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

In 1983, the Nuclear Waste Policy Act, 42 U.S.C. 10101-10270, authorized the Department of Energy to contract with nuclear facilities for disposal of spent nuclear fuel and high level radioactive waste. The Standard Contract provided that rights and duties may be assignable with transfer of SNF title. Plaintiff entered into the Standard Contract in 1983 and sold its operation and SNF to ENVY in 2002, including assignment of the Standard Contract, except one payment obligation. Plaintiff transferred claims related to DOE defaults. As a result of DOE’s breach, ENVY built on-site dry-storage facilities. The Claims Court consolidated ENVY’s suit with plaintiff’s suit. The government admitted breach; the Claims Court awarded ENVY $34,895,467 (undisputed damages) and certain disputed damages. The Federal Circuit affirmed in part. Plaintiff validly assigned pre-existing claims; while partial assignment of rights and duties under the contract was not valid, the government waived objection. The assignment encompassed claims against the government. Legal and lobbying fees to secure Vermont approval for mitigation were foreseeable, but other expenses were not recoverable. ENVY failed to prove costs of disposing of contaminated material discovered due to the breach and its characterization of spent fuel moved to dry storage. ENVY is not entitled to recover cost of capital for funding mitigation, or Resource Code 19 payroll loader overhead costs, but may recover capital suspense loader overhead costs,.View "VT Yankee Nuclear Power Corp. v. United States" on Justia Law

In February, 2002, the Navy awarded GM&W a contract for floor coating at a military base. GM&W subcontracted with FloorPro, which completed the work on February 27, 2002 and billed GM&W. On March 8, the Navy informed GM&W that the work was completed satisfactorily. On April 17, FloorPro informed the Navy’s contracting officer that it had not been paid. GM&W had claims pending and was not sure whether funds that the Navy directly deposited would be available to FloorPro. In April 2002, the Navy and GM&W entered into contract modification providing for mailing to FloorPro of a check payable to GM&W and Floor-Pro. The Navy paid GM&W directly by electronic transfer and informed FloorPro that its recourse was to sue GM&W. In December 2002, FloorPro submitted a claim to the Navy’s contracting officer. On March 27, 2003, FloorPro filed at the Armed Services Board of Contract Appeals, which awarded $37,500. The Federal Circuit reversed, holding that under the Contract Disputes Act, 41 U.S.C. 7101, ASBCA has no jurisdiction over a claim by a subcontractor. In 2009, FloorPro filed in the Court of Claims, which ruled in favor of FloorPro. The Federal Circuit vacated, ordering dismissal under the six-year limitations period of 28 U.S.C. 2501. View "FloorPro, Inc. v. United States" on Justia Law

Power companies sought damages for the cost of storing spent nuclear fuel and high-level radioactive waste beyond when the government promised by contract to begin storing that waste in a permanent repository. In 2004, the claims court held a seven-week trial on damages. The Federal Circuit accepted its findings on foreseeability, reasonable certainty and the use of the substantial causal factor standard for causation purposes, and the determination that an award of Nuclear Waste Fund fees should be denied as premature, but remanded for application of the 1987 annual capacity report rate to damages claimed by the parties. On remand, the claims court accepted the fuel exchange model presented by plaintiffs’ expert and concluded that plaintiffs would not have built dry storage; two of the companies would not have reracked their storage pools under the 1987 ACR rate. The court found that, using fuel exchanges, plaintiffs would have emptied their wet storage facilities in the non-breach world within the first 10 years of DOE’s performance. The Federal Circuit reversed with respect to denial of claims for wet storage pool costs and NRC fees, which were within the mandate on remand, but otherwise affirmed. View "Yankee Atomic Elec. Co. v. United States" on Justia Law

Gaylord created “The Column,” sculptures representing soldiers that are the centerpiece of the Korean War Veterans' Memorial on the National Mall. The Postal Service issued a stamp commemorating the 50th anniversary of the armistice, with a photograph of The Column, licensed from a photographer. USPS issued roughly 86.8 million of the stamps, sold retail goods with the image, and licensed the image to retailers, without seeking Gaylord's permission. In 2006, Gaylord sued under 28 U.S.C. 1498(b) for copyright infringement. The Federal Circuit held that Gaylord owned the copyright and that USPS was liable for infringement, but remanded for determination of damages. The Court of Federal Claims rejected a claim for a 10 percent royalty on about $30.2 million in revenue allegedly generated by the infringing use, as well as a claim for prejudgment interest, finding that neither 28 U.S.C. 1498(b), which waives sovereign immunity for copyright infringement, nor the copyright infringement statute, 17 U.S.C. 504, authorizes a royalty-based award for copyright infringement and that the proper measure of damages was the reasonable value of a license, between $1,500 and $5,000. The Federal Circuit vacated and remanded for determination of market value of the infringing use and award of prejudgment interest. View "Gaylord v. United States" on Justia Law

In 2004, the Army awarded Parsons the prime contract for work in Iraq. The contract incorporated Federal Acquisition Regulations (FAR), for reimbursement of sub-contractor costs. Parsons entered into a subcontract with Odell for health care facilities and medical equipment. After the Army terminated task orders for convenience, Odell attempted to collect reimbursement above the amount determined by the Defense Contract Audit Agency as its provisional indirect cost. Settlement for termination of the prime contract did not address the issue. Following an audit, Parsons submitted Odell’s revised invoice to the termination contract officer, who stated that it would not settle directly with Odell under FAR 49.108-8 because it was not in the best interest of the government. Parsons submitted a sponsored Certified Claim under the Contract Disputes Act on behalf of Odell to the Procurement Contracting Officer, who denied the claim. The Armed Services Board of Contract Appeal held that the request was routine and, under 48 C.F.R. (FAR) 2.101, needed to be in dispute to constitute a claim over which it had jurisdiction. The Federal Circuit affirmed. Parsons made no argument that its request was in dispute. The record did not indicate that the PCO ever received a proper request for payment.View "Parsons Global Servs., Inc. v. McHugh" on Justia Law

In 1983, Congress enacted the Nuclear Waste Policy Act, 42 U.S.C. 10101-10270, authorizing the Department of Energy to enter into contracts with nuclear facilities for the disposal of spent nuclear fuel (SNF) and high-level radioactive waste (HLW). Congress mandated that, under the Standard Contract, DOE dispose of SNF and HLW beginning not later than January 31, 1998. In 1983, DOE entered into a Standard Contract with Consolidated Edison under which DOE agreed to accept SNF stored at the Indian Point facility. Following DOE’s breach, the Claims Court awarded two categories of damages: wet storage costs for continued operation of its Unit 1 spent fuel pool and regulatory fees paid to the U.S. Nuclear Regulatory Commission. The Federal Circuit reversed the awards, affirmed denial of damages for the cost of financing mitigation activities, but reversed denial of damages for indirect overhead costs associated with mitigation. The company had chosen to prioritize removal of Unit 2 SNF and Unit 1 material would not have been removed by the time at issue; the company did not establish that the breach caused an increase in fees to the NRC. View "Consol. Edison Co. of NY, Inc. v. United States" on Justia Law

Petitioner served 26 years in the U.S. Army. Following his discharge, he began working in a civil service position as a maintenance management specialist for the Department of the Navy. His appointment was subject to completion of a one-year probationary period. Petitioner had no previous federal civilian service. Before expiration of the probationary period, the agency notified petitioner that he would be terminated from his position for unacceptable performance. He sought to appeal to the Merit Systems Protection Board. The administrative judge found that petitioner had no statutory right of appeal to the Board and that, as a probationary employee, petitioner's rights before the Board were limited to those defined by OPM regulations allowing appeal only if the termination was based on partisan political reasons or was the result of discrimination based on marital status, 5 C.F.R. 315.806(b). The Board rejected petitioner's claim that his military service should count toward completion of the one-year period of continuous service needed to qualify for Board review. The Federal Circuit affirmed, holding that petitioner did not qualify as an employee within the meaning of 5 U.S.C. 7511(a)(1)(A). View "Wilder v. Merit Systems Protection Board" on Justia Law

Plaintiff entered into a "Stipulation Agreement Regarding Damages," approved by the EEOC, to resolve her Title VII pregnancy discrimination claim against the U.S. Postal Service. She later filed suit in the Court of Federal Claims, alleging breached of that Agreement. The court held that it did not have jurisdiction because the Agreement was a consent decree, not a contract. In the federal system, when the United States is the defendant, whether the issue is enforcement of a court decree by the issuing forum or enforcement of a settlement contract in a separate suit determines which court can hear the case. The Federal Circuit reversed, stating that the "dispute is yet another example of the wastefulness of litigation over where to litigate." Consent decrees and settlement agreements are not necessarily mutually exclusive; a settlement agreement, even one embodied in a decree, is a contract within the meaning of the Tucker Act. View "VanDesande v. United States" on Justia Law

Zoltek’s patent, "Controlled Surface Electrical Resistance Carbon Fiber Sheet Product" concerns manufacturing carbon fiber sheets with controlled surface electrical resistivity. The filters were used in F-22 fighter jets, which Lockheed designed and built under government contract. Zoltek claimed infringement in a 1996 suit against the U.S. under 28 U.S.C. 1498(c). The Federal Circuit held that the statute did not waive sovereign immunity because the manufacturing process began in a foreign country and that Zoltek could not allege patent infringement as a taking under the Tucker Act. On remand, the court allowed Zoltek to add a claim against Lockheed under 35 U.S.C. 271(g) and transfer the case. The Federal Circuit court reconsidered its earlier decision and concluded that suit against the government is not barred and that 1498(c) does not apply to this case because the infringement was based on activities in the U.S. An independent cause of action is available under 28 U.S.C. 1498(a) for direct infringement by the government or its contractors that is not dependent on 35 U.S.C. 271(a). When the government is subject to suit under 1498(a) for alleged infringement by a contractor, the contractor is immune from individual liability. View "Zoltek Corp. v. United States" on Justia Law

During World War II, the U.S. contracted with oil companies for the production of aviation fuel, which resulted in production of hazardous waste. The waste was dumped at the California McColl site. Several decades later, the oil companies were held liable for cleanup costs under the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9601, and sought reimbursement from the government based on the contracts. The district court entered summary judgment on liability, finding that the contracts contained open ended indemnification agreements and encompassed costs for CERLCA cleanup, and awarded $87,344,345.70. The trial judge subsequently discovered that his wife had inherited 97.59 shares of stock in a parent to two of the oil companies. The judge ultimately vacated his summary judgment rulings; severed two companies from the suit and directed the clerk to reassign their claims to a different judge; reinstated his prior decisions with respect to two remaining companies; and entered judgment against the government ($68,849,505). The Federal Circuit vacated and remanded for reassignment to another judge. The judge was required to recuse himself under 28 U.S.C. 455(b)(4) and the error was not harmless.View "Shell Oil Co. v. United States" on Justia Law