Claude Mayo Construction Company, Inc. v. United States

128 Fed. Cl. 616, 2016 U.S. Claims LEXIS 1490, 2016 WL 5848912
CourtUnited States Court of Federal Claims
DecidedOctober 6, 2016
Docket15-1263C
StatusPublished
Cited by2 cases

This text of 128 Fed. Cl. 616 (Claude Mayo Construction Company, 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
Claude Mayo Construction Company, Inc. v. United States, 128 Fed. Cl. 616, 2016 U.S. Claims LEXIS 1490, 2016 WL 5848912 (uscfc 2016).

Opinion

Keywords; Subject Matter Jurisdiction; Motion to Dismiss; Tucker Act; Contract Disputes Act; Claim; Sum Certain

OPINION AND ORDER

KAPLAN, Judge

The plaintiff in this case, Claude Mayo Construction Company (Claude Mayo), filed *618 this action to challenge the General Services Administration’s (GSA) default, termination of a contract to renovate certain office space in a federal building in Syracuse, New York. In its complaint, Claude Mayo alleges: 1) that the default termination was improper; 2) that GSA committed material breaches of the contract; 3) that its improper termination was intended to and did in fact interfere with Claude Mayo’s ability to secure other contracts; and 4) that GSA was unjustly enriched because it received services from Claude Mayo for which it failed to provide adequate compensation. Compl. ¶¶ 73-95, ECF No. 1.

The matter is currently before the Court on the government’s motion to dismiss the second, third, and fourth causes of action identified above for lack of subject matter jurisdiction, pursuant to Rule 12(b)(1) of the Rules of the Court of Federal Claims (RCFC). According to the government, this Court lacks Tucker Act jurisdiction over those causes of action because, among other reasons, Claude Mayo failed to' exhaust its administrative remedies as required by the Contract Disputes Act (CDA), 41 U.S.C. §§ 7103-09. Def.’s Mot. to Partially Dismiss Compl. (Def.’s Mot.) at 10-15, ECF No. 10. Also before the Court is Claude Mayo’s cross-motion for a stay. In that motion, Claude Mayo requests that—should the Court agree with the government’s jurisdictional arguments—it stay consideration of Count I of the complaint to allow the Contracting Officer (CO) to render a final determination on certain monetary claims that Claude Mayo set forth in an April 25, 2016 Supplemental Claim Letter that it submitted while this action was pending. Pl.’s Resp. to Def.’s Mot. and Cross-Mot. for a Stay (PL’s Resp.) at 16-18, ECF No. 11.

For the reasons set forth below, the government’s motion to partially dismiss the complaint is GRANTED. Therefore, the claims set forth in the second, third, and fourth causes of action in the complaint are DISMISSED without prejudice. Claude Mayo’s cross-motion for a stay of further proceedings regarding the claims set out in its first cause of action is also GRANTED.

BACKGROUND 1

I. Initial Performance of the Contract

Oh July 23, 2013, GSA awarded Claude Mayo a contract to perform renovations of the United States Attorney’s Office located in the James M. Hanley Courthouse and Federal Building in Syracuse, New York. Compl. ¶¶ 7-9; id. Exs. A-B. The contract was priced at $732,003. Compl. ¶ 9.

On August 2, 2013, after Claude Mayo submitted performance and payment bonds as well as certificates of insurance, GSA issued it a Preliminary Notice to Proceed. Compl. ¶ 11; id. Ex. C. That preliminary notice instructed Claude Mayo to begin obtaining security clearances for its employees and informed it that, a Final Notice to Proceed would be issued prior to the start of any on-site work. Compl. ¶¶ 12-13; id. Ex C. The notice also stated that the performance period for on-site work was 150 calendar days. Compl. ¶ 13; id. Ex. C.

On November 21, 2013, GSA issued the Final Notice to Proceed. Compl. ¶ 17; id. Ex. D. Claude Mayo received and signed the notice on November 22, 2013 and began work that same day. Compl. ¶ 21; id. Ex. D. Thereafter, on December 24, 2013, the parties entered into an Amendment of Solicitation/Modification of Contract designated “PS01.” Compl. ¶ 28; id. Ex. E. That amendment modified the original contractual requirement that Claude Mayo refurbish fif- " teen Packaged Terminal Air Conditioner (PTAC) units. As modified, the contract required that Claude Mayo remove the existing PTAC units and replace them with fifteen new PTAC units. Compl. ¶¶ 24-26. The parties agreed to increase the contract amount by $79,043, to $811,046. Id. ¶ 27. In addition, PS01 stated that “[t]his contract is hereby extended for the additional work from 28 Feb 2014 to 01 Apr 2014.” Id. ¶30; see also id. Ex. E.

*619 GSA sent Claude Mayo additional modification requests (designated PS02 and PS03) on January 13 and 16, 2014, respectively. Compl. ¶¶ 36-40. These modification requests concerned woodwork, carpeting, duct work, partitions, and doors. Id. Both modification requests required responses by January 24, 2014. Id. ¶¶ 38, 41. Claude Mayo provided its responses on January 28, 2014, but the parties did not reach agreement on either request. Id. ¶¶ 42, 46,

II. GSA Terminates the Contract for Default

On February 11, 2014, GSA sent Claude Mayo a “Notice to Cure,” in which it asserted that Claude Mayo had failed to comply with contractual requirements that it provide schedules of completed work and schedules of work to be done, and had also failed to respond to contract modification requests PS02 and PS03. Compl. ¶¶ 50-61; see also Def.’s Mot. App. at Al. The letter expressed GSA’s concerns that those failures “endanger[ed] performance of the contract” and that, as a result, the contract completion date would not be met. Def.’s Mot. App. at Al.

On February 20, 2014, Claude Mayo responded in writing to the Notice to Cure. Compl. ¶ 63. In its response, Claude Mayo asserted that schedules of work done and to be completed were provided at each weekly meeting and that, in fact, it had responded to modification proposals PS02 and PS03. Id.

Subsequently, on March 17, 2014, GSA issued a “Show Cause Notice” to Claude Mayo, warning that it was considering termination of the contract for default. Compl. ¶ 55; see also Def.’s Mot. App. at A14-15. The letter alleged that Claude Mayo had failed to provide schedules showing that the project would be completed by April 1, 2014, which GSA identified as the required completion date. Compl. ¶ 56. It also asserted that Claude Mayo had failed to respond to modification requests and to install certain components per contract specifications. Id. ¶ 57. The Show Cause Notice concluded that Claude Mayo had the opportunity to “present, in writing, any facts bearing on the question” within ten days of receipt of the notice. Def.’s Mot. App. at A14.

Before the ten-day period expired, GSA sent Claude Mayo proposed contract modification PS04, which would have altered the completion date for the contract from April 1, 2014, to April 21, 2014. Compl. ¶¶ 60-61. Claude Mayo declined to sign PS04 because it was of the view that the parties had already extended the contract completion date to July 14, 2014, in connection with the execution of contract modification PS01. Id. ¶ 62.

On March 28, 2014, GSA issued a “Stop Work Order,” which directed Claude Mayo to cease all work and further orders for materials and services under the contract. Id. ¶ 58; see also Def.’s Mot. App. at A16. A few weeks later, on April 17, 2014, GSA unilaterally issued PS04. Compl. ¶ 63. According to GSA, this extended the contract completion date to April 21, 2014. See id. ¶¶ 61-63, 67.

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128 Fed. Cl. 616, 2016 U.S. Claims LEXIS 1490, 2016 WL 5848912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/claude-mayo-construction-company-inc-v-united-states-uscfc-2016.