OPINION AND ORDER
Before the court in this Spent Nuclear Fuel (“SNF”) case is the Plaintiffs’ motion to strike Defendant’s first affirmative defense, pursuant to Rule 12(f) of the Rules of the Court of Federal Claims (“RCFC”). Plaintiffs move the court to strike the defense of “unavoidable delays” because Defendant (“the Government”) cannot present such a defense without violating the writ of mandamus issued in Northern States Power Co. v. U.S. Dep’t of Energy,
I. Background
Plaintiffs Entergy Nuclear FitzPatrick, LLC and Entergy Nuclear Indian Point 3, LLC own commercial nuclear power plants. Entergy Nuclear Fitzpatrick owns the James A. FitzPatrick Nuclear Power Station in Scriba, New York. Am. Compl. ¶ 2. Entergy Nuclear Indian Point 3, LLC owns the Indian Point 3 Nuclear Power Station in the
In 1982, Congress enacted the Nuclear Waste Policy Act (“NWPA”). See generally 42 U.S.C. §§ 10101-10270. The Act authorized the Department of Energy (“DOE”) to contract with utilities and other producers of nuclear waste to collect and store their SNF. DOE drafted and issued a contract for use in negotiations with utilities, termed the Standard Contract. 10 C.F.R. § 961.11. The Standard Contract provided that DOE would accept and dispose of commercially-generated SNF no later than January 31, 1998 and that, in return, utilities would pay fees to cover the costs for removal. Am. Compl. ¶ 7. Such fees are paid to the Nuclear Waste Fund. Id. The NYPA entered into a Standard Contract with DOE for the removal of SNF from both plants in 1983. Id. ¶ 1. After purchase, DOE was notified by letter that the Standard Contract had been assigned to Entergy Nuclear Operations, Inc. as agent for the new plant owners, Entergy Nuclear FitzPatrick and Entergy Nuclear Indian Point 3. Id. ¶ 2.
There were significant problems with finding a repository for SNF, and by 1987 the program was more than ten years behind schedule. Id. ¶ 14. In 1995, DOE issued a Final Interpretation of Nuclear Waste Acceptance Issues stating that as there was no repository or interim storage facility, it would not be able to commence SNF removal until 2010 at the earliest. Id. ¶ 15. Utilities have since filed actions for breach of the Standard Contract in this court. On November 5, 2003, Plaintiffs here filed a complaint seeking damages arising from the breach of the Standard Contract by DOE, from the period of acquisition of the plants to the present. Id. ¶2. Like other utilities, Plaintiffs claim that DOE’s breach of the contract has forced them to “incur substantial additional costs” in finding alternative storage for their SNF. Id. ¶ 21.
After the complaint was filed in this ease, the Government filed a motion to stay pending outcomes in other SNF cases relating to discovery on rate of acceptance and damages issues on January 5, 2004. The case was stayed on May 12, 2004, and then stayed again on February 4, 2005, pending the outcome of the Federal Circuit appeal in Indiana Michigan Power Co. v. United States, No. 98-486C. This stay continued until September 2008. Both stays were unopposed. The case then focused on coordinating a discovery plan, and a joint discovery schedule was filed on October 24, 2008. On November 6, 2008, Plaintiffs filed for summary judgment on liability for partial breach of contract, which was granted on February 26, 2009. The Government, apparently realizing that it had never formally filed or been given a due date for the answer to the original complaint, filed a motion for leave to file an answer out of time on February 24, 2009. See Def.’s Resp. 11. This answer contains the two affirmative defenses and counterclaim for offset or recoupment pled by the Government. As its first affirmative defense, the Government states:
To the extent that the defense is not barred by the United States Court of Appeals for the District of Columbia Circuit’s writ of mandamus in Northern States Power Co. v. United States Department of Energy,128 F.3d 754 (D.C.Cir.1997), the ‘unavoidable delays’ clause of the standard contract would affect or eliminate the Government’s liability for and/or plaintiffs’ ability to recover damages for DOE’s delay.
Answer, ¶ 37.
On January 14, 2010, the Plaintiffs filed the present motion to strike the Govern
II. Standard of Review
RCFC Rule 12(f) states that “[t]he court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter” and may do so sua sponte or on a motion by a party. “A motion to strike must be directed at a ‘pleading.’” Reunion, Inc. v. United States,
In general, “[c]ourts view motions to strike with disfavor and rarely grant them.” Fisherman’s Harvest, Inc. v. United States,
III. Discussion
Plaintiffs move that the court strike the “unavoidable delays” affirmative defense because the assertion of that defense would violate the mandamus order issued by the United States Court of Appeals for the District of Columbia Circuit (the “D.C. Circuit”) in Northern States I. In Nebraska Public Power, the United States Court of Appeals for the Federal Circuit (the “Federal Circuit”) recently confirmed that the D.C. Circuit had jurisdiction to issue that writ and that the writ must be given res judicata effect in this court. Plaintiffs also contend that even if the defense is not prohibited by the writ, the Government cannot assert it because the defense was not timely raised
A. Interpretation and Effect of the Northern States I Writ of Mandamus and the Federal Circuit Decision in Nebraska Public Power
In Northern States I, the D.C. Circuit issued a writ of mandamus regulating conduct by the Government in future SNF cases. Previously, in Indiana Michigan Power Co. v. U.S. Dep’t of Energy,
In response to the mandamus order, the Government contested the D.C. Circuit’s authority to issue such a writ and asked for a clarification regarding the writ’s scope. The D.C. Circuit in addressing these questions reiterated that the mandamus order “barred the DOE from interpreting the Contract as imposing only a contingent disposal obligation.” Northern States Power Co. v. U.S. Dep’t of Energy, No. 07-1065,
The Government again challenged the jurisdiction of the D.C. Circuit and the effect of the Northern States I writ in the Court of Federal Claims in Nebraska Public Power
In the opinion, the Federal Circuit did provide some description of its reading of the Northern States I writ. The court concluded that the writ was “an order barring DOE from acting in derogation of its statutory obligation” and the fact that the writ “could affect subsequent contract litigation that in turn could result in an award of damages” did not make the writ itself “an award of damages.” Id. at 1371 n. 7 (emphasis added). The court reiterated that when issued “it was clear that the D.C. Circuit’s remedial order would affect later litigation over con-traet-based rights.” Id. at 1376. The court further emphasized that “the order did not address any issue of contract breach, direct the implementation of any remedy, or construe any contract defense, except to the extent that the proposed interpretation of the contract would conflict with the statutory directive of section 302(a)(5).” Id. (emphasis added).
Plaintiffs assert that these statements in Nebraska Public Power demonstrate that the Federal Circuit made no distinction between using “unavoidable delays” as a defense against statutory liability as opposed to contractual damages when upholding the jurisdiction of the D.C. Circuit. The Government, however, argues that the court did make such a distinction and thus necessarily “clarified the scope” of the mandamus order. Def.’s Resp. 2. The Government cites the concurring opinion, written by Judge Dyk and joined by Judge Linn, as indicating that the writ bars the “unavoidable delays” defense only as it relates to liability. Judge Dyk wrote that he “read the majority opinion here as holding that as a matter of res judicata, the D.C. Circuit’s statutory interpretation bars interpreting the Unavoidable Delays clause as creating a defense to liability.” Nebraska Public Power,
To date, only one case in this court has addressed the Nebraska Public Power opinion. In Consolidated Edison Co. of New York, Inc. v. United States,
Defendant asserted a further defense in this ease based upon the ‘unavoidable delays’ clause of the Standard Contract, arguing that DOE’s failure to collect spent nuclear fuel as required was attributable to excusable causes. Based upon the Federal Circuit’s recent decision in Nebraska Public Power Dist. v. United States,590 F.3d 1357 (Fed.Cir.2010), the Court will not address the ‘unavoidable delays’ defense in this opinion.
Id. at 474 n. 2. This brief statement does not address any difference between using “unavoidable delays” as a defense to damages or to liability and appears to interpret Nebraska Public Power as barring the use of “unavoidable delays” in either respect.
The Government contends that as there are two valid interpretations of the Federal Circuit decision, there is a disputed issue of law and therefore granting the motion to strike is inappropriate. The statements in the majority opinion in Nebraska Public Power and in the actual mandamus order, however, indicate that any use of the “unavoidable delays” clause as a defense would be a violation of the order. The Federal Circuit did not claim to be changing the terms of the writ or creating a distinction not found in the original language. The majority opinion instead specifically stated that the order was not a determination of damages but was instead a bar on a specific interpretation of the Standard Contract that would affect “any contract defense ... to the extent that the proposed interpretation of the contract would conflict with the statutory directive” of the NWPA. Nebraska Public Power,
The interpretation of the majority opinion presented by the concurrence is not binding on this court. See Sparton Corp. v. United States,
Additionally, it is unclear how a defense to damages relying on the “unavoidable delays” clause would be able to circumvent the very clear directive of the Northern States I mandamus order. The Government has offered no information on how it would present such a defense or any specifics about its arguments relating to the clause in the damages context. The writ broadly precludes the Government from excusing its own delay with the “unavoidable delays” clause: DOE
B. Waiver of the Defense and Laches
In the alternative, Plaintiffs move to strike the Government’s “unavoidable delays” defense on the bases of waiver and laches. Plaintiffs’ arguments in these respects are not compelling. Plaintiffs first argue that the Government waived its right to “unavoidable delays” as a defense because it failed to formally assert the defense before briefing on summary judgment had been completed. The Government responds that it properly pled the affirmative defense and filed its answer late because of other action in the case and in the Federal Circuit. RCFC 8(c) states that “a party must affirmatively state any avoidance or affirmative defense.” An affirmative defense may be waived if not pled as prescribed, but the waiver is not effective absent unfair surprise or prejudice. See Caldera v. Northrop Worldwide Aircraft Servs., Inc.,
In SNF cases, this court has been hesitant to allow affirmative defenses to proceed once significant activity, such as a trial or discovery, has concluded because the plaintiffs would be unfairly prejudiced. In Wisconsin Electric Power Co. v. United States,
Here, however, the only conclusive action was the grant of summary judgment on liability on February 26, 2009, which issued two days after the Government asserted the defense in its answer. The Government argues that it made its intention to assert “unavoidable delays” very clear to Plaintiffs well before formally pleading the defense: in its August 21, 2008, motion to coordinate discovery, the Government suggested that the then-pending Nebraska Public Power decision would allow it to raise the defense. Def.’s Mot. to Coordinate Disc. 9-10. The Government again referenced Nebraska Public Poiuer in its December 9, 2008, response to Plaintiffs’ motion for summary judgment, suggesting that the Federal Circuit’s ruling would be “instructive” regarding the Government’s ability to use the “unavoidable delays” clause. Def.’s Resp. to Pis.’ Mot. Summ. Judg, 6-7. Plaintiffs, then, have been aware of the possible use of this affirmative defense since at least August 2008, several months before the Government filed its answer. It does not therefore appear that the Government has delayed in such a way that would be prejudicial or an “unfair surprise” to Plaintiffs.
Plaintiffs additionally asserted in their reply in support of the motion that the Government should have argued that the writ did not bar the use of “unavoidable delays” defense against the assessment of damages much earlier and cannot do so now due to the doctrine of laches.
IV. Conclusion
For the reasons set forth above, Plaintiffs’ motion to strike the first affirmative defense, “unavoidable delays,” is GRANTED, and the first affirmative defense is stricken from Defendant’s answer.
Notes
. For a more detailed history of the NWPA, the Standard Contract, and SNF cases in the federal courts, see Maine Yankee Atomic Power Co. v. United States,
. The "unavoidable delays” clause is part of Article IX of the Standard Contract:
Neither the Government nor the Purchaser shall be liable under this contract for damages caused by failure to perform its obligations hereunder, if such failure arises out of causes beyond the control and without the fault or negligence of the party failing to perform. In the event circumstances beyond the reasonable control of the Purchaser or DOE — such as acts*742 of God, or of the public enemy, acts of Government in either its sovereign or contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes and unusually severe weather — cause delay in scheduled delivery, acceptance or transport of SNF and/or HLW, the party experiencing the delay will notify the other party as soon as possible after such delay is ascertained and Lhe parties will readjust their schedules, as appropriate, to accommodate such delay.
10 C.F.R. § 961.11.
. RCFC 12(f) is modeled after Federal Rule of Civil Procedure 12(f), and interpretation of that rule guides the Court’s analysis of the proper standard of review. See 2002 Rules Commit tee Note, Rules of the United States Court of Federal Claims 1 ("interpretation of the court's rules will be guided by case law and the Advisory Commit tee Notes that accompany the Federal Rules of Civil Procedure”).
. In its response, the Government quotes this text but carefully omits the patently relevant portion of the passage highlighted above. Def.'s Resp. 6. Plaintiffs suggest in a footnote that the court sanction counsel for the Government’s truncated editing of this excerpt from the Federal Circuit’s decision. Pis.’ Reply 5 n. 1 (citing Precision Specialty Metals, Inc. v. United States,
. Plaintiffs have not formally pled laches but instead reference the doctrine only in their reply. Pis.’ Reply 9. It is therefore unclear to the Court if Plaintiffs have raised, or even intended to formally argue, the issue of laches or are instead arguing more generally that the principles of equity should lead this Court to conclude that it cannot allow the Government to argue “unavoidable delays” at this time.
. See Sacramento Municipal Utility Dist. v. United States, No. 09-587C (answer filed on November 3, 2009); Power Authority v. United States, No. 00-703C (answer filed on February 24, 2009); Alabama Power Co. v. United States, No. 08-237C (answer filed on November 17, 2008). Additionally, in System Fuels Inc. v. United States, No. 03-2624C (answer filed January 30, 2007) and in the Nebraska Public Power case in this court, No. 01-116C (Def.’s Answer to Am. Compl., filed May 20, 2010), the Government has asserted “unavoidable delays” only as a limitation to plaintiffs’ damages.
