NANCY B. FIRESTONE, Senior Judge.
Pending before the court are the parties' cross-motions for summary judgment under Rule 56 of the Rules of the United States Court of Federal Claims ("RCFC") and the defendant's (the "government") motion for joinder of parties under RCFC 19(a) or, in the alternative, for dismissal under RCFC 19(b) or for a stay. These motions are preceded by a long and protracted procedural history that bears repeating here.
The plaintiff ("Mr. Baha") filed his first complaint in this court in June 2014. Compl. (ECF No. 1). In September 2014, the government filed a motion to dismiss Mr. Baha's complaint, or in the alternative, to require that Mr. Baha amend his complaint on the ground that it did not comport with the Contract Disputes Act, 41 U.S.C. §§ 7101-09 ("CDA"). (ECF No. 9). Following briefing on this issue, the court ordered Mr. Baha to file an amended complaint, Order (ECF No. 13), which he filed in March 2015, seeking $504,000 in unpaid rent arising from leases which the government entered in 2002 ("27-Lease") and 2011 ("32-Lease") regarding a residential property in Kabul, Afghanistan. Am. Compl. ¶ 12 (ECF No. 14).
In May 2015, the government filed a new motion to dismiss or to provide notice to interested parties. Def.'s Mot. to Dismiss (ECF No. 17). In this motion, the government argued that the court lacked jurisdiction over any claim for "rent after September 2009 because [Mr. Baha] failed to submit a certified claim" to the contracting officer. Id. at 6. The government also argued that Mr. Baha had other relatives (the "Baha Family") with a potential claim to the rental payments. Id. at 12. In August 2015, the court denied the government's motion to dismiss and ordered that the Baha Family be sent notice of the litigation. Baha v. United States, 123 Fed. Cl. 1 (2015).
In November 2015, after litigation notices were sent to the Baha Family members, the Baha Family filed their own complaint. See Compl., No. 15-1349C (ECF No. 1). However, the Baha Family had not yet filed a certified claim with the contracting officer. The Baha Family's case was consolidated with the present case in January 2016. The government filed answers in both cases in May 2017. (ECF Nos. 43-44).
In September 2017, the government provided notice in a joint status report that it intended to seek dismissal of both cases. See Joint Status Report at 1 (ECF No. 51). After considering the government's motion to dismiss, on September 11, 2018, the court found that Mr. Baha's claim under the CDA contained a defective, but correctable, certification and accordingly remanded Mr. Baha's claim to the United States Army Corps of Engineers (the "United States Army"), Afghanistan Engineer District, Real Estate Office for correction and consideration. See Order at 10 (ECF No. 79). In that same order, the court unconsolidated the Baha Family's case from the current case and dismissed their complaint for lack of jurisdiction for failure to file a CDA claim with the contracting officer. Id.
Since the court's September 11, 2018 order, both Mr. Baha and the Baha Family have filed claims with the United States Army (on October 11, 2018 and August 30, 2018, respectively), which were denied on December 12, 2018. See Def.'s App. at 45-67 (ECF No. 90-1). The contracting officer denied Mr. Baha's claim because his documentation regarding a deed to the subject property presented irregularities and because the Baha Family's assertion of property rights conflicted with his assertion of sole ownership. Id. at 64-66. The Baha Family submitted two separate claims, one arising from the 27-Lease and another arising from the 32-Lease. Id. at 45-54. The contracting officer denied their first claim regarding the 27-Lease because, among other reasons, it accrued approximately nine years before the claim was filed, and it was therefore time-barred by the six-year statute of limitations established by 41 U.S.C. § 7103(a)(4) and Federal Acquisition Regulation 33.206(a). Def.'s App. at 59-61. The contracting officer also denied the second claim regarding the 32-Lease because, inter alia, the Baha Family's assertion of property interests conflicted with Mr. Baha's assertion of sole ownership. Id. at 61-62.
The parties subsequently filed a joint status report on March 11, 2019, (ECF No. 83), and the court issued a scheduling order for cross-motions and briefing on summary judgment, (ECF No. 86). Mr. Baha filed his motion for summary judgment on April 15, 2019. (ECF No. 87). The government filed its cross-motion for partial summary judgment and for joinder of parties or dismissal or a stay on May 17, 2019. (ECF No. 90).
Mr. Baha asserts that he is entitled to summary judgment for his claims for unpaid rent arising out of the 27-Lease and 32-Lease because he is a party to both leases and was acting as an agent for his family when he signed the 32-Lease. Mr. Baha claims he is entitled to payment of rent (1) from September 2003 to September 2009 at the rate of $54,000 per year, for a total of $324,000, and (2) from September 2012 to March 2014 at the rate of $10,000 per month, for a total of $180,000 — for a combined total of $504,000.
In its cross-motion for partial summary judgment, the government asserts that Mr. Baha's claim arising from the 27-Lease is barred for various reasons, including the release Mr. Baha signed as part of the 32-Lease ("Release"). The Release states the Lessor agrees to "release, acquit, and forever discharge" the government, as Lessee, from "all . . . liability and claims; past, present and future, arising from the occupancy, use, and alteration" of the subject property. Def.'s App. at 17. As for the 32-Lease, the government asserts that the Baha Family may still bring claims arising out of that lease and thus the Baha Family must be joined under RCFC 19(a) or, alternatively, that the case should be dismissed or stayed until the statute of limitations on the Baha Family's claims expire. For the reasons set forth below, the court grants the government's motion for partial summary judgment and denies Mr. Baha's motion for summary judgment regarding Mr. Baha's claim under the 27-Lease and stays consideration of his claim under the 32-Lease until December 13, 2019.
The undisputed facts, relevant to the cross-motions for summary judgment, are as follows. On August 10, 2002, the government entered into lease No. SWD-OEF-0027 ("27-Lease") for a residential property located in Kabul, Afghanistan ("the Premises"). Pl.'s Br. in Supp. of Mot. for Summ. J. ("Pl.'s Mot.") at 2; Def.'s Cross-Mot. at 3. Although neither party has been able to supply a copy of the 27-Lease, the government recognized the existence of this lease when the government and Mr. Baha signed a "SUPPLEMENTAL AGREEMENT . . . FOR PRIVATELY OWNED PROPERTY BETWEEN GHUIAM BAWODDIN S/O NIAZ MOHMMAD (Acting by and through his son MUHAMMAD TARIQ BAHA[)] AND THE UNITED STATES OF AMERICA" ("the Lease Supplement") on August 17, 2002. Pl.'s Mot. at 2-3; Def.'s Cross-Mot. at 3-4; Def.'s App. at 1. The Lease Supplement identifies Ghiuam Bawoddin,
In 2009, following disputes regarding the ownership of the Premises with a third party, the Afghanistan Supreme Court identified Mr. Baha and the Baha Family members as Mr. Bawoddin's heirs and the rightful owners of the subject property. Pl.'s Mot. at 3; Def.'s Cross-Mot. at 5; Def.'s App. at 7-11.
On August 8, 2011, the heirs of Mr. Bawoddin, represented by Mr. Baha, and the United States Army entered into lease No. DACA-TAN-5-11-0032 ("32-Lease"). Pl.'s Mot. at 3; Def.'s Cross-Mot. at 6; Def.'s App. at 15. The annual rent in the 32-Lease was $120,000, more than twice that of the 27-Lease. Pl.'s Mot. at 3; Def.'s Cross-Mot. at 6; Def.'s App. at 16. The 32-Lease also contains the Release which states:
Def.'s App. at 17. The 32-Lease was signed by Mr. Baha on behalf of "the heirs of [Bawoddin], son of Neyaz Mohammad represented by Mohammad Tariq." Id. at 23. Ilse Merryman signed on behalf of the United States Army. Id.
Summary judgment is appropriate when "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." RCFC 56(a). A "genuine" dispute is one that "may reasonably be resolved in favor of either party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250 (1986). A material fact is one that "might affect the outcome of the suit under the governing law." Id. at 248. "A party opposing a properly supported motion for summary judgment may not rest upon mere allegation . . ., but must set forth specific facts showing that there is a genuine issue for trial." Id. at 256. Summary judgment is also appropriate where the only issues to be decided are issues of law. See Huskey v. Trujillo, 302 F.3d 1307, 1310 (Fed. Cir. 2002). Contract interpretation is generally amenable to summary judgment; whether a provision of a contract is ambiguous is a question of law. Premier Office Complex of Parma, LLC v. United States, 916 F.3d 1006, 1011 (Fed. Cir. 2019).
As discussed above, the government asserts that the plain language of the Release contained in the 32-Lease bars Mr. Baha's 27-Lease claim. Def.'s Cross-Mot. at 18. Specifically, the government contends that by agreeing to "release, acquit, and forever discharge" the United States Army as Lessor from "any and all manner of actions, liability, and claims for any reason whatsoever; past, present, or future, arising from the occupancy, use, and alteration of the Premises, and for any other matters related thereto," Mr. Baha is barred from asserting a claim for rent during the period of the 27-Lease. Id. at 18-19. Mr. Baha argues that the doctrine of equitable estoppel precludes applying the Release to the government's rent obligation under the 27-Lease and that "[s]uch a broad reading of the 32-Lease waiver of liability clause is contrary to equity and good conscience." Pl.'s Mot. at 10-11; see also Pl.'s Opp. & Reply at 2.
The court agrees with the government and finds that the Release unambiguously releases the government from any unpaid rent obligations arising under the 27-Lease. "A release is a contract whereby a party abandons a claim or relinquishes a right that could be asserted against another." Holland v. United States, 621 F.3d 1366, 1377 (Fed. Cir. 2010) (citations omitted). A release is interpreted like any other contract provision, Bell BCI Co. v. United States, 570 F.3d 1337, 1341 (Fed. Cir. 2009), and the court's interpretation begins with whether the release's plain language bars the asserted claim, McAbee Constr., Inc. v. United States, 97 F.3d 1431, 1435 (Fed. Cir. 1996). If the provisions of a release are "clear and unambiguous, they must be given their plain and ordinary meaning." Bell, 570 F.3d at 1341 (citations omitted).
Here, the 32-Lease releases the United States Army from "all manner of actions, liability, and claims," including "past" actions, liability, and claims, "arising from the occupancy, use, and alteration of the Premises, and for any other matters related thereto." Def.'s App. at 17. The United States Army's rent obligation for its occupancy of the subject property under the 27-Lease "aris[es] from" or is a matter "related" to "the occupancy . . . of the Premises." Id. As such, it bars Mr. Baha's claim for unpaid rent under the 27-Lease.
The Release provides no qualifications or exceptions that would suggest that claims arising from the 27-Lease were to be excluded from its scope. By its plain terms, the Release is a general release that bars any claims predicated upon events occurring prior to the date of the Release. See Augustine Med., Inc. v. Progressive Dynamics, Inc., 194 F.3d 1367, 1373 (Fed. Cir. 1999) ("The rule for releases is that absent special vitiating circumstances, a general release bars claims based upon events occurring prior to the date of the release." (citation omitted)). If a party who executes such a general release has knowledge of facts sufficient to constitute a claim at the time of executing the general release and wishes to make an exception for such a claim, that party bears the burden of manifesting his intent to do so with an "explicit reservation." Id. (citation omitted); see also Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1393-94 (Fed. Cir. 1987) ("Since the information regarding any unresolved claims against the government lies with the contractor, common sense indicates that placing the burden on the contractor to identify and specify such claims clearly in the release is proper."). Mr. Baha does not dispute that he knew of the facts giving rise to his 27-Lease claim before signing the 32-Lease. Mr. Baha therefore bore the burden of reserving his claim to past-due rents under the 27-Lease by creating an exception. See id. But the Release provides no such exception for claims arising from the 27-Lease or for claims related to any rent obligations. In fact, Mr. Baha recognizes that the Release, as written, encompasses the government's "rent liability under the 27-Lease." Pl.'s Mot. at 10.
Mr. Baha nevertheless argues that the Release should not be read according to its plain meaning, for two (somewhat overlapping) reasons. First, he asserts that "[s]uch a broad reading of [Release] is contrary to equity and good conscience"; in other words, that the Release is "unconscionable." Pl.'s Mot. at 10-11. To demonstrate that the Release is unconscionable, Mr. Baha must show that "no man in his senses, not under a delusion, would" agree to the terms of the Release. TPL, Inc. v. United States, 118 Fed. Cl. 434, 444 (2014) (quoting Fraass Surgical Mfg. Co. v. United States, 571 F.2d 34, 40 (Ct. Cl. 1978)). Where a court finds a contract provision unconscionable, it may deny enforcement of that provision. Id. However, "[t]he grant of discretion to deny enforcement to an unconscionable clause . . . is not intended to permit courts to redistribute risks allocated by differences in bargaining power, but rather to prevent oppression and unfair surprise." Id. at 444-45 (quoting Fraass, 571 F.2d at 40).
Contrary to Mr. Baha's arguments, see Pl.'s Mot. at 10-11, the facts that the United States Army authored the Release at a time when it knew that it had not paid rent to Mr. Baha under the 27-Lease and that Mr. Baha is not a sophisticated contractor are not sufficient to show that the Release is "unconscionable." Mr. Baha had knowledge of the facts giving rise to his claim for unpaid rent under the 27-Lease when he entered into the 32-Lease and therefore has not shown that the Release terms could have "unfair[ly] surprise[d]" him. TPL, 118 Fed. Cl. at 445 (quoting Fraass, 571 F.2d at 40). In addition, any disparity in bargaining power between the government and Mr. Baha is insufficient to demonstrate that the Release is unconscionable. Id. at 444-45; City of Gettysburg v. United States, 64 Fed. Cl. 429, 452 (2005) (holding that disparity in bargaining power alone is insufficient to give rise to an unconscionable adhesion contract). Finally, Mr. Baha fails to provide any evidence to show that it was "delusion[al]" or "oppresi[ve]" to agree to the terms of the Release. TPL, 118 Fed. Cl. at 444-45 (quoting Fraas, 571 F.2d at 40). To the contrary, as the government argues, the more than two-fold increase in the rent offered by the United States Army under the 32-Lease was ample consideration for the Release. Def.'s Cross-Mot. at 19. Mr. Baha has therefore failed to demonstrate that the Release is unconscionable or to create a triable dispute of material fact on this issue.
For similar reasons, Mr. Baha's remaining argument that equitable estoppel precludes the government from relying on the Release is also without merit. See Pl.'s Mot. at 10-11. Mr. Baha contends that, because the government knew that rent was owed under the 27-Lease, the inclusion of the Release in the 32-Lease is evidence of "manifest fraud" and "unconscionable conduct." Id. The government responds that equitable estoppel requires a showing of affirmative misconduct by the government and that Mr. Baha has not presented any facts to support his claim. Def.'s Cross-Mot. at 19. The court agrees with the government.
In order to avoid application of the Release, Mr. Baha needed to present, in addition to satisfying the traditional elements of equitable estoppel,
Mr. Baha argues in the alternative that, regardless of the Release, the United States Army occupied the subject property without paying rent, thus establishing a quasi-contract. Pl.'s Opp. & Reply at 3-4. The government responds that a quasi-contract is an implied-in-law contract over which this court lacks jurisdiction. Def.'s Reply at 6-7 (citing Lumbermens Mut. Cas. Co. v. United States, 654 F.3d 1305, 1316 (Fed. Cir. 2011) (noting that quasi-contracts are implied-in-law contracts and that the Tucker Act does not waive sovereign immunity over implied-in-law contracts)).
The government is correct. To the extent Mr. Baha contends that there is a controlling implied-in-law contract, this court lacks jurisdiction over such a claim. See, e.g., Hercules Inc. v. United States, 516 U.S. 417, 423 (1996) ("We have repeatedly held that [Tucker Act] jurisdiction extends only to contracts either express or implied in fact, and not to claims on contracts implied in law."). Therefore, the court finds that it lacks jurisdiction over Mr. Baha's claim based on an implied-in-law contract.
In its cross-motion and reply brief, the government does not dispute that, assuming the 32-Lease is valid, Mr. Baha is due some of the unpaid "rent that he demands in his claims under the 32-Lease." Def.'s Reply at 7-8. The government argues, however, that the unpaid rent claimed by Mr. Baha is owed to the entire Baha Family because the 32-Lease is a contract between all of the heirs of Mr. Bawoddin, who were represented by Mr. Baha, and the United States Army. See Def.'s Cross-Mot. at 25-26. The government therefore moves for the Baha Family members to be joined as necessary parties under RCFC 19(a) or, in the alternative, for the case to be dismissed or stayed to allow any of the other Baha Family members to join the suit within the applicable statute of limitations. Id. at 26-28, 34-35.
Mr. Baha argues that because the Baha Family authorized him to act on their behalf the government is shielded from liability regarding any claim brought by other Baha Family members. Pl.'s Mot. at 7. In addition, he argues that the Baha Family members, by failing to intervene, "are agreeing to allow [Mr.] Baha to alter their legal relationship with the Defendant." Id. at 8. Finally, he argues that Article 23 of the 32-Lease effectively indemnifies the government from any action concerning the property by the Baha Family because it indicates that Mr. Baha, as the "Agent," will represent the "Lessor" (the Baha Family) in any matters concerning the property.
Although this case has had a long and protracted history, the court finds that a stay of Mr. Baha's 32-Lease claim for a few months is appropriate. See Procter & Gamble Co. v. Kraft Foods Global, Inc., 549 F.3d 842, 848-49 (Fed. Cir. 2008) (citing Landis v. N. Am. Co., 299 U.S. 248, 254-55 (1936) (noting that courts have "broad discretion to manage their dockets, including the power to grant a stay of proceedings"). The court therefore grants the government's request for a stay of Mr. Baha's claim arising under the 32-Lease until December 13, 2019.
For these reasons, the government's motion for partial summary judgment is