Aviation v. United States

36 Cont. Cas. Fed. 75,963, 21 Cl. Ct. 782, 1990 U.S. Claims LEXIS 424, 1990 WL 172992
CourtUnited States Court of Claims
DecidedNovember 8, 1990
DocketNo. 90-430C
StatusPublished
Cited by3 cases

This text of 36 Cont. Cas. Fed. 75,963 (Aviation 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
Aviation v. United States, 36 Cont. Cas. Fed. 75,963, 21 Cl. Ct. 782, 1990 U.S. Claims LEXIS 424, 1990 WL 172992 (cc 1990).

Opinion

ORDER

MOODY R. TIDWELL, III, Judge:

On July 24, 1990, this court issued an Order allowing defendant’s motion to dismiss on the grounds that the court lacked jurisdiction to adjudicate the claim as being filed out of time. 20 Cl.Ct. 780. The court dismissed the complaint without prejudice. The facts are set forth in the July 24 Order, and will not be repeated here except as necessary.

FACTS

On July 25, 1990, defendant filed a motion for reconsideration requesting that the court vacate the judgement and dismiss the case with prejudice. On August 23, 1990, defendant filed a second motion for leave to cite supplemental authority. That motion was allowed. In it defendant suggested that, inasmuch as the court lacked jurisdiction to hear the case, it would be inappropriate for the “court to reach the merits of the claim and dismiss ‘with prejudice.’ ” 1 [783]*783On August 6, 1990, plaintiff filed its own motion for reconsideration asking the court to vacate its order of dismissal and direct the contracting officer to issue a final decision addressing plaintiff's claim for termination for the convenience of the government.

This case stems from plaintiff’s contract with the Department of the Army executed on June 27, 1987, to produce military gear with a production run of two years, and an option to produce an additional quantity. On August 8, 1988, the Army unilaterally cancelled the second production year. Thereafter, because plaintiff failed to meet its delivery schedule on one item due in the first year of the contract, the Army, on May 5,1989, informed plaintiff by telegram that the late item was terminated for default, effective that date.2 Plaintiff received the telegram on May 8, 1989. By certified letter dated May 15, 1989, the contracting officer partially terminated the contract — for the one late item — as of the May 5, 1989 telegram. On May 19, 1989, plaintiff received the May 15 certified letter that “confirmed” the telegraphed termination notice. The May 15 letter contained the mandatory Federal Acquisition Regulations (FAR) language informing plaintiff of the reason for the termination for default, and plaintiff’s appeal rights. The FAR requiring this language, which has the full force and effect of law, Longview Crop Ins. Agency v. United States, 20 Cl.Ct. 564, 571 (1990) (citations omitted), states that the period for appeal runs from the day the contractor receives the letter of termination. FAR appeal rights give a plaintiff ninety days to appeal the termination for default to the Armed Services Board of Contract Appeals (ASBCA), and one year to appeal to this court. The May 15 letter was somewhat unclear regarding the exact date on which the period for appeal began to run.3

Plaintiff did not appeal the termination for default to the ASBCA, but on May 16, 1990, did submit a claim to the contracting officer requesting reimbursement of costs expended in attempting to comply with the portion of the contract defendant had terminated for default. Plaintiff further challenged the validity of the default termination, requesting that it be converted into a termination for the convenience of the government.4 Two days later, on May 18, 1990, plaintiff filed its action here seeking de novo consideration of the termination.

DISCUSSION

The court was, and remains of the opinion that it cannot consider the May 5, 1989 telegram a proper notice of termination because it did not contain the language required by the Contract Disputes Act, 41 U.S.C. § 601, et. seq., and FAR 52.249-8, fully advising plaintiff of its appeal rights. Plaintiff is correct in its argument on reconsideration that a final decision of the contracting officer which does not state the appeal rights is defective, and does not start the limitations period for appeal or review. Pathman Constr. Co., Inc. v. United States, 817 F.2d 1573, 1579 [784]*784(Fed.Cir.1987). Neither would such a defective final decision start the clock running on the time for submitting to the contracting officer a termination for convenience claim. The effective date of the termination for default was May 19, 1989, the date plaintiff received the certified letter. See Handel v. United States, 16 Cl.Ct. 70, 72 (1988); 41 U.S.C. § 609(a)(3) (1982). Plaintiff timely filed suit on May 18, 1990, one day prior to the running of the statute of limitations. However, the matter does not end there. In its complaint, plaintiff characterized its claim as one for “conversion of a termination for default to a termination for convenience,” for “termination for convenience costs,” or, in the alternative, for an equal amount for expenses incurred notwithstanding the termination for default.

Plaintiff’s claim for conversion of the default termination to a convenience termination cannot, at this time, be heard by the court because, in the absence of a proper claim for monetary relief, plaintiff’s claim amounts to a request for declaratory judgment which the Claims Court has no authority to render under the Contract Disputes Act, 41 U.S.C. § 601, et seq. (1982). Overall Roofing & Const., Inc. v. United States, 20 Cl.Ct. 181, 182-83 (1990). Although plaintiff’s claims ostensibly include one for monetary relief, the court agrees with defendant that plaintiff’s costs claim under a convenience or default termination are premature and cannot be heard by the court. The Contract Disputes Act, 41 U.S.C. § 605, states that [a]ll claims by a contractor against the government relating to a contract shall be ... submitted to the contracting officer for a decision.” The law requires that the contracting officer issue a final decision within sixty days, or a reasonably longer period of time if necessary, but that “[a]ny failure by the contracting officer to issue a decision on a contract claim within the period required will be deemed to be a [denial of] the claim and will authorize the commencement of the appeal or suit on the claim.” The practical effect of the law is to give the contracting officer at least sixty days to consider and issue an appropriate final decision on the contractor’s claim. Plaintiff gave the contracting officer but two. Therefore, plaintiff’s request for costs is not before this court properly, and the remaining declaratory relief exceeds the established parameters of this court’s jurisdiction which extend only to claims for money damages against the United States. 28 U.S.C. § 1491 (1982). See, e.g., United States v. King, 395 U.S. 1, 3-5, 89 S.Ct. 1501, 1502-03, 23 L.Ed.2d 52 (1969); Glidden Co. v. Zdanok, 370 U.S. 530, 557, 82 S.Ct. 1459, 1476, 8 L.Ed.2d 671, reh’g denied, 371 U.S. 854, 83 S.Ct. 14, 9 L.Ed.2d 93 (1962); Austin v. United States, 206 Ct.Cl. 719, 723, cert. denied, 423 U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
36 Cont. Cas. Fed. 75,963, 21 Cl. Ct. 782, 1990 U.S. Claims LEXIS 424, 1990 WL 172992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aviation-v-united-states-cc-1990.