Montreal Securities, Inc. v. The United States

DAVIS, Judge.

This is another in the long series of suits by dissatisfied purchasers of surplus Government property. Montreal Securities, Inc., was the successful bidder in a sale by the Federal Housing Administration (FHA) of two rental housing projects. After the closing, many of the tenants moved out of the buildings and it appeared that plaintiff had made a poor bargain. It seeks a restoration of the money it paid for the purchase.

The FHA had insured the mortgages of two rental housing projects — known collectively as The Manor Apartments, in Williston, North Dakota — under Title IX of the…