Anselma Crossing, L.P. v. United States Postal ServiceAnselma Crossing, L.P. v. United States Postal Service
OPINION OF THE COURT
This appeal requires us to determine whether the Contract Disputes Act of 1978 (“CDA”), Pub.L. No. 111-350, § 3, 124 Stat. 3677, 3816-26 (2011) (to be codified at
I.
The factual background of this case is not complicated and is largely undisputed. Anselma Crossing, L.P. (“Anselma”), is the owner and developer of a piece of real estate in Chester Springs, Pennsylvania. In November 2009, Anselma filed a complaint against the USPS — amended in February 2010 — alleging that Anselma and the USPS agreed in March 2007 that the USPS would lease a post office building from Anselma which Anselma would construct at its site in or around 2010. The agreement was not reduced to writing. Anselma alleged that the USPS made representations to the local government that Anselma had been chosen as a new USPS site. In reliance on the agreement and the USPS’s representations, Anselma claims to have spent substantial sums on engineering, professional, and environmental services directly related to constructing a building that would meet USPS requirements. At some point in late 2008, the USPS made an internal decision to rescind all formerly approved new projects, a decision which affected 400 projects, including the Anselma project. Anselma was informed of the USPS’s decision when the USPS replied to inquiries from Anselma’s Congressman in March 2009. Anselma sought $150,000 in damages under theories of breach of contract and promissory estoppel.
The USPS moved to dismiss the complaint for lack of subject matter jurisdiction under
On an appeal from a dismissal for lack of jurisdiction, we exercise plenary review over legal conclusions and review a
II.
The question of whether a district court has jurisdiction to entertain a breach of contract claim against the USPS is simply stated but not so simply resolved. Indeed, to answer the question we must examine the interplay between the CDA and various provisions of the Postal Reorganization Act (“PRA”),
It is well settled that “[a]bsent a waiver, sovereign immunity shields the Federal Government and its agencies from suit.”
FDIC v. Meyer,
The question before us, then, is not whether an aggrieved party may bring a claim against the USPS — it can — but where the claim may be brought. With respect to claims sounding in contract, the CDA “established a comprehensive framework for resolving contract disputes between executive branch agencies and government contractors.”
Menominee Indian Tribe v. United States,
A.
Anselma argues that the plain language of
In
Licata,
the plaintiff sued the USPS for breach of contract. Two issues were raised: (1) whether
The USPS urges us to follow
U.S. Postal Service v. Flamingo Industries (USA), Ltd.,
Flamingo Industries
is not, however, directly applicable to the question before us,
i.e.
whether the CDA is a statutory bar to
B.
At issue, then, is the question that
Licata
left open — whether the CDA is a statutory bar to the jurisdiction granted to the federal district courts in
i.
Under the heading, “Applicability of [C]hapter,” the CDA states
(a) EXECUTIVE AGENCY CONTRACTS. — Unless otherwise specifically provided in this chapter, this chapter applies to any express or implied contract (including those of the nonappropriated fund activities described in sections 1346 and 1491 of title 28) made by an executive agency for—
(1) the procurement of property, other than real property in being;
(2) the procurement of services;
(3) the procurement of construction, alteration, repair, or maintenance of real property; or
(4) the disposal of personal property.
Pub.L. No. 111-350, § 3, 124 Stat. 3677, 3817 (2011) (to be codified at
Until 2006, and since the Act’s enactment in 1978,
an executive department as defined in section 101 of Title 5, an independent establishment as defined by section 104 of Title 5 (except that it shall not include the Government Accountability Office), a military department as defined by section 102 of Title 5, and a wholly owned Government corporation as defined by section 9101(3) of Title 31, the United States Postal Service, and the Postal Rate Commission
(A) an executive department as defined in section 101 of title 5;
(B) a military department as defined in section 102 of title 5;
(C) an independent establishment as defined in section 104 of title 5, except that the term does not include the Government Accountability Office; and
(D) a wholly owned Government corporation as defined in section 9101(3) of title 31.
Pub.L. No. 111-350, § 3, 124 Stat. 3677, 3817 (2011) (to be codified at
None of the definitions of “executive agency” includes the USPS, a point the USPS concedes. The USPS argues, however, that the CDA continues to apply to the USPS because (1) the 2006 amendments to the CDA reauthorized the Postal Service Board of Contract Appeals, and thus the statute continued to treat the USPS as an executive agency (and the 2011 recodification continues that reauthorization);
7
and (2) there is no evidence in the legislative history that Congress intended to remove the USPS from the CDA.
8
Unfortunately for the USPS, by
We need not resolve this ambiguity, however, because there is another, unambiguous reason for why the CDA applies to the USPS. That reason is this: the PRA permits the USPS to adopt the CDA via its own internal regulations,
see
Except as provided by subsection (b) of this section, and except as otherwise provided in this title or insofar as such laws remain in force as rules or regulations of the Postal Service, no Federal law dealing with public or Federal contracts, property, works, officers, employees, budgets, or funds, including the provisions of chapters 5 and 7 of title 5, shall apply to the exercise of the powers of the Postal Service.
ii.
We turn, finally, to the main issue in this case: whether the CDA overrides the grant of jurisdiction to the federal district courts in
The clear majority of courts of appeals that have addressed whether the CDA bars federal district court jurisdiction over breach of contract claims against the USPS have found that it does. In
Goodin v. U.S. Postal Inspection Serv.,
The opinions cited above generally analyzed the relationship of the CDA to
That said, we are persuaded by the reasoning of those cases which conclude that the CDA bars district court jurisdiction, despite the jurisdictional grant in
We conclude that because the CDA is a statutory bar to jurisdiction over breach of contract claims against the USPS in the federal district courts, the District Court properly dismissed the complaint for lack of subject matter jurisdiction.
III.
The order of the District Court will be affirmed.
Notes
. On January 4, 2011, subsequent to the completion of briefing in this appeal, Congress altered the provisions of the CDA in ways immaterial to our analysis. The session laws reflecting the alterations also note that the CDA will be recodified. See Act of Jan. 4, 2011, Pub.L. No. 111-350, § 3, 124 Stat. 3677, 3816-26. Accordingly, the provisions of the CDA formerly listed in the U.S.Code at
. We have appellate jurisdiction pursuant to
. The CDA “established” a board of contract appeals within the USPS called the Postal Service Board of Contract Appeals. Pub.L. No. 111-350, § 3, 124 Stat. 3677, 3822 (2011) (to be codified at
. Following
Licata,
district courts within the Third Circuit have not been consistent as to whether the CDA bars federal district court jurisdiction over contract claims against the USPS.
Compare Eagle Fence Co., v.
V.S.
Electric, Inc.,
.
Flamingo Industries
did not establish new law; the two-part test had been established in
FDIC
v.
Meyer,
. Even if we applied
Flamingo Industries,
we would conclude that Anselma satisfies the two-part test. Under the first part, there is no question that the "sue and be sued” clause of
. Added as part of the 2006 amendments, § 607(c)
established an agency board of contract appeals to be known as the “Postal Service Board of Contract Appeals”. Such board shall have jurisdiction to decide any appeal from a decision of a contracting officer of the United States Postal Service or the Postal Regulatory Commission relative to a contract made by either agency.... This chapter shall apply to contract disputes before the Postal Service Board of Contract Appeals in the same manner as they apply to contract disputes before the Civilian Board.
. The legislative history of the 2006 amendments is silent on Congress' rationale for striking the USPS from
would provide conforming amendments to the Contract Disputes Act of 1978 (Disputes Act) (41 U.S.C. 601) needed by the establishment of the Defense Board of Contract Appeals and the Civilian Board of ContractAppeals (Civilian Board) regarding contract disputes. This section also would establish the Postal Service Board of Contract Appeals to decide appeals under the Disputes Act for contracts awarded by the United States Postal Service or the Postal Rate Commission and provide for the selection and appointment of Board judges by the Postmaster General in the same manner as judges of the Civilian Board.
H.R.Rep. No. 109-89, at 397 (2005) (emphasis added).
This section explains the "establish[ment]" of the Postal Service Board of Contract Appeals, but nowhere is there an explanation of why