Navarro v. United States

586 F. Supp. 799, 20 V.I. 566, 1984 U.S. Dist. LEXIS 16589
CourtDistrict Court, Virgin Islands
DecidedMay 18, 1984
DocketCivil No. 27/1980
StatusPublished

This text of 586 F. Supp. 799 (Navarro v. United States) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Navarro v. United States, 586 F. Supp. 799, 20 V.I. 566, 1984 U.S. Dist. LEXIS 16589 (vid 1984).

Opinion

O’BRIEN, Judge

MEMORANDUM OPINION AND ORDER

This matter is before the Court on motion of defendant United States of America (“Defendant”) to dismiss pursuant to Fed. R. Civ. P. 12(b), or, in the alternative for summary judgment pursuant to Fed. R. Civ. P. 56. Defendant seeks to avoid plaintiffs’ claims in contract and in tort on a myriad of grounds the most pertinent being: 1) lack of subject matter jurisdiction over the contractual claims, 2) lack of any duty owed to plaintiffs actionable in tort, and 3) lack of [569]*569subject matter jurisdiction over the tort claims due to failure of plaintiffs to file the requisite administrative claim. For the reasons which follow this Court will grant the motion to dismiss the tort claims but will, for 30 days, hold in abeyance, the dismissal of the claims in contract.

FACTS

This action was brought by plaintiffs Marcelino Rivera Navarro and Pietra Rivera (“Riveras” or “plaintiffs”) against Desmond Kirby (“Kirby”), the United States of America, the Farmers Home Administration (“FmHA”), Secretary of Agriculture Robert Bergland, and a number of local officials of the FmHA (all defendants excluding Kirby hereafter “governmental defendants”).1 The Riveras proceed for damages alleging breach of express contracts, detrimental reliance, and negligence on the part of governmental defendants in their failure to comply with various federal regulations.

For the purposes of these motions we will accept as true the facts as alleged in the complaint. The Riveras, low income rural residents, qualified for a loan of $18,000 from the FmHA under § 502 of the Housing Act of 1949, 42 U.S.C. § 1471 et seq. They sought and obtained the loan in order to finance the construction of a four bedroom dwelling in Estate Profit, St. Croix, U.S. Virgin Islands.

On December 13, 1973, plaintiffs entered into a loan agreement with the FmHA whereby plaintiffs executed a promissory note and real estate deed of trust to the FmHA in exchange for the $18,000 loan. The deed of trust and note incorporated all existing and future regulations of the FmHA. On February 22, 1974, the Rivera’s and defendant Kirby, a building contractor, executed a FmHA form construction contract whereby Kirby was to provide all the materials and labor for the construction of the Rivera’s house.

Kirby began construction on the dwelling in the spring of 1974. While construction was underway, plaintiffs were informed that, due to increased building costs, Kirby would require an additional $2,000 to complete the work. The Riveras again went through the § 502 loan procedure and executed an additional note and deed of trust in exchange for the needed funds. This agreément was also made subject to FmHA regulations. In midsummer the house was finished. On July 9, 1974, Kirby, as required by FmHA , executed a builder’s warranty to plaintiffs to the effect that the construction [570]*570had been substantially completed in conformance with the FmHA guidelines.

Shortly thereafter, the Riveras moved into their home and began to notice numerous defects in the structure, including cracked walls, faulty wiring, a leaking cistern, and a cracked roof. Plaintiffs notified Kirby of the problems. When Kirby failed to take any corrective action, plaintiffs, on August 29, 1974, contacted the FmHA. After unsuccessfully attempting to get Kirby to remedy the structural defects, the FmHA informed the Riveras that another contractor would repair their home. This too, failed to occur. Despite the fact that the Riveras made numerous complaints to both the FmHA and Kirby up through 1978, no repairs were ever undertaken by either party.

Plaintiffs eventually moved out of the house in February, 1975, claiming that the structural defects made the dwelling uninhabitable. After they made several unsuccessful attempts to have the house repaired with their own funds, plaintiffs were finally informed by the FmHA, in April, 1979 that indeed their home was uninhabitable. The FmHA then offered to finance the necessary repairs through another low interest loan. On November 28, 1979, the Riveras submitted to the FmHA a claim for damage pursuant to 7 C.F.R. § 1804 et seq. (1972).2

Plaintiffs filed this action on February 5, 1980. Plaintiffs allege that they are poor people who do not understand the English language. They allege further that they have no business or construction experience and were therefore forced to rely solely on the expertise, skill and judgment of the FmHA and Kirby in the construction of their new home. Finally, they allege that as soon as the structural defects became apparent, plaintiffs made repeated complaints to both Kirby and the FmHA concerning the problems, but were unable to secure remedial action on either defendants’ part.

Plaintiffs sue the FmHA and other governmental defendants for allegedly failing to perform, or negligently performing, duties of inspection and supervision of the construction of plaintiffs’ home. The plaintiffs assert these duties are owed them by the governmental defendants due to regulations promulgated under the Housing Act. Plaintiffs also seek to enjoin the governmental defendants to require them to enforce rights under these regulations to repair plaintiffs’ home and to implement the use of Spanish complaint [571]*571forms. Plaintiffs also seek declaratory relief to the effect that the FmHA’s failure to perform its duties under the regulations was such a breach as to obviate plaintiffs obligation to make payments under the mortgage. Finally, plaintiffs seek to recover a sum of $35,014 from the governmental defendants in the form of compensatory damages.

DISCUSSION

1. Contractual Claims

The governmental defendants seek dismissal of this matter on a variety of grounds, all which basically go to the lack of subject matter jurisdiction in this Court to adjudicate the matter. Initially we address the Riveras’ claims which sound in contract.

Plaintiffs assert that the series of agreements entered into with the governmental defendants incorporated all the FmHA regulations as covenants and conditions and the failure of the governmental defendants to inspect the construction site and reject faulty materials and workmanship was a breach of their contractual obligations.

The Riveras bring their claims in contract against the governmental defendants under the Tucker Act, 28 U.S.C. § 1346 et seq. (1977) which is a limited waiver of sovereign immunity allowing the United States government to be sued on a claim arising in contract. Tempel v. United States, 248 U.S. 121 (1918); see United States v. Lockheed, 656 F.2d 390 (9th Cir. 1979). As sovereign, the United States and its agencies are ordinarily immune from suit. United States v.

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Bluebook (online)
586 F. Supp. 799, 20 V.I. 566, 1984 U.S. Dist. LEXIS 16589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navarro-v-united-states-vid-1984.