Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

CKY, Inc. entered into a fixed-price construction contract with the United States Army Corps of Engineers (Corps) in October 2012. CKY encountered unexpected conditions, including heavy rainfall and undisclosed culverts, which led to additional expenses. CKY sought compensation for these expenses, but the Corps denied the requests. CKY then filed a claim under the Contract Disputes Act, seeking $1,146,226 for the additional costs incurred. The Armed Services Board of Contract Appeals (Board) ruled in favor of CKY regarding the undisclosed culverts but denied compensation for other claims.The Board awarded CKY $185,000 plus interest for the expenses related to the undisclosed culverts. CKY then applied for attorney’s fees and expenses under the Equal Access to Justice Act (EAJA). The Board granted the application, concluding that the government’s position regarding the undisclosed culverts was not substantially justified. The Board limited its substantial-justification inquiry to the government’s litigation position on the specific claim where CKY prevailed.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the Board erred by categorically narrowing its substantial-justification inquiry to the government’s litigation position and to the specific claim on which CKY prevailed. The court emphasized that the substantial-justification inquiry should consider both the agency’s pre-litigation conduct and its litigation position, and should treat the case as an inclusive whole rather than focusing on individual claims. The court vacated the Board’s decision and remanded the case for reconsideration without the categorical limitations previously applied. View "In Re SECRETARY OF THE ARMY " on Justia Law

In 2014, due to severe drought conditions, the United States Bureau of Reclamation (Reclamation) was unable to meet its water delivery obligations to both the Exchange Contractors and the Friant Contractors under the Central Valley Project (CVP). Reclamation prioritized delivering water to the Exchange Contractors, including water from the San Joaquin River, which resulted in a near-zero allocation to the Friant Contractors. The Friant Contractors and individual growers sued the United States, alleging breach of contract and takings without just compensation.The United States Court of Federal Claims dismissed the Friant Growers' breach of contract claims for lack of standing and dismissed the takings claims for lack of a property interest. The court granted summary judgment to the government on the Friant Contractors' breach of contract claims, concluding that the Exchange Contractors' rights under the Exchange Contract were superior and that Reclamation's actions were not arbitrary, capricious, or unreasonable.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the lower court's decision. The court held that the Exchange Contract allowed Reclamation to deliver San Joaquin River water to the Exchange Contractors when necessary, and that the government did not breach the Friant Contract by doing so. The court also found that the government was immune from liability under the Friant Contract because its actions were not arbitrary, capricious, or unreasonable. Finally, the court affirmed the dismissal of the takings claims, concluding that the Friant Contractors and Growers did not have a property interest in the water delivered by Reclamation under California law. View "CITY OF FRESNO v. US " on Justia Law

The United States Department of the Navy issued a solicitation requesting technical support for its electromagnetic spectrum resources, requiring proposals to be submitted via email by a specified deadline. eSimplicity, Inc. submitted its proposal before the deadline, but it was not received by the Contracting Officer due to the email exceeding the maximum file size and being bounced back. The Navy deemed eSimplicity's proposal untimely and did not consider it.eSimplicity filed a pre-award bid protest with the United States Court of Federal Claims. The Claims Court ruled in favor of eSimplicity, concluding that the file size was an unstated evaluation criterion and that the government control exception could apply to electronically submitted proposals. The court remanded the case for the Navy to reconsider its decision or to take other actions consistent with the court's opinion. Subsequently, the Navy issued an amended solicitation and awarded the contract to eSimplicity.The United States Court of Appeals for the Federal Circuit reviewed the case. The court determined that the appeal was moot because the original solicitation had expired, and the contract had been awarded under a new solicitation. The court found that there was no longer a live controversy, as the issues presented on appeal concerned the now-expired solicitation. The court also rejected the government's argument that the case fell under the "capable of repetition yet evading review" exception to mootness, noting that the government had other opportunities to appeal similar issues in the past but chose not to do so. Consequently, the appeal was dismissed. View "ESIMPLICITY, INC. v. US " on Justia Law

The case involves a dispute between the municipality of Anchorage and the United States regarding two agreements related to the improvement of the Port of Alaska. In 2003, Anchorage and the United States, through the Maritime Administration (MARAD), signed a Memorandum of Understanding (2003 Memorandum) to upgrade and expand the port. In 2011, they signed a Memorandum of Agreement (2011 Memorandum) to address issues that arose during the project, including large-scale damage discovered in 2010.The United States Court of Federal Claims held that the United States breached the 2003 Memorandum by failing to deliver a defect-free port and the 2011 Memorandum by settling subcontractor claims without consulting Anchorage. The court awarded Anchorage $367,446,809 in damages, including $11,279,059 related to the settlement of subcontractor claims.The United States Court of Appeals for the Federal Circuit reviewed the case. The court found that the 2003 Memorandum did not require the United States to deliver a defect-free port, as it lacked specific terms such as what was to be built, where, dimensions, deadlines, and costs. The court vacated the Court of Federal Claims' decision regarding the 2003 Memorandum and remanded for further proceedings.However, the Federal Circuit affirmed the Court of Federal Claims' decision that the United States breached the 2011 Memorandum by settling subcontractor claims without conferring with Anchorage. The court upheld the award of $11,279,059 in damages to Anchorage for this breach. The case was vacated in part, affirmed in part, and remanded for further consideration consistent with the Federal Circuit's opinion. View "ANCHORAGE v. US " on Justia Law

Sage Acquisitions LLC ("Sage") entered into contracts with the United States Department of Housing and Urban Development ("HUD") to provide management and marketing services for properties in HUD's Real Estate Owned ("REO") disposition program. Sage was awarded three contracts for different geographic areas. Sage filed claims with the HUD contracting officer for settlement costs due to the termination for convenience of the contracts, equitable adjustments for reduced property assignments, and damages for scope reduction. Sage also claimed damages for HUD's alleged breach of a contractual option provision and a related bridge contract.The Civilian Board of Contract Appeals ("Board") denied Sage's claims. The Board held that the contracts were Indefinite Delivery/Indefinite Quantity ("IDIQ") contracts, not requirements contracts, and that HUD had met its obligations by ordering the guaranteed minimum quantities. The Board also found that HUD did not breach the contracts by issuing six-month task orders instead of one-year orders and that HUD did not breach the bridge contract by using REO alternatives.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Board's decision. The court held that the contracts were indeed IDIQ contracts, as they explicitly stated and included guaranteed minimums. The court found that the language in the contracts did not confer exclusivity to Sage, and HUD's reservation of the right to work with other contractors was incompatible with a requirements contract. The court also held that HUD's issuance of six-month task orders was permissible under the contract terms. Finally, the court concluded that HUD did not breach the bridge contract, as Sage was aware of HUD's use of REO alternatives, and HUD's actions were based on legitimate business purposes. View "SAGE ACQUISITIONS LLC v. HUD " on Justia Law

The Boeing Company filed a complaint against the United States, challenging a contracting officer's decision that required Boeing to pay over $1 million due to changes in its cost accounting practices. Boeing argued that the government's demand violated the relevant Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS) provisions, which should offset increased costs with decreased costs, resulting in no net increase. Boeing's complaint included three contract claims and an illegal exaction claim.The United States Court of Federal Claims dismissed Boeing's contract claims without prejudice, stating it lacked jurisdiction to review the validity of the regulation under the Administrative Procedure Act (APA). The court also dismissed the illegal exaction claim with prejudice, despite acknowledging jurisdiction, because it believed it lacked the authority to consider the claim under the Contract Disputes Act (CDA).The United States Court of Appeals for the Federal Circuit reversed the lower court's decision. The appellate court held that the Court of Federal Claims has jurisdiction under the CDA to resolve the contract dispute, including the validity of the underlying regulation. The court also held that the Court of Federal Claims has jurisdiction over Boeing's illegal exaction claim under the Tucker Act, 28 U.S.C. § 1491(a)(1), and that the CDA does not preclude this jurisdiction. The case was remanded for further proceedings consistent with these holdings. View "BOEING COMPANY v. US " on Justia Law

The case involves a bid protest action initiated by Oak Grove Technologies, LLC against the United States Department of the Army's award of a contract to F3EA, Inc. The contract, known as SOF RAPTOR IV, was for procuring training services for special forces. Oak Grove, a competing bidder, alleged that the bidding process was flawed and that F3EA had an unfair advantage due to an organizational conflict of interest involving the chairperson of the Source Selection Evaluation Board (SSEB), RM.The Court of Federal Claims reviewed the case and agreed with Oak Grove, finding that the Army's evaluation process was flawed. The court enjoined the Army from proceeding with the contract award to F3EA and ordered the Army to either restart the procurement process or reopen it to accept revised proposals. The court also sanctioned the government for failing to include material evidence in the administrative record, which delayed the proceedings and increased costs for Oak Grove.The United States Court of Appeals for the Federal Circuit reviewed the case and vacated the judgment and injunction issued by the Court of Federal Claims. The appellate court held that Oak Grove had waived its argument that the Army was required to hold discussions with bidders, that F3EA was not required to include teaming agreements in its proposal, and that the Army's investigation into RM's alleged misconduct was adequate. The court also found that the Court of Federal Claims erred in determining that Lukos, another bidder, was financially irresponsible and ineligible for the contract. However, the appellate court affirmed the sanctions imposed on the government for failing to compile a complete administrative record. The case was remanded for further proceedings consistent with the appellate court's opinion. View "OAK GROVE TECHNOLOGIES, LLC v. US " on Justia Law

International Development Solutions, LLC (IDS), a security service contractor, entered into a contract with the Department of State for the provision of personal protection services in Afghanistan. IDS was initially a joint venture between ACADEMI Training Center, Inc. (ATCI) and Kaseman, LLC. However, ATCI later purchased all of Kaseman, LLC’s membership interest in IDS, making IDS a sole member LLC with ATCI as the sole member and owner. IDS then sold and transferred all of its interests in all of its contracts, subcontracts, and all property and assets to ATCI. ATCI requested the State to recognize it as the successor-in-interest to IDS’s contract through a formal novation agreement, but the State denied the request.The Civilian Board of Contract Appeals denied IDS’s consolidated appeal seeking cost-reimbursement of tax payments made by related corporate entities. The Board found no entitlement to reimbursement as IDS did not present evidence that tax amounts paid were costs incurred by IDS, the contractor, rather than by entities higher in IDS’s ownership chain.The United States Court of Appeals for the Federal Circuit affirmed the Board’s decision. The court found substantial evidence supporting the Board’s finding that IDS did not present evidence that tax amounts paid were costs incurred by IDS, the contractor, rather than by entities higher in IDS’s ownership chain. Therefore, IDS was not entitled to reimbursement. View "INTERNATIONAL DEVELOPMENT SOLUTIONS, LLC v. SECRETARY OF STATE " on Justia Law

The case revolves around Ravi Teja, an Indian citizen, who paid thousands of dollars to enroll at the "University of Farmington," expecting to take classes. Unbeknownst to him, the University was a fictitious entity created by the Department of Homeland Security (DHS) as part of an undercover operation to target fraud involving student visas. When the operation came to light, the government neither provided the education Ravi had paid for nor refunded his money. Ravi filed a lawsuit against the United States in the United States Court of Federal Claims, alleging a breach of contract and an accompanying breach of the implied covenant of good faith and fair dealing.The United States Court of Federal Claims dismissed Ravi's complaint for lack of subject-matter jurisdiction, without addressing other issues. The court reasoned that its jurisdiction under the Tucker Act does not extend to contracts entered into by the government when acting as a sovereign unless those contracts unmistakably subject the government to damages in the event of breach. The court concluded that the government was acting in its sovereign capacity as it entered into the alleged contract in furtherance of an undercover law-enforcement operation, and that the alleged contract did not unmistakably subject the government to damages in the event of breach.On appeal, the United States Court of Appeals for the Federal Circuit reversed the Claims Court’s dismissal and remanded the case for further proceedings. The Appeals Court concluded that the Claims Court had jurisdiction pursuant to the Tucker Act over the agreement alleged by Ravi. The court disagreed with the Claims Court's interpretation of the Tucker Act, stating that the contract in question did not concern what was promised to happen or not to happen in a different proceeding in another adjudicatory forum, and thus did not fall into the narrow exception carved out by precedent. The court remanded the case for further proceedings, noting that other grounds not reached by the Claims Court but raised by the government as alternative bases to affirm warranted further exploration. View "RAVI v. US " on Justia Law

The case involves Hahnenkamm, LLC and the United States Forest Service. Hahnenkamm sold a parcel of land to the Forest Service. The purchase price was based on an appraisal that was supposed to comply with the Uniform Appraisal Standards for Federal Land Acquisitions, also known as the Yellow Book. Hahnenkamm later sued the Forest Service, claiming that the appraisal did not comply with the Yellow Book and was not independent, thus breaching the purchase agreement.The United States Court of Federal Claims found in favor of Hahnenkamm, ruling that the Forest Service had breached the agreement by not supporting the purchase price with an independent, Yellow Book-compliant appraisal. The court rejected the government's defenses of waiver and equitable estoppel and awarded damages to Hahnenkamm.The United States Court of Appeals for the Federal Circuit partially reversed the lower court's decision. The appellate court found that Hahnenkamm could not have reasonably relied on the contractual representation that the appraisal was independent. However, the court remanded the case back to the lower court for further proceedings to determine whether Hahnenkamm reasonably relied on the representation that the appraisal was Yellow Book-compliant. The court also remanded the lower court's rejection of the equitable estoppel defense.On cross-appeal, Hahnenkamm argued that the lower court erred in its damages determination. The appellate court affirmed the lower court's damages determination, finding no abuse of discretion in its analysis. View "HAHNENKAMM, LLC v. US " on Justia Law