Provencal v. Michel Construction Inc.

505 F. Supp. 770, 1980 U.S. Dist. LEXIS 15642
CourtDistrict Court, W.D. Michigan
DecidedDecember 24, 1980
DocketNo. G77-629 CA5
StatusPublished
Cited by1 cases

This text of 505 F. Supp. 770 (Provencal v. Michel Construction Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Provencal v. Michel Construction Inc., 505 F. Supp. 770, 1980 U.S. Dist. LEXIS 15642 (W.D. Mich. 1980).

Opinion

OPINION

BENJAMIN F. GIBSON, District Judge.

This matter is before the Court pursuant to a motion for summary judgment filed by the Government. In support of its motion, the Government filed two briefs and an affidavit of John Craig, a county supervisor for the Farmers Home Administration. In opposition to this motion, plaintiffs have filed two briefs and the affidavit of Jack M. Provencal. The Government contends that it is immune from the plaintiffs’ action in this case, and further have maintained that plaintiffs have failed to state a claim upon which relief can be granted and have failed to file an administrative claim with a sum certain. After a thorough review of the file and record before this Court, and after due consideration of the arguments of counsel presented during the October 10, 1980, hearing on this matter, this Court concludes that the Government is entitled to summary judgment and dismissal of plaintiffs’ claims against it.

Rule 56 of the Federal Civil Procedure, in relevant part, provides:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment is a matter of law.

The Government, as the moving party, must bear the burden of clearly establishing the nonexistence of any genuine issue of any fact material to judgment in its favor. Adickes v. S. H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 1608, 26 L.Ed.2d 142 (1970). Once the Government has succeeded in this showing, plaintiffs “may not rest upon the mere allegations or denial of [their] pleading,” but must come forward with “specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e). For the purposes of this motion, evidentiary matter submitted will be taken at “face value.” Begnaud v. White, 170 F.2d 323, 326-27 (6th Cir. 1948).

In deciding the question before this Court, all inferences drawn from underlying facts contained in the affidavits, exhibits, pleadings, admissions, and answers to interrogatories were viewed in a light most favorable to the plaintiffs. United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962); Adickes v. S. H. Kress & Co., supra, 398 U.S. at 157 n. 15, 90 S.Ct. at 1608 n. 15 (citing cases); Bohn Aluminum & Brass Corp. v. Storm King Corp., 303 F.2d 425, 427 (6th Cir. 1962). This Court is required to view this matter in a light most favorable to the plaintiffs, for even if the basic facts are not in dispute, summary judgment is not appropriate when contrary inferences may be drawn from those facts. United States v. Diebold, Inc., supra; Equal Employment Opportunity Commission v. United Association of Journeymen & Apprentices, Etc., 427 F.2d 1091, 1093 (6th Cir. 1970).

Plaintiffs filed their action against the Government and a general contractor for damages allegedly sustained when the general contractor failed to pay certain subcontractors for work performed during construction of the plaintiffs’ home. The affidavits show that the sub-contractors filed mechanics’ liens against the plaintiffs’ property. The plaintiffs had received a loan from the Farmers Home Administration (FmHA). They retained a FmHA-designated attorney to handle the loan closing, and the plaintiffs executed a construction contract with the general contractor for construction of their house. Shortly thereafter, an assistant FmHA county supervisor visited the plaintiffs’ partially constructed home and discovered a mechanic’s lien posted on the house. After further investigation, it was discovered that the general contractor had left the state and had not paid a number of sub-contractors who had performed work on the house to that date. John Craig, the FmHA county supervisor, [772]*772advised the plaintiffs to seek legal counsel “concerning the settlement of [the mechanics’] liens.” Affidavit of Jack M. Provencal, ¶ 7. See also Affidavit of John Craig, ¶¶ 7, 9.

The plaintiffs contacted the same FmHAdesignated attorney who had handled their FmHA loan closing.1 Plaintiffs also contacted John Craig, the FmHA county supervisor, and, according to plaintiffs, he advised plaintiffs that if they did not settle the mechanics’ liens, “the entire matter would be forfeited or FmHA would finish building the house and [would] give [plaintiffs] the first option to purchase it.” Affidavit of Jack M. Provencal, ¶ 11. Plaintiffs further state that they paid off the mechanics’ liens “as a result of the requirement set down by John Craig and the advice of [the] FmHA attorney.” Affidavit of Jack M. Provencal, ¶ 12. It is the conduct of John Craig and the “FmHA attorney” which plaintiffs consider actionable. Plaintiffs maintain that these agents of the Government were negligent in settling the mechanics’ liens referenced above. Although plaintiffs’ claim against the Government sounds in negligence, this Court believes that it truly sounds in negligent misrepresentation. Accordingly, since the Government is immune from actions for misrepresentation, plaintiffs’ claim against the Government must be dismissed.

This Court believes that this case is governed by United States v. Neustadt, 366 U.S. 696, 81 S.Ct. 1294, 6 L.Ed.2d 614 (1961) and Fitch v. United States, 513 F.2d 1013, (1975), cert, denied, 423 U.S. 866, 96 S.Ct. 127, 46 L.Ed.2d 95. In Fitch, the plaintiff was an inductee under the national lottery system governing conscription. Plaintiff received a draft number which should have guaranteed that he would not be drafted. However, plaintiff’s draft number was transcribed erroneously by his local draft board, and he was inducted. One year after his induction, an Army sergeant informed the plaintiff in Vietnam that his induction had been a mistake. He was discharged from active duty three months later. The [773]*773district court held that the erroneous assignment of the plaintiff’s lottery number established the liability of the United States under the Federal Tort Claims Act, 28 U.S.C. § 2674. However, the Sixth Circuit reversed on the grounds that the district court acted beyond the authority Congress had given it.

After reviewing the scope of the waiver of sovereign immunity from liability for torts, the court turned to the question whether the plaintiff’s action fell within the misrepresentation exception of 28 U.S.C. § 2680(h). The court said:

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Bluebook (online)
505 F. Supp. 770, 1980 U.S. Dist. LEXIS 15642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/provencal-v-michel-construction-inc-miwd-1980.