Patton v. United States

74 Fed. Cl. 110, 2006 U.S. Claims LEXIS 383, 2006 WL 3544587
CourtUnited States Court of Federal Claims
DecidedDecember 6, 2006
DocketNo. 01-161 C
StatusPublished
Cited by4 cases

This text of 74 Fed. Cl. 110 (Patton 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
Patton v. United States, 74 Fed. Cl. 110, 2006 U.S. Claims LEXIS 383, 2006 WL 3544587 (uscfc 2006).

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

This breaeh-of-contract matter is before the Court following a four-day trial held in [111]*111Washington, D.C. Rule 52(a) of the Rules of the United States Court of Federal Claims (“RCFC”) governs “actions tried upon the facts,” and provides that findings of fact may be “based on oral or documentary evidence ... and due regard shall be given to the opportunity of the trial court to judge of the credibility of the witness.” RCFC 52(a). In order to determine the facts surrounding the termination of plaintiffs contract by the Federal Bureau of Investigation (the “FBI”), the Court heard testimony from nine witnesses who were familiar with the plaintiffs service to the FBI, the procedures of the FBI relating to cooperating witnesses (“CWs”), or both. The witnesses included plaintiff Thomas J. Patton and his wife Ruth Patton; retired Special Agents (“SAs”) John F. Dono-hue, Peter McCann, Lawrence Sandri, and Michael Wacks; Charles Goodwin, SA in Charge of the Honolulu, Hawaii office of the FBI; Supervisory SA Stephen L. Morris; and Neil Divers, Unit Chief, Informant Unit (retired).

BACKGROUND

I. Procedural History

In his initial complaint, plaintiff asserted three claims against the FBI for breach of contract. Plaintiff alleged that the FBI breached (1) a 1990 oral contract in which it promised to pay plaintiff a $150,000 bonus for his work in Miami, (2) a 1990 implied-in-fact contract in which it promised to take over the payment of rental fees on plaintiffs leased storage unit in Florida, and (3) a 1994 personal services contract (the “1994 Contract”).

Judge Bodhan A. Futey dismissed the claim for $150,000 under the alleged 1990 oral contract on February 12, 2002, finding that the statute of limitations as to that claim had run. Patton v. United States, No. 01-161C, slip op., at 8 (Fed.Cl. Feb. 12, 2002) (docket entry 24). The case was transferred to the undersigned on September 9, 2004. This Court dismissed plaintiffs claim for breach of the alleged implied-in-fact contract as it related to payment of the storage fees, finding that the statute of limitations as to that claim had also run. Patton v. United States, 64 Fed.Cl. 768 (2005). This Court conducted a trial from October 16-19, 2006, in Washington, D.C., on plaintiffs claim that the FBI breached the 1994 Contract.

II. Facts1

In 1989, a group of individuals, including plaintiff, was indicted on charges that included loan sharking, extortion, and money laundering. Defendant’s Exhibit admitted at trial (“DX”) 2 U1; Trial Transcript (“Tr.”) at 212:12-16. In 1987, plaintiff had been shot nine times while getting out of his car in front of his house, id. at 212:19-213:1, and had been indicted in Florida. Id. at 213:4-8. Plaintiff testified that, after the 1989 federal indictment, “things were just getting bigger and bigger, and I was getting information I was going to be indicted in many more states around the country, so I sat down and talked to my family.” Id. at 214:17-20. Plaintiff decided not to enter the witness protection program because it would require him to terminate all contact with his family, id. at 215:1-12, and so he decided to work for the FBI as a CW.2 Id. at 214:21-23. On March 23, 1990, plaintiff entered into a plea agreement with the United States, under which he pleaded guilty to “the collection of an extension of credit by extortionate means.” DX 2 U 1(A). That same year, plaintiff began working for the Miami office of the FBI as a CW. Id. at 212:7-9.

Plaintiff worked for the FBI without a written contract until the end of May 1991, when he signed an agreement (the “1991 Contract”) with the FBI. Plaintiffs Exhibit admitted at trial (“PX”) 9. Under the 1991 [112]*112Contract, plaintiff agreed to cooperate with the FBI in an investigation regarding “Interstate Transportation of Stolen Property, Racketeering, Loan Sharking, the operation of an Illegal Gambling Business, Obstruction of Justice and other violations of Federal Law.” Id. at 1. In return for his cooperation and testimony, the FBI agreed to pay plaintiff $3,000 per month. Id. § 2. The 1991 Contract was to continue until September 30, 1991, but could be renewed “upon the written agreement of the parties.” Id. § 12. It could also be terminated by either party “by deliverance of written notice to terminate.” Id.

The FBI assisted in moving plaintiff from Florida to Maryland in September 1991, Tr. at 157:9, in part because of threats against him in Florida, id. at 64:25-65:2, and in part to assist SA Goodwin and the Annapolis office of the Baltimore division of the FBI in investigating an organized crime case involving money laundering through pizza parlors and bingo halls. Id. at 65:22-23, 70:12-16. SA Richard Leahy had been plaintiffs contracting officer3 in Florida, id. at 81:22-82:3; upon moving to the Annapolis office, SA Goodwin became plaintiffs contracting officer. Id. at 58:5. When SA Goodwin was transferred to the Washington, D.C. office, plaintiff was reassigned to SA George Chmiel. Id. at 72:7-8. Plaintiff continued to work under the 1991 Contract in Annapolis, receiving $3,000 per month,4 even after September 30, 1991. Id. at 82:10. The FBI always paid plaintiff in cash, and he signed a receipt for each payment. Id. at 281:22. The parties did not sign a written extension of the 1991 Contract, id. at 87:15-88:10, 283:16-21, but plaintiff continued to work as a CW without any diminution in the quality of his work. Id. at 89:13.

While working for the Annapolis office, plaintiff assisted two other FBI offices with investigations, but continued to receive his monthly compensation from the Baltimore division.5 Id. at 263:22. The FBI informed plaintiff on July 29, 1993, that it was terminating the 1991 Contract, PX 10, and on August 10, 1993, plaintiff received a letter confirming the termination of the 1991 Contract, id., and a $25,000 bonus payment for which he signed a receipt.6 PX 11. The bonus payment was in addition to amounts paid to plaintiff on a monthly basis under the 1991 Contract. Tr. at 113:23-114:7. Of the bonus, $10,000 came from the Baltimore office, $10,000 from the San Diego office, and $5,000 from a third office. Tr. at 115:2-12.

When the 1991 Contract was terminated, plaintiff and his wife moved to Gainesville, Florida. Id. at 158:21-23. Thereafter, the Los Angeles division of the FBI expressed interest in working with plaintiff, and he and his wife moved to Marina del Rey, California. Id. at 159:13, 816:2. Plaintiff began working as a CW in the Los Angeles office prior to signing a new contract, id. at 816:19-817:1, but signed the 1994 Contract on November 11, 1994, to “provide the FBI with information concerning criminal activity on the part of the La Cosa Nostra (LCN) and Drug Trafficking and Money Laundering Organizations.” Joint Exhibit admitted at trial [113]*113(“JX”) 1, at 1. In return, the FBI was to pay plaintiff $4,000 per month, as well as additional amounts for certain of plaintiff’s expenses, including a rental car, auto insurance, an apartment, utilities, furniture rental, and entertainment expenses. Id. § 2.

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Bluebook (online)
74 Fed. Cl. 110, 2006 U.S. Claims LEXIS 383, 2006 WL 3544587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patton-v-united-states-uscfc-2006.