Young v. United States

60 Fed. Cl. 418, 2004 U.S. Claims LEXIS 89, 2004 WL 874780
CourtUnited States Court of Federal Claims
DecidedApril 19, 2004
DocketNo. 02-1368C
StatusPublished
Cited by26 cases

This text of 60 Fed. Cl. 418 (Young v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Young v. United States, 60 Fed. Cl. 418, 2004 U.S. Claims LEXIS 89, 2004 WL 874780 (uscfc 2004).

Opinion

OPINION AND ORDER

WOLSKI, Judge.

Defendant has moved to dismiss this ease, under Title 28, Section 1500-the provision that shuts the door to this Court’s jurisdiction when a sufficiently similar suit against the United States government is pending in another court at the time litigants bring their case to our doorstep. The application of this statute is usually pretty straightforward-the Court looks to see what was pending elsewhere and compares that matter to the controversy brought before it. But this usual “what did they file, and when did they file it?” exercise is complicated in this case due to the pro se status of the plaintiffs.

The complications are two-fold. First, we have the fairly typical situation in which the papers filed-both here and in the other courts where matters were litigated-lack the clarity and fullness that one would hope to find were the plaintiffs represented by counsel. But more important to the outcome of this motion, this case is marked by procedural irregularities due in no small measure to plaintiffs’ lack of counsel. After plaintiffs properly filed a complaint in this Court at a time that the Section 1500 door was still open, they somehow became confused as to whether exhaustion of administrative remedies was first required. Having had tort claims concerning the same matter dismissed by a district court for this reason, plaintiffs out of an over-abundance of caution asked to have the complaint dismissed without prejudice. The government did not oppose the request and the Court granted it, without either realizing that plaintiffs had, after bringing their case in our Court, since filed an appeal against the government in the district court ease. But before this Court dismissed the Youngs’ first complaint, the Youngs had already filed their second one with this Court. Under these circumstances, as more fully explained below, the Court concludes that jurisdiction had already been properly secured and thus the motion to dismiss should be denied.

[420]*420BACKGROUND

Plaintiffs, Charles D. and Angela R. Young (the ‘Youngs”), first filed a complaint in this Court on July 8, 2002. This complaint was assigned case number 02-773C (“Young I”). In Young I, the Youngs alleged that an “actual loan contract” into which they had entered with the United States Department of Housing and Urban Development (“HUD”), and “an implied contract with HUD employees” were breached by HUD.1 The only specific allegations concerning the alleged breach were that HUD sold the loan to a third party, Ocwen Federal Bank, thereby “fail[ing] to uphold the provisions of the original loan contract” and also “fail[ing] to provide that Ocwen Federal must abide by the original contract.”2 Plaintiffs included an assertion that “claims may be filed under the Federal Tort Claims Act,” and explained that they were in the process of exhausting administrative remedies.

Before the United States filed a response to the complaint, the Youngs moved on September 26, 2002, to dismiss Young I without prejudice. Apparently, the Youngs had received a letter from HUD on September 14, 2002, which led them to believe that administrative remedies “were not finished” until August 20, 2002.3 In their motion, the Youngs cited Asco-Falcon II Shipping Co. v. United States, 18 Cl.Ct. 484 (1989), a case that concerned the need to exhaust administrative remedies when a claim arises under a contract that has a “changes” or “disputes” clause covering the claim. See id. at 491. But there are no such clauses identified in the express contracts that the Youngs allege were breached, nor could there be one in an implied contract.4 The Youngs, litigating this matter pro se, were just confused about the procedures they had to follow-although they were savvy enough to recognize that a new complaint containing a more definite statement was warranted, as they so stated in their motion. There were no administrative remedies to exhaust before this Court would have jurisdiction over the contract claims in Young I-a point the United States even seemed to concede, as in its statement of non-opposition it suggested as an alternative to dismissal a stay pending exhaustion. Nevertheless, at the time there appeared to be no potential prejudice in granting the dismissal without prejudice, and the Court granted the motion on October 23,2002.

The Youngs jumped the gun, however, and filed their new complaint as a new case in this Court on October 8, 2002-more than two weeks before the first case was dismissed. This is the present case before the Court, assigned case number 02-1368C (“Young IF’). The claims raised in Young II, albeit more specific, were the same claims raised in Young I, which at the time was still pending before the Court. In Young II, the Youngs allege that HUD tortiously breached several express and implied contracts. These contracts included a note secured by a mortgage, used to finance the rehabilitation of their residence, and the associated construction contract; a contract under which HUD was paid a fee “to insure [sic] that the home was built to acceptable, safe, code standards”; and a forbearance agreement. The Youngs maintain that HUD’s failure to properly inspect construction resulted in $18,000 in damages due to defects in two separate bathrooms, and over $12,000 in damages due to repairs to “a sub-floor base and part of the foundation.” They also contend that HUD failed to abide by the terms of their agreements by failing-to assist plaintiffs with a new payment plan, by allowing foreclosure on the property, and, finally, by refusing to investigate plaintiffs’ claims properly. The Youngs also alleged that HUD’s failure to keep proper records and to properly investigate their complaints-including claims of

[421]*421fraud-constituted violations of the Fair Housing Act.

Some light was shed on these allegations in February, 2003, when the government filed its initial motion to dismiss, which informed the Court of litigation brought by the Youngs in the United States District Court for the Eastern District of Arkansas. That case, Young v. U.S. Department of Housing & Urban Development (No. 4:00ev00079GH), was brought against HUD, Ocwen Federal Bank (“Ocwen”), the lawyers who represented Ocwen in foreclosure proceedings, and another individual. From an order dismissing the claims against HUD, filed in the district court case on July 2, 2001, we learned a bit more about the matters at hand. The Youngs had taken out a mortgage loan from the Simmons First National Bank (“Simmons”), secured by then residence, to rehabilitate and repair their house. This loan was insured by HUD under the Section 203-K mortgage insurance program.5 After the Youngs defaulted on this mortgage in 1994, they applied for coverage under HUD’s Single-Family Mortgage Assignment Program (“Assignment Program”).6 But because their initial application for the Assignment Program did not contain all the required documentation, it was rejected. In the meantime, Simmons began foreclosure proceedings and the Youngs responded with two administrative complaints filed with HUD in 1995-the first against Simmons and the second against the HUD Arkansas office.

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Cite This Page — Counsel Stack

Bluebook (online)
60 Fed. Cl. 418, 2004 U.S. Claims LEXIS 89, 2004 WL 874780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/young-v-united-states-uscfc-2004.