Chattler v. United States
2011 U.S. App. LEXIS 522
| Fed. Cir. | 2011Background
- Congress enacted IRTPA 2004, prompting Western Hemisphere Travel Initiative and higher passport demand; expedite processing funded by a $60 fee and posted on forms; Chattler applied June 11, 2007 and paid $60 for expedited service; her application and fee reached the Passport Agency June 19, 2007; passport not issued within three days and she eventually received it after a personal visit; district court held no contract and no automatic refund under 22 C.F.R. §51.63; government concedes refund due if a refund request is made; Chattler did not submit a refund request; regulatory claim involved automatic refund interpretation under §51.63(c); contract claims asserted offer/acceptance and consideration for expedited processing; district court granted judgment on the pleadings and summary judgment for regulatory claim; appeals court affirmed the rulings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §51.63(a) requires an automatic refund | Chattler argues 'will be refunded' auto-reflects refund without request | Government argues refund only upon applicant's request | No automatic refund; request required |
| Whether website statements formed an offer | Chattler contends website promises formed contract | Website statements are predictions/intended guidance, not offers | Not an offer to contract |
| Whether passport application provision 5(b) was an offer | Provision 5(b) constitutes an express contract to process within 3 days | Provision 5(b) is a mere informational request, not an offer | No contract formed from provision 5(b) |
| Whether statements on the Department's website created an implied contract | Statements promised timely processing for a fee | Statements are intention-oriented, not binding | No implied contract found |
Key Cases Cited
- Girling Health Sys., Inc. v. United States, 949 F.2d 1145 (Fed. Cir. 1991) (no contract from simple agency publication statement)
- Me. Yankee Atomic Power Co. v. United States, 225 F.3d 1336 (Fed. Cir. 2000) (government not bound by mere administrative provisions without negotiation)
- N. States Power Co. v. United States, 224 F.3d 1361 (Fed. Cir. 2000) (contract formation issues in government context)
- Wells Fargo Bank, N.A. v. United States, 88 F.3d 1012 (Fed. Cir. 1996) (issues of government authority to contract, and conditions precedent)
- Hughes Commc'ns Galaxy v. United States, 998 F.2d 953 (Fed. Cir. 1993) (government bound by best efforts in certain contexts)
