C. J. Langenfelder & Son, Inc. v. The United States

341 F.2d 600
CourtUnited States Court of Claims
DecidedJune 11, 1965
Docket291-63
StatusPublished
Cited by3 cases

This text of 341 F.2d 600 (C. J. Langenfelder & Son, Inc. v. The 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
C. J. Langenfelder & Son, Inc. v. The United States, 341 F.2d 600 (cc 1965).

Opinion

DAVIS, Judge.

In December 1958, plaintiff entered into a contract with the Federal Aviation Agency to do grading, drainage, and paving work at Dulles (then called Washington) International Airport. Part of its task under the contract was the installation of approximately 26,000 feet of subsurface pipeline. The specifications outlined the requirements for normal trench excavation and backfill operations in connection with the pipeline installation and provided for compensa^ tion at the contract unit price, which was $3.93 per cubic yard. There were also specific provisions dealing with unstable soil encountered in the excavation. Since such soil was unsuitable for use as backfill, it was to be removed to the depth determined by the defendant and replaced with approved backfill. The specifications included special provisions dealing with compensation for the removal of unstable soil ($6.00 per cubic yard), and the present controversy revolves around their meaning. 1

*603 In the course of trench excavation, the contractor did meet unstable soil and was authorized by the Aviation Agency to remove and replace it. After carrying out these directions, plaintiff filed a request for additional compensation of $6.00 per cubic yard for all this work. In August 1961, the contracting officer ■determined that plaintiff was entitled to the additional payment only for the removal and replacement of unstable soil below the excavation depths shown on the contract drawings; unstable materials found within the indicated depths were to be paid for at the normal rate of $3.93 per cubic yard. Following the procedures then in effect, the plaintiff appealed this decision to the Administrator of the Federal Aviation Agency; after a hearing before a member of the Agency’s Contract Appeals Panel, the Administrator overruled the contracting -officer, on June 20, 1962, and accepted plaintiff’s position. Shortly thereafter, plaintiff submitted a documented claim to the contracting officer for $160,964, based on the Administrator’s direction to compensate the contractor “in the light of this decision.”

The contracting officer took no action. The parties held a meeting in May 1963, .at which the plaintiff was informed that its claim had not been determined for over nine months because the contracting officer was uncertain as to the proper interpretation of the Administrator’s decision. At that meeting, the General Counsel of the Federal Aviation Agency requested an attorney in his office to prepare a memorandum discussing the Administrator’s decision. The memorandum was subsequently filed, on June 28, 1963, “on behalf of the contracting officer”, with the Contract Appeals Panel of the Agency as a request for a “supplemental decision” by the Administrator. Despite its euphemistic characterization, the true gist of this application was that the Administrator’s original decision was wrong. Plaintiff squarely opposed consideration of this request for a reopening, but on September 30, 1963, the Administrator granted it, and referred the case back to the Contract Appeals Panel for a full rehearing. 2 In October 1963, plaintiff filed its petition in this court, contending that the Administrator’s decision of June 1962 was final and conclusive, and that the Agency’s rules in effect at the time of that ruling precluded the grant of a rehearing over one year later at defendant’s request. The contractor also asserted that the contracting officer’s refusal to effectuate the Administrator’s original decision was arbitrary and capricious, and sought re *604 imbursement of the $160,964 previously claimed from the Agency. The defendant has moved to dismiss the petition on the ground that plaintiff failed to exhaust its administrative remedies; in the alternative, defendant requests the court to suspend proceedings to permit the formulation of an adequate administrative record by the Agency. Plaintiff has moved for a summary judgment of liability.

A. Defendant’s motion to dismiss. Disposition of the defendant’s motion to dismiss turns on the Federal Aviation Agency’s authority to reconsider its initial decision favoring the contractor. If the Agency had power to order a rehearing of this case as it did, plaintiff has failed to exhaust its administrative remedies. Under the rules at the time of the Administrator’s original decision, 3 motions for rehearing could be based only on new evidence and were required to be filed within a reasonable time after receipt of the Administrator’s decision. 41 C.F.R. § 2-60.20 (1960). 4 Plaintiff offers a number of arguments to prove that, under this provision, the Agency had no power to grant the contracting officer’s motion for a rehearing, but we can stop with the regulation’s requirement that such motions be made within a reasonable time. Cf. Dayley v. United States, Ct. Cl., No. 268-63, decided Jan. 22, 1965. The request for a “supplemental decision” — which was nothing but an application for reconsideration of the initial holding and was treated as such by the Administrator — was presented over a year after the decision of June 20, 1962. This was far too belated. In the circumstances here, a year was much more than a “reasonable period” to defer the finality of the Administrator’s ruling. A number of statutes, as well as administrative regulations, limit the time within which a party may petition an administrative agency for rehearing or reconsideration to thirty days following the final decision. See, e. g.. Communications Act Amendments, § 15, 66 Stat. 711, 720, 47 U.S.C. § 405; Natural Gas Act, § 19, 52 Stat. 821, 831, 15 U.S.C. § 717r(a). The revised Federal Aviation Agency regulation on motions to reconsider includes such a provision,, but permits an extension beyond the thirty-day limit if good cause can be shown. 41 C.F.R. § 2-60.210-4 (1963).

*605 The Federal Maritime Board Rules of Practice and Procedure, 46 C.F.R. § 201.-264 (1953), contain a similar time-extension clause. These provisions help to delimit what constitutes a reasonable time within which to ask for rehearing. 5 Thirty, or perhaps sixty, days is the order of magnitude — unless a special need for a longer period is shown. There is no real suggestion that the rehearing in this case could not have been sought much earlier; the essence of the application was simply that the original decision was incorrect. It is particularly difficult to prove good cause for delay much beyond thirty days where the controversy, as here, deals only with past events which have been definitively ascertained at the original hearing and where the basic issue is one of law. The defendant has not even attempted to show that more than a reasonably short period was required to gather information sufficient to present the legal point embodied in the motion for rehearing. As the ease comes to us, there is no adequate excuse for the long delay.

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Bluebook (online)
341 F.2d 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-j-langenfelder-son-inc-v-the-united-states-cc-1965.