Arctic Slope Native Association, Ltd. v. Sebelius

583 F.3d 785, 74 Fed. R. Serv. 3d 963, 2009 U.S. App. LEXIS 21361, 2009 WL 3082337
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 29, 2009
Docket2008-1532, 2008-1607, 2009-1004
StatusPublished
Cited by52 cases

This text of 583 F.3d 785 (Arctic Slope Native Association, Ltd. v. Sebelius) 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
Arctic Slope Native Association, Ltd. v. Sebelius, 583 F.3d 785, 74 Fed. R. Serv. 3d 963, 2009 U.S. App. LEXIS 21361, 2009 WL 3082337 (Fed. Cir. 2009).

Opinion

BRYSON, Circuit Judge.

The appellants in these three appeals are Indian tribes and tribal organizations that provide health care services to their members under contracts with the Indian Health Service (“IHS”). The contracts were entered into pursuant to the Indian Self-Determination and Education Assistance Act (“ISDA”), 25 U.S.C. §§ 450-450n. The Civilian Board of Contract Appeals dismissed several of the appellants’ contract claims against the IHS on the ground that the appellants had failed to present those claims to a contracting officer within six years after the claims accrued, as required by section 605(a) the Contract Disputes Act (“CDA”), 41 U.S.C. § 605(a).

Before the Board of Contract Appeals, the appellants argued that the CDA’s six-year presentment period was tolled on either of two grounds. First, they argued that the statutory presentment period was subject to equitable tolling. Second, they argued that the period was legally tolled by the pendency of two class action lawsuits in which they were putative class members. The Board rejected both arguments. It held that the CDA’s presentment period is a jurisdictional requirement that is not subject to tolling, either equitable or legal. We hold that the six-year presentment period is subject to equitable tolling, but not class action tolling; we remand to the Board to determine whether this case satisfies the requirements of the equitable tolling doctrine.

I

The ISDA was enacted in 1975 to promote tribal autonomy by permitting Indian tribes to manage federally funded services that were previously administered by the federal government. See 25 U.S.C § 450a; Cherokee Nation of Okla. v. Leavitt, 543 U.S. 631, 634, 125 S.Ct. 1172, 161 L.Ed.2d 66 (2005). Transfers of federal programs to tribal control under the ISDA are accomplished through “self-determination contracts” under which a tribe agrees to take over administration of a federal program such as an IHS hospital or clinic. 25 U.S.C. § 450f(a). The government is required to provide self-determination contractors with the same amount of funding that would have been appropriated for the tribal programs if the government had continued to operate the programs directly. Id. § 450j — 1(a)(1).

As originally enacted, the ISDA did not require the government to pay the administrative costs that the tribes incurred to operate the programs. In many cases, contractors were forced to absorb those costs, thereby reducing the funds available for the tribes to provide direct services to their members. See Thompson v. Cherokee Nation of Okla., 334 F.3d 1075, 1080 (Fed.Cir.2003); S.Rep. No. 100-274, at 8-9 (1987), U.S.Code Cong. & Admin.News 1988, p. 2620. To remedy that problem, Congress amended the ISDA in 1988 to require the federal government to provide funds to pay the administrative expenses of covered programs. Those expenses included “contract support costs,” defined in the statute as costs that a federal agency would not have directly incurred, but that tribal organizations acting as contractors *789 reasonably incur in managing the programs. 25 U.S.C. § 450j — 1 (a)(2).

The 1988 amendments to the ISDA made the Contract Disputes Act applicable to disputes concerning self-determination contracts. 25 U.S.C. § 450m-l(d). As a result, ISDA self-determination contractors can appeal an adverse decision by a contracting officer on contract disputes to the Civilian Board of Contract Appeals, see 41 U.S.C. § 606, or to the Court of Federal Claims, see 41 U.S.C. § 609(a)(1). In addition, the ISDA permits contractors to bring claims in district courts, an avenue of relief that is generally unavailable to government contractors under the CDA. See 25 U.S.C. § 450m-l(a).

After the 1988 amendments took effect, some ISDA contractors claimed that the government was still failing to meet its obligation to fully fund the contract support costs. Those allegations resulted in the filing of several class action lawsuits, two of which are pertinent to the cases before us. In the first of those suits, the Cherokee Nation of Oklahoma filed a complaint and a request for class certification on March 5, 1999, in the United States District Court for the Eastern District of Oklahoma. The plaintiffs alleged that they had entered into contracts with the IHS to provide tribal health care services, but that the government had refused to pay the full amount of the promised support costs because Congress had failed to appropriate sufficient funds to cover those costs. The complaint sought certification of a class comprising “[a]ll Indian tribes and tribal organizations operating IHS programs under [ISDA contracts] that were not fully paid their contract support costs needs, as determined by IHS, at any time between 1988 and the present.” Cherokee Nation of Okla. v. United States, 199 F.R.D. 357, 360 (E.D.Okla.2001).

On February 9, 2001, the district court denied class certification. The court subsequently ruled on the merits that the government was not obligated to provide contract support costs in excess of the amount appropriated by Congress for that purpose, Cherokee Nation of Okla. v. United States, 190 F.Supp.2d 1248, 1259 (E.D.Okla.2001), and the Tenth Circuit affirmed, Cherokee Nation of Okla. v. Thompson, 311 F.3d 1054, 1063 (10th Cir. 2002). After this court reached the opposite conclusion in another ISDA case, Thompson v. Cherokee Nation of Okla., 334 F.3d 1075 (Fed.Cir.2003), the Supreme Court granted certiorari to resolve the conflict. The Court subsequently held that the government could not avoid its contractual obligation to pay support costs to the plaintiff ISDA contractors on the ground that Congress had appropriated insufficient funds specifically designed to cover those costs, and that the government had to satisfy its contractual obligations out of other unrestricted appropriated funds. Cherokee Nation of Okla. v. Leavitt, 543 U.S. 631, 125 S.Ct. 1172, 161 L.Ed.2d 66 (2005).

In the second lawsuit, the Pueblo of Zuni filed a class action on September 10, 2001, in the United States District Court for the District of New Mexico, similarly contending that the government had failed to pay full support costs to contractors who were providing tribal health services pursuant to ISDA contracts with the IHS.

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583 F.3d 785, 74 Fed. R. Serv. 3d 963, 2009 U.S. App. LEXIS 21361, 2009 WL 3082337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arctic-slope-native-association-ltd-v-sebelius-cafc-2009.