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Hardie v. United States

Where plaintiff asserted breach of government's obligations under a joint venture contract, judgment in favor of government on grounds of absence of privity vacated because plaintiff satisfied its burden to adequately plead a viable claim.

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Plaintiffs-Appellants George G. Hardie, Kard King, Inc., and Park Place Associates, Ltd. (collectively, “PPA”), appeal from the decision of the United States Court of Federal Claims, which dismissed on the pleadings PPA’s contract claim against the United States for lack of subject matter jurisdiction and PPA’s Fifth Amendment takings claim for failure to state a claim upon which relief can be granted. Hardie v. United States, No. 99-890C (Fed. Cl. Aug. 31, 2000). We vacate the judgment of the Court of Federal Claims in favor of the United States, and remand for further proceedings.

I.

PPA, a California limited partnership, entered into a Joint Venture Agreement with LCP Associates (“LCP”), a California general partnership, in order to organize, own and operate a legal card-playing club called The Bell Gardens Bicycle Club. The club itself does not engage in games of chance, but instead provides a facility at which others play cards. The club generates its income by renting space to card players at an hourly fee and by providing the assistance of expert dealers. After opening in 1984, the club became an instant success, and, by 1990, it was generating after-tax profits of $23 million per year and was estimated to be worth $150 million.

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