GROUNDBREAKER DEVELOPMENT CORPORATION v. United States
1:22-cv-00578
| Fed. Cl. | Jun 15, 2023Background
- Groundbreaker Development Corp. contracted with the U.S. Army Corps of Engineers on April 20, 2020 to extend a water line at Northfield Brook Lake, CT.
- The Corps issued a notice terminating the contract for default on May 26, 2021; Groundbreaker appealed to the Court of Federal Claims and filed an amended complaint on February 17, 2023.
- Count I seeks a declaration that the default termination was improper (and should be converted to a termination for convenience) and also requests monetary relief (~$93,952) and reimbursement as if the termination were for convenience.
- The government moved to dismiss the monetary portion of Count I for lack of subject-matter jurisdiction, arguing Groundbreaker never presented its monetary claim to the contracting officer as required by the Contract Disputes Act (CDA).
- Groundbreaker agreed that dismissal of the monetary claim was proper and asked for dismissal without prejudice so it may present the claim to the contracting officer.
- The court granted dismissal without prejudice of the monetary claim for lack of subject-matter jurisdiction and entered judgment for the government as to that claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Court of Federal Claims has jurisdiction over Groundbreaker's monetary damages claim absent prior presentment to the contracting officer under the CDA | Groundbreaker concedes the claim was not presented to the CO and requests dismissal without prejudice so it may present the claim (cannot present while suit pending) | Presentment to the contracting officer is a jurisdictional prerequisite under the CDA; because Groundbreaker did not present its monetary claim, the court lacks jurisdiction over that claim | Monetary claim dismissed without prejudice for lack of subject-matter jurisdiction; presentment to the CO is required before litigating monetary CDA claims |
Key Cases Cited
- Sharman Co. v. United States, 2 F.3d 1564 (Fed. Cir. 1993) (distinguishes CO's default termination decision from separate monetary claims and requires CO decision for jurisdiction)
- England v. Swanson Grp., 353 F.3d 1375 (Fed. Cir. 2004) (CDA presentment to contracting officer is prerequisite to suit)
- Arctic Slope Native Ass’n v. Sebelius, 583 F.3d 785 (Fed. Cir. 2009) (reinforces presentment requirement as prerequisite to Court of Federal Claims jurisdiction)
- M. Maropakis Carpentry, Inc. v. United States, 609 F.3d 1323 (Fed. Cir. 2010) (CDA requires valid claim presented to contracting officer prior to litigation)
- Groundbreaker Dev. Corp. v. United States, 163 Fed. Cl. 619 (Fed. Cl. 2023) (court's prior opinion dismissing monetary claims for lack of CDA presentment)
- Lockheed Martin Aeronautics Co. v. Sec’y of the Air Force, 66 F.4th 1329 (Fed. Cir. 2023) (confirms the presentment requirement remains jurisdictional)
