Rel-Reeves, Inc. v. United States

606 F.2d 949, 221 Ct. Cl. 263, 210 U.S.P.Q. (BNA) 160, 1979 U.S. Ct. Cl. LEXIS 216
CourtUnited States Court of Claims
DecidedJuly 18, 1979
DocketNo. 258-67
StatusPublished
Cited by14 cases

This text of 606 F.2d 949 (Rel-Reeves, Inc. 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
Rel-Reeves, Inc. v. United States, 606 F.2d 949, 221 Ct. Cl. 263, 210 U.S.P.Q. (BNA) 160, 1979 U.S. Ct. Cl. LEXIS 216 (cc 1979).

Opinions

PER CURIAM:

This case comes before the court on defendant’s request, filed January 12, 1979, for review by the court of the recommended decision of Trial Judge Joseph V. Colaianni, filed November 20, 1978, pursuant to Rule 54, on defendant’s motion and plaintiffs cross-motion for summary judgment, having been submitted to the court on the briefs and oral argument of counsel for the defendant and the plaintiff. Upon consideration thereof, since the court agrees with the trial judge’s recommended decision, as hereinafter set forth, it hereby affirms and adopts the recommended decision as the basis for its judgment in this case. Accordingly, it is found and concluded that the September 25, 1974 assignment by Rel-Reeves to Dynamics Corporation of America is valid against the Government notwithstanding the Assignment of Claims Act and that DCA is the owner of the patent in suit. Therefore, defendant’s motion for summary judgment is denied, plaintiffs cross-motion under Rule 66(c) is granted and the case is remanded to the trial judge for further appropriate proceedings.

OPINION OF TRIAL JUDGE

COLAIANNI, Trial Judge:

On March 1, 1978, defendant filed a motion under Rule 41 to give notice to Dynamics Corporation of America (DCA) and Douglass E. Wendel, trustee for plaintiff, an adjudicated bankrupt. The motion was allowed without opposition on March 20, 1978. On the next day, DCA, the predecessor plaintiff to Rel-Reeves, Inc., filed a motion to respond to defendant’s motion under Rule 41 out of time and also filed therewith a cross-motion seeking to be substituted under Rule 66(c) as the plaintiff in place of Rel-Reeves. Defendant filed its response to [267]*267DCA’s cross-motion on March 28,1978. The Rule 66(c) issue was, with the filing of defendant’s June 23, 1978 response, ready for consideration. However, concurrent with its response, defendant filed a motion for summary judgment. By a September 12, 1978 order of the court, defendant’s motion for summary judgment was referred, under Rules 54 and 55, to me for a decision and recommendation in connection with matters pending before me under Rules 66(c) and 131(c).1

Defendant’s motion for summary judgment argues that DCA lacks any valid and enforceable right to recover against the United States because: (1) its right to recover is barred by the Assignment of Claims Act, 31 U.S.C. §203; and (2) it lacks title to the patent in suit and is not the real party in interest.

In an April 14, 1976 decision,2 this court entered judgment in favor of plaintiff Rel-Reeves on the issue of liability and remanded the case to the Trial Division to establish the amount of recovery under Rule 131(c)(2).

Since the aforesaid decision, defendant claims to have learned for the first time of DCA’s alleged interest in this suit. Defendant filed the previously mentioned motion under Rule 41, to issue notice to both Mr. Wendel, trustee in bankruptcy for Rel-Reeves, and DCA.

DCA opposes defendant’s motion to notice the trustee of Rel-Reeves on the ground that it is and has been the owner of the McCoy patent since September 25, 1974 and that neither Rel-Reeves nor the trustee, Douglass E. Wendel, has any interest in this cause of action. DCA also opposed the issuance by the court of notice to it under Rule 41 and instead urges, by virtue of the September 25, 1974 assignment, that it is the proper party-plaintiff and should accordingly be substituted in place of Rel-Reeves pursuant to Rule 66(c).

Defendant acknowledges, on page 3 of its motion for summary judgment, that the substance of its motion and [268]*268brief for summary judgment is identical to its response to plaintiffs brief in support of its motion under Rule 66(c). Therefore, defendant’s motion for summary judgment and plaintiffs motion to be substituted as plaintiff in place of Rel-Reeves will both be considered.

Background Facts

The facts, which are not in dispute, are set forth in order to provide the necessary background to understand the legal issues raised by the parties.

As of the close of the liability trial in May 1972, DCA was the original and only plaintiff. It owned the entire right, title and interest in and to the McCoy patent and causes of action accruing thereunder. During the next few months, DCA sustained a series of financial reversals and on August 2, 1972, filed a petition to effect an arrangement with its creditors pursuant to the provisions of Chapter XI of the Bankruptcy Act, 11 U.S.C. § 701, et seq., in the United States District Court for the Southern District of New York. Pursuant to an order of that court, DCA, the debtor, was authorized to operate its business and manage its property as a debtor-in-possession. Post-trial briefing by DCA of its cause of action before this court was repeatedly deferred because of the necessity of DCA to obtain the authorization of the bankruptcy judge to continue prosecution of the litigation. Following the approval of the bankruptcy judge, proposed findings of fact were finally submitted by DCA on April 10, 1974.

In the meantime, DCA, as the court-sanctioned debtor-in-possession, entered into an October 31, 1972 agreement with the Parker-West Corporation and its newly formed and wholly owned subsidiary, Rel-Reeves, Inc. The agreement, inter alia, called for the sale of all assets of DCA’s Electronic Systems Division (hereinafter ESD), including the patent in suit and all claims thereunder, to Rel-Reeves. On December 4, 1972, Edward J. Ryan, Bankruptcy Judge of the United States District Court for the Southern District of New York, entered an order approving the agreement.

The agreement was amended seven times between the dates of October 31, 1972 and July 17, 1973 to revise the [269]*269terms, date of closing, and numerous details of the sale. Each amendment provided that it was not to become effective until approved by order of the United States District Court for the Southern District of New York. Indeed, each amendment was approved by that court. For example, on June 20, 1973, Judge Ryan, in response to DCA’s request of June 1, 1973 for an order—

[Authorizing and empowering it to consummate an Amendment to an Agreement dated as at October 31, 1972, as amended by Orders of this Court made and entered on December 26, 1972, January 4, 1973, and by letter agreement dated January 5, 1973, with Parker-West Corporation for the sale of the assets of the Electronic Systems Division and the Esarbe Industries Division, * * *

ordered:

The application of DYNAMICS CORPORATION OF AMERICA to consummate the Amended Agreement with Parker-West Corporation as modified upon the record of these proceedings with respect to the sale of the assets of the debtor’s Electronic Systems Division, * * * and in accordance with the Amended Agreement as modified dated May 14, 1973, entered into between the parties, be and the same is granted.
* * * * *

Free access — add to your briefcase to read the full text and ask questions with AI

Related

3rd Eye Surveillance, LLC v. United States
133 Fed. Cl. 273 (Federal Claims, 2017)
Anchor Savings Bank, FSB v. United States
121 Fed. Cl. 296 (Federal Claims, 2015)
Annuity Transfers, Ltd. v. United States
86 Fed. Cl. 173 (Federal Claims, 2009)
L-3 Communications Integrated Systems v. United States
84 Fed. Cl. 768 (Federal Claims, 2008)
Centers v. United States
71 Fed. Cl. 529 (Federal Claims, 2006)
Westinghouse Electric Co. v. United States
56 Fed. Cl. 564 (Federal Claims, 2003)
National Australia Bank v. United States
54 Fed. Cl. 238 (Federal Claims, 2002)
Johnson Controls World Services, Inc. v. United States
44 Fed. Cl. 334 (Federal Claims, 1999)
Standard Manufacturing Co. v. United States
42 Fed. Cl. 748 (Federal Claims, 1999)
MDS Associates, Ltd. v. United States
31 Fed. Cl. 389 (Federal Claims, 1994)
Public Varieties of Mississippi, Inc. v. Sun Valley Seed Co.
734 F. Supp. 250 (N.D. Mississippi, 1990)
Foster v. United States
230 Ct. Cl. 938 (Court of Claims, 1982)
School Feeding Corp.
26 Cont. Cas. Fed. 83,732 (Court of Claims, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
606 F.2d 949, 221 Ct. Cl. 263, 210 U.S.P.Q. (BNA) 160, 1979 U.S. Ct. Cl. LEXIS 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rel-reeves-inc-v-united-states-cc-1979.