Mansfield v. United States

89 Ct. Cl. 12, 1939 U.S. Ct. Cl. LEXIS 211, 1939 WL 4293
CourtUnited States Court of Claims
DecidedMay 1, 1939
DocketNo. 43248
StatusPublished
Cited by3 cases

This text of 89 Ct. Cl. 12 (Mansfield 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
Mansfield v. United States, 89 Ct. Cl. 12, 1939 U.S. Ct. Cl. LEXIS 211, 1939 WL 4293 (cc 1939).

Opinion

Littleton, Judge,

delivered the opinion of the court:

When the special act of August 19, 1935, under which this suit was instituted, is interpreted, as it must be in the light of the facts and circumstances obtaining at the time of the actions and orders of the Enforcement Division of the Food Administration in 1918, all of which were fully disclosed to and considered by the Congressional claims committees of the .Senate and the House of Representatives which recommended the passage of the Act, and also when such facts and circumstances, together with the reports of the Senate and House claims committees, are considered in the light of the provisions and intent of section 6 of the Food Control Act of August 10, 1917, we are of opinion that the special act recognized the right of plaintiffs to relief and for compensation for such actual loss, if any, as might be found to have been sustained by reason of the action of the Enforcement Division of the Food Administration in directing and compelling plaintiffs to immediately sell the cheese in question. To that end the special act confers jurisdiction upon this court to hear, consider, and determine the claim on its merits and to enter judgment for the amount of such actual [23]*23loss, if any, without interest, notwithstanding the lapse of time or the statute of limitation or the tortious character of the action.

The record discloses that the bill, which on August 19, 1935, became the special act under which this suit was instituted, was introduced in the Senate and the House of Representatives about 1924. At that time, enactment of the bill for the relief of plaintiffs was opposed on behalf of the government, on the ground that “the claim is wholly without merit.” This opposition to the bill was set forth in a lengthy memorandum of February 28, 1924, to the chairman of the Senate claims committee by the former chief auditor, Enforcement Division of the Food Administration, who was then an employee of the United States Grain Corporation of the Commerce Department and the custodian of the records, of the former Food Administration. Hearings were held before the Senate claims committee March 3, 1924. Witnesses were called and examined before the committee by counsel for plaintiffs and the various documents were identified and received in evidence. The former chief auditor of the Enforcement Division of the Food Administration appeared in opposition to the passage of the bill and cross-examined all of the witnesses produced on behalf of plaintiffs.

Subsequently, in February 1930, a hearing on the bill which subsequently became the special act in this case was held before the claims committee of the House of Representatives. Evidence, oral and documentary, was then presented to the committee, and the House Claims Committee, as had the Senate Claims Committee, went specifically into the facts and circumstances surrounding the purchases of cheese by plaintiffs as well as the facts and circumstances concerning the actions and orders of the Enforcement Division of the Food Administration in January 1918 ordering and compelling plaintiffs .to sell the entire amount of cheese on hand within three months thereafter. All the facts and. circumstances were considered by the committee in connection with the Food Control Act of August 10,1917, in order to ascertain, as the committee stated, whether the facts and circumstances justified the conclusion that plaintiffs should be compensated for any actual loss sustained by reason of the-[24]*24enforced orders of the Food Administration under the supposed authority of section 6 of the Food Control Act of August 10, 1917, — in other words, whether the cheese purchases of plaintiffs made in good faith and in the ordinary course of business prior to the enactment of the Food Control Act, and on hand at the time that act was approved, constituted a violation of the statute, and whether the cheese purchases completed in May, June, and July 1917 constituted a transaction which a reasonably prudent man familiar with the trade relating to that character of commodity would consider a reasonable and legitimate transaction. Subsequent to the hearing before the claims committee of the House of Eepresentatives a written memorandum on behalf of the former Food Administration in opposition to the passage of the special act was transmitted to the committee on March 10, 1980, by the former Food Administration officer.

During the hearings before the Senate and the House of Representatives claims committees, it was pointed out by the committees that they were not interested in evidence as to the details of the claim or the amount of loss but that they were interested in the question whether the cheese purchases prior to the enactment of the Food Control Act constituted a reasonable business transaction of such a character as to justify the Congress in concluding that claimant was entitled to relief. Subsequent to the above-mentioned hearings, and upon the evidence submitted, the Senate and the House claims committees,1 in their reports recommending passage of the special act, stated—

The facts before this committee are believed to show that claimants are entitled to relief. Your committee, however, does not here pass upon the question of the amount to which claimants may be reasonably entitled, but recommends that-this question be referred, as contemplated in the bill, to the Court of Claims for proper adjudication.

The question which the special act in this case leaves open for determination is the amount of the actual loss suffered [25]*25because of tbe actions of the Food Administration directing and compelling the sale of the cheese. In Edwards v. United States, 79 C. Cls. 436, it was held that

The authority of Congress to prescribe the basis on which a claim shall be adjudicated, that is, to prescribe the conditions under, which a citizen may be compensated for losses suffered under a contract, or even where no contract exists, or to create a liability on the part of the government where no legal liability in fact exists and to waive any legal defense on the part of the government, is no longer subject to question.

See also, Nock v. United States, 2 C. Cls. 451; Boudinot v. United States, 18 C. Cls. 716, 728; The American Trading Co. v. The Chinese Indemnity Fund, 47 C. Cls. 563; Southern Pacific Co. v. United States, 68 C. Cls. 223; Garrett v. United States, 70 C. Cls. 304; Alcoch v. United States, 74 C. Cls. 308, 375. The evidence shows that the actual loss sustained by George D. Mansfield by reason of the action of the Federal Food Administration, Division of Enforcement, in directing and compelling him to sell the 3,672,661 pounds of cheese theretofore purchased by him in the regular course of business prior to the passage of the special food act of August 19, 1935, was $122,919.40 (finding 9). This is the amount which, under the jurisdictional act, plaintiff, George D. Mansfield, is entitled to recover, without interest.

If it be assumed, as is insisted on behalf of the defendant, that the special act does not recognize a liability for the actual loss sustained by plaintiffs, because of the action of the Enforcement Division of the Food Administration, we are, nevertheless, of the opinion that upon the facts and circumstances disclosed by the record plaintiffs are entitled to recover.

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Bluebook (online)
89 Ct. Cl. 12, 1939 U.S. Ct. Cl. LEXIS 211, 1939 WL 4293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mansfield-v-united-states-cc-1939.