Marks v. United States

24 Cl. Ct. 310, 1991 U.S. Claims LEXIS 468, 1991 WL 205563
CourtUnited States Court of Claims
DecidedOctober 10, 1991
DocketNo. 90-111C
StatusPublished
Cited by4 cases

This text of 24 Cl. Ct. 310 (Marks 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
Marks v. United States, 24 Cl. Ct. 310, 1991 U.S. Claims LEXIS 468, 1991 WL 205563 (cc 1991).

Opinion

OPINION

REGINALD W. GIBSON, Judge:

This is a breach of contract action in which plaintiff, Stephen Marks, seeks $300,000 in damages plus interest from the defendant, the United States, acting through the United States Marshals Service (USMS). Mr. Marks alleges that the USMS breached an express written contract for the sale of certain real property by refusing to accept the tender and failing to convey title at closing. Jurisdiction is, therefore, premised on 28 U.S.C. § 1491.1 The defendant, on the other hand, has filed a RUSCC 12(b)(1) motion to dismiss for lack of subject matter jurisdiction. In this connection, the defendant avers that this court lacks jurisdiction under 28 U.S.C. § 15002 because the plaintiff has a previously filed action pending in the United States District Court for the Southern District of Florida based on the identical operative facts. The essence of the action there is specific performance whereas the case here, in theory, is bottomed on a breach claim. In the alternative, the defendant moves for summary judgment under RUSCC 56, asserting that a valid contract (expressed or implied) for the sale of the property at issue was never formed. Furthermore, even if a valid contract was created, the defendant further argues that Mr. Marks obtained the full remedy provided under the contract, as intended by the parties, when his full deposit funds were made available for receipt by him. For the reasons stated below, the defendant’s RUSCC 12(b)(1) motion to dismiss is DENIED and the motion for summary judgment is GRANTED.

Facts

On April 21, 1989, the United States District Court for the Southern District of Florida, in an in rem forfeiture action, issued an interlocutory order directing sale of the property at 3940 Douglas Road, Coconut Grove, Florida 33133, by the USMS during criminal and civil proceedings against the previous property owner. A final judgment of forfeiture was, thereafter, entered on June 15, 1989, in an in personam criminal action (# 87-928C). In connection with a forthcoming sale, the USMS received an appraisal dated January 25, 1988, of $550,000 for the real estate from a licensed appraiser and thereafter listed it at a price of $605,000. Mr. Marks signed a written contract with the USMS for the sale of said real property for a price of $605,000 and paid a $60,500 deposit on July 14, 1989.

On September 1,1989, the agreed closing date, the USMS, however, refused to accept Mr. Marks’ tender of payment or to convey title. Instead, the government asserted that it had made a mistake in setting the sales price below fair market value in view [312]*312of its second fair market value appraisal of the property which amounted to $860,000. A third appraisal was also made which valued the property at $790,000, or $1¡85,-000 in excess of Mr. Marks’ contract price. In any event, the contract never received confirmation by the district court because the transaction was aborted and, consequently, the USMS directed the escrow broker to release Mr. Marks’ deposit, which was made available to him.

On December 6, 1989, Mr. Marks filed a motion to compel compliance in the Florida district court forfeiture proceeding without first filing a motion to intervene pursuant to Rule 24 of the Federal Rules of Civil Procedure. He thereafter filed a complaint, on February 5, 1990, in the Claims Court demanding $300,000 in damages plus interest for the government’s breach of contract. In opposition, the defendant, on July 31, 1990, filed a corrected motion to dismiss the Claims Court action allegedly based on the court’s lack of subject matter jurisdiction pursuant to 28 U.S.C. § 1500.3 As a result of Mr. Marks’ failure to meet procedural requirements regarding his December 6, 1989 motion, the district court, on August 9, 1990, granted the defendant’s motion to strike Mr. Marks’ December 6, 1989 motion to compel compliance. Nevertheless, the district court did allow Mr. Marks 15 days leave to file a motion to intervene under Fed.R.Civ.P. 24. Accordingly, on August 24, 1990, Mr. Marks filed a Complaint In Intervention in the United States District Court for the Southern District of Florida seeking specific performance of the contract allegedly entered into by the government and himself. Currently, that action is still pending in the district court.

On February 11, 1991, the defendant filed a supplemental motion to dismiss or in the alternative for summary judgment asserting, once again, that this court lacks subject matter jurisdiction under RUSCC 12(b)(1), and, for the first time, that the plaintiff has failed to state a claim for which relief can be granted under RUSCC 12(b)(4). The motion of dismissal due to lack of subject matter jurisdiction is premised on 28 U.S.C. § 1500, wherein the defendant contends that the claim before this court is one and the same claim as that previously filed and currently pending in the U.S. district court in Florida, and therefore, the Claims Court is barred from exercising its jurisdictional power under § 1500. With regard to its motion for summary judgment, the defendant alternatively contends that no valid contract was formed simply because the USMS did not have actual authority to bind the United States Government contractually without first securing confirmation by the district court. In addition, it avers that even if a valid contract was formed, Mr. Marks constructively received the full and total relief specified by the contract at the time the USMS instructed the escrow broker to release his deposited funds to him, despite Mr. Marks’ refusal to receive and accept the refunded deposit.

In response to the defendant’s § 1500 jurisdictional arguments, Mr. Marks raises the issue—whether there is a “suit” pending on his behalf in the district court (i.e., Mr. Marks contends that he did not file a “suit” in the district court and that he, therefore, is not the plaintiff in the district court). Accordingly, Mr. Marks alleges that he has no claim currently pending before that court; that secondly, even if he had an action pending before the district court, the “Casman exception” to the § 1500 jurisdictional bar applies in this instance because Casman v. United States, 135 Ct.Cl. 647 (1956), allows a party to simultaneously seek equitable relief in a district court and monetary relief in the Claims Court even when the two claims are based on the same operative facts. Finally, in response to defendant’s motion for summary judgment, Mr. Marks asserts that he has a valid contract with the USMS for the latter to convey title to the real property, and that the damages to which he is entitled to recover should not be limited to the refund of his deposit.

[313]*313 Discussion

We are faced with two issues.

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Bluebook (online)
24 Cl. Ct. 310, 1991 U.S. Claims LEXIS 468, 1991 WL 205563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-united-states-cc-1991.