William C. Haas Realty Management, Inc. v. United States

3 Cl. Ct. 231, 26 Wage & Hour Cas. (BNA) 683, 1983 U.S. Claims LEXIS 1640, 99 Lab. Cas. (CCH) 34,450
CourtUnited States Court of Claims
DecidedAugust 31, 1983
DocketNo. 343-82C
StatusPublished
Cited by1 cases

This text of 3 Cl. Ct. 231 (William C. Haas Realty Management, 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
William C. Haas Realty Management, Inc. v. United States, 3 Cl. Ct. 231, 26 Wage & Hour Cas. (BNA) 683, 1983 U.S. Claims LEXIS 1640, 99 Lab. Cas. (CCH) 34,450 (cc 1983).

Opinion

OPINION ON DEFENDANT’S MOTION TO DISMISS OR, IN THE ALTERNATIVE, FOR SUMMARY JUDGMENT

WHITE, Senior Judge.

In the complaint,1 the plaintiffs, which are Missouri corporations with their principal place of business in Kansas City, Missouri, alleged that the defendant, represented by the Department of Labor (“the Department”), violated an agreement dated September 4, 1981, between the plaintiffs and the Department. The plaintiffs requested a judgment in the amount of $82,-416.71 against the defendant.

The defendant subsequently filed a motion to dismiss or, in the alternative, for summary judgment; the plaintiffs responded; the defendant replied; and oral arguments were made by the parties before the court.

The Facts

The facts, as disclosed by the papers before the court, will be outlined in subsequent paragraphs.

In 1977, the Department filed suit against the present plaintiffs in the U.S. District Court for the Western District of Missouri, contending that the plaintiffs had violated section 15(a)(2) and (5) of the Fair Labor Standards Act of 1938 (52 Stat. 1060, 1068; 29 U.S.C. § 215(a)(2) and (5) (1976)) with respect to the payment of wages and overtime compensation. The present plain[233]*233tiffs (defendants in the earlier litigation) bitterly contested the Department’s allegations, and continued to do so until September 1981.

On September 4,1981, a settlement of the earlier case was agreed upon between the Department and the present plaintiffs. The agreement, which was reduced to writing and duly signed on behalf of the Department and the present plaintiffs, provided in pertinent part as follows:

1. Press Release
The Plaintiff [Department] will not issue a press release in regard to the settlement or the terms thereof.
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3. Advertising Re Former Employees
The Plaintiff will insert only “blind” advertisements in searching for former employees of the * * * Defendants [present plaintiffs]. In such advertisements, no mention will be made of the NAMES of the two * * * Defendants, or the settlement terms. The advertising will basically be directed along the lines of: “Will the following named persons, please contact the Department of Labor,
attn: Mr.__” * * * [I]t will
be a benign advertisement.
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5. Cost of Defense Settlement
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In view of the high potential costs to * * * [the defendants], they are willing to make a “cost of defense” cash settlement of $46,800.00 to the Plaintiff. Defendants maintain and will continue to maintain they owe nothing to former employees.
Nevertheless, the Defendants understand the Plaintiff will seek to locate the former employees Plaintiff contends are involved and make cash payments to such former employees or representatives.
Defendants do not agree with Plaintiff's intended use of the $46,800.00. However, Defendants will not contest whatever the disposition Plaintiff makes of the funds * * *.

A consent judgment was entered by the District Court on the basis of the agreement; and the defendants paid the agreed sum of $46,800 to the Department.

Sometime before May 19, 1982, the Department’s Kansas City, Missouri, Regional Office issued to the information media, and particularly to the Kansas City Star, a newspaper of general circulation in the Kansas City, Missouri, area, an advance press release, which was to be released as of 10:00 a.m. on May 19. The press release stated in part as follows:

$53,000 IN BACK WAGES HELD BY THE LABOR DEPARTMENT FOR KANSAS CITY AREA WORKERS
Checks totaling more than $53,000 are being held for 229 workers believed living throughout the metropolitan Kansas City area, according to M.J. Villarreal, Jr., Assistant Regional Administrator/Wage and Hour Division of the Employment Standards Administration (ESA). The monies represent settlements with the U.S. Department of Labor agency after the former employers agreed to pay back-wages for alleged minimum wage or overtime pay violations.
Villarreal indicated the checks ranged from $150 to $1,000 and that a majority of the workers formerly were employed by a real estate management firm, a computer service, a restaurant, and a service station chain.
The Assistant Regional Administrator stated that persons whose names are listed should write or call: Wage and Hour Division, ESA, U.S. Department of Labor, 911 Walnut Street, Room 2000, Kansas City, Missouri 64106. The telephone number is (816) 374-5386. Villarreal said that the individuals should provide their social security number and information concerning their previous employment history with the firms.

The material just quoted was followed by a list containing the names of a large number of individuals.

On May 19,1982, in response to a request submitted by the Kansas City Star under the Freedom of Information Act (5 U.S.C. [234]*234§ 552 (1976)), the Department’s Kansas City Regional Office informed the Star that William C. Haas Realty Management, one of the present plaintiffs, was one of the firms mentioned in the May 19, 1982 press release, and that the total back wages paid by the Haas firm was $46,800.

The Motion To Dismiss

The defendant’s motion to dismiss is based on the rule of comity. This rule was explained as follows by this court’s predecessor, the U.S. Court of Claims, in the ease of Tecon Engineers, Inc. v. United States, 170 Ct.Cl. 389, 394, 343 F.2d 943, 946 (1965), cert. denied, 382 U.S. 976, 86 S.Ct. 545, 15 L.Ed.2d 468 (1966):

The long established rule of comity in such cases [where actions are filed in different courts with concurrent jurisdiction] is that the court having equal and concurrent jurisdiction over the subject matter which first obtains and exercises this jurisdiction, retains jurisdiction until a final judgment is entered. * * * [Citations omitted.]

The rule of comity, strictly speaking, is not applicable as between the United States District Court for the Western District of Missouri, on the one hand, and the U.S. Court of Claims and this successor court, on the other hand, with respect to the litigation between the United States (represented by the Department in the district court case) and the present plaintiffs. As the jurisdiction of the Court of Claims was restricted to actions against the United States, this court’s predecessor obviously did not have concurrent jurisdiction with the district court over the suit that was instituted by the United States (represented by the Department) against the present plaintiffs.

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Bluebook (online)
3 Cl. Ct. 231, 26 Wage & Hour Cas. (BNA) 683, 1983 U.S. Claims LEXIS 1640, 99 Lab. Cas. (CCH) 34,450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-c-haas-realty-management-inc-v-united-states-cc-1983.