Alaska American Lumber Co. v. United States

37 Cont. Cas. Fed. 76,286, 25 Cl. Ct. 518, 1992 U.S. Claims LEXIS 612, 1992 WL 51359
CourtUnited States Court of Claims
DecidedMarch 16, 1992
DocketNo. 41-87 C
StatusPublished
Cited by14 cases

This text of 37 Cont. Cas. Fed. 76,286 (Alaska American Lumber Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska American Lumber Co. v. United States, 37 Cont. Cas. Fed. 76,286, 25 Cl. Ct. 518, 1992 U.S. Claims LEXIS 612, 1992 WL 51359 (cc 1992).

Opinion

OPINION

HORN, Judge.

This case involves the termination of a contract between the plaintiff and the United States Forest Service, United States Department of Agriculture, to harvest timber in the Tongass National Forest in Alaska. The case is presently before this court on cross-motions for summary judgment. Plaintiff, Alaska American Lumber Co., Inc. filed this action claiming damages for the alleged breach and termination of a timber sale contract, in which the defendant, the United States, acting through the United States Forest Service, granted the plaintiff the right to harvest timber from National Forest lands. According to the defendant, the facts material to this action are not in dispute. Defendant asserts that it terminated plaintiffs contract for default due to plaintiffs failure to perform contract obligations, which defendant asserts were not excused by any action of the defendant. In its Opposition to Defendant’s Motion for Summary Judgment, and in its own Cross-Motion for Summary Judgment, plaintiff claims that there are genuine issues of material fact in dispute regarding the applicable terms of the contract, but, nonetheless, asserts that it is entitled to summary judgment, alleging that the defendant breached the contract between the parties.

Based on a review of the papers submitted to the court and upon the oral argument held, the court finds that the Forest Service acted in accordance with the contract terms when it terminated plaintiff’s contract for failure to substantially complete the roads specified by the date specified in the contract. Moreover, the court concludes that, based upon the record, plaintiff’s failure to perform was not due to any action on the part of the United States Forest Service. Therefore, the defendant’s Motion for Summary Judgment is, hereby, GRANTED, and the plaintiff’s Cross-Motion for Summary Judgment is, hereby, DENIED.

' BACKGROUND

The original contract at issue in this case, which is known as the Deer Island Timber Sale Contract, Contract No. 02-011, was awarded to the plaintiff on February 13,1979, and was originally scheduled to be completed by May 31, 1983. The contract provided the plaintiff, Alaska American Lumber Co., a Washington corporation, with the right to harvest timber from the Tongass National Forest in southeastern Alaska. The agreement required the plaintiff to construct 4.12 miles of specified roads, which were deemed to be necessary to obtain access to. the timber.1

Plaintiff was required to provide the Forest Service with an annual, written operating schedule of its “anticipated major activities” for logging under the contract prior to commencing operations. The contract defined the “normal operating season” during which the plaintiff could perform its contractual obligations as May 1st to October 31st. The plaintiff was permitted to conduct operations outside of the normal operating season, upon compliance with two provisions which called for the satisfaction of contract conditions regarding erosion prevention and control. In addition, the plaintiff was required to submit for approval to the Forest Service a written general Plan of Operation, setting forth planned times and methods for road construction, timber harvesting and other contractual activities. The contract also provided the plaintiff with thirty (30) days in which to cure a breach of the timber sale contract. If, after notification, a breach was not remedied within the allowed time, [522]*522contract clause C9.3, gave the Forest Service the right to terminate the contract.

Prior to the termination date of the original timber sale contract, the parties entered into two subsequent final agreements to extend the contract term. Each extension was preceded by an interim modification. The first extension, for a period of two years, was requested by the plaintiff, pursuant to the Economic Recovery Act of 1981, and was finalized on August 8, 1983, following a first, interim extension modification agreement, which was executed on June 6, 1983. In the first final modification, dated August 8, 1983, the parties agreed to a new timber sale termination date of May 31, 1985, and to a road substantial completion date of May 31, 1984.

In February 1984, the plaintiff requested a second extension, this time for a period of five years, under the Multi-Sale Extension Program.2 Pursuant to this request, the parties executed a second, interim extension agreement on April 3, 1984, which states:

Pursuant to B8.3 and based on Purchaser’s intent to submit a multi-sale extension plan in accordance with the multisale extension program, it is agreed that the effective date of this modification shall be the effective date of the extension of this contract under the program____

The second interim modification does not distinguish between the contract termination date and the date for substantial completion of specified roads. The second and final modification agreement or the final Multi-Sale Extension Program agreement was executed by the parties on or about September 12, 1984.3 This final agreement, however, explicitly specifies a contract termination date of April 3, 1989, and in section C5.102$ (12/83) provides that:

the construction of specified roads shall be substantially completed no later than April 3, 1985.

It is uncontested that on January 18, 1985, the plaintiff was declared in breach of contract for failure to pay an assessed $47,156.80 stumpage bill, in accordance with the Removal Schedule, included in clause C4.262 of the original contract. This breach was effectively cured when the plaintiff agreed to pay a revised fee of $4,919.18.

On January 29, 1985, following several delays, and at the insistence of the Forest Service, the plaintiff submitted its proposed plan of operation to the Forest Service for approval, pursuant to contract clause B6.31. The plan set forth plaintiff’s anticipated activities for the 1985 operating season. The Forest Service approved the plan, on February 8, 1985, subject to the following four conditions: (1) review of and compliance with the erosion prevention and control contract provisions outlined in the contract; (2) payment of the revised removal payments bill of $4,919.18; (3) scheduling of a pre-work meeting with the Forest Service; and (4) substantial completion of specified roads by April 3, 1985, or prior to the conclusion of the period provided to cure a breach, May 30, 1985.4

On March 21, 1985, District Ranger Richard K. Kohrt sent a letter to plaintiff’s purchaser representative, Mr. R.G. Critten[523]*523den, informing him that the plaintiffs operating plan would not be approved unless the Forest Service was assured that plaintiff had sufficient equipment on hand to complete the road construction work prior to May 30, 1985, or, in other words, within the period of time allowed for substantial completion and cure of a breach of the date set for substantial completion of the roads. Plaintiff maintains that this letter was instrumental in preventing plaintiff from rendering its contractual performance, as specified. The letter contains the following language:

In light of our discussion this morning concerning the Deer Island Timber Sale Contract No. 02-011, I would like to reemphasize that I cannot approve an Annual Operating Plan that will not show that the specified road will be completed by April 3, 1985. (Contract Clause No.

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Bluebook (online)
37 Cont. Cas. Fed. 76,286, 25 Cl. Ct. 518, 1992 U.S. Claims LEXIS 612, 1992 WL 51359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-american-lumber-co-v-united-states-cc-1992.