City of Manassas Park v. United States

633 F.2d 181, 224 Ct. Cl. 515, 15 ERC (BNA) 1374, 1980 U.S. Ct. Cl. LEXIS 237
CourtUnited States Court of Claims
DecidedJuly 16, 1980
DocketNo. 506-78
StatusPublished
Cited by27 cases

This text of 633 F.2d 181 (City of Manassas Park 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
City of Manassas Park v. United States, 633 F.2d 181, 224 Ct. Cl. 515, 15 ERC (BNA) 1374, 1980 U.S. Ct. Cl. LEXIS 237 (cc 1980).

Opinion

NICHOLS, Judge,

delivered the opinion of the court:

By the amended petitions the principal or lead claimant is the Upper Occoquan Sewage Authority (UOSA), a body corporate and politic of the Commonwealth of Virginia. Four creatures of that Commonwealth, Manassas, Manas-sas Park, Fairfax County, and Prince William County (municipalities), entered into a service agreement with UOSA to provide for an advanced waste water treatment system for the upper Occoquan, which flows into the Potomac. Manassas Park originally filed this action, and the other municipalities would now join as third parties. UOSA now claims to be suing for their benefit. The grant contract sued on here was made by UOSA with the United States Environmental Protection Agency (EPA) pursuant to the Federal Water Pollution Control Act, 33 U.S.C. §§ 1251 and ff, and specifically § 1281(g)(1). The federal share of the grant is limited by § 1282 to 75 percent of cost, and the remainder must be borne by the grantee. UOSA having no taxing or borrowing authority of its own, any increase in the grantee’s share is immediately borne by its founder municipalities.

The grievance here is that EPA arbitrarily and needlessly caused an increase in the project cost, rounded off, from $49,300,000 to $82,280,000, with corresponding increase ultimately borne by the municipalities of their ungranted 25 percent. It is not disputed that the government has absorbed and paid the corresponding larger increase in its own grant costs, occasioned by its own alleged folly. What the plaintiffs want is for the government to absorb enough [518]*518more of their costs to reduce their burden to 25 percent of $49,300,000, not $82,280,000. We state the case at this point as it is stated to us. No evidence has yet been taken as to the actual extent of the cost overrun or the extent to which EPA caused it, and of course we make no fact-finding. The immediate problem of UOSA and the municipalities is to state their claim in a fashion that brings it within the jurisdiction of this court as against defendant’s motion for summary judgment. We hold that they do not succeed.

The EPA, having spread the necessary granted funds over three years, construed its own regulation, as it then was, 40 C.F.R. § 35.603(a), 38 Fed. Reg. 5329 (1973), to require that the use of each annual grant be such as to produce a "complete and operable treatment works.” Thus, in case of an unforeseen cutoff in later years, an earlier grant would not be exhausted in an unfinished and useless facility. It is easy to see how such a requirement might elevate the costs, as plaintiffs say it did, and it is ironic that it resulted from an effort at economy, President Nixon having impounded part of the grant funds. Whether EPA correctly construed its own regulations is one of the things the parties dispute, but we pass it over as an answer either way would not affect the result. EPA rejected plaintiffs’ original plans because they did not conform to the regulation as interpreted. Plaintiffs submitted revised plans which did, and were approved. Plaintiffs are thus in the position of having acquiesced in the change. Their explanation for this is that they were not aware how great the cost overrun would be. They do not now show that EPA knew more, but hope to learn of something along the line of "superior knowledge” on discovery. We do not think such discovery is necessary as evidence of "superior knowledge,” if discovered, would not affect our conclusion.

Plaintiffs suggest without much conviction that their acquiesence was the product of duress. Their explanation is that under the statute the municipalities were responsible to correct the excess of their pollution of navigable waters over allowable limits, by statuory deadline dates, whether or not they received grants to aid them in doing so. State Water Control Board v. Train, 559 F.2d 921 (4th Cir. 1977). Therfore, as a practical matter, UOSA had no real option, it [519]*519says, but to agree with whatever EPA proposed. We do not think enactment by Congress of laws protecting navigable waters, not asserted to be outside its constitutional power, could ever be held to constitute duress in the sense of the law of contracts. Rather they are "sovereign acts.” D. R. Smalley & Sons, Inc. v. United States, 178 Ct. Cl. 593, 372 F. 2d 505, cert. denied, 389 U.S. 835 (1967). In any case it appears that by January 2, 1974, the Congress expressly negated the involved EPA interpretation by Pub. L. No. 93-243, 33 U.S.C. § 1283(d). This came soon enough to rescue all other municipalities from the extravagance in which UOSA says it was entrapped, and no doubt would have rescued UOSA too if it had dragged its feet just a little and for long enough. It is difficult to see duress in a good faith executive policy the Congress no sooner heard of than corrected, and we consider the duress issue no further.

A leading case in this court, Eastport Steamship Corp. v. United States, 178 Ct. Cl. 599, 372 F.2d 1002 (1967), analyzes our jurisdiction under the Tucker Act, 28 U.S.C. § 1491, which is here invoked. It says noncontract claims must be for money, and must be in one or the other of two categories. The first is for money illegally exacted, and in Treasury coffers, as, e.g., tax refund claims. The second is when the claimant urges that some specific provision of law commands expressly or by implication the payment of money, upon proof of conditions he is said to meet, e.g., fifth amendment taking claims or claims by illegally discharged government employees for back pay. The Supreme Court approved this analysis in United States v. Testan, 424 U.S. 392 (1976) and applied it to exclude from our Tucker Act jurisdiction a claim that did not pass the Eastport Steamship test. Thus not every instance of misgovernment by a United States agency that is costly to private parties, or local and state interests, generates a valid Tucker Act claim. The misgovernment, e.g., in Eastport caused the claimant company to lose an opportunity to sell a ship to foreign buyers at a good price, and made necessary acceptance of a much less favorable price a few months later. As we read the plaintiffs, they do not contend that their case will stand by either of the Eastport tests. They accept the onus of showing that their claim is founded on their [520]*520interpretation of the grant agreement, the only privity of contract that existed with defendant.

They say they want an "equitable adjustment” in the grant agreement. But this term, familiar in litigation founded on the standard government disputes clause, not here involved, is inappropriate here. We think what they really want is an equitable reformation. What they would do is to reform the agreement and enforce it as reformed.

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Bluebook (online)
633 F.2d 181, 224 Ct. Cl. 515, 15 ERC (BNA) 1374, 1980 U.S. Ct. Cl. LEXIS 237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-manassas-park-v-united-states-cc-1980.