Romala Corp. v. United States

36 Cont. Cas. Fed. 75,831, 20 Cl. Ct. 8, 1990 U.S. Claims LEXIS 49, 1990 WL 31700
CourtUnited States Court of Claims
DecidedMarch 22, 1990
DocketNo. 610-87C
StatusPublished
Cited by4 cases

This text of 36 Cont. Cas. Fed. 75,831 (Romala Corp. 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
Romala Corp. v. United States, 36 Cont. Cas. Fed. 75,831, 20 Cl. Ct. 8, 1990 U.S. Claims LEXIS 49, 1990 WL 31700 (cc 1990).

Opinion

OPINION

FUTEY, Judge.

This case is before the court on defendant’s motion for summary judgment and plaintiff’s cross-motion for summary judgment. Plaintiff is seeking the cost of a replacement furnace. Defendant contends that, under the terms of the lease, plaintiff is responsible for furnace replacement, and defendant may modify the heating system. In addition, defendant asserts that its modifications did not cause the furnace to fail.

Factual Background

This action arises out of a lease dated March 11, 1963, between plaintiff (lessor) and defendant (lessee), for rental of real property and a building in Smithburg, Maryland. The lease, drafted by defendant, was for a term of 10 years with four 5-year renewal options. Plaintiff provided heat pursuant to paragraph 6(a):

Lessor shall furnish heating system of sufficient size and capacity to maintain uniform temperature of 70° F. in all areas based on the design [sic] temperature commonly in use in the locality.

Lessor’s maintenance and repair responsibilities, which include the heating system, are described in paragraph 7:

The Lessor shall, unless herein specified to the contrary maintain the demised premises, including the building and any and all equipment, fixtures, and appurtenances, whether severable or non-severable, furnished by the Lessor under this lease in good repair and ten-antable condition, except in case of damage arising from the act or the negligence of the Government’s agents or employees. For the purpose of so maintaining said premises and property, the Lessor may at reasonable times enter and inspect the same and make any necessary repairs thereto. [Emphasis added.]

Prior to entering into the lease with defendant, plaintiff installed a new furnace, which was approved for use in the premises by defendant. Nearly 20 years later, during 1981 and 1982, defendant, without the prior permission or consent of plaintiff, installed a stack vent damper (damper) on this furnace,1 and a Honeywell 7-day thermostat (thermostat).2 Later that year, [10]*10plaintiff replaced the firebox in the furnace because too much heat was built-up there as a result of the functioning of the damper.3 Some time in 1983, the thermostat was rewired by plaintiff because it had been improperly installed.4 Plaintiff billed defendant for the thermostat repair costs and defendant paid. Approximately 3 years later, in December, 1986, the furnace failed and plaintiff replaced it.

In a letter dated December 12, 1986, plaintiff notified defendant that since defendant had failed to obtain plaintiff’s permission before attaching the damper and thermostat, “these changes eliminate the lessor from all maintenance responsibility.”

On June 15, 1987, plaintiff filed a claim with the Contracting Officer (CO) alleging that the installation of the damper and the thermostat caused the furnace to fail. The CO’s decision, dated July 27, 1987, denied plaintiff’s claim. It was based in part on paragraph 9 of the lease:

The Government shall have the right to make alterations, attach fixtures and erect additions, structures or signs in or upon the premises hereby leased (provided such alterations, additions, structures or signs shall not be detrimental to or inconsistent with the rights granted to other tenants on the property or in the building in which said premises are located); which fixtures, additions or structures so placed in, upon or attached to the said premises shall be and remain the property of the Government and may be removed or otherwise disposed of by the Government. Prior to expiration or termination of this lease the Government shall if required by the Lessor by notice in writing sixty days in advance of such expiration or termination, restore the premises to as good condition as that existing at the time of entering upon the same under this lease, reasonable and ordinary wear and tear and damages by the elements or by circumstances over which the Government has no control, excepted. [Emphasis added.]

In addition, the CO noted that “[t]he furnace was a part of the original construction and as such if it was in need of replacement, it was just plain wornout.”

On September 29, 1987, plaintiff filed a complaint in this court claiming that the attachment by defendant of the damper and thermostat “caused an overload on the existing warm air furnace at the Plaintiff’s facility, and was the direct and proximate result of the furnace failure and replacement.” Plaintiff further alleges that it had never given its permission to the defendant to attach the devices and that such prior permission was necessary for such devices because it “has a right to determine if proposed changes will cause damage or mechanical problems to originally installed equipment." Plaintiff seeks to recover $3,100.00 for the cost of replacing the furnace and $620.00 for the administrative expenses related to furnace replacement, plus interest and attorney’s fees.

A. Jurisdiction

Plaintiff alleges jurisdiction under the Contract Disputes Act of 1978, 41 U.S.G. §§ 601-613 (1982) (the CDA). Lease agreements are proper subjects for adjudication under the CDA. Kelley v. United States, 19 Cl.Ct. 155, 160 (1989). The court finds that the July 27, 1987, decision of the CO constitutes a final decision for purposes of the CDA. Therefore, jurisdiction is proper here under the CDA.

B. Summary Judgment

Summary judgment is appropriate where the pleadings raise no genuine dispute as to any material fact and, as a matter of law the moving party is entitled to judgment. RUSCC 56; Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 2509, 91 L.Ed.2d 202 (1986). The moving party bears the burden of establishing an [11]*11absence of evidence to support the nonmovant’s case. Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 1608, 26 L.Ed.2d 142 (1970). The party opposing the motion for summary judgment has the burden of showing sufficient evidence, not necessarily admissible, of a genuine issue of material fact in dispute. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). Any doubt over factual issues must be resolved in favor of the party opposing summary judgment, Litton Indus. Prods., Inc. v. Solid State Sys. Corp., 755 F.2d 158, 163 (Fed.Cir.1985), to whom the benefit of all presumptions and inferences runs. H.F. Allen Orchards v. United States, 749 F.2d 1571, 1574 (Fed.Cir.1984), cert. denied, 474 U.S. 818, 106 S.Ct. 64, 88 L.Ed.2d 52 (1985).

To grant summary judgment in the present case, the court must find, as a matter of law, the party responsible for furnace replacement under the lease.

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Cite This Page — Counsel Stack

Bluebook (online)
36 Cont. Cas. Fed. 75,831, 20 Cl. Ct. 8, 1990 U.S. Claims LEXIS 49, 1990 WL 31700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romala-corp-v-united-states-cc-1990.