Champagne v. United States

15 F. Supp. 3d 210, 2014 WL 1404566, 2014 U.S. Dist. LEXIS 49546
CourtDistrict Court, N.D. New York
DecidedApril 10, 2014
DocketNo. 8:13-cv-571
StatusPublished
Cited by3 cases

This text of 15 F. Supp. 3d 210 (Champagne v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Champagne v. United States, 15 F. Supp. 3d 210, 2014 WL 1404566, 2014 U.S. Dist. LEXIS 49546 (N.D.N.Y. 2014).

Opinion

DECISION and ORDER

THOMAS J. McAVOY, Senior District Judge.

Plaintiff Edward C. Champagne, Jr., d/b/a H.E. Automotive, commenced the instant action pursuant to the Federal Tort Claims Act, 28 U.S.C. §§ 2674, 1346(b) et seq., alleging that Defendant tortiously interfered with a contract, breached its duty of good faith and fair dealing with the Plaintiff, acted to destroy his business, and failed to correct past performance ratings, causing Plaintiff and his business substantial harm. Presently before the Court is Defendant’s motion to dismiss Plaintiffs Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1) and 12(b)(6).

I. FACTS1

This case involves work done by H.E. Automotive, Plaintiffs business, to process and handle seized vehicles for the United States Marshals Service (“USMS”). H.E. Automotive was awarded contract number MS-97-D-0019 by the USMS on or about April 25, 1997. Complaint (“Cmplt.”) Dkt. #1, at ¶ 9. Plaintiffs company was awarded the contract despite being forced to disprove false and slanderous allegations against Plaintiff by the former incumbent contractor, who was hoping to maintain the contract. Id. at ¶ 10. The former contractor was working with the assistance of a friend, an Assistant District Marshal, who provided false information [214]*214about Plaintiff to the USMS in Washington, D.C. Id. Plaintiff and his firm disproved these claims by filing protests and appeals with the Small Business Administration, and Plaintiffs firm received the contract. Id. at ¶ 11. As a precondition of the contract, H.E. Automotive received a guarantee that no one involved in the then-current administration would be involved in the contract. Id. at ¶ 12.

H.E. Automotive performed under this contract for a number of years, and obtained a number of successive contracts. Id. at ¶ 13. While performing under the contract, H.E. instituted a number of new policies that assisted the Marshals Service and taxpayers, such as opening seized asset sales to the public and implementing new maintenance programs that increased the value of government vehicles sold. Id. at ¶ 14. Plaintiff recovered $140,000 in cash from a vehicle scheduled for auction and also prevented efforts of two persons to steal the vehicle by breaking into the H.E. facility. Id. at ¶ 15. H.E. also alerted the F.B.I., which led to a search of H.E.’s facility and the recovery of illegal drugs worth hundreds of thousands of dollars. Id. at ¶ 16. Because of these efforts, H.E. received an average rating of 4.5 on a five-point scale during the lives of H.E.’s contracts with the Marshals Service. Id. at ¶ 17.

Under the terms of the contract, H.E. Automotive was to receive a minimum of 30% of all vehicles seized within the geographic area designated in the contract. Id. at ¶ 18. Despite these terms, during the life of the contract Anne Deminski, who worked in the Utica/Syracuse District Office, “intentionally interfered with H.E. Automotive’s contract by circumventing the existing contract,” and by “withholding sums owed under the contracts [sic] specified guaranteed minimum quantity charge.” Id. at ¶ 19. Deminski also convinced personnel in the Washington Contract Office to refuse renewal of the contract option unless the contract eliminated minimum guarantees. Id. at ¶ 20.

When Plaintiff inquired about why fewer cars were being sent to his facility, he discovered that hundreds of vehicles were being diverted to various agencies and noncontract vendors. Id. at ¶¶ 21-22. These “diversions” came at the direction of Anne Deminski. Id. at ¶ 22. Deminski was the only remaining employee from the administrator of the former Contractor and Assistant Chief. Id. at ¶ 23. Plaintiff alleges that Deminski worked “actively” to “[circumvent] the contract” and to “[deprive] H.E. of guaranteed stated minimums.” Id. at ¶ 24. She also acted to divert vehicles to other “entities,” who did not care for the vehicles properly and cost the government money. Id. Some of those “diverted” vehicles actually disappeared. Id. Plaintiff alleges that, when confronted by Contracting Officer Gary Insley, De-minski retaliated against Plaintiff and Plaintiffs company by refusing to pay Plaintiff more than $150,000, the minimum amount he was owed under the contract. Id. at ¶ 25.

Plaintiff also alleges that Deminski had the contract location moved from Platts-burgh to Syracuse. Id. at ¶ 26. When a new procurement was then let, H.E. emerged as the successful bidder. Id. at ¶ 27. H.E. leased an approved facility in Brewerton, New York and operated that facility with “record setting sales.” Id. Still, Deminski allegedly interfered with the operations of this facility too; at times there were less than 5 cars in H.E.’s inventory. Id. at ¶ 28. She also allegedly arranged to replace certain administrative personnel with personnel of her choosing. Id. at ¶ 29. These new officers worked with Deminski to “discredit H.E. Automotive through excessive inspections and fa-[215]*215brieated reports about H.E.’s performance under the contract.” Id. On two separate occasions Deminski allegedly had all vehicles moved to a contractor she chose, CNY NY, even though the Marshals Service was still under contract with H.E. Automotive. Id. at ¶ 30. After a protest, the vehicles were eventually returned to H.E. Id. at ¶ 31. These actions cost the Marshals Service in excess of $10,000. Id.

On April 6, 2010, H.E. Automotive submitted an offer under RFQ number DJMS09-AFD-Q-0054. Id. at ¶ 32. Plaintiff alleges that only two quotations were submitted under that number, H.E. Automotive’s and one from a Baldwinsville, New York firm known as Simply the Best. Id. at ¶ 33. Simply the Best quoted a price with options of $617,544.50. Id. The company had been newly created for the purpose of submitting an offer, and worked out of a garage. Id. at ¶ 34.

H.E. Automotive first learned of negative past performance ratings on February 1, 2010, during the evaluation process for this new procurement. Id. at ¶ 35. Those negative past performance ratings came, however, during the October 2007-October 2008 contract period, and the evaluations were performed by Anne Deminski and Daniel Driscoll. Id. Plaintiff had long complained that Deminski had a personal animus towards him, and that she had interfered with performance of the prior contract. Id. at ¶ 36. He had also alleged that Deminski had attempted to steer an earlier procurement towards a competitor, CNY. Id. H.E. Automotive protested De-minski’s involvement in the DJMS-09-AFD-Q-0054 procurement process, requesting that the Government Accountability Office (“GAO”) exclude her from any role in the procurement. Id. at ¶ 37. The GAO had earlier agreed with Plaintiffs claims of animus against Deminski, and the Marshals Service had precluded her from participating in the process of awarding an interim contract. Id. at ¶ 38. Despite this preclusion, Plaintiff alleges that Deminski “played an integral role” in evaluating H.E.

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Cite This Page — Counsel Stack

Bluebook (online)
15 F. Supp. 3d 210, 2014 WL 1404566, 2014 U.S. Dist. LEXIS 49546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/champagne-v-united-states-nynd-2014.