AABCO, Inc. v. United States

31 Cont. Cas. Fed. 71,810, 3 Cl. Ct. 700, 1983 U.S. Claims LEXIS 1578
United States Court of Claims·Decided November 3, 1983·No. No. 411-83C·Published·Cited by 7 cases

Opinion

OPINION

YOCK, Judge.

This matter is before the Court on the plaintiff’s timely application for attorney’s fees and costs under the Equal Access to Justice Act, 28 U.S.C. § 2412 (Supp. V 1981) (EAJA). The application stated in part that plaintiff was entitled to reasonably-incurred attorney’s fees of at least $21,443.75, and that the position of the United States in this action was not substantially justified. The plaintiff also requested reimbursement for certain costs.

For the reasons discussed herein, this Court denies the plaintiff’s application for fees and costs.

Background

The attorney’s fees and costs sought in this application were incurred in the successful prosecution of a contract declaratory judgment and injunctive action filed by the plaintiff on June 22, 1983. The plaintiff is a regulated freight forwarding company that specialized in moving household goods for military personnel. As such, plaintiff submitted computerized tape bids on various routes for the period October 1, 1983— March 31,1984 used by the Army’s Military Traffic Management Command (MTMC) to transport the household goods of military personnel worldwide.

The issue in this case was whether, in bids of less than $100 for each route, the bid had to contain five numeric characters in order to be considered responsive to the Government’s solicitation. The Government contended that its regulations (Standing Instructions) required that all bids, including those less than $100, had to contain five numeric characters, eg., a bid of $98.89 should be converted on the computer tape to 09889. Approximately 1800 (out of 2600) of the plaintiff’s computerized bids were for routes where the bid was under $100. The plaintiff submitted those bids on the com[702] puter tape with a leading blank instead of a leading zero numeric character, e.g., 9889 instead of 09889.

After a two-day hearing conducted on June 27 and 28, 1983, and briefs on the matters, the plaintiff was able to convince the Court that the Government’s Standing Instructions were ambiguous on the point and that plaintiff’s reading of the instruction and actions based on that reading were reasonable. Thus, the bids should have been accepted as responsive. In addition, the plaintiff convinced the Court that even if it had made a mistake in its interpretation of the instructions, the mistake was a minor technical matter that did not materially affect the price, quality of service to be rendered, time requirements, or integrity of the competitive bidding process, and therefore should have been waived. Hence, the Court on July 11, 1983, granted the plaintiff’s request for an order declaring that the contracting officer had abused his discretion in failing to give full and fair consideration to plaintiff’s bids. The Court further enjoined the Army (MTMC) from accepting any other bids until it had fully and fairly considered the plaintiff’s bids. AABCO, Inc. v. United States, 3 Cl.Ct. 109 (1983) (YOCK, J.).

Following the filing of the merit decision in this matter, the defendant moved the Court for a stay pending appeal on July 14, 1983. After both parties had briefed the motion, the Court issued its order denying the motion on July 19, 1983. The Government then filed its notice of appeal on July 20, 1983. Thereafter, the plaintiff filed its motion for release of bond which was granted on July 22, 1983. On September 15, 1983, the Federal Circuit dismissed the Government’s appeal, after the Government had submitted its voluntary motion to dismiss. Timely application by plaintiff for attorney’s fees and costs followed.

Discussion

Plaintiff asserts in its application that it is entitled to an award of attorney’s fees and expenses because it meets the statutory requirement of 28 U.S.C. § 2412(d)(2)(B) in that it is a corporation whose net worth is under $5 million and employs under 500 people; that it is a “prevailing party,” as required by 28 U.S.C. § 2412(d)(1)(B); and that the position of the Government in this matter was not “substantially justified,” as required by 28 U.S.C. § 2412(d)(1)(A), since the Court found the contracting officer had acted in an arbitrary and capricious manner and thus had abused his discretion by failing to give plaintiff’s bid full and fair consideration.

The Government, in its opposition to plaintiff’s application, raises a number of contentions. First, it contends that this Court lacks jurisdiction to hear matters under the EAJA. Second, it argues that the position of the Government in litigating this case was substantially justified. Finally, it asserts that even if the position of the United States is found not to be substantially justified, some of the fees and expenses were excessive and not reasonably incurred.

Jurisdiction

The Government in this case has again raised the issue of whether this Court has jurisdiction to hear matters under the EAJA. The Government’s argument is basically that the Claims Court is not a court of the United States as defined in 28 U.S.C. § 451 (1976), and points to the legislative history of the EAJA for support that Article I courts were not intended to be included in those courts having jurisdiction to hear matters under the EAJA. The Government looks to the legislative history even though the language of the Act itself states in pertinent part:

(a) Except as otherwise specifically provided by statute, a judgment for costs, as enumerated in section 1920 of this title, but not including the fees and expenses of attorneys, may be awarded to the prevailing party in any civil action brought by or against the United States * * * in any court having jurisdiction of such action. * * *
(b) Unless expressly prohibited by statute, a court may award reasonable fees and expenses of attorneys, in addition to [703] the costs which may be awarded pursuant to subsection (a), to the prevailing party in any civil action brought by or against the United States * * * in any court having jurisdiction of such action.

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AABCO, Inc. v. United States, 31 Cont. Cas. Fed. 71,810, 3 Cl. Ct. 700, 1983 U.S. Claims LEXIS 1578 (cc 1983).

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