United States v. 229.34 Acres of Land

246 F. Supp. 718, 1965 U.S. Dist. LEXIS 7192
CourtDistrict Court, N.D. Indiana
DecidedOctober 12, 1965
DocketCiv. No. 3179
StatusPublished

This text of 246 F. Supp. 718 (United States v. 229.34 Acres of Land) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 229.34 Acres of Land, 246 F. Supp. 718, 1965 U.S. Dist. LEXIS 7192 (N.D. Ind. 1965).

Opinion

GRANT, Chief Judge.

This action in condemnation was brought by the United States under the authority of the Act of Congress approved February 26, 1931 (46 Stat. 1421, 40 U.S.C. § 258a), and acts supplementary thereto and amendatory thereof, and [719]*719under the further authority of the Acts of Congress approved April 24, 1888 (25 Stat. 94, 33 U.S.C. § 591), and March 1, 1917 (39 Stat. 948, 33 U.S.C. § 701), which acts authorize the acquisition of land for flood control projects; the Act of Congress approved July 3, 1958 (Public Law 85-500, 72 Stat. 297), which act authorizes the construction of the Salamonie Reservoir, and the Act of Congress approved October 24, 1962 (Public Law 87-880, 76 Stat. 1216), which act appropriated funds for such purpose. The complaint herein was filed March 19, 1963.

In its complaint, the Government recited that the use for which the property is to be taken is for flood control purposes and other uses incident thereto. The property involved has been selected by the Secretary of the Army for acquisition by the United States for use in connection with the establishment of the Salamonie Reservoir on the Salámonie River in Indiana and for such other public uses as may be authorized by Congress or by Executive Order.

The estate to be taken for said public use in this action consists of: (a) the fee simple title to the tracts numbered 106, 107, 110, and 118; (b) a perpetual and assignable easement with respect to the tracts numbered 110-E-l and 110-E-4; and (c) a temporary easement with respect to the tracts numbered 110-E-2 and 110-E-3.

Thereafter, on March 3, 1964, the Government filed a motion for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure on the ground that the pleadings conclusively show that the Government is entitled to a judgment as a matter of law as to Tract Nos. 106, 110, and 118. The basis of said motion were certain “options” for the purchase of fee simple title (copies of which were appended to the motion as exhibits thereto) going to the aforementioned three tracts, which, the Government contended, were binding upon the prior owners as valid contracts to sell real property. The Government’s allegations on the mption for summary judgment were:

(a) “ * * * (S)ince Arthur V. Rehak and Madge E. Rehak, his wife, on June 7, 1962, executed an option for purchase of fee simple title to Tract Number 106, Exhibit A, agreeing to accept the sum of $3,000.00 for said purchase, which option was accepted on behalf of the United States of America' on June 13, 1962, there can be no objection to the acquiring of the fee simple title to Tract Number 106, or to the amount of the just compensation therefor.”
(b) “* * * (S)ince Ray H. Craig and Esther M. Craig, his wife, on June 6, 1962, executed an option for purchase of fee simple title to Tract Number 110, Exhibit B, agreeing to accept the sum of $8,-000.00 for said purchase, which option was accepted on behalf of the United States of America, on June 13, 1962, there can be no objection to the acquiring of the fee simple title to Tract Number 110, or to the amount of just compensation therefor.”
(e) “* * * (S)ince Lewis A. Harmon and Kathryn Harmon, his wife, on June 19, 1962, executed an option for purchase of fee simple title to Tract Number 118, Exhibit C, agreeing to accept the sum of $12,000.00 for said purchase, which option was accepted on behalf of the United States of America on June 26, 1962, there can be no objection to the acquiring of the fee simple title to Tract Number 118, or to the amount of the just compensation therefor.”

The Government then contended that an option which has been timely accepted and was not obtained by fraud or force is valid and binding on those who have executed it under a contractual relationship.

In their reply to the Government’s motion, the prior owners of the three tracts admitted the instruments in ques[720]*720tion were indeed “options”, but contested the Government’s reading of the legal effect of same. Thus resisting the motion for summary judgment, the defendants contended, first, that the “options” were without legal consideration and were therefore unenforceable. Secondly, it was contended that the “options” were revoked and rescinded by defendants prior to acceptance by the United States and were unenforceable as valid contracts. And finally, defendants contended that said “options” were unenforceable for the reason that they were acquired by the Government by fraud and misrepresentation.

On March 19,1965, hearing was had on the issues of revocation and fraud, issues the defendants asserted were unresolved and pertained to material facts thus precluding summary judgment for the United States. At said hearing, the parties were present and represented by counsel, evidence was presented, all material witnesses testified as to the transactions in question, and arguments of counsel were heard. At the close of the hearing, the Court ordered memoranda to be submitted on the issues involved, and the matter was taken under advisement.

Before setting forth the Court’s findings of fact and conclusions of law with respect to these issues, it is well that the Court first state what is ripe for disposition at this time in light of the posture the case has taken since the filing of the Government’s motion for summary judgment. We do this for the reason that a review of the file clearly indicates that the parties hold divergent views as to the nature and scope of the hearing of March 19, 1965.

In this respect, defendants have urged that, inasmuch as the matter was before the Court on a motion for summary judgment, the Court was limited to determining whether or not a material issue of fact was outstanding. This contention means that, in defendants’ view, the testimony heard and the evidence received during the hearing of March 19, 1965, which incidentally took practically the entire day to complete, went only to the question of whether or not the motion for summary judgment should be denied for the reason that there then existed an unresolved material issue of fact. Defendants further contend that, because the testimony of the parties was largely in conflict, a factual issue was conclusively shown to exist. This being so, the Government’s motion for summary judgment should be denied and “this case should be docketed for trial to a jury.”

On the other hand, the Government contends that the hearing of March 19, 1965, was a “trial”, pursuant to Rule 71A (h) of the Federal Rules of Civil Procedure, of the issues of fraud, consideration, and rescission. The Government would have the Court hold that the question now before it is not whether a factual issue exists, but — assuming such to be the case — whether the defendants have proved their allegations of fact by a preponderance of the evidence.

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246 F. Supp. 718, 1965 U.S. Dist. LEXIS 7192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-22934-acres-of-land-innd-1965.