Sgs-92-X003 v. United States

118 Fed. Cl. 492, 2014 WL 4802453
CourtUnited States Court of Federal Claims
DecidedSeptember 26, 2014
Docket1:97-cv-00579
StatusPublished
Cited by5 cases

This text of 118 Fed. Cl. 492 (Sgs-92-X003 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
Sgs-92-X003 v. United States, 118 Fed. Cl. 492, 2014 WL 4802453 (uscfc 2014).

Opinion

Breach of Implied-in-Fact Contract; Breach of Duty of Good Faith and Fair Dealing; Duty to Protect; Confidential Informant; Violation of Procedures; Multiple Sclerosis; Expectation Damages; Causation; Foreseeability; Reasonable Certainty.

OPINION AND ORDER

WILLIAMS, Judge.

This breaeh-of-contraet action comes before the Court after a trial on damages. In its decision addressing liability, the Court determined that the Drug Enforcement Administration (“DEA”) breached an implied-in-fact contract and its duty of good faith and fair dealing by failing to protect Plaintiff, an undercover informant. During an undercover operation in Colombia, Plaintiff, known as “the Princess,” was kidnapped and held captive for more than three months. Plaintiff claims that her kidnapping and prolonged captivity caused the onset of her multiple sclerosis 2 and seeks compensatory damages in the amount of $10,000,000 for financial losses, inconvenience, future medical expenses, physical pain and suffering, and mental anguish arising from Defendant’s breach.

Because Plaintiff demonstrated that Defendant’s breach of contract was a substantial factor in causing the Princess’ kidnapping and captivity, and triggering her multiple sclerosis, the Court awards the Princess the value of her life care plan, $1,145,161.47. 3 Plaintiff failed to prove any other damages.

Findings of Fact 4

Plaintiff served as a confidential informant for DEA from December 1991 to 1995. DX 6; 5 PX 119. The Princess and DEA representatives signed a “Statement of Understanding” that acknowledged that the Princess was “a cooperating individual involved in obtaining confidential information for [DEA] and has voluntarily undertaken the role for compensation.” DX 6; PX 1. *496 DEA ran an undercover operation revolving around the Princess out of its Fort Lauder-dale District Office (“FLDO”). As head of that office, Assistant Special Agent in Charge (“ASAC”) Joseph P. Salvemini created the “Southeast Florida State and Local Task Force” to focus on top-tier narcotics cases. 6 SGS-92-X003 v. United States, 85 Fed.Cl. 678, 682 (2009).

The Princess was the key informant in a long-term money-laundering operation aiming to develop eases against high echelon drug traffickers and money launderers. See PX. 611. 7 As a “cover” for her work as an informant, Plaintiff posed as a money launderer. Id.; 2011 Tr. 518 (Princess). 8 The Princess’ work for DEA “resulted in the penetration of a number of targeted kingpin organizations” that recognized her as a “safe avenue for laundering their illicit drug proceeds” and, she was “increasingly being contacted by representatives of these [organizations]” to launder money. PX. 611. According to a letter ASAC Salvemini sent to DEA Headquarters, the Princess’ cooperation resulted in seizure of approximately $23 million, over 20 “spin-off’ investigations, multiple arrests, prosecutable cases against approximately 80 traffickers, “cell-heads” and couriers, and unquantifiable intelligence. SGS-92-X003 v. United States, 74 Fed.Cl. 637, 648 (2007).

DEA Recognized Its Duty to Protect the Princess

From the beginning of her tenure as an undercover informant, DEA actively undertook steps to protect the Princess. During the Princess’ first meeting with ASAC Sal-vemini, he discussed her security and promised her that he “would do everything within [his] power to make sure that she was never injured or placed in harm’s way.” 2007 Tr. 290 (Salvemini). As the Princess’ supervising DEA official from DEA’s Fort Lauder-dale, Florida District Office, ASAC Salvemini testified, he “had concerns on a daily basis with her safety.” 2007 Tr. 321 (Salvemini). In an internal DEA memorandum dated March 17, 1993, DEA intelligence analyst Sandra Neal, who frequently worked with the Princess, acknowledged the risk to Plaintiff and her family if the Princess’ identity were revealed. The memo stated: “[b]y virtue of the fact of that [the Princess] has been accepted as ‘trustworthy1 by [drug trafficking organizations] it can be assumed that [the Princess] is now known to all, and were [the Princess’] identity to be revealed, all activities in the above-cited cases would undoubtedly terminate, and [the Princess] and [the Princess’] family would be placed in a position of grave danger.” PX 611. The Princess too was concerned about her safety and asked that DEA implant a tracker in her arm. 2007 Tr. 134 (Princess); 2011 Tr. 533 (“I did request there be a ... [tracker] — like a Norplant so they will know where I was.... But they always told me that they had everything under control.”). For safety reasons, the Princess requested that DEA remove her family from Colombia, and ASAC Salvemini arranged for the Princess’ brother, his wife, and their two children to come to the United States where they moved in with the Princess. 2007 Tr. 144-45 (Princess); see also 2007 Tr. 291 (Salvemini).

Another example of DEA’s efforts to protect the Princess involved an incident in November 1993, when a member of the Italian mafia arranged to “test” Princess by having her launder money after a “pick-up” in Geneva, but DEA unexpectedly seized the money and called the Princess to warn her to “get out of there.” 2007 Tr. 135-36 (Princess); 2011 Tr. 532-33 (Princess); PX 140.

*497 The Princess’ International Work for DEA

As part of the money laundering operation, the Princess regularly traveled outside the United States, including trips to Colombia, Venezuela, Costa Rica, Italy, Geneva, and France. 2011 Tr. 519 (Princess); see also SGS-92-X003 v. United States, 85 Fed.Cl. 678, 699 (2009) (citing 2007 Tr. at 128-29, 138-39) (“[S]he and DEA executed numerous operations in Colombia and several other international locations including Switzerland, Costa Rica, Ecuador, Spain, Italy, and Canada.”); PX 92 at G-17.

Indications that the Princess’ Cover Was Compromised

In 1994, the Princess received a letter written by one drug trafficker to another that stated, in essence, “be careful” of the Princess because she works for DEA and “gave up” the author, and is “trying to do the same to other people.” 2011 Tr. 525-26 (Princess). 9 Upon her return to the United States, the Princess immediately handed the letter over to the DEA agents. Id. Similarly, according to an application for monetary award for the Princess authored by ASAC Salvemini, the Princess received a death threat on a “recent” trip to Cali, Colombia because she had been identified as working for DEA and would be killed upon her arrival. PX10. 10

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Cite This Page — Counsel Stack

Bluebook (online)
118 Fed. Cl. 492, 2014 WL 4802453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sgs-92-x003-v-united-states-uscfc-2014.