Janowsky v. United States

36 Fed. Cl. 148, 1996 WL 376921
CourtUnited States Court of Federal Claims
DecidedJuly 3, 1996
DocketNo. 90-3846 C
StatusPublished
Cited by6 cases

This text of 36 Fed. Cl. 148 (Janowsky 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
Janowsky v. United States, 36 Fed. Cl. 148, 1996 WL 376921 (uscfc 1996).

Opinion

OPINION and ORDER

TURNER, Judge.

Plaintiffs assert entitlement to damages on theories of contract and Fifth Amendment taking. A prior published opinion, Janowsky v. United States, 23 Cl.Ct. 706 (1991), rev’d and remanded, 989 F.2d 1203 (Fed.Cir.1993) (Table), describes their claims.

This opinion addresses (1) defendant’s motion filed April 10, 1995, for summary judgment with respect to plaintiffs’ contract claim (count I of the complaint) and to dismiss plaintiffs’ taking claim (count II of the complaint) and (2) defendant’s motion filed August 4, 1995, to dismiss the complaint to the extent that it asserts entitlement to quasi-eontractua! relief. Oral argument was held in Washington, D.C. on March 14,1996.

We conclude that defendant is entitled to summary judgment on the contract claim. Regarding plaintiffs’ taking claim, we conclude alternatively that plaintiffs have failed to state a claim upon which relief can be granted or that we do not have subject matter jurisdiction, and that, consequently, defendant’s motion to dismiss count II should be granted. Regarding defendant’s motion to dismiss the complaint to the extent that relief of a quasi-eontraetual nature is sought, we conclude that dismissal is required.

I

This case has an extensive factual and procedural history. We review the factual background from plaintiffs’ (the non-moving parties’) perspective.

A

In 1984, plaintiffs Timothy and Peggy Ja-nowsky agreed to help the Federal Bureau of Investigation infiltrate an alleged extortion ring in exchange for monetary compensation. Plaintiffs cooperated with the FBI by allowing their vending machine business (Geno’s Vending) to be used as a front for the FBI investigation. Pursuant to this agreement, plaintiff Timothy Janowsky tape recorded conversations with FBI suspects and agreed to testify before a grand jury and at any trial of individuals charged in connection with the investigation. At the direction of FBI agents, plaintiff purchased and distributed gambling equipment, infiltrated a gambling ring, and helped gather evidence that eventually resulted in recovery of almost $700,000 in back taxes and forfeitures and in thirty-three criminal indictments and convictions.

The Janowskys were promised that in exchange for their cooperation the FBI would reimburse them for any expenses they incurred and at the end of the investigation would either purchase plaintiffs’ business at its fair market value (less any rewards they collected) or provide financing for a purchaser. However, at the close of the investigation, the FBI refused to abide by these promises, telling plaintiffs that the FBI agent with whom they had negotiated did not have authority to enter into a compensation agreement. During the course of the subsequent legal proceedings, the FBI offered evidence that Special Agent Kahoe, the FBI representative with whom the Janowskys negotiated, had no authority to contract with plaintiffs. Plaintiffs have conceded that they cannot prove that Agent Kahoe possessed contracting authority.

B

The Janowskys initially brought suit in a federal district court under the Federal Tort Claims Act (FTCA), 28 U.S.C. §§ 1346(b), 2671-2680, alleging negligence on the part of the FBI agents with whom they had negotiated, both in failing to obtain proper authority to reimburse plaintiffs for their expenses and in failing to protect plaintiffs from financial loss suffered as a result of their cooperation. The district court dismissed plaintiffs’ claim, holding that misrepresentation falls under an exception to the FTCA and that because the Janowskys volunteered to cooperate with the FBI, as a matter of law, the FBI’s failure to pay them as promised was not a compensable tort. Janowsky v. United States, 713 F.Supp. 282 (N.D.Ind.1989). The [151]*151Seventh Circuit affirmed the district court’s ruling. Janowsky v. United States, 913 F.2d 393 (7th Cir.1990).

C

The Janowskys then brought this action, alleging, in a two-count complaint, that the FBI breached an implied-in-fact contract to compensate them or, in the alternative, that the FBI’s use of their business during the investigation constituted a taking of their property under the Fifth Amendment, entitling them to just compensation. We dismissed count I of plaintiffs’ complaint for lack of jurisdiction based on plaintiffs’ failure to file a certified claim with the FBI and to receive a final decision on the claim prior to bringing suit, as required under the Contract Disputes Act (CDA), 41 U.S.C. §§ 601-613. We dismissed count II for failure to state a claim upon which relief can be granted, holding that the Janowskys’ voluntary agreement to allow the FBI to use their property negated their taking claim as a matter of law. Janowsky v. United States, 23 Cl.Ct. 706 (1991).

On appeal, the United States Court of Appeals for the Federal Circuit reversed our dismissal of count I for lack of jurisdiction, holding that the CDA had no applicability to the alleged agreement between the Janow-skys and the FBI. The Court of Appeals remanded the case for further consideration of the implied-in-fact contract claim. Janow-sky v. United States, No. 92-5004, slip op. at 8, 1993 WL 36863 at *4 (Fed.Cir., Feb. 17, 1993) (unpublished).

The Federal Circuit also found that the dismissal of count II of plaintiffs’ claim for failure to state a claim upon which relief can be granted was premature, vacated the dismissal of count II, and remanded for consideration of whether the Janowskys’ property was involuntarily taken by the FBI, if we determine that no implied-in-fact contract existed. Id.

D

On remand, defendant filed on April 10, 1995 one of the dispositive motions we now address. In the exchange of briefs related to its April 1995 motion, defendant perceived that plaintiffs asserted a new claim — or at least a new theory — for quasi-contractual relief based on a theory of quantum meruit. On August 4,1995, defendant filed a separate motion to dismiss the quantum meruit “claim”.

II

In its motion for summary judgment on plaintiffs’ contract claim, defendant argues that proof of contracting authority is a required element of an implied-in-fact contract with the government. Because plaintiffs concede that they cannot prove that the FBI agents with whom they negotiated had contracting authority, defendant contends that as a matter of law, no implied-in-fact contract existed between the parties.

Plaintiffs argue that notwithstanding their concession regarding authority, adequate support for an implied-in-fact contract claim exists. Plaintiffs contend that an implied-in-fact contract was created between themselves and the FBI when the FBI retained the benefits of using plaintiffs’ business to aid in a sting operation. According to plaintiffs, case law supports their entitlement to recover on an equitable basis.

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Cite This Page — Counsel Stack

Bluebook (online)
36 Fed. Cl. 148, 1996 WL 376921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janowsky-v-united-states-uscfc-1996.