Kalos v. United States
670 F. App'x 714
| Fed. Cir. | 2016Background
- Peter and Veron Kalos guaranteed Brickwood Contractors, Inc.’s performance bond for a BOP contract to repair a water tank; their real property secured the bond.
- The Bureau of Prisons terminated the contract for cause on September 15, 2005 for poor performance.
- Greenwich Insurance, Brickwood’s surety, paid the government $770,000 and then sought reimbursement from Brickwood and the Kaloses; Greenwich foreclosed on the Kaloses’ property when repayment failed.
- On August 14, 2015 the Kaloses sued the United States in the Court of Federal Claims seeking a declaration that the 2005 termination left no money due to the government (i.e., termination without liability to them).
- The government moved to dismiss as time-barred under 28 U.S.C. § 2501 (six-year statute for Claims Court jurisdiction); the Claims Court dismissed and denied reconsideration.
- The Kaloses appealed; this opinion affirms dismissal for lack of jurisdiction as the claim accrued in 2005 (or by 2008 at the latest) and was filed in 2015.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Claims Court has jurisdiction given § 2501 six-year limit | Kalos argued the suit was timely or that § 1494 preserves jurisdiction despite delay | Government argued claim accrued on termination (2005) or by settlement (by 2008), so 2015 filing was untimely | Held: Claim accrued Sept. 15, 2005 (at latest by July 2008); 2015 filing was untimely; Claims Court lacked jurisdiction |
| Whether § 1494 tolls or suspends § 2501 limitations | Kalos relied on § 1494 to avoid § 2501 bar | Government and precedent: § 1494 does not toll § 2501 | Held: § 1494 does not toll § 2501; cannot save the late filing |
Key Cases Cited
- FloorPro, Inc. v. United States, 680 F.3d 1377 (Fed. Cir. 2012) (defines accrual: claim arises when all events fixing Government liability have occurred)
- Bianchi v. United States, 475 F.3d 1268 (Fed. Cir. 2007) (confirms § 2501 six-year jurisdictional limit and that § 1494 does not toll § 2501)
