Goodyear Tire Rubber Co v. United States

• Decision Date: 12 March 1928
• Docket Number: No. 159,159
• Parties: GOODYEAR TIRE & RUBBER CO., Inc., v. UNITED STATES
• Court: U.S. Supreme Court

276 U.S. 287

48 S.Ct. 306

72 L.Ed. 575

GOODYEAR TIRE & RUBBER CO., Inc.,

v UNITED STATES.

No. 159.

Argued Jan. 10, 1928.

Decided March 12, 1928.

Messrs. Spencer Gordon and Dean G. Acheson, both of Washington, D. C., for petitioner.

[Argument of Counsel from page 288 intentionally omitted] The Attorney General and Mr. Alfred A. Wheat, of Washington, D. C., for the United States.

[Argument of Counsel from page 289 intentionally omitted] Mr. Justice SANFORD delivered the opinion of the Court.

The Goodyear Company brought this action under the Tucker Act,¹ to recover rent claimed under a lease to the United States. The petition was dismissed, on demurrer, for failure to state a cause of action. 62 Ct. Cl. 370.

The facts alleged were these: In October, 1921, the predecessor of the Goodyear Company leased to the United States, for the use of the Veterans' Bureau, certain premises in Cincinnati, Ohio, for a term ending June 30, 1926, at a stipulated annual rental payable in monthly instalments. No appropriation was then available for payment of the rent after the first fiscal year, ending June 30, 1922;² and the lease provided that if an appropriation was not made under which the rent for any succeeding fiscal year might be paid, it should automatically terminate as of June 30 of the year for which an appropriation was last available.

The lessor assigned and transferred the lease to the Goodyear Company in January, 1922. In June an appropriation was made, available for the fiscal year ending June 30, 1923; and the lease was by agreement 'renewed' for that year. In February, 1923, an appropriation was made, available for the fiscal year ending June 30, 1924. Before June 30, 1923, the officials of the Veterans' Bureau informed the Company that the United States would give up the occupancy of the premises as of that date. 'When June 30, 1923, arrived'-as the petition alleged-'the officials of the Veterans' Bureau desired to occupy the premises beyond that date, and possession was continued by the United States into the following fiscal year, the officials of the Veterans' Bureau then stating that there was no intention on the part of the United States to pay rent for any longer time than the actual period of occupancy, and the officials of the claimant company stating that it was their contention that * * * even if the original lease was not binding beyond June 30, 1923, nevertheless if the United States remained longer than June 30, 1923, it would at least be liable for the stipulated rent for the year ending June 30, 1924, under the laws of the State of Ohio by reason of holding over.' The United States continued in possession to December 20, 1923, when it vacated the premises. The rent was paid to December 31, 1923.

The Company claimed that 'by reason of holding over' the United States was bound for the entire fiscal year ending June 30, 1924, and liable for the unpaid rental to that date.³

In Leiter v. United States, 271 U. S. 204, 207, 46 S. Ct. 477, 478 (70 L. Ed. 906), we held that a lease to the United States for a term of years, made without any specific authority of law and entered into when there was no appropriation available for the payment of rent after the first fiscal year, in so far as its terms extend beyond that year, violates the express provisions of Sections 3732 and 3679 of the Revised Statutes⁴ (41 USCA § 11, 31 USCA § 665) and creates no binding obligation on the Government after that year; and that 'to make it binding for any subsequent year, it is necessary, not only that an appropriation be made available for the payment of the rent, but that the Government, by its duly authorized offices, affirmatively continue the lease for such subsequent year; thereby, in effect, by the adoption of the original lease, making a new lease under the authority of such appropriation for the subsequent year.'

The Company contends 'that since there was a Federal appropriation before June 30, 1923, pursuant to which the lease might have been extended to June 30, 1924, and since by the common law of Ohio, where the land was, such a holding over on June 30, 1923, would have created a tenancy to June 30, 1924, as between individuals, the United States became bound for the year by the act of holding over coupled with the authority to lease the property contained in the appropriation act.'

We cannot sustain this contention. In order to bind the Government for the fiscal year ending June 30, 1924, it was necessary, as held in the Leiter Case, that after the available appropriation had been made, the Government should affirmatively continue the lease for that year, that is, in effect, make a new lease for the year under...