Central Freight Lines, Inc. v. United States

87 Fed. Cl. 104, 2009 U.S. Claims LEXIS 109, 2009 WL 1262382
CourtUnited States Court of Federal Claims
DecidedMay 5, 2009
DocketNo. 08-331C
StatusPublished
Cited by13 cases

This text of 87 Fed. Cl. 104 (Central Freight Lines, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Freight Lines, Inc. v. United States, 87 Fed. Cl. 104, 2009 U.S. Claims LEXIS 109, 2009 WL 1262382 (uscfc 2009).

Opinion

OPINION

FIRESTONE, Judge.

This case comes before the court on the defendant’s motion to dismiss the plaintiffs complaint pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims (“RCFC”) for lack of subject matter jurisdiction. The plaintiff, Central Freight Lines, Inc. (“Central Freight” or “the plaintiff’), an interstate motor carrier, claims in this action that the United States Department of Defense (“DOD,” “the government,” or “the defendant”) breached contracts for transportation services by failing to pay Central Freight $172,089.93 in charges. For the reasons discussed below, the government’s motion to dismiss is GRANTED.

I. BACKGROUND FACTS

The following background facts are taken from the pleadings and are undisputed unless otherwise noted. This case involves shipments of crated household goods, known in the industry as “Freight All Kinds” (“FAK”), belonging to DOD personnel transported pursuant to government bills of lading. A government bill of lading (“GBL”) is a contract between the government and a DOD-approved carrier by which the government accepts the carrier’s offer to perform transportation services at a set cost. In order to contract with the government, the carrier must be a pre-qualified transportation service provider (“TSP”).

In this case, the DOD, through the Military Surface Deployment and Distribution [107]*107Command (“SDDC”),1 issued a series of GBLs to Dispatch Services, Inc. (“Dispatch”) for trucking services, including the transportation of FAK belonging to DOD employees. Dispatch was registered as a TSP for FAK but was not registered with the SDDC as a broker during the period at issue. The GBLs identify Dispatch as a provider of motor carrier services, not broker services. Dispatch then entered into subcontracts with the plaintiff under straight bills of lading (“SBLs”). None of the SBLs incorporated any provisions of the GBLs between the government and Dispatch. Approximately 1,300 SBLs were issued between June 2005 and May 2006. All of the SBLs list “Dispatch Services, Inc.” as the party to be billed. See Ex. A to Ptf.’s Supp. Br. The defendant avers, and the plaintiff does not dispute, that the DOD paid Dispatch the full amount due under the GBLs for the period at issue. However, it appears that Dispatch did not pay Central Freight for the transportation services it provided. Dispatch has since gone out of business.

Briefing was completed on March 3, 2009.2 Oral argument was deemed unnecessary.

II. STANDARD OF REVIEW

RCFC 12(b)(1) governs the dismissal of claims for lack of subject matter jurisdiction. In reviewing a motion to dismiss, “Lfjactual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal citations omitted); see also Holley v. United States, 124 F.3d 1462, 1465 (Fed.Cir.1997); Henke v. United States, 60 F.3d 795, 797 (Fed.Cir.1995) (“[TJhe court Lis] obligated to assume all factual allegations to be true and to draw all reasonable infer-enees in plaintiffs favor.”). See generally Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974), abrogated on other grounds by Harlow v. Fitzgerald, 457 U.S. 800, 814-15, 102 S.Ct. 2727, 73 L.Ed.2d 396 (1982); Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746, 747 (Fed.Cir.1988). The plaintiff, however, bears the burden of establishing subject matter jurisdiction, Alder Terrace, Inc. v. United States, 161 F.3d 1372, 1377 (Fed.Cir.1998) (citing McNutt v. Gen. Motors, 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936)), and must do so by a preponderance of the evidence. Reynolds, 846 F.2d at 748. Because jurisdiction is a threshold matter, a case can proceed no further if a court lacks jurisdiction to hear it. See Arbaugh v. Y & H Corp., 546 U.S. 500, 514, 126 S.Ct. 1235, 163 L.Ed.2d 1097 (2006) (“LW]hen a federal court concludes that it lacks subject-matter jurisdiction, the court must dismiss the complaint in its entirety.” (citation omitted)); Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 94, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998). See generally John R. Sand & Gravel v. United States, 552 U.S. 130, 128 S.Ct. 750, 169 L.Ed.2d 591 (2008). It is well-settled that when the court considers a motion to dismiss for lack of subject matter jurisdiction, it may look beyond the pleadings and “inquire into jurisdictional facts” to determine whether jurisdiction exists. Rocovich v. United States, 933 F.2d 991, 993 (Fed.Cir.1991).

III. DISCUSSION

A. Introduction

The Tucker Act, 28 U.S.C. § 1491(a)(1) (2000), grants the Court of Federal Claims jurisdiction to hear any claim founded upon an express or implied-in-fact contract with the United States. The Federal Circuit has held that in order “to maintain a cause of action pursuant to the Tucker Act [108]*108that is based on a contract, the contract must be between the plaintiff and the government." Cienega Gardens v. United States, 194 F.3d 1231, 1239 (Fed.Cir.1998) (internal citation omitted) (emphasis added); see Cent. Transp. Int'l, LLC v. United States (“Central Transport"), 63 Fed.Cl. 336, 338 (2004) (same) (citing Chancellor Manor v. United States, 331 F.3d 891, 899 (Fed.Cir.2003) (noting longstanding rule that privity is required in contract cases under the Tucker Act)). Privity between the plaintiff and the government “is a jurisdictional prerequisite for a contract claim because ‘the government consents to be sued only by those with whom it has privity of contract.’ ” Globex Corp. v. United States, 54 Fed.Cl. 343, 347 (2002) (quoting Erickson Air Crane Co. v. United States, 731 F.2d 810, 813 (Fed.Cir.1984)). “Absent privity between the plaintiff and the United States, there has been no waiver of sovereign immunity for a suit in contract.” Central Transport, 63 Fed.Cl. at 338.

B. No Contract Existed Between the Government and Central Freight.

The plaintiff asserts that this court has subject matter jurisdiction because its claims are predicated on contracts between the government and Central Freight. The plaintiff argues that it should prevail on one of two alternative contract theories.

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Cite This Page — Counsel Stack

Bluebook (online)
87 Fed. Cl. 104, 2009 U.S. Claims LEXIS 109, 2009 WL 1262382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-freight-lines-inc-v-united-states-uscfc-2009.