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Monarch Assurance P.L.C. v. United States

Affirmed in part, reversed in part and remanded; where plaintiffs alleged they lent money to a secret agent of the CIA and never received the promised return on their loan, trial court correctly approved the Government's invocation of the state secrets privilege, but abused its discretion in unduly constraining plaintiffs' right to discovery with reference to non-government witnesses and, thus, harmed plaintiffs' potential ability to prove authority to contract.

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Appealed from: United States Court of Federal Claims

Judge Eric Bruggink

In this contract action, plaintiffs allege that they lent a secret agent of the United States money to support a clandestine CIA operation, and have not been paid for their efforts. The United States denies responsibility, and invokes the state secrets privilege to avoid responding to plaintiffs’ demands for discovery. The United States Court of Federal Claims concluded that, even if the individual alleged to be a secret agent was in fact such an agent, there was an insufficient showing that the agent had authority to contract on behalf of the United States. The court granted summary judgment for the United States. Monarch Assurance P.L.C. v. United States, 42 Fed. Cl. 258 (1998).

 
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