United States v. Kasler Electric Company, Inc., Fireman's Fund Insurance CompaniesUnited States v. Kasler Electric Company, Inc., Fireman's Fund Insurance Companies
Defendant-Appellant Kasler Electric Co. (“Kasler”) appeals the district court’s order granting summary judgment in favor of Plaintiff-Appellee United States in this action to enforce the final decision of a government contracting officer. 1 Kasler contends that the decision was not a valid “final decision” within the meaning of the Contract Disputes Act of 1978(CDA), Pub.L. No. 95-563, 92 Stat. 2383; in the alternative, Kasler argues that the government should be es-topped from asserting that Kasler did not seek review of the decision as provided in the CDA.
I. BACKGROUND
The facts underlying the contract dispute itself may be succinctly stated. In brief, the Veterans Administration contraсted with Kasler for installation of a fire alarm system in a V.A. hospital in Michigan in 1982. After various disputes involving performance of the contract, the government contracting officer issued a decision terminating the contract for default; Kasler received notice of the decision on May 4, 1987. The government later contracted with another company to complete installation of the fire alarm system.
On May 4, 1988, Kasler filed suit in the United States Claims Court 2 challenging the 1987 decision and seeking $322,198.77, including $127,961.08 remaining on the contract and $194,237.69 for “extra work performed not in our contract.” Joint Appendix (J.A.) at 68; see also J.A. at 127. During the pendency of the litigation, the contracting officer issued another decision on November 5, 1990, determining the costs of excess re-procurement (the difference between the amount Kasler owed on the unfinished contract and the amount of the second contract with another company to complete the job) and ordering Kasler to pay those costs, which totaled $131,111.88. J.A. at 53. On November 21, 1990, the United States filed a counterclaim seeking to enforce the decision regarding reprocurement. Although Kasler asserted defenses against that counterclaim, it did not seek review of the decision by the Veterans Administration Board of Contract Appeals (VABCA) or file a separate suit in the Claims Court. Appellant’s Br. at 9.
On April 30, 1992, the Claims Court dismissed Kasler’s claim without prejudice, for lack of subject matter jurisdiction, since the plaintiff had not submitted a CDA “claim” to the contracting officer, as was required for jurisdictional purposes.
Kasler Elec. Co. v.
[A]s the Court of Claims is generally without authority to adjudicate claims by the United States against other persons, it has been held that where the United States hаs asserted in this court a counterclaim against a plaintiff and the plaintiffs claim is rejected because of a lack of jurisdiction, the counterclaim must be dismissed along with the plaintiffs petition, without regard to the merits of the counterclaim.
See also Somali Dev. Bank v. United States,
In the Claims Court litigation, Kasler and the government stipulated to the existence of the November 5, 1990 decision of the contracting officer and the notification of Kasler. See J.A. at 59 (Joint Mem. Re: Stipulations at ¶ 18). Although the government incorrectly contends that the previous stipulation “conclusively established]” notice, Appellee’s Br. at 9, the record and various motions and briefs in this litigаtion indicate that Kasler challenges the validity of the decision on other grounds and does not appear to challenge the decision’s existence and Kasler’s notice thereof. See generally Appellant’s Br.; J.A. at 156-68.
On August 25,1992, the contracting officer, for reasons that are not clear (and that even the contracting officer claimed not to know 3 ), sent another copy of the November 5, 1990 decision to Kasler. The government presented an affidavit from the contracting officer stating that she had placed a copy of the decision, properly addressed, in the mail to Kasler’s president, its attorney, and the bond surety. J.A. at 43-44. Kаsler presented affidavits .from its president, its counsel, and its codefendant’s counsel stating that they never received a copy dated August 1992, and that they had received no claim for payment from the government since before April 30, 1992 (i.e., they had received no claim for payment after the end of the period during which they contend the contracting officer lacked authority to issue a decision). J.A. at 169,171,178.
The United States filed this action in the district court on August 17, 1994, seeking a judgment to enforce the 1990 decision. The district court granted summary judgment in favor of the United States, holding that the final decision was “valid, final and unreviewable undеr [41 U.S.C.] § 609.” J.A. at 380.
II. ANALYSIS
This court reviews a grant of summary judgment de novo.
Shahid v. Ford Motor Co.,
The government sought a judgment to enforce the contracting officer’s 1990 decision for purposes of collecting the reprocurement costs. The CDA divests the federal district courts of jurisdiction over contractors’ disputes with the government. S.Rep. No. 95-1118, at 33 (1978),
reprinted in
1978 U.S.C.C.AN. 5235, 5267;
McDonnell Douglas Corp. v. United States,
Though the merits of the contracting officer’s decision itself were not within the jurisdiction of the district court, the government merely sought summary enforcement of an order that it contends is final and unreviewable.
See Seaboard Lumber,
Furthermore, the Ninth Circuit’s analogy to a suit on a judgment is apt. A court asked to enforce a money judgment rendered by a court in another jurisdiction- generally cannot reconsider the merits of the prior decision; the court can, however, consider such matters as notice to the defendant and the finality of the judgment. See generally Restatement (Second) of Confl. of Laws §§ 100, 104, 106, 107 (1971). Similarly, a court deciding whether to enforce a final decision of a contracting officer must be аble to consider issues not related to the merits, such as notification'of the contractor and the contractor’s failure to appeal.
Although the government protests in its brief that Easier is seeking to obtain fact-finding jurisdiction in the district court, and contends that the divestment of such jurisdiction by the CDA bars the district court from finding a genuine dispute as to a material fact,-the only issues raised in-this appeal involve the validity and finality of the order itself, rather than the facts underlying the merits. Certainly, the district court could not evaluate disputes as to the merits of the
A. The Authority of the Contracting Officer to Issue the Decision in November 1990
Kasler contends that the final decision was void when issued in 1990 because the pending litigation in the Claims Court divested the contracting officer of authority to issue a final decision on the matter. Kasler bases its argument on
Sharman Co. v. United States,
Under the Ninth Circuit’s analogy to a suit to enforce a judgment,
see Suntip Co.,
The CDA is intended to keep government contract disputes out of district courts; it limits review of the merits of government contract disputes to certain forums, both to limit the waiver of sovereign immunity and to submit government contract issues to forums that have specialized knowledge and experience.
See, e.g., Seaboard Lumber,
Because the language of
B. Defense Against the United States’ Counterclaim in the Previous Litigation as a Substitute for a Direct Suit
Easier contends that the 1990 decision is not final and unreviewable because Easier did challenge it, in effect, within the applicable time period. According to Easier, the government’s introduction of the reprocurement issue into the Claims Court litigation as a counterclaim effectively substituted for a challenge by Easier to the 1990 decision under the CDA. Easier argues that the government should be estopped from asserting that Easier did not challenge the 1990 decisiоn for purposes of
The meaning of
We note that the Federal Rules of Civil Procedure do not apply to the Court of Federal Claims, which has established its own rules, found in Title 28 of the United States Code. The Rules of the Court of Federal Claims are based on the Federal Rules of Civil Procedure, with some adaptations to reflect the court’s unique jurisdictional constraints.
See
R. Ct. Fed. Cl. 1(b); John Cibinic, JR. & Rat,ph C. Nash, Jr., Administration of Government Contracts 1314 (3d ed.1995). The language of Rule of the Court of Federal Claims 13 closely tracks the language of
The CDA gives the contractor the choice between the two available forums for review; “the result [is] that the Government has no right to determine the forum in which its claims will be litigated.” Cibinic
&
Nash,
supra,
at 1304. By choosing to challenge a contracting officer’s decision in one forum, the contractor is precluded from seeking review in the other.
See National Neighbors, Inc. v. United States,
Therefore, the selection of the forum is a particularly significant strategic choice that the CDA leaves to the contractor:
Numerous consequences can result from the contractor’s election of a forum, including the degree of formality of the proceedings, availability of accelerated procedures, possibility of recovery of Equal Access to Justice Act attorneys’ fees, scope of review by the Court of Appeals for the Federal Circuit, and presence or absence of precedent or recent decisions on similar issues. Thus, the selection of a forum is an important decision.
Cibinic & Nash,
supra,
at 1305-06.
See also Bonneville Assocs.,
Justice and efficient operation of the contract disputes-resolving system can be obtained best with a flexible system that provides alternative forums for resolution of particular kinds of disputes. The claimant should be able to choose a forum according to the needs of his particular case; that is, one where the degree of due process desired can be balanced by the time and expense considered appropriate for the case. To this end, alternate forums, each with special characteristics, should be maintained for initial resolution of disputes above the contracting officer and informal agency review level.
S.Rep. No. 95-1118, at 13, reprinted in 1978 U.S.C.C.A.N. 5247.
To hold that defending against a government counterclaim is the functional equivalent of bringing a direct suit in the Court of Federal Claims would be to rob contractors of that strategic choiсe — if the government raised a counterclaim based on a contracting officer’s decision and the contractor defended against it, the contractor would lose the option of seeking review in a BCA pursuant to
C. The Alleged Dispute Regarding Kasler’s Notice of the Final Decision
Easier contends that summary judgment was inappropriate because it offered evidence establishing a genuine dispute of material fact as to the notification of Easier. Easier presented three affidavits, from its president, its counsel, and an employee of its eodefendant, Fireman’s Fund, asserting that they had not received the copy of the 1990 decision that the contracting officer claimed to have re-sent on August 25, 1992. J.A. at 169, 171, 178. Nevertheless, Easier did not establish a genuine dispute as to a material fact.
Easier correctly argues that the government’s discussion of presumptions and its attempts to cast doubt on the credibility of Easler’s affiants were insufficient to overcome the specific claims in the affidavits at summary judgment; at most, the government’s arguments merely demonstrated that a dispute existed. Easier is also correct that the CDA requires that the contracting officer “mail or otherwise furnish” a copy of the decision to the contractor,
Easier must lose this point, however, because the second copy of the decision was superfluous. The district court correctly held that “[wjhile the Court is not sure why the contracting officer found it necessary to issue copies of the November 1990 decision in August 1992, the Court need not address whether these copies constituted a properly noticed final decision.” J.A. at 380. Because Eаsier did not challenge the validity of the November 1990 decision through the appropriate channels within the period of time prescribed by statute, the government need not have sent another copy at all; the August 1992 copy was utterly gratuitous, and its receipt immaterial to the district court’s analysis of the finality and unreviewability of the 1990 decision. Though this court has no way of knowing whether the government thought the renewed sending was necessary, even such a belief on the government’s part would have no impact on the court’s determination. Easler’s apparent desire to characterize the 1992 copy as a re-finalization of the decision, or as evidence that the government recognized the invalidity of the 1990 decision, is without support in fact or law.
If Easier had alleged, with supporting evidence, that it never received a copy of the November 1990 decision, a genuine dispute as to a material fact would have existed and summary judgment would have been precluded. Easier, however, did not contend that it had not received the 1990 decision, and presented no evidence to indicate that it had not. In fact, the affidavit from the code-fendant’s employee stated that the codefend-ant received a сopy of the decision on November 12, 1990, and faxed it to Easler’s counsel on November 13. J.A. at 179 (Gar-docky Aff. at ¶ 7). In addition, Easier necessarily received notice of the decision when the United States raised a counterclaim based on that decision in the Claims Court litigation. Moreover, Easier actually stipulated to the issuance of the 1990 decision in that litigation. J.A. at 59 (Joint Mem. re: Stipulations at ¶ 18). The government argues that the stipulation is “conclusive[ ]”; though we disagree, given that the Claims Court suit granted a motion to dismiss for lack of jurisdiction and therefore did not actually decide any fact,
13
the stipulation is
III. CONCLUSION
For the reasons discussed above, we AFFIRM the order of the district court granting summary judgment to the plaintiff.
Notes
. Defendant Fireman's Fund is not a party to this appeal, since the district court denied the government's motion for summary judgment as to Fireman's Fund. The district court expressly determined that there was no just reason for delaying review as to Kasler, and directed the entry of final judgment as to Kasler only, so we have jurisdiction over this appeal. R. 61;
. The United States Claims Court, established pursuant to Article I of the United States Constitution, was the successor to the original (trial) jurisdiction of the United States Court of Claims, an Article III court. Federal Courts Improvement Act of 1982 (FCIA), Pub.L. No. 97-164, 96 Stat. 25. The FCIA also combined the appellate division of the Court of Claims with the Court of Customs and Patent Appeals to form the United States Court of Appeals for the Federal Circuit, an Article III court. Precedents from the Court of Claims (cited as Ct. Cl.) were binding authority on the Claims Court (Cl.Ct.). See
West Seattle Gen. Hosp., Inc. v. United States, 1
Cl.Ct. 745, 746 (1983). In 1992 Congress changed the name of the Claims Court to the United States Court of Federal Claims (Fed.Cl.). Court of Federal Claims Technical and Procedural Improvements Act of 1992, Pub.L. No. 102-572, tit. DC, § 902, 106 Stat. 4516;
Continental Collection & Disposal, Inc. v. United States,
. "Following the dismissal of the Claims Court litigation, I was told to send another notification of excess reprocurement costs to Kasler Electric. I don't know who told me to do this or why...." J.A. at 43 (Presnell Aff. at ¶ 7).
. The Court of Appeals for the Federal Circuit has exclusive jurisdiction over appeals from agency boards of contract appeals in CDA cаses and from the Court of Federal Claims (formerly the Claims Court).
. Title 48, chapter 1 of the Code of Federal Regulations contains the Federal Acquisition Regulations (FAR). Courts, BCAs, and government contracts lawyers use a special citation form that does not refer to the C.F.R. (e.g., FAR 52.233-1). We will follow the citation method recognized within the field.
.
See also
. Though the government contends that
Sharman
has been overruled by
Reflectone, Inc. v. Dalton, 60
F.3d 1572 (Fed.Cir. 1995),
Reflectone
itself does not support that assertion. In addition to the point for which Kasler cites
Sharman, Shar-man
also held, in a different section of its analysis, that a claim was not a “claim” for purposes of FAR 33.201 unless it was disputed at the time it was submitted to the contracting officer.
. Prior to its amendment by the Court of Federal Claims Technical and Procedural Improvements Act of 1992, Pub.L. No. 102-572, tit. DC, § 902(b)(1), 106 Stat. 4516,
. Kasler brought the suit to challenge the contracting officer’s 1987 decision terminating the contract for default; the government's counterclaim was based on the contracting officer’s 1990 decision assessing excess reprocurement costs.
. Though we base this part of our holding on the implausibility of Kasler’s argument under the CDA, we also note, as did the district court, that even if Kasler’s defense against the government's counterclaim could be construed as satisfying
.Significantly, the CDA allows a contractor to pursue different remedies for separate claims arising from the same contract.
See, e.g.,
. The Election Doctrine applies only when the chosen forum has jurisdiction over the proceedings.
National Neighbors,
. The issue also was not "actually litigated"; an issue is not actually litigated "if it is the subject of a stipulation between the parties. A stipulation may, however, be binding in a subsequent