The Minesen Co. v. McHugh
2012 U.S. App. LEXIS 4376
| Fed. Cir. | 2012Background
- Minesen contracted with the Army Fund in 1993 to build and operate the Inn at Schofield Barracks for 32 years.
- The Inn was deemed government quarters under the JFTR, creating a mandatory patronage incentive for military travelers.
- The JFTR amendments in 1997–1998 removed the mandatory per diem forfeiture, allegedly altering the contract’s core bargain.
- ASBCA in 2006 found a breach by the Fund and remanded for damages; Minesen sought past, future profits, and other relief.
- In 2008 Minesen filed a duplicative claim alleging failure to cure; the CO and ASBCA treated it as duplicative of the 2006 dispute.
- The ASBCA ultimately dismissed the 2008 claim as duplicative, and Minesen appealed to the Federal Circuit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the CDA applies to this appeal | Minesen argues Tucker Act jurisdiction survives Slattery; NAFI status does not bar CDA review. | Fund contends NAFI excludes claims from the CDA and defeats this court’s jurisdiction. | Court assumes jurisdiction for purposes of addressing the waiver issue. |
| Whether Minesen validly waived its right to Federal Circuit review | Minesen asserts the disputes clause is unenforceable under the CDA and public policy; cannot bar review. | Fund contends Minesen voluntarily contracted to final ASBCA review with no further appeal. | Waiver is enforceable; the dispute is dismissed for lack of further appellate review. |
Key Cases Cited
- Slattery v. United States, 635 F.3d 1298 (Fed.Cir. en banc 2011) (NAFI status does not bar Tucker Act jurisdiction over CDA claims)
- Bumside-Ott Aviation Training Center v. Dalton, 107 F.3d 854 (Fed.Cir. 1997) (CDA review standards; cannot wholly contract away Board review)
- Seaboard Lumber Co. v. United States, 903 F.2d 1560 (Fed.Cir. 1990) (CDA provides dual avenues of review; contracts cannot defeat judicial review)
- McCall v. United States Postal Serv., 839 F.2d 664 (Fed.Cir. 1988) (voluntary waiver of appellate rights enforceable under public policy)
- Rumery v. United States, 480 U.S. 386 (U.S. 1987) (voluntary waivers in government contracting may be enforceable if knowingly made)