Webb & Associates, Inc. v. United States

19 Cl. Ct. 650, 1990 U.S. Claims LEXIS 69, 1990 WL 17962
CourtUnited States Court of Claims
DecidedFebruary 28, 1990
DocketNo. 412-89 L
StatusPublished
Cited by8 cases

This text of 19 Cl. Ct. 650 (Webb & Associates, Inc. v. 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
Webb & Associates, Inc. v. United States, 19 Cl. Ct. 650, 1990 U.S. Claims LEXIS 69, 1990 WL 17962 (cc 1990).

Opinion

OPINION

RADER, Judge.

This action involves a dispute about the operation and maintenance of a Wherry Military Housing Act (12 U.S.C. § 1748 (1988)) (Wherry Act) project at Fort Gillem, Georgia. Webb and Associates (plaintiff or Webb) is assignee of a leasehold interest in the housing project. Plaintiff contends in this action that the United States Army (the Army) wrongfully refused to consider rent increases at the housing project.

In 1980, the Army filed an action against plaintiff and the assignor, Jon Holden Adams. In this pending federal district court action, the Army contends that plaintiff has not made required repairs and renovations to the housing complex. See United States v. Jon Holden Adams, C802049A (N.D.Ga. filed Nov. 25, 1980) (Complaint).1 The Army contends here and at the district court that plaintiff may not recover rent increases or let the premises.

Plaintiff and Mr. Adams have a counterclaim pending in the district court. In their mandatory counterclaim, plaintiff and Mr. Adams contend that the Army breached the lease agreement by forcing tenants to vacate. The Army also purportedly breached the agreement by refusing to consider rent increases. Mr. Adams and plaintiff seek damages and injunctive relief under the Federal Tort Claims Act, 28 U.S.C. § 2671 (1982), and the fifth amendment to the United States Constitution. The district court, however, has suspended proceedings while the parties attempt to resolve their dispute through a consent decree.

Meantime, plaintiff instituted this action in the United States Claims Court for breach of contract and inverse condemnation. Defendant now moves to dismiss the Claims Court action under 28 U.S.C. § 1500 (1982). Defendant contends that plaintiff’s pending counterclaim in the district court raises the same claims as plaintiff’s complaint. With respect to plaintiff’s contract breach claims, this court grants defendant’s motion. With respect to plaintiff’s inverse condemnation claim, this court denies defendant’s motion.

FACTS

In 1950, the Army entered into an agreement with Conley Housing Corporation (Conley) for the construction, maintenance, and operation of the Holland Park Housing Project at Fort Gillem, Georgia. The Army intended the housing project to serve as a residential complex for military personnel.

The Army executed the lease with Conley in accordance with the Wherry Act. Under this Act, the armed services may lease Government land to private developers. In exchange, the developers promise to build and operate low-cost housing for military personnel. 12 U.S.C. § 1748(d).

In 1966, Conley assigned its leasehold interest to Jon Holden Adams. Mr. Adams first encountered difficulties with the Government between 1975 and 1980. The Army refused to approve Mr. Adams’ request for rent increases until Mr. Adams [652]*652completed certain repairs and renovations at the housing project. In the fall of 1980, the Army closed the premises because Mr. Adams had not made necessary repairs and renovations. The Army required existing tenants to vacate.

The United States instituted an action against Mr. Adams in November 1980 in the United States District Court for the Northern District of Georgia. The Army sought termination of the agreement with Adams because he purportedly “breachfed] ... lease conditions to repair and maintain a military housing project in safe and habitable condition....” Complaint, at ¶1.

Mr. Adams denied the Army’s allegations and filed a counterclaim alleging breach of the lease agreement in violation of the Tort Claims Act and the fifth amendment. Mr. Adams sought damages in excess of $10,-000.00 for diminishing the value of his leasehold interest. Mr. Adams also sought injunctive relief to restore his right to lease the premises.

In August 1981, the United States and Mr. Adams entered into a consent decree that permitted assignment of the leasehold interest to plaintiff. The consent decree required plaintiff to make repairs as defined under the lease. Upon completion of this task, plaintiff could increase the rent as prescribed by the consent decree.

In light of the consent decree, the district court suspended its action. However, Mr. Adams and plaintiff could reinstate the counterclaim if the decree did not resolve the dispute with the United States. The decree, however, provided for dismissal of the counterclaim with prejudice once Webb completed the repairs and renovations.

On February 4, 1987, plaintiff asked the federal district court to vacate or modify the consent decree. Plaintiff contended that it had complied with the decree. Plaintiff alternatively contended that the court should not, in fairness, require any more work.

In December 1987, the district court denied plaintiff's motion. The court ordered the parties to comply with the decree and seek relief only under its terms. The United States Court of Appeals for the Eleventh Circuit affirmed the district court’s decision in August 1988. United States v. Dean Webb, Dean Webb & Assoc., 858 F.2d 745 (11th Cir.1988). The parties have continued since then to negotiate, but without successful resolution of the dispute.

Plaintiff filed this action in the Claims Court on July 31, 1989. Plaintiff alleges breach of the lease agreement, breach of the Wherry Act, and inverse condemnation. Defendant moves to dismiss under 28 U.S.C. § 1500 because of the pendency of the earlier district court action.

DISCUSSION

The United States Claims Court lacks jurisdiction over a complaint that raises claims already pending in another court. 28 U.S.C. § 1500. Section 1500 reads:

The United States Claims Court shall not have jurisdiction of any claim for or in respect to which the plaintiff or his assignee has pending in any other court any suit or process against the United States or any person who, at the time when the cause of action alleged in such suit or process arose, was, in respect thereto, acting or professing to act, directly or indirectly under the authority of the United States.

Section 1500 prevents duplicative or vexatious litigation by forcing plaintiff to elect between two courts. See Casman v. United States, 135 Ct.Cl. 647, 648-49 (1956). The United States Court of Appeals for the Federal Circuit stated:

[T]he legislative history and the cases indicate section 1500 was enacted for the benefit of the government and was intended to force an election where both forums could grant the same relief, arising from the same operative facts.

Johns-Manville Corp. v. United States, 855 F.2d 1556, 1564 (Fed.Cir.1988), cert. denied, — U.S.-, 109 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
19 Cl. Ct. 650, 1990 U.S. Claims LEXIS 69, 1990 WL 17962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webb-associates-inc-v-united-states-cc-1990.