Blackhawk Heating & Plumbing Co. v. William B. Driver

433 F.2d 1137, 140 U.S. App. D.C. 31, 1970 U.S. App. LEXIS 9171
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 19, 1970
Docket22956_1
StatusPublished
Cited by51 cases

This text of 433 F.2d 1137 (Blackhawk Heating & Plumbing Co. v. William B. Driver) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackhawk Heating & Plumbing Co. v. William B. Driver, 433 F.2d 1137, 140 U.S. App. D.C. 31, 1970 U.S. App. LEXIS 9171 (D.C. Cir. 1970).

Opinion

TAMM, Circuit Judge:

In the summer of 1968 appellant was invited to submit a bid for the construction of a Veterans Administration hospital in Tampa, Florida. When the bids were opened on October 1, 1968, appellant’s was the lowest in amount of the five bids received. (Supp.App. 25.) Pursuant to the Federal Procurement Regulations, an assessment of responsibility was undertaken prior to the awarding of the contract. 1 After completing a careful analysis of appellant’s contract responsibility, the contracting officer determined that, under the requirements of the Federal Procurement Regulations and the Veterans Administration Procurement Regulations, appellant was not a responsible prospective contractor; on October 9, 1968, the Veterans Administration advised appellant by telegram that its bid had been rejected. (Brief for the Appellees at 10-11.)

On October 21, 1968, appellant filed suit in the district court in which it sought a temporary restraining order, preliminary, prohibitory and mandatory injunctions, and a declaratory judgment which would have had the cumulative effect of giving the construction contract to Blaekhawk and of requiring that all of its future bids be fairly considered. (App. 1-19.) Appellees moved to dismiss the complaint for lack of jurisdiction on the grounds of sovereign immunity and plaintiff’s lack of standing to sue. (App. 46.) On January 23, 1969, the district court, in a written opinion, granted appellees’ motion to dismiss and denied appellant’s motion for a preliminary injunction. Blackhawk Heating & Plumbing Co. v. Driver, 297 F.Supp. 1295 (D.D.C.1969). This appeal followed.

(4) [have] a satisfactory record of integrity, judgment, and performance (contractors which are seriously delinquent in current contract performance, considering the number of contracts and the extent of delinquencies of each, shall in the absence of evidence to the contrary or compelling circumstances, be presumed to be unable to fulfill this requirement). [Emphasis added.]

The stated grounds for dismissal present us squarely with the question of whether appellant herein should be deemed to have standing to' sue under the circumstances of this case and the criteria stated in our recent decisions in Seanwell Laboratories, Inc. *1140 v. Shaffer, 137 U.S.App.D.C. 371, 424 F.2d 859 (1970) and Ballerina Pen Co. v. Kunzig, 140 U.S.App.D.C. -, 433 F.2d 1204 (1970), and under the Supreme Court’s recent statements in Association of Data Processing Serv. Organizations, Inc. v. Camp, 397 U.S. 150, 90 S.Ct. 827, 25 L.Ed.2d 184 (1970), and Barlow v. Collins, 397 U.S. 159, 90 S.Ct. 832, 25 L.Ed.2d 192 (1970). Those cases clearly indicate that the question of standing is a preliminary matter which does not go to the merits of the case. In rejecting the “legal interest” test in Data Processing, the'Court noted: “The ‘legal interest’ test goes to the merits. The question of standing is different.” 397 U.S. at 153, 90 S.Ct. at 830. The Court had previously enunciated this distinction in Flast v. Cohen, 392 U.S. 83, 88 S.Ct. 1942, 20 L.Ed.2d 947 (1968), in which it was said:

Despite the complexities and uncertainties, some meaningful form can be given to the jurisdictional limitations placed on federal court power by the concept of standing. The fundamental aspect of standing is that it focuses on the party seeking to get his complaint before a federal court and not on the issues he wishes to have adjudicated.

392 U.S. at 99, 88 S.Ct. at 1952 (emphasis added.)

The criteria for standing which were enumerated in the above cases indicate that a party aggrieved in fact by agency action has standing to challenge that action, even in the absence of “person aggrieved” language in the statute under which the agency action is taken, if he is able to demonstrate injury in fact, if he is able to show that the interest he asserts is “arguably” within the zone of interests the statute seeks to protect, and if a perusal of the statute reveals no legislative intent that judicial review should be withheld. Data Processing, supra, 397 U.S. 150, 90 S.Ct. 827; Scanwell Laboratories, supra, 137 U.S.App.D.C., at 378, 381 n. 10, 381, 384, 424 F.2d at 866, 869 n. 10, 869, 872; Ballerina Pen Co., supra, 433 F.2d at 1204; Barlow, supra, 397 U.S. 159, 90 S.Ct. 832; Lodge 1858, Am. Fed’n of Gov’t Employees v. Paine, No. 22,006 (D.C.Cir. April 21, 1970) (concurring opinion at 32). Application of those criteria to the present case compels the conclusion that appellant has standing to challenge the instant agency action. As we held in Scanwell Laboratories and Ballerina, one who alleges that an agency has acted arbitrarily or in excess of its authority in denying him a government contract is a proper party to “satisfy the public interest in having agencies follow the regulations which control government contracting.” Scanwell Laboratories, supra, 137 U.S.App.D.C. at 376, 424 F.2d at 864. It was stated that one who could demonstrate that the government had abused its discretion in contracting would be permitted to sue in the district court to vindicate the public interest as a “private attorney general” 2 under section 10 of the Administrative Procedure Act. 3 The decision of the district court must therefore be reversed to the extent that *1141 it holds that Blackhawk has no standing to sue.

II

Fortunately, the inquiry does not end with a determination that the plaintiff has standing; rather, the inquiry begins in more relevant detail at that point. As we noted in Scanwell Laboratories and Ballerina, the mere fact that a party has standing to sue does not entitle him to render uncertain for a prolonged period of time government contracts which are vital to the functions performed by the sovereign. 4 The recent decisions in this court and in the Supreme Court have served to eliminate the artificial barrier created by the concept of standing, but that does not mean that the traditional legitimate bars to frivolous lawsuits have also been abrogated.

Rather than denying access to the courts to all litigants who make claims of arbitrary and capricious agency action on the ground that there will be unmeritorious suits from time to time — a process which also has the effect of barring plaintiffs who have legitimate

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Bluebook (online)
433 F.2d 1137, 140 U.S. App. D.C. 31, 1970 U.S. App. LEXIS 9171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackhawk-heating-plumbing-co-v-william-b-driver-cadc-1970.