City of Burbank, California v. United States

273 F.3d 1370, 51 Fed. Cl. 1370, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20436, 2001 U.S. App. LEXIS 26688, 2001 WL 1604326
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 17, 2001
Docket01-5004
StatusPublished
Cited by15 cases

This text of 273 F.3d 1370 (City of Burbank, California v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Burbank, California v. United States, 273 F.3d 1370, 51 Fed. Cl. 1370, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20436, 2001 U.S. App. LEXIS 26688, 2001 WL 1604326 (Fed. Cir. 2001).

Opinion

GAJARSA, Circuit Judge.

The Plaintiff-Appellant, the City of Burbank, California (“Burbank”), seeks review of the final decision by the U.S. Court of Federal Claims (“Court of Federal Claims” or “trial court”) dismissing Burbank’s complaint for lack of subject matter jurisdiction. Burbank filed suit against the United States, acting by and through the Bonneville Power Administration (“BPA” or “Bonneville”), in the Court of Federal Claims under the Tucker Act, 28 U.S.C. § 1491(a)(1), alleging two counts of breach of contract. The trial court dismissed both counts, holding that they fall within the exclusive jurisdiction of the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”), pursuant to 16 U.S.C. § 839f(e)(5). City of Burbank v. United States, 47 Fed.Cl. 261 (2000). In the alternative, the trial court held that if it did have jurisdiction, it dismissed Burbank’s claims without prejudice for failing to satisfy the procedural requirements of the Contract Disputes Act of 1978, 41 U.S.C. § 601 et seq. (“CDA”).

Burbank appeals only that portion of the trial court’s decision dismissing both counts for lack of jurisdiction. It does not appeal the alternative holding dismissing its claims without prejudice for failure to comply with the CDA. We hold that both counts relate to alleged breaches of contract based on facts outside of an administrative record and therefore fall within the Court of Federal Claims’ Tucker Act jurisdiction, 28 U.S.C. § 1491(a)(1), rather than within the exclusive jurisdiction of the Ninth Circuit under § 839f(e). Accordingly, we reverse the trial court’s dismissal and remand for further proceedings consistent with this opinion.

I. BACKGROUND

A. The Parties

The City of Burbank is a municipal corporation organized and existing under the Constitution and laws of California. It operates a municipal electric system, which involves generating, transmitting, and distributing electric energy within its jurisdiction in California.

The BPA is a power-marketing, federal administration organized and existing under the Bonneville Project Act, 16 U.S.C '§§ 832-8321, and Sections 302(a)(1)(D) and *1373 302(a)(2) of the Department of Energy Organization Act, 42 U.S.C. § 7152(a)(1)(D). The BPA markets, transmits, purchases, exchanges, and sells electric energy in the wholesale market. Federal dams in the Pacific Northwest 1 generate the hydroelectric energy the BPA sells in this market. Four statutes primarily govern the BPA. 2 At issue in this case is the scope of the jurisdictional grant contained in the Pacific Northwest Electric Power Planning and Conservation Act of 1980, 16 U .S.C. §§ 839-839h, which is commonly called the “Northwest Power Act” (or the “Regional Act”).

Congress created the BPA primarily to serve the Pacific Northwest. See 16 U.S.C. §§ 832-832m (2000). Whenever the BPA generates sufficient electric energy to satisfy the demand of its primary service area, any electric energy above this amount is defined as surplus. 16 U.S.C. § 837(c) (2000) (defining “surplus energy” as electric energy that would otherwise be wasted due to lack of a market in the Pacific Northwest). The BPA may sell such surplus electric energy outside of the Pacific Northwest. It must do so, however, pursuant to the authorization and restrictions codified at 16 U.S.C. §§ 837a, and 839c(f). Thus, when the BPA agrees to sell electric energy to an entity outside the Pacific Northwest, such as Burbank, some of the contractual provisions are mandated by statute. The BPA freely negotiates other provisions, which are not mandated by statute.

B. The Contract At Issue

Burbank and the BPA executed the contract at issue on January 28, 1988 (the “Contract”). 3 It has a term of twenty years. The Contract initially provided for the sale and exchange of 18 megawatts of electric energy per contract year by the BPA to Burbank. On July 6, 1988, the parties executed an Amendatory Agreement that increased the amount of electric energy to be sold or exchanged to 40 megawatts.

At any given time the Contract operates in one of two different, and distinct, modes: the power sale mode or the exchange mode. The Contract initially operated in power sale mode.

1. Power Sale Mode Versus Exchange Mode

The Contract operates in the power sale mode when the BPA determines that it is capable of producing surplus electric energy. In the power sale mode, the BPA sells firm amounts of electric energy, which Burbank must purchase at rates governed by Section 9(a) of the Contract. Sections 9(a)(1) and 9(a)(2) specify the rates payable in 1988 and 1989-1992, respectively. Section 9(a)(3) of the Contract determines the rates payable by Burbank beginning on January 1, 1993. These contract rates are determined by applying the adjustment ratio provided in Section 9(a)(3) to the previously applicable Contract rate on the effective date of any firm power rate *1374 adjustment by the BPA. The adjustment ratio is calculated with respect to the rates the BPA charges in the Pacific Northwest, which are established by an administrative proceeding pursuant to 16 U.S.C. § 839e(i).

If the BPA lacks surplus electric energy, the Contract converts to the exchange mode. The terms and conditions of this conversion are mandated by statute. See 16 U.S.C. § 837b(a) (2000) (Any contract for the sale of electric energy outside the Pacific Northwest will provide that, after notice, the Secretary “will not deliver electric energy under such contract whenever it can reasonably be foreseen that such delivery would impair his ability to meet ... the energy requirements of any Pacific Northwest Customer.”).

Upon conversion to exchange mode, the BPA provides Burbank with the capacity to generate electric energy at some times. In exchange, Burbank must deliver electric energy to the BPA at other times.

2. The Allegedly Breached Contract Provisions

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
273 F.3d 1370, 51 Fed. Cl. 1370, 32 Envtl. L. Rep. (Envtl. Law Inst.) 20436, 2001 U.S. App. LEXIS 26688, 2001 WL 1604326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-burbank-california-v-united-states-cafc-2001.