Opinion ID: 511014
Heading Depth: 4
Heading Rank: 2

Heading: Judicial Precedents:

Text: 29 The purpose of section 1500 is to prohibit the filing and prosecution of the same claims against the United States in two courts at the same time. Wessel, Duval & Co. v. United States, 124 F.Supp. 636, 637-38, 129 Ct.Cl. 464 (1954); Frantz Equip. Co. v. United States, 98 F.Supp. 579, 580, 120 Ct.Cl. 312 (1951). The Court of Claims repeatedly applied section 1500 consistently with this purpose. This court is bound by the decisions of the Court of Claims. South Corp. v. United States, 690 F.2d 1368, 1369, 1 Fed.Cir. (T) 1, 1, 215 USPQ 657, 657 (Fed.Cir.1982). The decision in British American Tobacco Co. v. United States, 89 Ct.Cl. 438 (1939), cert. denied, 310 U.S. 627, 60 S.Ct. 974, 84 L.Ed. 1398 (1940), best states the Court of Claims interpretation of the term claim in section 1500. In that case plaintiff sought to recover damages or compensation for gold bullion surrendered to the Federal Reserve Bank pursuant to Executive orders and regulations. The plaintiff had filed both in the district court on a conversion theory and in the Court of Claims on a theory of taking property without just compensation. The Court of Claims dismissed the suit under section 154 of the Judicial Code [now 28 U.S.C. Sec. 1500] and reasoned: 30 The only distinction between the two suits instituted in the District Court and in this court is that the action in the District Court was made to sound in tort and the action in this court was alleged on contract. The facts existing and operating in both cases are the same. A recital of the operative facts relied upon by a claimant does not state two separate and distinct causes of action merely because such facts may set up a liability both in tort and contract.... We think it is clear that the word claim, as used in section 154 [now 28 U.S.C. Sec. 1500], supra, has no reference to the legal theory upon which a claimant seeks to enforce his demand.... The legislative history of section 154 of the Judicial code ... supports these conclusions. 89 Ct.Cl. at 440. 31 The Court of Claims again considered the interpretation of the term claim in section 1500 in Los Angeles Shipbuilding & Drydock Corp. v. United States, 152 F.Supp. 236, 138 Ct.Cl. 648 (1957). There the plaintiff brought two actions for recovery of income and excess profits taxes. The first action was brought in the Southern District of California and the second in the Court of Claims. The district court action claimed a refund was due for the years 1940, 1941, 1942, 1943, and 1946. The Court of Claims action claimed a refund for years 1940 and 1941. Los Angeles held section 1500 barred its jurisdiction of the action on the ground that the same claim was pending in the district court. Id. at 237-38. The court reasoned it was not relevant that the district court action was brought under the theory of overpayment of taxes and the Court of Claims action was brought under a theory of account stated. The court stated, [t]he claim involved is for the refund of taxes and that claim is before both courts. The theory advanced to sustain the claim is quite another matter and not determinative of the jurisdiction of this court. Id. at 238 (emphasis in original). 32 Both the decision in British American and the decision in Los Angeles are explicit in their interpretation of the term claim in section 1500. Both reject the argument that claim is based on legal theories. Both hold claim to be defined by the facts. British American specifically applied this interpretation to a case involving tort and contract theories, the same theories raised in the instant appeal. A contrary interpretation would defeat the intent of Congress and would allow a plaintiff to bring duplicative actions on the same operative facts. The possibility of inconsistent judicial resolution of similar legal issues would then exist and the dual proceedings could result in unfair burden to the defendant, and unnecessary crowding of this court's docket and general administrative chaos. City of Santa Clara v. United States, 215 Ct.Cl. 890, 893 (1977). 9 Accordingly, we construe the term claim in 28 U.S.C. Sec. 1500 to be defined by the operative facts alleged, not the legal theories raised. 33 Given this construction of section 1500 we must apply it in the instant appeal. That is, do the same operative facts exist in the Robinson case or the Eastern District of Virginia third-party complaints and the Claims Court case Nos. 465-83C, 688-83C, and 1-84C? Both the complaint in the Robinson case and the complaint in Claims Court No. 465-83C allege the following: (1) the specifications of the United States required asbestos in the insulation products; (2) Johns-Manville was compelled to perform the supply contracts with the United States; (3) the United States controlled the shipyard working conditions; (4) the United States restricted access to the shipyards; (5) the United States implicitly agreed not to hold Johns-Manville liable for damages where the products were made according to the specifications; (6) the United States had a duty to enforce standards for limiting exposure to asbestos; (7) the United States had a duty to disclose its knowledge of the shipyard working conditions; (8) the United States knew of the dangers of asbestos exposure; (9) the United States failed to disclose information regarding shipyard working conditions; and (10) Johns-Manville is not liable for acts or omissions of the United States. Additionally, all the complaints, i.e., the Robinson case, the third-party complaints, and all the Claims Court cases seek recovery for costs and expenses incurred and other damages connected to suits brought by shipyard workers against Johns-Manville, alleging injury from exposure to asbestos. 34 The operative facts which support the several legal theories raised are therefore the same. The fact that Robinson was exposed to asbestos after 1963 rather than in WWII does not negate this. The motion of the United States to dismiss and the Claims Court's order of April 6, 1987, granting that motion, were with regard to Claims Court case Nos. 465-83C, covering exposures during WWII; 688-83C, covering post-1963 exposures; and 1-84C, covering exposures during a mixture of the two time periods. Thus, Nos. 688-83C and 1-84C both cover exposures in the time period of the Robinson case. No. 465-83C also presents the same claim as the Robinson case due to the overlap of operative facts. In both cases the asbestos causing the injuries was sold to the United States under WWII supply contracts. It matters not that in No. 465-83C the exposure resulted from installing the asbestos and in the Robinson case the exposure resulted from removing the asbestos. In both cases Johns-Manville bases legal theories of recovery on the allegations that (1) the United States set a safety standard of limits to asbestos exposure at five million particles per cubic foot, (2) the United States had a duty to enforce this standard, (3) the United States did not enforce this standard, and (4) this breach to enforce the exposure standards was a cause of injuries to shipyard workers. Lastly, Johns-Manville agreed to try case No. 465-83C as a test case and therefore to be bound in certain other cases by the decision in 465-83C. Johns-Manville v. United States, 13 Cl.Ct. 72, 76-77 (1987). 10 Thus, the specific facts alleged by claimants in No. 465-83C were not so significantly different as to warrant separate trials for each indemnification action in the Claims Court. Certain other asbestos manufacturers have likewise agreed to be bound by the decision in No. 465-83C. See Johns-Manville, 13 Cl.Ct. at 76-77; Keene Corp., 12 Cl.Ct. at 211. 35 Johns-Manville argues the claims are not the same since a tort theory will require different elements of proof than a contract theory. There are at least two answers to this. First, elements of proof are only relevant once a legal theory has been chosen. As previously discussed, the term claim in section 1500 has no reference to the legal theory upon which a claimant seeks to enforce his demand.... British American Tobacco Co., 89 Ct.Cl. at 440. Since the legal theory is not relevant, neither are the elements of proof necessary to present a prima facie case under that theory. Second, the Court of Claims in Los Angeles expressly rejected this argument of appellant. See Los Angeles, 152 F.Supp. at 237-38. 36 In the latter case, the plaintiff argued section 1500 was not applicable since the proof required in each court would be different. In the district court, under the theory of overpayment of taxes, the proof would relate to the correctness of the characterization of many items as being or not being income or expenses. In contrast, the proof in the Court of Claims, under the theory of an account stated, would relate to the existence of an agreement resolving conflicts between the plaintiff and the Commissioner of Internal Revenue. The court rejected plaintiff's argument on the ground the claims were both the same, the refund of taxes, regardless of the different theories or different elements of proof. Accordingly, we also reject this argument.