112 Genesee Street, LLC v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 4, 2026
Docket25-1373
StatusPublished

This text of 112 Genesee Street, LLC v. United States (112 Genesee Street, LLC v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
112 Genesee Street, LLC v. United States, (Fed. Cir. 2026).

Opinion

Case: 25-1373 Document: 45 Page: 1 Filed: 02/04/2026

United States Court of Appeals for the Federal Circuit ______________________

112 GENESEE STREET, LLC, ET AL. Plaintiffs-Appellees

v.

UNITED STATES, Defendant-Appellant ______________________

2025-1373 ______________________

Appeal from the United States Court of Federal Claims in No. 1:23-cv-01876-RAH, Judge Richard A. Hertling. ______________________

Decided: February 4, 2026 ______________________

CHARLES MCCLOUD, Williams & Connolly LLP, Wash- ington, DC, argued for plaintiffs-appellees. Also repre- sented by FRANK BOWMAN, EDWARD CHARLES REDDINGTON.

MARGARET JANTZEN, Commercial Litigation Branch, Civil Division, United States Department of Justice, Wash- ington, DC, argued for defendant-appellant. Also repre- sented by WILLIAM JAMES GRIMALDI, PATRICIA M. MCCARTHY, YAAKOV ROTH.

______________________ Case: 25-1373 Document: 45 Page: 2 Filed: 02/04/2026

2 112 GENESEE STREET, LLC v. US

Before MOORE, Chief Judge, CHEN, Circuit Judge, and ANDREWS, District Judge.1 MOORE, Chief Judge. Over three hundred restaurants and businesses (Plain- tiffs) brought this action against the United States (Gov- ernment) seeking unpaid grant applications from the Restaurant Revitalization Fund (RRF). The United States Court of Federal Claims denied the Government’s motion to dismiss the complaint for lack of Tucker Act jurisdiction and failure to state a claim upon which relief may be granted. For the following reasons, we affirm. BACKGROUND I. Statutory Scheme In the wake of the COVID-19 pandemic, Congress passed the America Rescue Plan of 2021, establishing the RRF. 15 U.S.C. § 9009c. Congress required the Small Business Administration (SBA) to administer the RRF pro- gram, § 9009c(a)(1), and appropriated $28.6 billion for RRF grants “[i]n addition to amounts otherwise available,” § 9009c(b)(2)(A). Eligible entities included small restau- rants, bars, and similar types of dining establishments. § 9009c(a)(4). The statute directed that “[t]he Administra- tor shall use amounts in the Fund to make grants,” § 9009c(b)(3) (emphasis added), and mandated that the SBA “shall award grants to eligible entities in the order in which the applications are received by the Administrator.” § 9009c(c)(1) (emphasis added). Congress also directed that the amounts the SBA paid to recipients “shall be equal to the pandemic-related revenue loss of the eligible entity.” § 9009c(c)(4)(B)(i) (emphasis added).

1 Honorable Richard G. Andrews, District Judge, United States District Court for the District of Delaware, sitting by designation. Case: 25-1373 Document: 45 Page: 3 Filed: 02/04/2026

112 GENESEE STREET, LLC v. US 3

The statute required that “[d]uring the covered period, an eligible entity that receives a grant under this subsec- tion may use the grant funds for [certain allowable] ex- penses incurred as a direct result of, or during, the COVID- 19 pandemic.” § 9009c(c)(5). Examples of expenses for which grant funds could be used include payroll costs, mortgage or rent payments, utilities, supplies, food and beverage expenses, and other operational expenses. Id. “Covered period” was defined as the period beginning Feb- ruary 15, 2020 and ending December 31, 2021 or a date de- termined by the Administrator not later than two years after March 11, 2021. § 9009c(a)(3). The statute also es- tablished the formula for calculating grant amounts for el- igible entities where “the gross receipts . . . of the eligible entity during 2020 [are] subtracted from the gross receipts of the eligible entity in 2019.” § 9009c(a)(7)(A). The statute required that if an eligible entity “fails to use all grant funds or permanently ceases operations on or before the last day of the covered period, the eligible entity shall re- turn [the unused grant funds] to the Treasury.” § 9009c(c)(6). In accordance with the statute, the covered period for RRF grants ended on March 11, 2023, triggering the re- quirement for entities to return unused funds. J.A. 4. Three months later, in June 2023, the Fiscal Responsibility Act, Pub. L. No. 118-5, 137 Stat. 10, became law, rescinding all unobligated RRF funds. J.A. 7. II. Procedural Background Plaintiffs submitted RRF grant applications on the first day applications were open to the public, but none re- ceived a grant before the RRF was exhausted, even though other applicants who applied after Plaintiffs received grants. J.A. 6. Plaintiffs filed a complaint in the Court of Federal Claims alleging they were entitled to receive grants under the RRF and seeking damages in the amount of the unpaid grants. J.A. 1. Plaintiffs alleged that 15 Case: 25-1373 Document: 45 Page: 4 Filed: 02/04/2026

4 112 GENESEE STREET, LLC v. US

U.S.C. § 9009c(c)(1) directed the SBA “to ‘award grants to eligible entities in the order in which applications [were] received by the Administrator,’ but the SBA instead made payments to applicants in the order in which it processed the applications.” J.A. 1. The Government moved to dis- miss pursuant to Rule of the Court of Federal Claims (RCFC) 12(b)(1), which the Court of Federal Claims denied. J.A. 1–34. The court held that “[t]he Administra- tor . . . was required to use the RRF to make grants under section 9009c(b)(3), and to do so in the order specified by section 9009c(c)(1), an order that gave each eligible appli- cant an individual right to receive payment before any later applicant. Because the SBA lacked discretion under sec- tion 9009c as to whether to pay money to specific applicants who meet the requirements of the statute or as to the amounts to award a specific applicant, section 9009c can fairly be read to be money-mandating.” J.A. 22. The Court of Federal Claims sua sponte raised the is- sue of whether Plaintiffs failed to state a claim due to a possible statutory cap on the Government’s liability. J.A. 27. The Government argued that 15 U.S.C. § 9009c(b)(2)(A) established a statutory cap on government liability, and Plaintiffs argued against the cap. J.A. 27–29. The court explained the SBA “cannot evade its obligations by paying the wrong entities out of the RRF and then claiming there is no money left to pay the plaintiffs, the text of the statute notwithstanding.” J.A. 32. The court also explained that “[n]o funding cap exists in section 9009c to limit the [Government]’s liability for the allegedly illegal actions of the SBA,” therefore concluding that Plaintiffs stated a claim upon which relief can be granted. J.A. 33. The Court of Federal Claims granted the Government’s motion to certify interlocutory appeal pursuant to 28 U.S.C. § 1292(d)(2), J.A. 35–42, and the Government ap- peals. We have jurisdiction under 28 U.S.C. § 1292(d). Case: 25-1373 Document: 45 Page: 5 Filed: 02/04/2026

112 GENESEE STREET, LLC v. US 5

DISCUSSION I. Tucker Act Jurisdiction We review whether the Court of Federal Claims has subject matter jurisdiction de novo. Lummi Tribe of the Lummi Rsrv., Washington v. United States, 870 F.3d 1313, 1317 (Fed. Cir. 2017). We also review the Court of Federal Claims’ statutory interpretation de novo. Id. The plaintiff bears the burden of establishing subject matter jurisdic- tion. Id. “The United States is immune from suit unless it une- quivocally consents.” Maine Cmty. Health Options v. United States, 590 U.S. 296, 322 (2020).

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