Yachts America, Inc. v. United States

673 F.2d 356, 230 Ct. Cl. 26, 1982 U.S. Ct. Cl. LEXIS 66
CourtUnited States Court of Claims
DecidedFebruary 24, 1982
DocketNo. 239-79L
StatusPublished
Cited by25 cases

This text of 673 F.2d 356 (Yachts America, 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
Yachts America, Inc. v. United States, 673 F.2d 356, 230 Ct. Cl. 26, 1982 U.S. Ct. Cl. LEXIS 66 (cc 1982).

Opinions

KASHIWA, Judge,

delivered the opinion of the court:

This case is before the court on defendant’s motion for summary judgment and on plaintiffs’ motion for partial summary judgment. After considering the parties’ submissions and oral argument, we deny in part plaintiffs’ motion for partial summary judgment, allow in part defendant’s motion for summary judgment, and remand the remainder of the case to a trial judge for further determination.

Plaintiffs are Yachts America, Inc. (Yachts) and Yachts’ president, Thomas Wilson. In October 1972, Yachts leased some eight acres of marina property along the Potomac River in Maryland from Fort Washington Marina, Inc. (Fort Washington). The leasehold was for a two-year period beginning November 1,1972, at a monthly rental of $6,000. The lease allowed Yachts an option, exercisable prior to July 31, 1974, to purchase the marina property. The lease contained no provision allocating condemnation proceeds but did specify the leasehold would terminate if Yachts, pursuant to a governmental taking, was required to surrender possession of the premises.

The relationship between Yachts and Fort Washington was far from harmonious. Ultimately, Yachts brought at least three actions against its landlord. One action for breach of the lease agreement was filed November 30,1973, in the Circuit Court for Prince George’s County, Maryland, as Legal Action No. 56019 (the first breach suit). The first breach suit originally alleged Fort Washington had violated the lease by requiring excessive fire insurance, failing to pay for certain sewer improvements, and encumbering the marina property. Ultimately, the first breach suit also alleged Fort Washington violated the lease by not selling the marina property to Yachts. A second breach suit identical to the first was subsequently filed as Legal Action No. 5665 in the Circuit Court for St. Mary’s County, [28]*28Maryland. The date of the second breach suit’s filing is unclear from the record.

In a third suit, Prince George’s County Circuit Court Equity Action No. D-8967, Yachts sought ownership of the marina property (referred to hereafter as the equity action or the equity litigation). The filing date of the equity action is also not set forth in this record. Equity Action No. D-8967 alleged that Yachts had properly exercised the purchase option, that Fort Washington had not performed, and that Yachts was entitled to have the property conveyed.

While these lawsuits were pending, the United States became owner of the marina property on October 15, 1974, through Pub. L. No. 93-444, 88 Stat. 1304 (1974). In relevant part, Pub. L. No. 93-444, supra, provides:

* * * "Effective on the date of enactment of this Act, there is hereby vested in the United States all right, title and interest in, and the right to immediate possession of, all real property within the boundaries of the parcels designated A, B, C, and D, as shown on the drawing referenced in subsection 2(b). The United States will pay just compensation to the owners of any property taken pursuant to this subsection and the full faith and credit of the United States is hereby pledged to the payment of any judgment so entered against the United States. Payment shall be made by the Secretary of the Treasury from moneys available and appropriated from the Land and Water Conservation Fund, subject to the appropriation limitation contained in section 4 of this Act, upon certification to him by the Secretary of the Interior of the agreed negotiated value of such property, or the valuation of the property awarded by judgment, including interest at the rate of six (6) per centum per annum from the date of taking to the date of payment therefor. In the absence of a negotiated settlement or an action by the owner within one year after the date of enactment of this Act, the Secretary may initiate proceedings at any time seeking a determination of just compensation in a court of competent jurisdiction. The Secretary shall allow for the orderly termination of all operations on real property acquired by the United States in parcels A, B, C, and D of this subsection, and for the removal of equipment, facilities, and personal property therefrom: Provided, That in no event shall the Secretary allow operations at the Marshall Hall Amusement Park to continue beyond [29]*29January 1, 1980. The Secretary shall, on lands acquired for the purposes of this park, implement a development plan which will assure public access to, and public use and enjoyment of, such lands. To further the preservation objective of this Act, the Secretary of the Interior may accept donations of scenic easements in the land within the area designated as 'Scenic Protection Area’ on the drawing referred to in subsection (b) of this section.”

The marina property was located within Parcel D and thus originally was subject to the orderly termination provision. Parcel D subsequently was exempted from that provision by section 305 of Pub. L. No. 94-578, 90 Stat. 2732 (1976). In June 1975, the United States and Fort Washington negotiated $750,000 as compensation for Parcel D. In recognition of Yachts’ then pending litigation and two mortgages of the property, the $750,000 was paid into escrow.

On October 8, 1975, Fort Washington and Yachts settled their disputes. In the settlement agreement, a mutual release, each party agreed in broad language to:

* * * release and forever discharge each other mutually and reciprocally, from all claims, demands, and causes of action that they now have or that might subsequently accrue to them arising out of or connected with, directly or indirectly, the aforementioned [lease] agreements between the parties, including, but not limited to, all claims, actions, or issues as set forth in the litigation between the parties known as Law No. 56019, in the Circuit Court for Prince George’s County, Maryland, Law No. 5665, in the Circuit Court for St. Mary’s County, Maryland, and Equity No. D-8967, in the Circuit Court for Prince George’s County, Maryland.

Fort Washington also agreed to allow a $300,000 judgment to be entered in favor of Yachts and against Fort Washington. A contemporaneous consent decree in the equity action entered the $300,000 judgment in favor of Yachts and against Fort Washington, denied Yachts specific performance, and dismissed with prejudice all other claims and issues in that litigation. In separate proceedings, Yachts’ breach actions were voluntarily dismissed with prejudice. Shortly after the actions were settled, Fort Washington became insolvent.

[30]*30In June 1976, Yachts brought suit in federal district court against the United States, Fort Washington, and the escrow agent holding the $750,000. Count I of that petition alleged Pub. L. No. 93-444, supra, was unconstitutional in scope and purpose, while Count II alternatively sought just compensation for Yachts’ purported ownership of the marina property. Eventually, the United States was granted summary judgment as to Count I. Further, the district court held all claims by Yachts against Fort Washington barred by res judicata arising from the state court consent decree. Yachts then secured voluntary dismissals without prejudice as to its remaining district court claims. In the interim since the district court dismissals, the $750,000 held in escrow has apparently been disbursed to Fort Washington’s creditors other than Yachts. Yachts’ $300,000 judgment against Fort Washington remains unsatisfied.

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Cite This Page — Counsel Stack

Bluebook (online)
673 F.2d 356, 230 Ct. Cl. 26, 1982 U.S. Ct. Cl. LEXIS 66, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yachts-america-inc-v-united-states-cc-1982.