Big Easy Studios, LLC v. United States

United States Court of Federal Claims·Decided April 17, 2026·No. 17-879·Published

Opinion

In the United States Court of Federal Claims No. 17-879

(Filed: 17 April 2026) *

************************************** BIG EASY STUDIOS, LLC, *

*

Plaintiff, *

*

v. *

*

THE UNITED STATES, *

*

Defendant. *

*

**************************************

William D. Ross, Sr., Ross Law Firm, PLLC, of Ridgeland, MS, with whom was Christopher C. Van Cleave, of Van Cleave Law, PA, of Biloxi, MS, for plaintiff.

Anna Bondurant Eley, Senior Litigation Counsel, Commercial Litigation Branch, Civil Division, with whom were Reginald T. Blades, Jr., Assistant Director, Patricia M. McCarthy, Director, Brett A. Shumate, Assistant Attorney General, Department of Justice, all of Washington, DC, for the government.

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/presidentsnews -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.

*

This Opinion was originally filed under seal on 13 April 2026 pursuant to the protective order in this case. The Court provided the parties an opportunity to review this Opinion for proprietary, confidential, or other protected information and submit proposed redactions by 17 April 2026 at 5:00 p.m. The Court accepts the parties’ proposed redactions and reissues the Opinion with redactions as follows: “[XXXXX].” 1 “Let the contractor for the government beware.”

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

See Abare v. United States, No. 22-1271, 2026 WL 797115, at *1 (Fed. Cl. Mar. 19, 2026).

This case reviews a very unique set of contracts regarding space vehicle production and moviemaking—a contract dispute regarding plaintiff’s lease of the NASA Michoud Assembly Facility to film big-budget Hollywood movies. In 2011, plaintiff and NASA entered the first of three short-term Space Act Agreements governing plaintiff’s use of MAF. Encouraged by a contracting officer’s efforts to “paper up” a long-term Enhanced Use Lease to supersede the short-term Space Act Agreement, plaintiff understood it also reached a long-term agreement with NASA and expended resources to improve the leased space at NASA MAF in anticipation of a ten-year tenancy. As discussed in detail infra, unfortunately for plaintiff the contracting officer had no authority to enter a long-term lease on behalf of the agency, leaving the express short-term Agreements as plaintiff’s only legal option for relief. After NASA MAF terminated the last of these short-term Agreements, plaintiff filed suit, alleging four breach of contract claims and requesting equitable estoppel. The government moved for partial summary judgment on all but one of plaintiff’s claims. For the following reasons, the Court grants the government’s Motion for Partial Summary Judgment.

I. Background

A. Factual History 2

2 All facts in this section are undisputed, unless stated otherwise. See Rule 56(a) of the Rules of the Court of Federal Claims (“RCFC”) (requiring a movant for summary judgment to show “there is no genuine dispute as to any material fact”). The Court draws all inferences “in the light most favorable to the party opposing the motion.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587–88 (1986).

Plaintiff Big Easy Studios, LLC (“Big Easy” or “plaintiff”) leased space to produce movies from late 2011 to early 2017 at the National Aeronautics & Space Administration’s (“NASA”) Michoud Assembly Facility (“MAF”) in Louisiana, under a series of Space Act Agreements” (“SAA(s)”). Am. Compl. ¶¶ 15–16, 20, ECF No. 214; Pl.’s Resp. at 4–6, ECF No. 195; Gov’t’s Mot. for Partial Summ. J. (“MPSJ”) at 30, ECF No. 187; Gov’t’s App’x to Gov’t’s MPSJ (“Gov’t’s App’x”) at A425 (Amendment No. 7 to Contract SAA8-1416319) (indicating termination date of 31 January 2017). Prior to Big Easy’s incorporation, its founder, Herbert Gains, and a NASA Contracting Officer, Mark York, negotiated a short-term agreement between Paramount Pictures and NASA for use of MAF to shoot the movie G.I. Joe Retaliation. See Am. Compl. ¶ 14; Pl.’s Resp. at 4. This agreement was executed by Robin Henderson, Associate Director of NASA’s George C. Marshall Space Flight Center (“MSFC”), and Teri Fournier, Executive Vice President of the Motion Picture Legal Department for Paramount Pictures, as of 2 June 2011. See Gov’t’s App’x at A78 (Execution Page, Paramount SAA).

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