Snyder v. United States

54 Fed. Cl. 686, 2002 U.S. Claims LEXIS 341, 2002 WL 31819255
CourtUnited States Court of Federal Claims
DecidedDecember 16, 2002
DocketNo. 96-231C
StatusPublished
Cited by1 cases

This text of 54 Fed. Cl. 686 (Snyder 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
Snyder v. United States, 54 Fed. Cl. 686, 2002 U.S. Claims LEXIS 341, 2002 WL 31819255 (uscfc 2002).

Opinion

ORDER TO SHOW CAUSE

SMITH, Senior Judge.

This matter is before the Court on defendant’s Motion to Dismiss for Lack of Subject Matter Jurisdiction, or in the alternative, for Summary Judgment filed on May 18, 1999. Plaintiff filed a brief in opposition on January 15, 2002. On February 28, 2002, defendant filed its reply. Oral argument was held on defendant’s motion on March 12, 2002. In response to a post-hearing order, plaintiff filed a Submission of Value and Inventory of Coins on April 15, 2002. Plaintiff filed explanations of the Submission on May 30, 2002, and July 9, 2002.

Defendant’s Motion to Dismiss argues that this Court lacks jurisdiction to entertain plaintiffs claim because actions against the assets of failed thrifts and the conduct of the Federal Deposit Insurance Corporation (“FDIC”) fall exclusively under the review scheme established by Congress in the Fi[687]*687nancial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA”). The government’s motion raises a somewhat complex question of statutory construction. It seems to the Court, however, that a more basic problem in plaintiffs claim exists.

The Rules of the Court of Federal Claims (“RCFC”), 12(b)(6), provide for dismissal based on the “failure to state a claim upon which relief can be granted.” In ruling upon a motion to dismiss, a court must grant the motion “when the facts asserted by the plaintiff do not under the law entitle him to a remedy.” Boyle v. United States, 200 F.3d 1369, 1372 (Fed.Cir.2000). As the Supreme Court reasoned, a RCFC 12(b)(6) motion may dispose of plaintiffs claims if “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957). In assessing a motion to dismiss under RCFC 12(b)(6), the court “must accept all well-pleaded factual allegations as true and draw all reasonable inferences in [the nonmovant’s] favor.” Id. However, “conclusory allegations of law and unwarranted inferences of fact do not suffice to support a claim.” Bradley v. Chiron Corp., 136 F.3d 1317, 1322 (Fed.Cir.1998).

In the instant matter, plaintiff alleges that the FDIC damaged and lost several coins that were part of a collection plaintiff provided as collateral for a $300,000 promissory note payable to Rushville National Bank (“RNB”). On December 18, 1992, RNB was closed by the Office of Comptroller of the Currency and the FDIC was named as receiver of the failed bank. After requesting (and not receiving) payment from plaintiff on the $300,000 note, the FDIC began proceedings to sell the coin collection at auction. To prevent the auction, in November 1993, plaintiff entered an agreement with the FDIC to purchase the collection for $25,500, which reflected the appraised value of the coin collection plus auction termination costs.

In the Complaint, plaintiff characterized its claim as “a ‘taking’ for a public purpose since it [the FDIC] denied all economic and beneficial or productive use of the coin collection to Snyder.” Pl.’s Compl. H 41. On that theory, plaintiff alleges damages in the amount of $315,000 as just compensation for the government’s taking of his coin collection. Id. at ¶¶39-47. In plaintiffs Brief in Opposition to Defendant’s Motion he also asserts “[T]he actions of the government ... constitute a 5th Amendment ‘taking’ of plaintiffs property, and a breach of contract for which the Government is hable.” Pl.’s Br. in Opp’n at p. 31. However, plaintiffs Complaint lacks a specific damage claim under a breach of contract theory. No matter how the claim is characterized, plaintiff limits its allegations and claim to damages to “wrongful misconduct and breach of agreement concerning facts and transactions between FDIC and Snyder after the filing of Hoosier Bancorp, Snyder, Hedrick v. United States ... and not relating to any prior litigations, claims, or dismissal.” Pl.’s Compl. ¶ 31 (emphasis in original). Therefore, the Court will use the Hoosier Bancorp filing date of August 29, 1994, as the date to determine if plaintiff can sufficiently allege a set of facts in support of a takings or breach of contract claim that would entitle him to relief.

In assessing the motion to dismiss, the Court must examine each claim separately. First, plaintiffs takings claim is based upon alleged government misconduct occurring after plaintiff completed the purchase of the coin collection on January 11, 1994. Pl.’s Compl. ¶18. However, because the FDIC and plaintiff entered an agreement in November 1993, for the return of the coin collection, a takings claim is barred and plaintiff must seek redress under contract theory. See Home Sav. of America, F.S.B. v. United States, 51 Fed.Cl. 487, 494-95 (2002). As the Federal Circuit found in Hughes Comm. Galaxy, Inc. v. United States:

“[T]he concept of a taking as compensable claim theory has limited application to the relative rights of party litigants when those rights have been voluntarily created by contract. In such instances, interference with such contractual rights generally gives rise to a breach claim not a taking claim. Takings claims rarely arise under government contracts because the Government acts in its commercial or proprietary capacity in entering contracts, rather than [688]*688in its sovereign capacity. Accordingly, remedies arjse from the contracts themselves, rather than from the constitutional protection of private property.” 271 F.3d 1060, 1070 (Fed.Cir.2001) (citing Sun Oil Co. v. United States, 215 Ct.Cl. 716, 572 F.2d 786, 818 (1978)).

In the instant case, the terms of the November 1993 agreement created plaintiffs rights, and any interference with those rights gives rise to a breach of contract remedy. Therefore, plaintiffs takings claim fails to state a claim upon which this Court can grant relief.

Second, plaintiff alleges that “[T]his case is a breach of contract claim by not delivering the coin collection it [the government] agreed to deliver upon full payment .... ” Pl.’s Br. in Opp’n at p. 4. The alleged contract is the November 1993 agreement with the FDIC for the release of the coin collection in exchange for three installment payments totaling $25,500. The agreement set forth a payment schedule and provided that “the coins shall be made available for borrower to pick up after the final payment is received.” Pl.’s Compl. H35. The price of the agreement was based on a June 3, 1993, inventory and appraisal of the coin collection obtained by the FDIC. Def. Proposed Findings of Uncontroverted Fact No. 7. The appraisal estimated the total value of the coin collection at $22,722.11. Id. On January 11,1994, plaintiff remitted the final payment under the agreement and expressed a desire to pick up the collection from the FDIC sometime between January 25, 1994 and January 27, 1994. Id. at Nos. 13 & 14. Plaintiff did not pick up the coin collection at that time because he declined to sign a Redemption of Collateral Agreement drafted by the FDIC. Id. at Nos. 15 & 16.

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Bluebook (online)
54 Fed. Cl. 686, 2002 U.S. Claims LEXIS 341, 2002 WL 31819255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snyder-v-united-states-uscfc-2002.