History
  • No items yet
midpage
Kalos v. United States
670 F. App'x 714
| Fed. Cir. | 2016
Read the full case

Background

  • 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)
Read the full case

Case Details

Case Name: Kalos v. United States
Court Name: Court of Appeals for the Federal Circuit
Date Published: Nov 9, 2016
Citation: 670 F. App'x 714
Docket Number: 2016-2224
Court Abbreviation: Fed. Cir.