United States v. Morgan

196 F. Supp. 345, 1961 U.S. Dist. LEXIS 4058
CourtDistrict Court, D. Maryland
DecidedAugust 1, 1961
DocketCiv. A. No. 10799
StatusPublished
Cited by4 cases

This text of 196 F. Supp. 345 (United States v. Morgan) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Morgan, 196 F. Supp. 345, 1961 U.S. Dist. LEXIS 4058 (D. Md. 1961).

Opinion

R. DORSEY WATKINS, District Judge.

The United States as lessor of fifteen premises located in Southwest Washington, D. C., containing thirty-one apartment units to be used for residential purposes, has brought suit against the defendants jointly and severally to recover $335.60 allegedly due as rent. Defendants have filed an answer denying all of the allegations of the complaint, setting up the statute of limitations as a bar to recovery and have counterclaimed for the return to them of the sum of $62.-70. The United States as moved for summary judgment on its complaint and defendants have moved for summary judgment in their favor on the complaint and on their counterclaim.

The first question presented to the court for consideration is whether or not the Government’s claim is barred by limitations. Chief Judge Thomsen of this court had occasion in United States v. Fidelity-Baltimore National Bank & Trust Company, D.C.D.Md.1959, 173 F. Supp. 565, 567-568 to review extensively the cases supporting the general doctrine that the United States is not bound by limitations, and the few exceptions to that general rule. Here as in that case the United States contends that it is suing as a sovereign to enforce a public right or assert a public interest and thus is not barred by limitations. On the other hand, the defendants take the position that the United States in the leasing of the property involved entered into an ordinary commercial transaction, abandoning any sovereign immunity, and thereby coming within the “business relations” exception to the general rule. It, therefore, becomes necessary to examine by what authority the premises were acquired, by what authority they were leased, and the nature of the transaction as characterized by the terms and provisions of the lease itself.

The lease recites that it was entered into between the defendants and the “United States of America, acting by and through the Director of Real Property Acquisition and Utilization Division, [347]*347Public Buildings Service, General Services Administration (hereinafter called the ‘Government’), under and pursuant to the authority contained in Public Law 152, 81st Congress, approved June 30, 1949, as amended,” (63 Stat. 380). The leased premises in the instant case were originally acquired under an Act passed by Congress to provide, inter alia, for the acquisition of land in the District of Columbia for the construction of public buildings (44 Stat. 630-635) 40 U.S.C.A. § 341 et seq. Pursuant to this statute the Secretary of the Treasury was authorized and directed to acquire by purchase, condemnation, or otherwise, suitable sites for Federal buildings. Section 5 of the Act provided that in case a site acquired under the Act contained a building, the Secretary of the Treasury was authorized to rent such building until its removal (44 Stat. 634). Thereafter, the functions of the Secretary of the Treasury were transferred to the Federal Works Administrator under 1939 Reorganization Plan No. I (See annotations to section 133t of Title 5 U.S.C.A., Part 3 of Plan No. I, section 303, Public Buildings Administration). In 1949 all functions of the Federal Works Agency were transferred to the Administrator of General Services (63 Stat. 380, section 103 (a); Title 5 U.S.C.A. § 630b). He was accordingly authorized, in his discretion, to rent sites previously acquired until they were needed for construction purposes. Thus, as a tracing of the statutory authority reveals and as recited by the lease at the time of the execution of the lease herein involved, the leased premises were under the authority and control of the General Services Administration.

The lease itself contains certain provisions not found in the ordinary commercial lease. For example, all records of the lessees relating to the operation of the properties were to be made available for inspection by authorized representatives of the Government at all reasonable times. The Government reserved the right to enter the leased premises at any reasonable time for the purpose of inspecting the buildings. The lessees warranted that the rentals to be charged by them in subletting the apartments should not exceed the ceiling prices established by the Office of Rent Control in the District of Columbia and that they would furnish each subtenant with the services and supplies required by the Office of Rent Control. The Government reserved the right to enter upon the properties at any time for the purpose of investigating the sub-surface in connection with the preparation of plans and specifications for any proposed Federal Development. Right was reserved by the Government to permit prospective bidders for the work of constructing any proposed Federal Development to enter and make such investigations of subsoil conditions as might be necessary. All material determined pursuant to section 5(b) (1) of the Atomic Energy Act of 1946 (60 Stat. 761) to be essential to the production of fissionable material was reserved “for the use of the United States”, with a right in the Government to enter at any time to prospect for and remove said material. It was provided further that all disputes concerning questions of fact arising under the lease should be determined by the Commissioner of Public Buildings Service, General Services Administration, subject to appeal by the lessees to the Administrator of General Services, whose decision was to be final and conclusive upon the parties. The lessees agreed not to discriminate against any applicant for employment in connection with the performance of work under the lease because of race, creed, color, or national origin and to require their subcontractors to make similar covenants against discrimination in their subcontracts.

As the land and buildings in question were acquired, pursuant to statutory authority, for federal purposes and were leased as authorized by statute and on terms and conditions protecting the public interest, it can only be concluded that in suing to recover rent allegedly due to the Government, the United States is acting in its sovereign capacity and is [348]*348not bound by any statute of limitations. A case closely similar aptly stated the law as follows:

“ -» * * it would indeed appear from the venerable and respectable dicta cited, and from the stated grounds of the decisions, that the United States might, in the holding and disposition of property, ‘come down from its position of sovereignty’ and thus be subject to a state time limitation. But not a single case has been cited or found in which the United States has been held barred by a state statute of limitations because the Government had abandoned its sovereign capacity. In this connection, at least, the reason may be that ‘The United States do not and cannot hold property, as a monarch may, for private or personal purposes.’ Van Brocklin v. State of Tennessee, 117 U.S. 151, 158, 6 S.Ct. 670, 674, 29 L.Ed. 845. Or as put more recently ‘Every acquisition, holding, or disposition of property by the Federal Government depends upon proper exercise of a constitutional grant of power.’ United States v. Allegheny County, 322 U.S. 174, 182, 64 S.Ct. 908, 913, 88 L.Ed. 1209.
“Whatever the answer to that problem is, the Government was not, in this case, a ‘mere’ lessor of real estate. The lease was executed pursuant to statutory authority, 41 Stat. 129, 10 U.S.C.

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Cite This Page — Counsel Stack

Bluebook (online)
196 F. Supp. 345, 1961 U.S. Dist. LEXIS 4058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-morgan-mdd-1961.