Van Deman v. United States

119 F. Supp. 599, 1948 U.S. Dist. LEXIS 3063
CourtDistrict Court, N.D. Indiana
DecidedJanuary 12, 1948
DocketCiv. No. 840
StatusPublished
Cited by1 cases

This text of 119 F. Supp. 599 (Van Deman v. United States) 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
Van Deman v. United States, 119 F. Supp. 599, 1948 U.S. Dist. LEXIS 3063 (N.D. Ind. 1948).

Opinion

SWYGERT, District Judge.

This is a suit by the plaintiff, for himself and other veterans of World War IÍ similarly situated, to have the court declare void a sale of certain public property to the defendant Knox Homes, Inc., and to enjoin the defendants from consummating the sale.

The property involved consists of 139 housing units known as Park View Heights in the town of Knox, Indiana. These houses were constructed by the Government under the provisions of the so-called Lanham Act, 42 U.S.C.A. § 1521 et seq. Pursuant to the authority given under § 4 of the Act the Public Housing Administration has negotiated a sale of these properties to Knox Homés, Inc.

The plaintiffs say that the contract was not properly negotiated and that as veterans they have a preference in the purchase of these houses because of the provisions of the Surplus Property Act of 1944, 50 U.S.C.A.Appendix, § 1611 et seq., particularly 50 U.S.C.A.Appendix, § 1632f (1).

The motion to dismiss filed by- the-United States Attorney presents a question of the jurisdiction of the court over the defendants, United States of America, Public Housing Administration, and Orville R. Omstead, Director of Region III of the Public Housing Administration.

It is axiomatic that the United States is immune from legal action unless it consents to be sued. U. S. v. Sherwood, 312 U.S. 584, 61 S.Ct. 767, 85 L.Ed.. 1058. Accordingly, the first question to-be resolved relates to the Government’s, consent, if any, to be sued in matters arising out of the administration of defense housing constructed under the provisions of the Lanham Act. Specifically,, the question goes to whether the Public-Housing Administration is an agency and instrumentality of the United States. Government which may be sued as the present successor to the Federal Works; Agency in the supervision, administration and disposal of government property acquired under this Act.

The plaintiffs have sued the Federal 'Public Housing Administration. It is-, assumed that they refer to the Public Housing Administration, because that is the administrative unit which now carries out the functions of the Federal Works Agency, which governmental unit was originally charged with supervising the creation of certain housing projects adjacent to defense-plant areas and with carrying out the other provisions of the Lanham Act.

The Lanham Act was passed on October 14, 1940. At the time of its enactment the administrative functions, duties, and powers imposed by the Act were charged to the Federal Works Administrator, who was the executive head of the Federal Works Agency. The Federal Works Agency was created by Executive Order, Reorganization Plan No. 1, effective July 1, 1939, 4 F.R. 2727, 53 Stat. 1423, Title 5 U.S.C.A. § 133t note. Part 3 of that order transferred to the Federal Works Agency the powers, functions and duties of several governmental agencies and instrumentalities, including the [601]*601United States Housing Authority. This latter Authority, a wholly-owned government corporation, was created by an act of Sept. 1, 1937, c. 896, 50 Stat. 888, Title 42 'U.S.CA. § 1401 et seq. Under, the provisions of § 5 (b) of that Act, Title 42 U.S.C.A. § 1405(b), the United States Housing Authority could sue and be sued.

Pursuant to Title I of the First War Powers Act of 1941, Public Law 354, 77th Congress, 50 U.S.C.A.Appendix, § 601 et seq., the President of the United States by' Executive Order No. 9070, 50 U.S. C.A.Appendix, § 601 note, on February 24," 1942, created the National Housing Agency. This order transferred the supervision of the United States Housing Authority from the Federal Works Agency to the Federal Public Housing Authority, one of three component parts of the National Housing- Agency. This order also provided that all functions, powers and duties of the Federal Works Agency relating to defense housing under the Lanham Act were to be transferred to the National Housing Agency and be administered by the Federal Public Housing Authority.

On July 27, 1947, a Presidential Executive Order known as Reorganization Plan 3 of 1947, 5 U.S.C.A. § 133y-16 note, and made pursuant to the Reorganization Act of 1945, 5 U.S.CA. §§ 133y to 133y-16, became effective. This order created the Housing and Home Finance Agency and within this overall agency are three constituent agencies, one of which is the Public Housing Administration. By § 4 of Plan 3, the Commissioner of the Public Housing Administration has been delegated the following functions:

(a) To administer the duties of the Administrator of the United States- Housing Authority, which government-owned corporation is hereafter to be known as the Public Housing Administration.
(b) To administer the duties previously assigned to ' the National Housing Agency with respect to nonfarm housing projects and certain other properties. (The project at- Knox comes within this subsec-tion.) ,-
(c) To liquidate and dissolve the Defense Homes Corporation.'

Thus it appears that these three functions of the Commissioner of the Public Housing Administration are separate and distinct, and the fact that the duties under heading (a) relate to a government-owned corporation which may sue and be sued does not affect the capacity of the agency to be sued in connection with other functions and duties relating to the- Lanham Act* under heading (b). The United States Housing Authority, as such, has never had any connection with housing projects constructed under the Lanham Act, although the functions, duties, and powers relating to the United States Housing Authority and to the administration -of the Lanham Act have been coexistent in first the Federal Works Agency, then the Federal Public Housing Authority, and now in the Public. Housing Administration.

Furthermore, Congress has not waived the sovereign immunity from suit with reference to its agents, the Federal Works Agency, the National Housing Agency and its component part, the Federal Public Housing Authority, or the Housing and Home Finance Agency and its component part, the Public Housing Administration, except as their functions, duties, and powers relate to those governmental units which Congress has specifically allowed to be sued, such as the United States Housing Authority.

Having decided that Congress has not consented that the United States government may be sued through the Public Housing Administration with reference to its functions in administering housing projects constructed under the Lanham Act, the question of jurisdiction over the Regional Director still remains.

- The duties of the Regional Director in connection with the sale in question were not ministerial, but were executive and discretionary in charae[602]*602ter. Under such circumstances the official cannot be sued for his official acts unless Congress has consented that he may be sued. Wells v. Roper, 246 U.S. 335, 38 S.Ct. 317, 62 L.Ed. 755; Goldberg v. Daniels, 231 U.S. 218, 34 S.Ct. 84, 58 L.Ed. 191. Furthermore, these duties had to do with property belonging to the government and not with personal or property rights of the plaintiffs. There is no law or regulation which requires the Regional Director of the Public Housing Administration to sell these properties to these plaintiffs.

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Related

Breen v. Housing Authority
119 F. Supp. 320 (W.D. Pennsylvania, 1954)

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Bluebook (online)
119 F. Supp. 599, 1948 U.S. Dist. LEXIS 3063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-deman-v-united-states-innd-1948.