Price v. United States

46 Fed. Cl. 640, 2000 U.S. Claims LEXIS 92, 2000 WL 656221
CourtUnited States Court of Federal Claims
DecidedApril 21, 2000
DocketNo. 98-336C
StatusPublished
Cited by9 cases

This text of 46 Fed. Cl. 640 (Price 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
Price v. United States, 46 Fed. Cl. 640, 2000 U.S. Claims LEXIS 92, 2000 WL 656221 (uscfc 2000).

Opinion

OPINION

HORN, Judge.

The above captioned case is presently before this court on cross motions for summary judgment pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (RCFC). The plaintiff, Donnie E. Price, through counsel, alleges that the defendant, the United States government, acting through the United States Department of Veterans Affairs (VA), committed a breach of contract by failing to be able to deliver certain property in the condition it was in at the time the parties entered into the Installment Contract to purchase the property. Plaintiff further alleges that the VA committed a breach of the duty of good faith and fan-dealing by failing to disclose the ongoing demolition proceedings filed against the property and for failing to give notice of building code violations prior to consummation of the contract. Plaintiff also alleges that the defendant violated the Illinois Dwelling Unit Installment Contract Act by failing to notify him of the code violations prior to execution of the contract. In this complaint, the plaintiff states that he “has suffered damage including the loss of the budding, the loss of monies, time and effort expended rehabilitating the building, lost profits to be realized [642]*642on the rehabilitation of the building and other compensatory damages to be shown at trial in the amount of $75,000.00.”

Defendant rejects plaintiffs claims and has moved for summary judgment. Defendant asserts that summary judgment is appropriate because there are no material issues of genuine fact in dispute, and that contract interpretation is a question of law. Defendant argues that the government sale of 3252 West Carroll Street is governed by Federal law, not Illinois law. Defendant further contends that plaintiffs have failed to come forward with sufficient evidence to prevail on the plaintiffs breach of contract and breach of duty of good faith and fair dealing. Defendant suggests that the conditions of the contract do not provide any basis for the relief the plaintiff seeks, and, in fact, expressly precludes the plaintiff from prevailing in this action because the contract contains explicit conditions to the contrary.

FINDINGS OF FACT

The material facts before the court are undisputed by the parties. The parties have submitted joint stipulations of fact and both parties agree that this case is ripe for summary judgment. On or about April 17, 1995, the VA accepted title to the property located at 3252 West Carroll Street, Chicago, Illinois. On or about June 13, 1995, the City of Chicago filed a complaint in City of Chicago v. Secretary of Veterans Affairs, No. 95M1-404036 (Cir. Ct., Cook County), alleging that the building at 3252 West Carroll Street did not comply with building codes and that it was in a dangerous and unsafe condition. Among other requests, the City asked the court to issue an order authorizing the City to demolish the premises. On or about June 13, 1995, the City recorded a notice of lis pendens in the Circuit Court of Cook County.1

On or about June 27, 1995, the VA sent a property management broker to inspect the property. The property management broker reported that the property had been severely vandalized, that it had major plumbing lines in need of repair, and that the property needed a new roof because there was severe water damage on the second floor of the building. After receiving the report, on or about July 12, 1995, the VA filed a special and limited appearance in response to the City’s complaint. On or about July 15, 1995, the VA informed counsel for the City that the VA had recently acquired 3252 West Carroll Street through foreclosure and that the VA had filed a special and limited appearance contesting the jurisdiction of the court in response to the City’s complaint.

On or about August 25, 1995, the VA advertised 3252 West Carroll Street for sale in the Chicago Tribune at the price of $14,-000.00. The notations next to the listing for the property indicated that the property was being offered “AS IS — NO FURTHER REPAIRS ARE TO BE DONE BY VA” and that the property had “Severe or structural damage.” The listing for the property, however, did not include the notation “CV,” which would have indicated that the property had “Code violations or condemnation acknowledgment,” or the notation “DP,” which would have indicated that there were “Demolition proceedings in progress.” The listing also stated that:

VA makes no warranty regarding property condition including mechanical system, well or septic capacity, foundations, air conditioners or any other appliances. Basements or crawlspaces may not be waterproof. Buyers are responsible for obtaining occupancy including satisfaction of code violations and communication with gas, electric, water, and sewer utilities for account transfer. All information herein is believed to be correct; however, it is subject to variations. VA assumes no liability for errors or omissions____ This listing is subject to confirmation, withdrawal, change in price and prior sale by VA — all any time without notice. Issuance of a revised listing automatically cancels any previous listing____

[643]*643Plaintiff, Donnie E. Price2, first became aware of 3252 West Carroll Street in September 1995 when he saw the listing referred to in a newspaper article. Soon after seeing the listing, Mr. Price inspected the property, and admits that he was aware that the property suffered from structural defects, that the property was being offered for sale “as is,” and that the budding was not in compliance with building codes. Mr. Price has had prior experience with government real estate sales. Mr. Price’s current residence, where he is both the property owner and landlord, was purchased from the Department of Housing and Urban Development (HUD). He executed the purchase of his current residence with the assistance of an attorney. With regard to 3252 West Carroll Street, however, Mr. Price did not search any public record regarding 3252 West Carroll Street or request any information regarding the property from the VA. Mr. Price also did not seek any professional advice regarding his possible purchase of the property other than from his real estate broker.

On or about September 12, 1995, Mr. Price offered to purchase 3252 West Carroll Street from the VA for $12,000.00 by submitting and signing an “Offer to Purchase and Contract of Sale.” The “Offer to Purchase and Contract of Sale” stated that Mr. Price “examined [the] property and agree[s] to accept same in its present ‘as is’ condition, and further agree[s] that VA makes no warranties, expressed or implied, with respect thereto.” On September 29, 1995, the City of Chicago served the Secretary of the Department of Veterans Affairs in Washington, DC, with a copy of the summons and complaint in City of Chicago v. Secretary of Veterans Affairs, No. 95M1-404036 (Cir. Ct., Cook County). On or about October 11, 1995, the VA accepted Mr. Price’s offer to purchase the property. On or about October 19, 1995, the VA sent a letter to Mr. Price informing him that his offer to purchase 3252 West Carroll Street had been accepted, apparently on October 11, 1995, but did not inform Mr. Price of the summons and complaint filed by the City of Chicago. On or about November 2, 1995, the VA advised the City of Chicago, by letter, that it had sold the property to Mr. Price. On November 6, 1995, Mr. Price signed an Installment Contract and made a down payment in the amount of $2,120.74. Mr.

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Bluebook (online)
46 Fed. Cl. 640, 2000 U.S. Claims LEXIS 92, 2000 WL 656221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-united-states-uscfc-2000.