Blackwell v. United States

37 Cont. Cas. Fed. 76,164, 23 Cl. Ct. 746, 1991 U.S. Claims LEXIS 394, 1991 WL 163114
CourtUnited States Court of Claims
DecidedAugust 23, 1991
DocketNo. 90-3890C
StatusPublished
Cited by6 cases

This text of 37 Cont. Cas. Fed. 76,164 (Blackwell 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
Blackwell v. United States, 37 Cont. Cas. Fed. 76,164, 23 Cl. Ct. 746, 1991 U.S. Claims LEXIS 394, 1991 WL 163114 (cc 1991).

Opinion

OPINION

MARGOLIS, Judge.

This government contract case comes before the court on defendant’s motion to dismiss for lack of jurisdiction or, alternatively, for failure to state a claim upon which relief may be granted. A newspaper advertisement mistakenly stated the wrong deadline for the bid opening on property offered for sale by the government, which the plaintiff was interested in purchasing. The government informed plaintiff’s agent of the mistake on the morning of the day of the 4:15 PM bid opening. The plaintiff’s bid was submitted at 4:18 PM, three minutes after the deadline. The government refused to consider the plaintiff’s bid and sold the land to other bidders. The plaintiff filed suit in the district court, but the action was subsequently transferred to this [748]*748court. The plaintiff seeks a temporary injunction to enjoin the sale of the property, specific performance of the bid process and consideration of plaintiffs bid, bid preparation costs, set aside of the sale of the property, and attorney fees and costs. After careful consideration and after hearing oral argument, this court grants in part and denies in part the defendant’s motion to dismiss.

FACTS

Michael B. Blackwell, the plaintiff in this case, is a resident of New Jersey who attempted to purchase property in Tennessee offered for sale by the United States Department of Housing and Urban Development (“HUD”).

The Nashville, Tennessee office of HUD offered property for public sale, identified as 4332-34 Hydes Ferry Pike. The property was offered to the public for sale by means of open bidding. On Sunday, June 24, 1990, the property was advertised for sale in the Tennessean newspaper. The advertisement stated that bids would be accepted until July 3 at 4:15 PM. Another advertisement ran in the Sunday edition of the Tennessean on July 1, except this time the bid closing date was listed, by mistake, as July 4, 1990, a federal holiday.

On the morning of July 3, 1990, HUD informed George Willis, a local realtor who was the agent of Blackwell, that the deadline in the Sunday Tennessean was incorrect and that the proper deadline was July 3 at 4:15 PM. See Michael B. Blackwell v. Department of Housing and Urban Development, No. 3-90-0619, 1 n. 1 (M.D.Tenn. July 24, 1990) (Memorandum Decision) (Higgins, J.). Blackwell submitted his sealed bid on July 3,1990 at 4:18 PM. HUD did not consider Blackwell’s bid because it was submitted after the 4:15 PM deadline. The property was sold to the high bidders on August 16, 1990.

On July 13, 1990, Blackwell filed a complaint in the United States District Court for the Middle District of Tennessee seeking a temporary injunction to enjoin HUD from selling the property to the high bidders. After an oral hearing, the court dismissed Blackwell’s complaint for lack of jurisdiction on July 24, 1990 and informed him that the United States Claims Court had exclusive jurisdiction to entertain his claim under 28 U.S.C. § 1491(a)(3) (1988).1 See Michael B. Blackwell v. Department of Housing and Urban Development, No. 3-90-0619, 4 (M.D.Tenn. July 24, 1990) (Memorandum Decision) (Higgins, J.).

Blackwell filed a motion to alter or amend judgment in the district court on July 26, 1990. The district court, however, transferred Blackwell’s case to the Claims Court where it was filed on October 29, 1990, presumably pursuant to 28 U.S.C. § 1631.2 Blackwell did not, as required by RUSCC 84, file a complaint in the Claims Court. On November 29, 1990, the Claims Court ordered Blackwell to file a complaint within 15 days of the order. Blackwell filed a complaint in this court on December 17, 1990.

DISCUSSION

The government argues that plaintiff’s complaint should be dismissed because this [749]*749court is without jurisdiction to enjoin the awarding of a contract after award, the court may not grant claims for specific performance, plaintiff allegedly has not complied with the rules of the court for filing a preliminary injunction, plaintiff does not have standing to sue, the claim for injunctive relief is barred by the doctrine of laches, and plaintiff failed to join the purchaser of the property as an indispensable party. Plaintiff maintains that this court has jurisdiction over its complaint on the grounds that the Tucker Act provides the Claims Court with the power to grant in-junctive relief, the complaint was filed before the contract was awarded because the date of filing in the Claims Court is the date of filing in the district court, and (even if the court does not have jurisdiction over the claims for equitable relief) the Claims Court has jurisdiction over plaintiff’s requests for alternative forms of relief.

Jurisdiction

The government asserts that this court is without jurisdiction to enjoin the awarding of a contract after award and therefore the complaint should be dismissed. The Tucker Act, as amended, provides the Claims Court with equitable jurisdiction “[t]o afford complete relief on any contract claim brought before the contract is awarded ...” 28 U.S.C. § 1491(a)(3) (emphasis added). This court is without jurisdiction over a claim filed after the contract is awarded. United States v. John C. Grimberg Co., Inc., 702 F.2d 1362, 1374 (Fed.Cir.1983). Our case was originally filed in district court on July 13, 1990, was transferred to this court, and “shall proceed as if it has been filed in or noticed for the court to which it is transferred on the date upon which it was actually filed in or noticed for the court from which it was transferred.” 28 U.S.C. § 1631. The case proceeds here as though it had been filed in this court on July 13, 1990, which was one month before the contract was awarded on August 16,1990. See F. Alderete General Contractor, Inc. v. United States, 715 F.2d 1476, 1479-80 (Fed.Cir.1983); Willow Beach Resort, Inc., 5 Cl.Ct. at 243-44. Therefore, the complaint is not susceptible to the jurisdictional defect alleged by the government.

Standing

Alternatively, the government maintains that the plaintiff does not have standing to protest the award of the contract to another bidder. This court’s jurisdiction over Blackwell’s bid protest depends upon the existence of an implied-in-fact contract to consider Blackwell’s bid fairly and honestly. Olympia USA, Inc. v. United States, 6 Cl.Ct. 550, 552 (1984) (citing CACI, Inc-Federal v. United States, 719 F.2d 1567, 1573 (Fed.Cir.1983)). Whether the bidder is seeking an injunction or bid preparations costs, or both as in our case, the bidder must show that the bid was responsive and within the zone of active consideration, and that there is a substantial chance that it would receive the award. See CACI, Inc-Federal, 719 F.2d at 1574-75;

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Cite This Page — Counsel Stack

Bluebook (online)
37 Cont. Cas. Fed. 76,164, 23 Cl. Ct. 746, 1991 U.S. Claims LEXIS 394, 1991 WL 163114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackwell-v-united-states-cc-1991.