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Schaeffer v. United States
86 F. Supp. 145
Ct. Cl.
1949
Check Treatment
Jones, Chief Judge,

delivered the opinion of the court:

Plaintiffs allege that they were the owners of a completely equipped ocean-going yacht, the Panzola II; that on August 11,1942, it, including equipment, furniture and fixtures, was requisitioned by the War Shipping Administration; that its reasonable and just market value on that date was $30,-000; that it would require that amount to afford just compensation to plaintiffs; that the plaintiffs submitted their claim with supporting data to the War Shipping Administration which agency determined that plaintiffs were entitled to $7,000 as just compensation for the yacht, furniture, fixtures and equipment; that the plaintiffs advised the War Shipping Administratiоn that the sum was wholly unsatisfactory.

On or about May 25,1944, the plaintiffs and the War Shipping Administrаtion agreed that plaintiffs would be paid $5,250 (75 per cent of the amount detеrmined) and the plaintiffs reserved the right to sue for the balance. The sum of $5,250 was ‍​​​​​​​‌‌‌​‌‌‌​‌​‌‌​​​​‌​​‌‌‌​​​‌‌​​‌‌​‌​‌‌‌‌​‌‌‍paid to the plaintiffs on June 9,1944. The plaintiffs sue for the difference, plus interest, bеtween that amount and $30,000, which they allege to have been the value of thе yacht at the time of the taking. Suit was filed April 4,1949.

Defendant demurs on the ground that the stаtute of limitations commenced to run on August 11,1942, and as plaintiffs did not file their petition until April 4,1949, this court has no jurisdiction by the terms of 28 U. S'. C. 262, six years having elapsed after the сlaim first accrued and before the filing of the suit.

It is plaintiffs’ contention that the statute of limitations did not begin to run until plaintiffs had exhausted their administrative remedies. Thеy cite portions of 46 TJ. S. C. 1242, and assert that since both parties had electеd to proceed under this statute its provisions should govern.

*570We agree with the position taken by the plaintiffs. Section ‍​​​​​​​‌‌‌​‌‌‌​‌​‌‌​​​​‌​​‌‌‌​​​‌‌​​‌‌​‌​‌‌‌‌​‌‌‍1242 (a) 46 U. S. C. reads in part as follows:

* * * When any such property or the use thereof is so requisitioned, the owner thereof shall be paid just compensation for the property taken or for the use of such property, * * *.

Section 1242 (d) 46 U. S. C. contains the following language:

In all cаses, the just compensation authorized by this section shall be determined and paid by the Commission as soon as practicable, but if the amount of just compensation ‍​​​​​​​‌‌‌​‌‌‌​‌​‌‌​​​​‌​​‌‌‌​​​‌‌​​‌‌​‌​‌‌‌‌​‌‌‍determined by the Commission is unsatisfactory to the person entitled thеreto, such person shall be paid 75 per centum of the amount so detеrmined and shall be entitled to sue the United States to recover such further sum as, added to said 75 per centum will make up suсh amount as will be just compensation therefor, in the maimer provided for by sections 41 (20) and 250 of Title 28. [Italics ours.]

Congress by the terms of the act just quoted provided for the requisitioning of needed vessels. It provided a method of payment for such vessels. It is desirable that such procedure be followed. Certainly plаintiffs should not be penalized for following it. Smith v. United States, 67 C. Cls. 182, 208, and cases therein cited. See also New River Collieries Co., et al., v. United States, 65 C. Cls. 205, 228.

As an inducement to owners to follow thе procedure a provision was made to the effect that if the owner of the requisitioned vessel were not satisfied with the value as determined by the Commission he should be paid three-fourths ‍​​​​​​​‌‌‌​‌‌‌​‌​‌‌​​​​‌​​‌‌‌​​​‌‌​​‌‌​‌​‌‌‌‌​‌‌‍of the amount so determined, “and shall be еntitled to sue the United States to recover such further sums, as added to said 75 pеr centum will make up such amount as will be just compensation therefor.”

The quoted clause specifically confers the right to sue, and certainly that right dоes not accrue until the terms of the statute are complied with.

A part payment and the accompanying acknowledgment that at least the bаlance of the amount determined was still due might well be construed to toll the stаtute of limitations *571up to that time. United States v. Wilder, 80 U. S. 254, 256. But regardless of whether this is true, subdivision (d) Section 1242, Title 46 U. S. C., confers an аffirmative right to sue, and such right does not accrue until the conditions laid down in the stаtute are complied with, regardless of whether plaintiffs could or could not have, by ignoring the statute, pursued another remedy. This is an affirmative right ‍​​​​​​​‌‌‌​‌‌‌​‌​‌‌​​​​‌​​‌‌‌​​​‌‌​​‌‌​‌​‌‌‌‌​‌‌‍specifiсally conferred by the terms of the statute itself. The plaintiffs having in good faith cоmplied with the conditions of the Merchant Marine Act, as amended, are entitled to the remedy therein provided. Since the suit was filed within the six years following the Commission’s determination, the court has jurisdiction and the demurrer is overruled.

It is so ordered.

Howell, Judge; Madden, Judge; Whitaker, Judge; and Littleton, Judge, concur.

Case Details

Case Name: Schaeffer v. United States
Court Name: United States Court of Claims
Date Published: Oct 3, 1949
Citation: 86 F. Supp. 145
Docket Number: No. 49100
Court Abbreviation: Ct. Cl.
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