United Communities, LLC v. United States
20-1220
| Fed. Cl. | Nov 18, 2021Background
- United Communities, LLC contracted with the Air Force/Army under the Military Housing Privatization Initiative to lease land and operate privatized housing at Joint Base McGuire–Dix.
- United Communities filed suit alleging breach of contract, breach of implied duty of good faith and fair dealing, and a Fifth Amendment takings claim.
- The court dismissed the complaint under RCFC 12(b)(6): plaintiff failed to plead a duty for the contract claims and failed to allege a cognizable property interest for the takings claim.
- United Communities moved for reconsideration under RCFC 59(a), arguing the court erred by not granting leave to amend before dismissing; it relied on a single-sentence request in its response to defendant’s motion asking for 14 days to amend if dismissal were ordered.
- The court denied reconsideration, holding the single-sentence, unsupported request did not comply with RCFC 7(b)(1)’s requirement to state particularized grounds for relief and thus was not properly before the court; the court found no manifest injustice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether court should have granted leave to amend before dismissal | United Communities argued it requested leave (one sentence) and dismissal should be without prejudice so it could amend | US argued no properly supported motion to amend was presented and court did not abuse discretion | Denied — one-sentence request was not a proper motion; no abuse of discretion |
| Whether the request in the response complied with RCFC 7(b)(1) | Request sufficed as alternative relief and was timely | Request failed to state grounds or proposed amendments as RCFC 7(b)(1)(B) requires | Denied — request failed RCFC 7(b)(1) and thus was not properly before the court |
| Whether failure to rule on the amendment request warrants reconsideration/manifest injustice | Reconsideration required to prevent injustice from denial of opportunity to amend | No manifest injustice; reconsideration standards not met | Denied — plaintiff did not show extraordinary circumstances or manifest injustice |
Key Cases Cited
- Biery v. United States, 818 F.3d 704 (Fed. Cir.) (grounds for reconsideration and discretionary standards)
- Caldwell v. United States, 391 F.3d 1226 (Fed. Cir.) (extraordinary circumstances required for reconsideration)
- Exxon Shipping Co. v. Baker, 554 U.S. 471 (2008) (motions for reconsideration cannot relitigate matters that could have been raised earlier)
- Meehan v. United Consumers Club Franchising Corp., 312 F.3d 909 (8th Cir. 2002) (no abuse in failing to invite amended complaint when plaintiff did not move to amend)
- Fru-Con Constr. Corp. v. United States, 44 Fed. Cl. 298 (1999) (discussing standards for motions for reconsideration)
