Military Aircraft Parts
ASBCA No. 60692
| A.S.B.C.A. | Jan 5, 2017Background
- DLA awarded MAP a fixed-price contract (total $18,975) including a first-article test due Dec 22, 2011; MAP submitted first articles late (June 29, 2012).
- Government inspected and rejected the first articles for dimensional discrepancies and being too short; testing/inspection costs were documented.
- CO issued a show-cause notice and informed MAP of potential termination for default; MAP sought to resubmit but cited inability to pay retesting costs.
- Email exchange led the parties to agree to a no-cost cancellation; on Sept 13, 2013 the parties executed bilateral Modification P00001 cancelling the contract, deleting the FA CLIN, and containing express language: MAP "unconditionally waives any charges against the Government" and "releases it from all obligations."
- MAP filed a claim in March 2016 seeking monetary recovery for pre-modification events; the CO denied the claim relying on the modification's release language. MAP appealed to the ASBCA; the government moved for summary judgment asserting release and accord-and-satisfaction defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the bilateral modification barred MAP's later monetary claim by operation of a release | MAP sought to introduce parol evidence to vary/avoid the modification and pursue the claim | Government argued the modification unambiguously contained an unconditional release of all claims arising from the contract | Board held the release language was clear and unambiguous; parol evidence inadmissible; release bars the claim |
| Whether the modification constituted an accord and satisfaction extinguishing the claim | MAP disputed applicability of accord and satisfaction | Government argued the modification satisfied elements (subject matter, competent parties, meeting of the minds, consideration) | Board held the modification met accord-and-satisfaction elements; summary judgment appropriate |
| Whether factual disputes precluded summary judgment (e.g., competence, intent, exceptions) | MAP asserted factual issues warrant discovery/parol evidence | Government maintained no genuine issue of material fact given plain language of modification | Board found no material factual disputes on the release/accord issues and granted summary judgment |
| Admissibility of parol evidence to alter modification terms | MAP sought to admit parol evidence to limit the release | Government opposed parol evidence as barred by the unambiguous written release | Board ruled parol evidence inadmissible because modification language was unambiguous |
Key Cases Cited
- Holland v. United States, 621 F.3d 1366 (Fed. Cir. 2010) (single document may operate as both a release and an accord and satisfaction)
- Mingus Constructors, Inc. v. United States, 812 F.2d 1387 (Fed. Cir. 1987) (summary judgment standard in government contract appeals requires determining genuine issues of material fact)
- Brock & Blevins Co. v. United States, 343 F.2d 951 (Ct. Cl. 1965) (elements required to establish an accord and satisfaction)
