80 F.4th 1017
9th Cir.2023Background
- Aero bought Aero Union’s MAFFS-related intellectual property in 2012 and in 2014 executed a Data Rights Agreement (DRA) with the U.S. Forest Service granting the Forest Service “unlimited rights to view and use” the MAFFS data for continued operation and maintenance while Aero retained ownership of the technical data.
- Aero delivered a hard drive with MAFFS data to the Forest Service; the Forest Service later provided that drive to the U.S. Air Force (USAF).
- USAF used the MAFFS data to develop an upgraded iMAFFS system and marketed it internationally.
- Aero sued USAF in federal district court under the Administrative Procedure Act (APA), alleging violations of federal procurement regulations and the Trade Secrets Act (18 U.S.C. § 1905); USAF moved to dismiss invoking the Contract Disputes Act (CDA) as an implied bar to APA jurisdiction.
- The district court dismissed for lack of subject-matter jurisdiction; the Ninth Circuit panel affirmed, holding the CDA “impliedly forbids” Aero’s APA suit because the claim “relates to” a procurement contract and Aero is a contractor; Judge Collins dissented.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the CDA "impliedly forbids" Aero's APA suit in district court | Aero: APA waives sovereign immunity for statutory rights (Trade Secrets Act); suit is not contract-based so CDA does not preclude district-court APA relief | USAF: CDA vests exclusive jurisdiction over contractor disputes in Court of Federal Claims, so APA waiver is impliedly forbidden | Court: CDA impliedly forbids Aero’s APA action because it falls within CDA’s scope |
| Whether Aero’s claims “relate to” the DRA (i.e., are contract‑related) | Aero: Rights derive from statute and Trade Secrets Act; government defenses won’t convert that into a contract claim | USAF: Aero’s requested relief (declaring USAF lacks rights; prohibiting use) requires interpreting DRA’s "unlimited rights" clause, so claims relate to the contract | Court: Claim has “some relationship to the terms or performance” of the DRA and thus "relates to" a contract |
| Whether the DRA is a procurement contract and Aero is a contractor under the CDA | Aero: DRA is like a bailment and not a procurement contract; rights are proprietary, not procurement-based | USAF: DRA conferred use rights (intangible property), and CDA covers disputes about rights in intangible property; Aero is a party to the DRA (a contractor) | Court: DRA qualifies as a procurement contract for CDA purposes and Aero is a contractor |
| Whether the Megapulse (Tucker Act) test controls or CDA requires a distinct analysis | Aero (and dissent): Megapulse two‑part test (source of rights; type of relief) governs and would allow district-court APA review | USAF: Megapulse concerns the Tucker Act; CDA’s post‑1992 text covering nonmonetary disputes requires a broader "relating to" inquiry | Court: Megapulse governs Tucker Act implied preclusion only; CDA analysis differs and covers nonmonetary disputes—CDA preclusion applies here |
Key Cases Cited
- Dogan v. Barak, 932 F.3d 888 (9th Cir. 2019) (district-court dismissal for lack of subject-matter jurisdiction reviewed de novo)
- Esquivel v. United States, 21 F.4th 565 (9th Cir. 2021) (sovereign immunity waiver limits and strict construction rule)
- Tucson Airport Auth. v. Gen. Dynamics Corp., 136 F.3d 641 (9th Cir. 1998) (statute that vests exclusive jurisdiction in a specialized court can impliedly forbid APA actions)
- N. Star Alaska v. United States, 9 F.3d 1430 (9th Cir. 1993) (Tucker Act/CDA preclusion principles; limits on declaratory/injunctive relief)
- Todd Constr., L.P. v. United States, 656 F.3d 1306 (Fed. Cir. 2011) (broad interpretation of "relating to" a contract persuasive for CDA analysis)
- Megapulse, Inc. v. Lewis, 672 F.2d 959 (D.C. Cir. 1982) (two‑part test—source of rights and type of relief—for Tucker Act implied preclusion)
- Ruckelshaus v. Monsanto Co., 467 U.S. 986 (1984) (trade secrets recognized as "property" for certain constitutional purposes)
