award under th[ose] circumstances____” Declaration of Harold D. Wankel, Dec. 1, 1994, ¶ 17. Mr. Wankel further noted that DEA policy prohibits use of confidential informants who are currently engaged in criminal activity. Moreover, DEA policy permits agents in DEA’s Field Division Offices to decide case-by-case “[w]hether a ... [confidential informant] has engaged in suspect activity sufficient to warrant deactivation on that basis.” Def's Prop. Findings of Uncontroverted Fact No. 42, filed Dec. 9, 1994. Relying on conclusions and recommendations from agents in DEA’s Miami and Newark Division Offices, Mr. Wankel withheld plaintiffs award.

Plaintiff filed an amended complaint5 in the United States Court of Federal Claims on October 7, 1998, claiming $50,000.00 in damages based on three counts: 1) breach of contract; 2) violation of 28 U.S.C. § 524; and 3) quantum meruit.6 On April 28, 1994, this court granted defendant’s motion to dismiss plaintiffs quantum meruit claim and granted summary judgment as to the breach of contract claim. Hoch, 31 Fed.Cl. 111. This court, however, denied defendant’s motion to dismiss plaintiffs claim under 28 U.S.C. § 524. In view of the binding precedent that did not support defendant’s position, the court ordered the record to be developed.

Defendant has again moved to dismiss for lack of jurisdiction, arguing that section 524(c) is not money-mandating and that therefore jurisdiction is lacking to consider plaintiffs claim. The gravamen of defendant’s summary judgment motion is that the undisputed facts demonstrate that DEA exercised its discretion properly when it decided to withhold plaintiffs award. Plaintiff has cross-moved for summary judgment. Citing Tyson v. United States, 91 Ct.Cl. 139, 32 F.Supp. 135 (1940), and its progeny, plaintiff argues that language of section 524(c) mandates payment in this circumstance, where the proper delegate exercised discretion, and DEA issued a check.

DISCUSSION

1. Motion to dismiss

When evaluating a motion to dismiss for subject matter jurisdiction pursuant to RCFC 12(b)(1), the allegations of the complaint should be construed favorably to the pleader, Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974), to the end that the court must accept as trae the facts alleged in the complaint. Reynolds v.

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

Related

Meyers v. United States
96 Fed. Cl. 34 (Federal Claims, 2010)
Contreras v. United States
64 Fed. Cl. 583 (Federal Claims, 2005)
Tracy v. United States
55 Fed. Cl. 679 (Federal Claims, 2003)
Hopi Tribe v. United States
55 Fed. Cl. 81 (Federal Claims, 2002)
Shibayama v. United States
55 Fed. Cl. 720 (Federal Claims, 2002)
Snyder v. Principi
16 Vet. App. 62 (Veterans Claims, 2002)
Odow v. United States
51 Fed. Cl. 425 (Federal Claims, 2001)
Clark v. United States
50 Fed. Cl. 727 (Federal Claims, 2001)
Doe v. United States
48 Fed. Cl. 495 (Federal Claims, 2000)
Murakami v. United States
46 Fed. Cl. 653 (Federal Claims, 2000)
Confidential Informant v. United States
46 Fed. Cl. 1 (Federal Claims, 2000)
Khairallah v. United States
43 Fed. Cl. 57 (Federal Claims, 1999)
Henke v. United States
43 Fed. Cl. 15 (Federal Claims, 1999)
Deshauteurs v. United States
39 Fed. Cl. 263 (Federal Claims, 1997)
Chatfield Centre Condominium Ass'n v. United States
934 F. Supp. 1247 (D. Colorado, 1996)
Perri v. United States
35 Fed. Cl. 627 (Federal Claims, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
33 Fed. Cl. 39, 1995 U.S. Claims LEXIS 56, 1995 WL 129683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoch-v-united-states-uscfc-1995.