S. J. Groves & Sons Co. v. United StatesS. J. Groves & Sons Co. v. United States
ORDER
This action by S. J. Groves & Sons Company against the United States Government and officers of the Department of Interior and Bureau of Reclamation involves a dispute regarding a government contract between Groves and the United States to construct the Current Creek Pipeline, Currant Creek Dam, and other features of the Bonneville Unit, Central Utah Project. Contract No. 14-06-D-7566, dated July 15, 1974, was bid, executed, and administered pursuant to the Federal Property and Administrative Services Act,
Plaintiff contends that the dispute, a matter of contract interpretation, arises under federal law and invokes jurisdiction under
I agree that I do not have subject matter jurisdiction of this dispute and therefore dismiss the complaint. However, because of the perimeters of jurisdiction under
I.
The pertinent facts follow: The pipeline was completed and delivered to the government in the fall of 1976. The government did not accept the pipeline as a finished project. On March 28, 1977, Groves filled the pipeline pursuant to Bureau directives and the contract. At this time the pipeline was found to be defective. Observation, testing, and consultation with technical experts continued from March, 1977, to March, 1978, to determine the cause of the failure. On March 14, 1978, Groves advised the Bureau in a detailed presentation that the failure was attributable to incorrect design, excessive ground water, landslides, and changed conditions after completion of the pipeline. The Bureau nonetheless directed Groves to make corrections beginning in 1978. Groves performed corrective construction several times during this period until the third filling on November 22, 1978, resulted in severe leakage and further corrections were aborted.
In response to Groves letter of December 5, 1978, requesting a determination of responsibility, the Bureau, in a letter dated January 5, 1979, stated that Groves was responsible for replacement or repair and directed further construction. On February 23, 1978, the contracting officer, defendant Robert B. Jansen, issued his findings of fact and directed Groves to proceed immediately with corrective measures. The findings concluded that faulty construction and laying of the pipeline resulted in the failure of the pipeline. On March 23, 1979, Groves filed its notice of appeal which was referred by Interior to the Board of Contract Appeals. Groves never filed a formal appeal although it requested four extensions of time. Groves then filed this action in district court on February 7, 1979.
In its five claims for relief Groves seeks to prevent the Bureau from directing plaintiff to replace or repair the. pipeline and from declaring plaintiff in breach of the contract for failure to perform the work, and declarations that the directives are outside the terms of the pontract and its disputes clause, that no further work is required under the contract or the maintenance warranty of three years and that reimbursement on the basis of reasonable costs plus overhead and profit be awarded plaintiff for all work performed to correct or test the cause of the failure in the pipeline after March 28, 1977, to present.
II
Groves invokes jurisdiction under
In foreclosing the APA as a basis for jurisdiction, the Supreme Court in
Sanders
relied on the 1976 amendments to
It is fundamental that the United States may not be sued without its consent,
United States v. Testan,
Although recognizing that the status of sovereign immunity under
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I conclude that there is no waiver of sovereign immunity under
Ill
Plaintiff characterizes its case as one arising under federal law and regulations governing government contracts,
6
rather than as a dispute arising under the contract. This fine distinction is insufficient to circumvent the jurisdiction of the appropriate court. The Court of. Claims has exclusive jurisdiction over contract actions against the United States where the amount in controversy, exceeds $10,000.
I agree with other courts which have resolved this question,
see Lee v. Blumenthal,
The resolution of this dispute rests,
inter alia,
upon determination of whether the changes and corrective construction ordered and completed between March, 1977, and March, 1978, and those directed to be completed in January, 1979, are within the terms of the contract, whether changed conditions support a claim for equitable adjustment for corrections made, or whether cardinal changes have been ordered resulting in breach of the contract.
See, e. g., Turnkey Enterprises, Inc. v. United States,
Determination of these matters turns on the interpretation of the contract under the standard of review set forth in the Wunderlich Act,
Section 322 prohibits government contract provisions from making administrative decisions final as to any question of law. Where an ultimate determination regarding a contract turns on a question of law, such as whether the changes ordered were cardinal and thus in breach of the contract, a court is not bound by the government officer’s or board’s decision.
Monroe M. Tapper, Etc. v. United States,
IV
Further, I recognize that the amendments to the Administrative Procedures Act, specifically
V
Having determined that this action is founded upon a contract and within the exclusive jurisdiction of the Court of Claims, a response is required to plaintiff’s argument that the relief it seeks is injunetive and declaratory rather than one for damages, relief which is not available in the Court of Claims. While it is generally true that the Court of Claims is without authority to grant injunctive and declaratory relief,
Richardson v. Morris,
Further, plaintiff seeks reimbursement for corrective construction performed between March, 1977, and March, 1978, albeit by means of a request for declaratory judgment. It appears that the primary purposes of plaintiff is to obtain money from the government for corrective construction completed and to avoid expending money for further corrective construction. All of this may be required if under the terms of the contract the contracting officer was factually correct that such directives were within the contract and the maintenance warranty.
It is established that Court of Claims jurisdiction can not be evaded by framing a district court complaint to seek only injunctive, mandatory, or declaratory relief
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against government officials or the United States.
Hoopa Valley Tribe v. United States,
In addition, the Court of Claims has limited equitable jurisdiction incident to its jurisdiction.
Pauley Petroleum, Inc. v. United States,
VI
Because I have determined that jurisdiction of this matter is exclusively within the Court of Claims, I also decline to pass on the determination of whether Groves has adequately exhausted its administrative remedies under the disputes clause of the contract. It is to be borne in mind, however, that the Supreme Court has made clear that in disputes under a government contract “the contractor must seek the relief provided under the contract or be barred from any relief in the courts.”
Crown Coat Front Co., Inc. v. United States,
VII
Finally, Groves invokes the district court’s mandamus jurisdiction,
IT IS ORDERED that this case be and hereby is dismissed.
Notes
.
E. g., compare Watson v. Blumenthal,
. One of the exceptions to reviewability under the APA,
. After amendment in 1976,
A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. An action in a court of the United States seeking relief other than money damages and stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief therein be denied on the ground that it is against the United States or that the United States is an indispensable party. The United States may be named as a defendant in any such action, and a judgment or decree may be entered against the United States: Provided, That any mandatory or injunctive decree shall specify the Federal officer or officers (by name or by title), and their successors in office, personally responsible for compliance. Nothing here in (1) affects Other limitatinnc nn inrlieial review or the power or duty of the court to dismiss any action or deny relief on any other appropriate legal or equitable ground; or (2) confers authority to grant relief if any other statute that grants consent to suit expressly or impliedly forbids the relief which is sought.28 U.S.C. § 1331 now provides:
The district courts shall have original jurisdiction of all civil actions wherein the matter in controversy exceeds the sum or value of $10,-000, exclusive of interest and costs, and arises under the Constitution, laws, or treaties of the United States except that no such sum or value shall be required in any such action brought against the United States, any agency thereof, or any officer or employee thereof in his official capacity.
.
Compare Hill v. United States,
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Although the Tenth Circuit has not passed directly on this question, in
Merrion v. Jicarilla Apache Tribe,
. Plaintiff maintains that sovereign immunity does not prevent a suit against a federal officer who is acting in excess of his authority.
See Pan American Petroleum Corp. v. Pierson,
I cannot entertain plaintiffs claim that the Bureau’s or the Contracting Officer’s actions were arbitrary, capricious and outside the scope of the contract under the first exception. Although the immunity defense does not bar judicial review of an officer’s acts if they “conflict with the terms of his valid statutory authority,”
Larson v. Domestic & Foreign Commerce Corp.,
. The complaint states: “The dispute arises under the Federal Property and Administrative Services Act,
. Please take further note that although the Contract Disputes Act of 1978 is not controlling in this case, the Act, Public Law 95-563,
. Plaintiff claims that the corrective construction performed and requested involves $2 to 4 million dollars.
. Of course, the Third Circuit’s position, as noted in Jaffee, supra, is that the amendments to the APA abrogated sovereign immunity in equitable actions, a position to which I do not adhere in this matter.