Richards v. B & L Development, Inc.

18 V.I. 85, 1980 U.S. Dist. LEXIS 9592
CourtDistrict Court, Virgin Islands
DecidedDecember 23, 1980
DocketCivil No. 181/1978
StatusPublished
Cited by3 cases

This text of 18 V.I. 85 (Richards v. B & L Development, Inc.) 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
Richards v. B & L Development, Inc., 18 V.I. 85, 1980 U.S. Dist. LEXIS 9592 (vid 1980).

Opinion

SILVERLIGHT, Judge

MEMORANDUM OPINION

This case is before the Court on cross motions of defendant/third-party plaintiff, B & L Development, Inc., and third-party defendant, Government of the Virgin Islands.

[87]*87Third-party defendant, Government of the Virgin Islands (the “Government”), moves for dismissal on the ground that plaintiff has failed to state a claim upon which relief can be granted or in the alternative partial summary judgment on the amount of damages and right to a jury trial. Defendant/third-party plaintiff, B & L Development, Inc. (“B & L”), has filed a cross motion for summary judgment. For the reasons stated below, summary judgment is granted to third-party defendant, Government of the Virgin Islands, and the case is dismissed as to that party.

The relevant facts of the case are that Denise Richards, while an employee of the Government of the Virgin Islands, was injured when she tripped and fell on the steps of the Senate Building, Contentment Road, Christiansted, St. Croix. She sued B & L Development, Inc., owner of the Senate Building. B & L impleaded the Government of the Virgin Islands, lessee of the building.

A lease was signed on June 21, 1974, between B & L Development, Inc., and the Legislature of the Virgin Islands for the rental of the Senate Building. The term of the lease commenced July 1, 1974, and ran for fifteen (15) years but after the first year, the term was expressly conditioned on appropriations being authorized by the Virgin Islands Government. In addition, an indemnity clause in the lease stated that lessee would indemnify and save harmless lessor from and against any and all claims arising from an occurrence at the leased premises.

B & L’s third-party complaint demands that the Virgin Islands Government enter this action, defend B & L, and indemnify B & L for any expenses which may arise from the case.

The Government’s motion to dismiss for failure to state a claim on which relief can be granted must be denied. B & L has stated a cognizable claim by pleading the indemnity clause in the lease. This fulfills the requirement of Rule 8(a) Fed. R. Civ. P. that a pleading contain a statement of the claim showing that the pleader is entitled to relief. The third-party complaint is thus formally sufficient to withstand the Government’s Rule 12(b)(6) Fed. R. Civ. P. motion.

The posture of the Government relating to summary judgment in this case is confusing. In its motion it asks only for partial summary judgment on issues involving the Tort Claims Act. Yet in its supporting memorandum of law, the Government does argue for full summary judgment, calling into question the validity of the lease [88]*88between B & L and the Legislature, and specifically the indemnity clause of that lease.

Ordinarily this Court would only consider granting that relief which a party explicitly requests in its motion. However, here third-party plaintiff B & L has asked for summary judgment on the indemnity issue. The weight of authority is that summary judgment may be rendered in favor of the opposing party even though he has made no formal cross motion under Rule 56. Wright & Miller, Federal Practice and Procedure, Vol. 10 § 2720. Thus, on the basis of B & L’s motion for summary judgment, it would be appropriate to grant summary judgment, if deserved, to the opposing party, the Government.

While great care must be exercised to assure that the original movant has had an adequate opportunity to show that there is a genuine issue and that his opponent is not entitled to judgment as a matter of law, Wright & Miller, supra, this requirement has been met in the instant case. B & L argued its “cross-motion” for summary judgment as if the Government had asked for a full summary judgment. Consideration of the question of full summary judgment for both parties at this time is both fair to B & L and in keeping with the purpose of Rule 56 to expedite the disposition of cases. Cf. Wright & Miller, supra; United States v. Franklin Federal Savings and Loan Association, 140 F.Supp. 286 (D.C. Pa. 1956).

The indemnity clause in the lease relied upon by B & L reads:

16. INDEMNIFICATION AND LIABILITY:
Lessee (Legislature of the Virgin Islands) will indemnify Lessor (B & L) and save it harmless from and against any and all claims, actions, damages, liability and expense in connection with loss of life, personal injury and/or damage to property arising from or out of any occurrence in, upon, or at the leased premises, or the occupancy or use by lessee of the leased premises or any part thereof, or occasioned wholly or in part by any act or omission of lessee, its agents, contractors, employees, servants, lessees or concessionaires. In case lessor shall, without fault on its part, be made a party to any litigation commenced by or against lessee, then lessee shall protect and hold lessor harmless and shall pay all costs, expenses, and reasonable attorney’s fees incurred or paid by lessor in connection with such litigation. Lessee shall also pay all costs, expenses and reasonable attorney’s fees that may be incurred or paid by lessor in enforcing the covenants and agreements in this lease.

[89]*89The Government claims that this clause represents an unfunded indebtedness of unlimited proportion contracted for in violation of law. We concur.

The applicable statutes relative to this issue are 31 V.I.C. §§ 248 and 249(a), and 33 V.I.C. § 3101.

31 V.I.C. § 248
No contract or purchase on behalf of the government shall be made unless the same is authorized by law or is under an appropriation adequate to its fulfillment.
31 V.I.C. § 249
Any purchase order or contract executed in violation of this chapter and of the rules and regulations promulgated for its enforcement, shall be null and ineffective and, if public funds have been expended in relation therewith, the amount so expended may be recovered in behalf of the Government of the Virgin Islands through proper action instituted for such purpose.
33 V.I.C. § 3101
No officer or employee of the Virgin Islands shall make or authorize an expenditure from, or create or authorize an obligation under, any appropriation or fund in excess of the amount available therein; nor shall any such officer or employee involve the government in any contract or obligation for payment or money for any purpose, in advance of appropriations made for such purpose, unless such contract or obligation is authorized by law.

In interpreting the meaning of these statutes, it is helpful to look to the interpretation given the federal laws they were patterned after. 31 V.I.C. § 248 follows exactly the language of 41 U.S.C. § 11(a) but for the substitution of the word “government” for the words “United States” and the excision of the Armed Forces exception of the federal statute. 33 V.I.C. § 3101 reiterates 31 U.S.C. § 665(a) but for the substitution of the words “Virgin Islands” for the words “United States”. The two federal statutes are to be construed together, 15 Op. Atty. Gen.

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18 V.I. 85, 1980 U.S. Dist. LEXIS 9592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richards-v-b-l-development-inc-vid-1980.