Aero-Abre, Inc. v. United States

39 Fed. Cl. 654, 1997 WL 763461
CourtUnited States Court of Federal Claims
DecidedDecember 11, 1997
DocketNo. 95-320 C
StatusPublished
Cited by3 cases

This text of 39 Fed. Cl. 654 (Aero-Abre, Inc. 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.

Bluebook
Aero-Abre, Inc. v. United States, 39 Fed. Cl. 654, 1997 WL 763461 (uscfc 1997).

Opinion

OPINION and ORDER

TURNER, Judge.

In this government contract case, plaintiff seeks enforcement of an alleged pricing amendment made with a representative of the contracting officer. The case stands on defendant’s motion filed October 3, 1995 to dismiss the action for failure to state a claim on which relief can be granted or, alternatively, for summary judgment. For reasons stated below, we conclude that defendant’s motion should be denied.

I

Plaintiff is a corporation in the business of towing and storing vehicles. On November 2, 1987, plaintiff contracted with the United States Marshals Service (USMS) to tow, store and prepare for sale vehicles seized by the Department of Justice in the San Diego Border Patrol area.

Under the original contract, plaintiff was required to store 1500 vehicles and prepare approximately 170 vehicles for sale each month. Plaintiff was paid $36,000 per month for these services. Plaintiff was also paid a $.50 per day fee for each vehicle stored above 1500. The contract period was one year with four one-year options, all of which were exercised by the USMS.

The contract required plaintiff to submit invoices to the USMS office in San Diego for approval and certification. Def. Mot. (10/3/95), App. at 18, 45. Plaintiff was also required to submit duplicate invoices to the National Asset Seizure and Forfeiture Office (NASAF) in San Diego. Id. A Contracting Officer’s Technical Representatives (COTR) had to certify each invoice as correct before forwarding the invoice to the USMS Payment Office. Id. at 43-44. The contract also required a COTR to submit a copy of the certified invoice to the Contracting Officer (CO). Id.

In December 1987, contract modification 001 designated the COTRs: Robert E. Digh-era, Chief Deputy United States Marshal, and Gerald C. Smith, Criminal Asset Investigator with NASAF. Id. at 70-71. Plaintiff worked very closely with COTR Dighera who allegedly informed plaintiff he was in charge of the contract. Dighera monitored the vehicle inventory, determined whether plaintiff was meeting the contract requirements, and supervised the preparation of vehicles for sale.

During the first year of contract performance, plaintiff’s storage inventory never exceeded 1500 vehicles. However, in 1989, all [656]*656DOJ agencies in the Southern District of California began to use plaintiffs services, resulting in a dramatic increase in the number of vehicles towed and stored by plaintiff. In April 1989, plaintiff had more than 1500 vehicles in storage. At this time, plaintiff was directed by a CO, Kim Butler, not to accept any more vehicles. The government then entered into a contract with a different company to tow and store the excess vehicles.

Later that year, plaintiff was informed by another CO (Kathy Coghill) that CO Butler had incorrectly interpreted the contract and that plaintiff was required to meet all of the USMS’s vehicle storage requirements for the area. In August 1989, the parties modified the contract. Plaintiff agreed to meet all the storage requirements of the government and the government promised to store the excess vehicles with plaintiff. Following this modification, plaintiff leased additional space, made physical improvements and hired additional staff in order to meet the contract requirements.

Shortly after that contract modification, COTR Dighera informed plaintiff that the government wanted to increase sales of seized vehicles in order to reduce storage fees. Plaintiff objected because the contract required plaintiff to prepare for sale only approximately 170 vehicles per month and increased sales would increase plaintiffs costs and reduce income from storing the extra vehicles. Plaintiff was depending on the excess storage charges to cover the cost of expanding its storage facilities and believed that increased sales would reduce if not eliminate the need to store excess vehicles.

COTR Dighera and his assistant Kathleen Carson (Supervisory Deputy U.S. Marshal) agreed that plaintiff’s costs would increase and that his storage income would decrease. Dighera and Carson asked plaintiff to propose a solution. Plaintiff’s president, Larry Lemler, suggested that the extra costs could be recouped if the excess vehicle charge was raised from $.50 per vehicle per day to $.55. Dighera and Lemler eventually agreed that in exchange for plaintiffs installing a computer system and preparing more than twice the contract’s amount of vehicles for sale, the government would increase the excess vehicle storage fee from $.50 per day to $.55 per day. Dighera said that he would take care of the required paperwork.

Thereafter, plaintiff prepared the additional vehicles for sale and installed an $8,000 computer system. Lemler received several contract modification letters after his conversation with Dighera and thus assumed that the contract had been modified to reflect their agreement.

For twenty-two months, plaintiff prepared the increased amount of vehicles for sale and in doing so tripled its work force. Each month, plaintiff submitted invoices to Digh-era and NASAF in San Diego. Plaintiff itemized its storage fees, charging $.55 per day for each vehicle in excess of 1500. Each month the invoices were approved and plaintiff was paid.

In August 1991, the contract was audited in a contract compliance review by the Seized Assets Division of the San Diego Region. The auditor questioned the $.55 excess vehicle storage charge. Plaintiff informed the auditor of the 1989 agreement and was, in turn, informed that because the agreement had not been formalized in a written change order signed by the CO, plaintiff must discontinue charging $.55 per vehicle. On May 7, 1993, the government informed plaintiff that under the contract it had overpaid the plaintiff by $94,930. Def. Mot. (10/3/95), App. at 144-45. The government refused to pay plaintiff for work until it had recouped the alleged overpayment. Id. at 160. The government did recoup the overpayment by withholding payments for plaintiff’s subsequent towing and storage services. On April 29, 1994, the CO issued a final decision advising plaintiff that it owed the government $94,930. Id. at 162-64.

On May 1, 1995, plaintiff filed the complaint initiating this civil action for payment for the work completed in accordance with the agreement made with the COTR. On October 3, 1995, defendant filed the disposi-tive motion under discussion.

[657]*657II

Defendant seeks dismissal of the complaint under RCFC 12(b)(4) for plaintiff’s failure to state a claim upon which relief can be granted. Def. Mot. (10/3/95) at 1. In the alternative, defendant moves for summary judgment under RCFC 56. Id. Pursuant to RCFC 12(b), the court will treat the motion as one for summary judgment.1

When a party moves for summary judgment, a court may grant the motion if the movant demonstrates that the nonmoving party “has failed to make a sufficient showing on an essential element of her case with respect to which she has the burden of proof.” Celotex Corp. v. Catrett, 477 U.S. 317, 323,106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986).

In the instant case, plaintiff must prove either (1) that Chief Deputy U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
39 Fed. Cl. 654, 1997 WL 763461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aero-abre-inc-v-united-states-uscfc-1997.