Yankee Atomic Electric Co. v. United States
679 F.3d 1354
Fed. Cir.2012Background
- This consolidated appeal arises from Yankee Atomic, Maine Yankee, and Connecticut Yankee's contract-dispute against the United States over failure to accept and dispose of SNF/HLW under the Standard Contract.
- On remand from 2008, the district court awarded dry-storage ISFSI costs, reracking costs, and ISFSI construction costs, but denied certain wet-pool O&M costs and NRC fees.
- GTCC was argued to potentially affect the SNF acceptance queue; the remand record addressed GTCC but the trial court barred some arguments as beyond the mandate.
- The court adopted an exchanges model for damages, concluding that in the nonbreach world the utilities would have used fuel exchanges rather than building dry storage.
- Issues on remand included future loading costs, crane upgrades, GTCC impact on the queue, and whether wet storage O&M costs and NRC fees could be recovered; the court clarified the scope of the remand and adjusted damages accordingly.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Remand scope for wet storage costs and NRC fees | Yankee argues these costs are recoverable under remand. | Government contends these issues were beyond remand scope. | Remand allowed recovery; denial reversed; awarded $17,021,742. |
| GTCC inclusion in SNF acceptance queue | GTCC would have affected the acceptance queue and costs. | GTCC arguments were not properly raised at trial or barred by mandate. | GTCC argument barred on remand; proper valuation left open for future adjudication. |
| Future loading costs and crane upgrades (deferred vs avoided costs) | Loading to DOE and crane costs are recoverable as deferred costs under subsequent law. | Costs were avoidable or outside mandate. | Deferred costs for loading to DOE affirmed; recoveries reinstated where appropriate. |
| Use of exchanges model to determine damages | Exchanges model credibly reflects nonbreach world. | Model is speculative or not sufficiently grounded. | Court affirmed damages using the exchanges model; DOE discretion not undermining the result. |
Key Cases Cited
- Yankee Atomic Elec. Co. v. United States, 536 F.3d 1268 (Fed. Cir. 2008) (remand to apply 1987 ACR rate for damages)
- Dairyland Power Cooperative v. United States, 645 F.3d 1363 (Fed. Cir. 2011) (affirmed use of an exchanges model when damages are grounded in proper evidence)
- Carolina Power & Light Co. v. United States, 573 F.3d 1271 (Fed. Cir. 2009) (established treatment of SNF/HLW acceptance under Standard Contract; GTCC considerations)
- Indiana Michigan Power Co. v. United States, 422 F.3d 1369 (Fed. Cir. 2005) (set standards for quantum and causation in damages)
- Laitram Corp. v. NEC Corp., 115 F.3d 947 (Fed. Cir. 1997) (mandate scope and evolving rulings; controlling authority on remand)
- Engel Indus., Inc. v. Lockformer Co., 166 F.3d 1379 (Fed. Cir. 1999) (considering letter and spirit of mandate on remand)
- Cardiac Pacemakers, Inc. v. St. Jude Med., Inc., 576 F.3d 1348 (Fed. Cir. 2009) (mandate principles apply to defenses raised on remand)
