Abare v. United States

CourtUnited States Court of Federal Claims
DecidedMarch 19, 2026
Docket22-1271
StatusPublished

This text of Abare v. United States (Abare v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Abare v. United States, (uscfc 2026).

Opinion

In the United States Court of Federal Claims No. 22-1271 (Filed: 19 March 2026)

*************************************** MARGARET ABARE, * * Plaintiff, * * v. * * THE UNITED STATES, * * Defendant. * * ***************************************

Morgan L. Bigelow, Lubin, Enoch, & Bustamante, PC, of Phoenix, AZ, with whom was Sara L. Faulman, McGillivary Steele Elkin LLP, of Washington, DC, for plaintiff.

Oliver McDonald, Trial Attorney, Department of Justice, Civil Division, Commercial Litigation Branch, with whom were Reginald T. Blades, Jr., Assistant Director, Patricia M. McCarthy, Director, Brett A. Shumate, Acting Assistant Attorney General, Department of Justice, and David White, Attorney, and Joshua Hofer, Attorney, Commercial & Appellate Litigation, United States Postal Service, all of Washington, DC, for defendant.

OPINION AND ORDER

HOLTE, Judge.

Caveat manceps rei publicae. 1

This forewarning is hardly novel. On 12 August 1986, President Ronald Reagan uttered his famous adage—“[T]he nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.” Ronald Reagan Presidential Library and Museum, The President’s News Conference, 12 August 1986, available at https://www.reaganlibrary.gov /archives/speech/presidents-news-conference-23. Since then, government contracting has grown to pervade nearly every facet of the American economy, and so too has government contractors’ need to beware of the contracts they presume to have entered.

As government contracting is funded by the people for the people, “[contractors] must turn square corners 2 when they deal with the [g]overnment.” Rock Island, A. & L. R. Co. v.

1 “Let the contractor for the government beware.” 2 “Turning square corners” is the converse of “cutting corners,” which originated from when carriage drivers took shortcuts by diagonally crossing a sharp turn. Though carriage drivers saved time by taking these shortcuts, they United States, 254 U.S. 141, 143 (1920) (Holmes, J.). “But it is also true, particularly when so much is at stake, that ‘the [g]overnment should turn square corners in dealing with the people.’” Dep’t of Homeland Sec. v. Regents of the Univ. of Cal., 591 U.S. 1, 24 (2020) (Roberts, C.J.) (quoting St. Regis Paper Co. v. United States, 368 U.S. 208, 229 (1961) (Black, J., dissenting)); see also Niz-Chavez v. Garland, 593 U.S. 155, 172 (2021) (Gorsuch, J.) (“If men must turn square corners when they deal with the government, it cannot be too much to expect the government to turn square corners when it deals with them.”). Yet, “the Supreme Court has recognized that any private party entering into a contract with the government assumes the risk of having accurately ascertained that he who purports to act for the government does in fact act within the bounds of his authority.” Schism v. United States, 316 F.3d 1259, 1278 (Fed. Cir. 2002) (citing Fed. Crop Ins. Corp. v. Merrill, 332 U.S. 380, 384 (1947)) (other citations omitted). This means, even if a government actor misrepresented the extent of their authority, the contractor is charged with knowing the true extent of the government actor’s authority and bears all legal risk if the actor exceeds their authority. Such is the concern here.

Ms. Abare—a mail handler who suffered from a spinal injury—filed a grievance at the Equal Employment Opportunity Commission (“EEOC”) against the United States Postal Service (“USPS”) alleging discrimination based on her disability. During the pendency of her grievance, an administrative judge at the EEOC ordered party representatives with authority to discuss settlement. After plaintiff’s counsel conveyed its first settlement proposal, a Postal Service attorney agreed to discuss settlement over a phone call. Following the phone call, plaintiff’s counsel asked via e-mail what the Postal Service’s current settlement offer was. The Postal Service attorney responded: “$180[,000] inclusive of comp[ensation] and att[orney’s] fees.” Plaintiff’s counsel replied: “My client accepts this offer.” Despite this facially lucid settlement discussion and in spite of the EEOC administrative judge’s order requiring the government negotiator to have settlement authority, the Postal Service attorney was not authorized to offer a settlement over $5,000 and did not attempt to receive proper authorization for a settlement of $180,000—plaintiff never asked the actual extent of the Postal Service attorney’s settlement authority either. See infra Sections I.A, IV.A; see also infra Section IV.A n.4 (noting the Postal Service attorney admitted to “universally ignoring” the administrative judge’s Order at his deposition).

Unfortunately, the Postal Service does not publish any memorandum detailing the actual extent of its agents’ settlement authority, raising the question: how can contractors “accurately ascertain[] that he who purports to act for the government does in fact act within the bounds of his authority”? See Schism, 316 F.3d at 1278. The absence of such information, plaintiff’s failure to inquire about the Postal Service attorney’s authority, and the parties’ email correspondences prompted plaintiff to assume the attorney had authority. This assumption, however, was in vain. 3 As the government agreed at oral argument, if the Postal Service

invited risks and dangers by doing so. Instead of taking shortcuts when dealing with the government, Justice Holmes urged the people to “turn[] square corners” by complying with, inter alia, legal requirements, contractual duties, and due process. 3 This is not the first instance of government representatives promising more than they have authority to offer. In the 2024 Yifrach decision, the Court noted a history of at least nine other cases concerning law enforcement officers making contract promises beyond their DOJ authorization manual. Yifrach v. United States, 169 Fed. Cl. 33, 68 n.7 (2024) (citing Cornejo-Ortega v. United States, 61 Fed. Cl. 371, 374–76 (2004), Tracy v. United States, 55 Fed. Cl.

-2- published its settlement authority delegation processes (like the Department of Justice does), the Postal Service would avoid disputes like the instant case regarding whether a government actor had requisite settlement authority. See infra Section IV.A. Given plaintiff agreed at oral argument (1) apparent authority is insufficient and (2) the Postal Service’s attorney did not possess actual authority to bind the government to a settlement agreement over $5,000, the Court grants the government’s Motion for Summary Judgment.

I. Background

A. Factual History

The Court detailed the factual history of this case in its 25 September 2023 Opinion and Order, ECF No. 17:

Plaintiff, Margaret Abare, was a United States Postal Service (“USPS”) mail handler in Maricopa County. Compl. ¶¶ 2–3, ECF No. 1. She submitted an Equal Employment Opportunity (“EEO”) complaint related to her USPS employment in 2018. Id. ¶¶ 3, 11. On 20 November 2020, the EEO Commission (“EEOC”) administrative judge “issued an order scheduling an initial conference,” which required the parties to “discuss specific settlement proposals” and the representatives to “have the authority to settle the complaint during the Initial Conference.” Id. ¶ 12 (quoting Compl. Ex. A (“EEOC Order Scheduling Initial Conference”) at 2, ECF No. 1-1).

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