Cardiosom, LLC v. United States
2011 U.S. App. LEXIS 18127
| Fed. Cir. | 2011Background
- Medicare CAP was created under 2003 MMA; 2008 Amendment terminated pre-existing contracts.
- Cardiosom’s contract was terminated by the 2008 Amendment before its term ended.
- Cardiosom sued the United States in the Court of Federal Claims for breach of contract and takings.
- Court of Federal Claims dismissed, citing § 1395w-3(a)(1)(D)(i) as withdrawing jurisdiction.
- Cardiosom appealed; issue is whether Tucker Act jurisdiction remains for a breach-of-contract claim despite the withholding provision.
- Court reverses and remands, holding the 2008 Amendment did not unambiguously withdraw Tucker Act jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 1395w-3(a)(1)(D)(i) unambiguously withdraws Tucker Act jurisdiction | Cardiosom argues language is ambiguous and does not unambiguously bar jurisdiction | United States argues provision plainly bars independent review of terminations | No unambiguous withdrawal; jurisdiction remains |
| Whether the 2008 Amendment permits a separate administrative remedy to foreclose court relief | Cardiosom claims administrative process can still allow court remedies | Government contends admin mechanism precludes judicial review | Amendment leaves Tucker Act jurisdiction intact; no automatic bar to suit on contract claims |
| How the administrative remedy interacts with Tucker Act courts on remand | unclear exhaust and interaction not resolved on appeal | not dispositive on jurisdiction | Questions left to trial court on remand for appropriate handling |
Key Cases Cited
- United States v. Mitchell, 463 U.S. 206 (Supreme Court, 1983) (Tucker Act jurisdiction and sovereign immunity principles)
- Preseault v. Interstate Commerce Comm'n, 494 U.S. 1 (Supreme Court, 1990) (unambiguous withdrawal of Tucker Act remedy required)
- Slattery v. United States, 635 F.3d 1298 (Fed. Cir. 2011) (en banc: intent to withdraw must be unambiguous)
- California v. United States, 271 F.3d 1377 (Fed. Cir. 2001) (unambiguous withdrawal requirement not met by broad immunity statutes)
- Winstar Corp., 518 U.S. 839 (Supreme Court, 1996) (limitations on government repudiation of contracts; context for implied rights)