United States v. Holder

292 F. Supp. 826, 12 Fed. R. Serv. 2d 123, 1968 U.S. Dist. LEXIS 9811
CourtDistrict Court, S.D. Iowa
DecidedNovember 20, 1968
DocketCiv. No. 8-2209-C-1
StatusPublished
Cited by3 cases

This text of 292 F. Supp. 826 (United States v. Holder) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Holder, 292 F. Supp. 826, 12 Fed. R. Serv. 2d 123, 1968 U.S. Dist. LEXIS 9811 (S.D. Iowa 1968).

Opinion

MEMORANDUM AND ORDER

STEPHENSON, Chief Judge.

This matter is now before the Court on the motion of plaintiff, United States of America, to dismiss the counterclaim [828]*828interposed herein by the defendants. Defendants have responded to said motion, and both parties have provided the Court with briefs.

In simple terms this is a controversy between adjoining landowners. The defendants are record titleholders of a lot which was conveyed to them by warranty deed executed by the Federal Housing Administration, an agency of the plaintiff. The adjoining lot is owned by the plaintiff, through its officer J. S. Gleason, Jr., as Administrator of Veterans Affairs, although there is presently outstanding on said lot a contract for sale. A controversy has arisen between these adjoining landowners over the water and sewer lines which cross defendants’ lot in order to reach and service the lot owned by plaintiff. Plaintiff asks that an easement over defendants’ lot for the sewer and water lines be established as a matter of record and that the defendants be permanently enjoined from interfering with the sewer and water lines. Defendants deny the existence of such easement and ask that title be quieted in them. By way of counterclaim defendants in essence seek damages in the amount of $5,000 for breach of the warranty deed executed by the Federal Housing Administration if the plaintiff is successful in obtaining the easement.

Plaintiff has moved to dismiss said counterclaim on the ground that it seeks an affirmative judgment against the plaintiff, United States of America, which has not consented thereto and therefore this Court lacks jurisdiction to entertain the counterclaim. Defendants contend jurisdiction is conferred on this Court by 12 U.S.C.A. § 1702 and 28 U. S.C.A. § 1346(a) (2).

It is fundamental, of course, that without statutory consent no suit may be brought against the United States. Where suits against the United States are authorized they are allowed only in the designated forum and only to the extent that the United States has consented to be sued. These limitations apply to counterclaims as well as to original suits. Thus the United States does not, merely by filing its complaint, consent to be sued on a counterclaim based upon a cause of action on which it had not otherwise given its consent to be sued. United States v. Shaw, 309 U.S. 495, 60 S.Ct. 659, 84 L.Ed. 888 (1940).

It is true, as argued by defendants, that the claim of defendants is a compulsory counterclaim within the meaning of Rule 13(a), Federal Rules of Civil Procedure. The counterclaim herein obviously “arises out of the transaction or occurrence that is the subject matter of the opposing party’s claim and does not require for its adjudication the presence of third parties of whom the Court cannot acquire jurisdiction.” This, however, in no way disposes of the question of jurisdiction, because Rule 13(d) provides:

“Counterclaim against the United States. These rules shall not be construed to enlarge beyond the limits now fixed by law the right to assert counterclaims or to claim credits against the United States or an officer or agency thereof.”

This limitation on counterclaims has generally led the courts to hold as stated in Frederick v. United States, 386 F.2d 481, 488 (5th Cir. 1967):

“Our conclusion is that when the sovereign sues it waives immunity as to the claims of the defendant which assert matters in recoupment — arising out of the same transaction or occurrence which is the subject matter of the government’s suit, and to the extent of defeating the government’s claim but not to the extent of a judgment against the government which is affirmative in the sense of involving relief different in kind or nature to that sought by the government or in the sense of exceeding the amount of the government’s claims; * * *”

See also United States v. Lashlee, 105 F.Supp. 184 (W.D.Ark.1952). The counterclaim of defendants herein, although compulsory, is of a different nature than the original claim of the Gov-[829]*829eminent, and therefore cannot be utilized as a set-off or in recoupment. Under the circumstances of this case the counterclaim must be considered as seeking an affirmative judgment against the Government and thereby requires a waiver of immunity to confer jurisdiction on this Court. The Court, therefore, must determine whether an independent basis for jurisdiction of the counterclaim exists in the present case.

Defendants rely on 12 U.S.C.A. § 1702 and 28 U.S.C.A. § 1346 as statutory waivers of immunity applicable to this case, thereby conferring jurisdiction on this Court. In this regard 12 U.S.C. A. § 1702 provides that the Secretary of Housing and Urban Development is “authorized in his official capacity, to sue and be sued in any court of competent jurisdiction, State or Federal.” This provision, however, does not constitute a consent by the United States as such that it may be sued and, therefore, cannot confer jurisdiction in this case. Waylyn Corp. v. United States, 231 F.2d 544, 546 (1st Cir.1956).

Title 28 U.S.C.A. § 1346(a) (2), otherwise known as the Tucker Act, provides that:

“(a) The district courts shall have original jurisdiction, concurrent with the Court of Claims, of:
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“(2) Any other civil action or claim against the United States, not exceeding $10,000 in amount, founded * * * upon any express or implied contract with the United States, or for liquidated or unliquidated damages in cases not sounding in tort.”

There is no doubt that the Tucker Act constitutes a consent by the United States to be sued directly under the limitations provided therein. There is a division of authority, however, as to the use of the Tucker Act as a basis for jurisdiction of a counterclaim against the United States.

One view, which is followed by a substantial number of decisions, holds that under the Tucker Act no affirmative recovery may be had by means of a counterclaim against the United States, and that the only relief against the United States by means of a counterclaim is in the nature of recoupment or set-off. United States v. Nipissing Mines Co., 206 F. 431 (2d Cir.1913); United States v. Ameco Electronic Corp., 224 F.Supp. 783 (E.D.N.Y.1963); United States v. Carey Terminal Corp., 209 F.Supp. 385 (E.D.N.Y.1962); United States v. Anasae International Corp., 197 F.Supp. 926, 929 (S.D.N.Y.1961); United States v. Boris, 122 F.Supp. 936 (E.D.Pa.1954); United States v. Wessel, Duval & Co., 115 F.Supp. 678, 686 (S.D.N.Y.1953); United States v. Double Bend Mfg. Co., 114 F.Supp. 750 (S.D.N.Y.1953); United States v. Jos. Behr & Sons, Inc., 110 F.Supp. 286, 287 (N.D.Ill.1953); United States v. Wissahickon Tool Works, 84 F.Supp. 896 (S.D.N.Y.1949), aff’d, 200 F.2d 936 (2d Cir.1952). This doctrine was originally expressed in United States v. Nipissing Mines Co., supra, 206 F. at 434, when the court stated:

“The affirmative judgment against the United States upon the counterclaim cannot, however, be permitted to stand.

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292 F. Supp. 826, 12 Fed. R. Serv. 2d 123, 1968 U.S. Dist. LEXIS 9811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-holder-iasd-1968.