224 Ct. Cl. 724 | Ct. Cl. | 1980
Contracts; employment contract; alleged agreement with CIA for undercover activities. — On June 27, 1980 the court entered the following order:
The petition of plaintiff A.H. Simrick alleges that, from 1969 through 1976, he entered into a contract with the Government (acting through the Department of State and the Central Intelligence Agency) providing that (a) defendant was to pay plaintiff an initial retainer of $5,000; (b) defendant was to pay plaintiff $20,000 per year as salary; (c) plaintiff was to set up a business in Mauritius to act as a "cover” for agents of the CIA and to provide information; (d) plaintiff was to provide defendant with field offices with identification badges; (e) plaintiff was to provide a meeting place for the CIA in Mauritius; (f) defendant was to buy all the output of plaintiffs business produced in Mauritius at the fair market rate and was to wholly support plaintiffs company in Mauritius; and (g) defendant was to pay all moving and resettling costs of plaintiff. The petition then alleges that (i) plaintiff carried out his agreement and formed two companies, Le Baron and Le Sega, to produce, manufacture, and sell ties; (ii) defendant has refused to pay plaintiff anything more than $9,300, the bulk of which was received in 1978; and (iii) plaintiff is due $219,000 (plus costs and interest), "including loans the Plaintiff was forced to procure to keep the company in operation as a result of the Defendant’s failure to purchase the output of the Plaintiff and to support the company.”
Defendant has moved to dismiss the petition, mainly on the authority of Totten v. United States, 92 U.S. 105 (1875).
Defendant says that plaintiffs case falls squarely under Totten, that inquiry into the case would necessarily involve the precise nature of the alleged contractual understandings between the parties, including the parties’ alleged
Plaintiffs response is that Totten involved a direct spy, while plaintiff acted more as an administrative employee of the CIA, sent to set up a business, run the intelligence gatherers through his business as a front operation, and manufacture ties to be sent back to the United States and sold by the domestic corporations. We are told that plaintiff s information gathering role was insignificant compared to his administrative functions as a corporate businessman; and that his suit is for acting as a corporate businessman, setting up two corporations, providing employment roles and meeting places, and providing day-to-day information on the political climate in Mauritius. We are also told that very little of a secret nature is left in the case, and what there is can be disclosed in camera in the court’s discretion.
On what we now have before us, we have to say the plaintiff s case falls under Totten. This is not a suit between private parties. The contract, if there was one, was with the United States; according to plaintiff he was to engage significantly in undercover intelligence work for the Government; his alleged dealings seem to have been oral and very probably with CIA operatives not otherwise known to the public. We doubt very much that plaintiff could make his case, or the defendant put up its defense, without revealing secret matters which should not be disclosed. In the words of Totten, both plaintiff and the Government "must have understood that the lips of the other were to be for ever sealed respecting the relation of either to the matter. This condition of the engagement was implied from the nature of the employment * * 92 U.S. at 106. The agents in such a secret service "must look for their compensation to the contingent fund of the department employing them, and to such allowances from it as those
it is therefore ordered, without oral argument, that defendant’s motion to dismiss is granted and the petition is dismissed.