The Review Company v. The United States

425 F.2d 1227, 192 Ct. Cl. 259, 1970 U.S. Ct. Cl. LEXIS 191
CourtUnited States Court of Claims
DecidedMay 15, 1970
Docket429-65
StatusPublished

This text of 425 F.2d 1227 (The Review Company v. The 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
The Review Company v. The United States, 425 F.2d 1227, 192 Ct. Cl. 259, 1970 U.S. Ct. Cl. LEXIS 191 (cc 1970).

Opinion

OPINION

PER .CURIAM:

This case was referred to Trial Commissioner Louis Spector with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Rule 57 (a) [since September 1, 1969, Rule 134(h)], The commissioner has done so in an opinion and report filed on July 7, 1969. Exceptions to the commissioner’s opinion, findings of fact and recommended conclusion of law were filed by plaintiff and the case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court agrees with the commissioner’s opinion, findings and recommended conclusion of law, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Therefore, plaintiff is not entitled to recover and the petition is dismissed.

*1228 OPINION OF COMMISSIONER

SPECTOR, Commissioner:

This is an action to recover the sum of $17,522. It is characterized by plaintiff in an earlier cross-motion for summary judgment as a suit “for the use and occupation of real property owned by the plaintiff to the virtual exclusion of the plaintiff therefrom in such a manner as to work an undue and severe hardship on plaintiff and unjust enrichment to defendant, amounting to an implied agreement to pay rent and entitling plaintiff to just compensation under the Fifth Amendment to the Constitution of the United States.”

Defendant’s motion for summary judgment, and the aforementioned cross-motion were denied by this court May 18, 1968, and -the case remanded to the trial commissioner “for trial or other further proceedings.” Following a pretrial conference, the case was tried in New York City on October 21, 1968, and the material facts developed at that trial are set forth in appropriate detail in the findings of fact. They are summarized here solely to provide narrative support for this opinion.

Prior to July 17, 1961, defendant owned an 18-acre tract of land in Nassau and Queens Counties, New York, on which were located essentially three large industrial buildings, connected by covered passageways. They are hereinafter referred to as Buildings Nos. 4, 5 and 6. From July 1, 1958 until June 30, 1961, the General Bronze Corporation occupied the entire property under lease from defendant, for the purpose of performing a defense production contract. The plant was in actual operation at least through May 1961, and General Bronze employed a substantial quantity of machinery and other personalty owned by the United States Air Force, along with its own equipment and personalty, in the performance of the aforementioned contract.

At some unspecified time prior to April 10, 1961, General Bronze decided not to renew its lease following its scheduled expiration on June 30, 1961, and defendant acting through the General Services Administration issued an invitation soliciting bids for the purchase or lease of the property. Plaintiff’s bid to purchase in the amount of $600,000 was dated and opened April 10, 1961. After further negotiations, plaintiff increased its bid to $650,000 by letter of April 27, 1961, and the latter bid was accepted May 17, 1961.

The above described invitation, bid and acceptance constitute the entire agreement of sale between the parties, as specifically provided in the invitation, which further provided that “[n]o oral statements or representations made by, for, or ostensibly on behalf of either party shall be a part of such contract * * There is, in any event, no evidence of any oral statement or representation offered as varying the written agreement.

Section B, paragraph 9, of the Invitation for bids, is the contract provision around which this lawsuit revolves. It provides:

9. In the event Government-owned items of personal property or equipment not included in the Invitation are located on the premises, the General Services Administration reserves the right to remove the same or to hold sales thereof, at the location, together with the right of ingress and egress therefor, for a period of 120 days after closing of title. Any such removal or in-place sale will be conducted in such a manner as to cause the least possible interference with the successful bidder’s use and occupancy of the premises.

Plaintiff, in effect, seeks to recover on either of two theories, as follows:

(1) That the Government breached its covenant that “such removal or in-place sale will be conducted in such a manner as to cause the least possible interference with the successful bidder’s use and occupancy of the premises.”
*1229 (2) That, in any event, the Government had a common-law or implied obligation to pay plaintiff the reasonable rental value of the premises, for the period July 17 (the date of closing of title) to August 25, 1961 (the date by which all of defendant’s property had been removed).

In other words, the plaintiff charges that even though removal of all Government-owned personal property and equipment was effected within only 39 of the 120 days reserved in the contract for that purpose, either the taking of any time at all after closing of title, or the manner in which the “removal or in-place sale” was conducted, constituted more than “the least possible interference” with plaintiff’s use and occupancy of the premises.

There is no basis for this theory of relief in the record. The phrase “least possible interference,” although stated in superlatives, must be read, as all such phrases are read, against the background facts in this particular case, and it must be measured against the concept of what was reasonable in these circumstances.

When plaintiff submitted a bid for the purchase of the property, and examined the premises as the invitation required, the plant was in actual operation under a lease to General Bronze, a lease not due to expire until June 30, 1961. It was occupied with literally thousands of individual items of personalty and equipment. The invitation which was part of the contract of sale, reserved a right to remove that property or to hold sales thereof, with right of ingress and egress, for a period of 120 days after the closing of title. Since closing actually occurred on July 17, 1961, the Government’s reserved right therefore extended until the middle of November 1961. Complete removal of the Government’s property by August 25, 1961, considered solely from the standpoint of time consumed, could hardly be deemed a violation of the promise to cause the “least possible interference” with plaintiff’s use and occupancy. The latter’s insistence that the premises should have been cleared on or prior to the date of closing is entirely without foundation, and it treats the reservation of a period of 120 days thereafter in paragraph 9 of the Invitation above quoted, as if it did not exist.

Nor was the manner

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Related

Chain Belt Co. v. United States
115 F. Supp. 701 (Court of Claims, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
425 F.2d 1227, 192 Ct. Cl. 259, 1970 U.S. Ct. Cl. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-review-company-v-the-united-states-cc-1970.