Croman Corp. v. United States

44 Fed. Cl. 796, 1999 U.S. Claims LEXIS 238, 1999 WL 791075
United States Court of Federal Claims·Decided October 1, 1999·No. No. 98-405 C·Published·Cited by 24 cases

Opinion

OPINION AND ORDER

HEWITT, Judge.

This matter comes before the court on Plaintiff’s Motion for Summary Judgment on Count One of its Amended Complaint and Defendant’s Motion to Dismiss and Cross-[798] Motion for Summary Judgment. Plaintiff, Croman Corporation (“Croman”), seeks damages suffered as a result of the Forest Service’s allegedly unauthorized suspension of the Clearview timber sale contract (the “contract”). Plaintiffs Amended Complaint (“Complaint”) at 25. Defendant, the United States, acting through the Forest Service of the Department of Agriculture (the “Forest Service”), seeks to have the court dismiss Croman’s case for lack of jurisdiction on the grounds that Croman’s current claim was neither properly submitted to the contracting officer for final decision, nor properly asserted in its Complaint or Motion for Summary Judgment. Defendant’s Motion to Dismiss and Cross Motion for Summary Judgment (“Def.’s MTD”) at 15, 21. In the alternative, defendant asks the court to deny plaintiff’s motion for summary judgment and grant the government’s cross motion for summary judgment. Id. at 1. For the following reasons, plaintiffs motion is DENIED. The government’s motion to dismiss is GRANTED in part. The government’s motion for summary judgment is also GRANTED in part.

I. Background

The contract is for the sale and harvest of timber located on the Happy Camp Ranger District of the Klamath National Forest in California. Plaintiff’s Proposed Findings of Uncontroverted Fact (“PPFUF”) at ¶ 2; Defendant’s Corrected Statement of Genuine Issues (“DSGI”) at ¶ 2. Standard Veneer and Timber Company was awarded the contract in 1970 and transferred all rights and obligations under the contract to Standard Plywood Corporation in 1973. PPFUF at ¶¶ 1, 6; DSGI at ¶¶ 2, 6. Croman purchased the contract in 1979. PPFUF at ¶ 28; DSGI' at5 28.

The original contract was to terminate on March 31, 1974. PPFUF at ¶ 4; DSGI at ¶ 4. Prior to Croman’s purchase of the contract, the contract termination date was extended many times by agreement of the parties. PPFUF at ¶¶ 7, 8,10,13,14,15; DSGI at ¶¶ 7, 8, 10, 13, 14, 15. The contract contained a standard provision, Paragraph C8.22, allowing for adjustments to the contract termination date in certain circumstances.1 Defendant’s Appendix (“Def.’s App.”) at 209. The relevant portion of Paragraph C8.22 provides:

(a) Purchaser experiences delay in starting scheduled operations or interruption in active operations either of which stops removal of Included Timber from Sale Area through curtailment in felling and bucking, yarding, skidding, and loading, hauling or road construction, as scheduled in B6.31, of 10 or more consecutive calendar days during a Normal Operating Season due to causes beyond Purchaser’s control, including but not limited to acts of God, acts of the public enemy, acts of Government, labor disputes, fires, insurrections or floods.

Id. at 210. After Croman’s purchase of the contract, several Contract Term Adjustments (“CTAs”) were granted to Croman extending the contract termination date. PPFUF at ¶¶ 29, 42, 43, 44, 58; DSGI at ¶¶ 29, 42, 43, 44, 58.

On January 12, 1988, the National Audubon Society and 32 of its chapters in Oregon, Washington and California filed a petition with the United States Fish and Wildlife Service (“FWS”), an establishment within the United States Department of the Interior, to list the marbled murrelet2 as a threatened species in the states of Oregon, Washington and California under the Endangered Species Act (“ESA”) 16 U.S.C. § 1531 et seq.; 53 Fed.Reg. 40479-01, (1988); Complaint at ¶ 13; Answer at ¶ 13. The FWS solicited comments and on January 6, 1989 it issued a revised notice of possible inclusions to the List of Endangered and Threatened Wildlife. Complaint at ¶ 16; Answer at ¶ 16. The [799] marbled murrelet was included in the category of “proposing to list as endangered or threatened is possibly appropriate.” Id. The FWS extended the comment period to May 31, 1990. 55 Fed.Reg. 7746-03 (1990); Complaint at ¶ 17; Answer at ¶ 17. On April 16, 1991, multiple chapters of the Audubon Society filed a lawsuit due to the FWS’s failure to decide whether to list the marbled murrelet within the time requirements of the ESA. Complaint at ¶ 19; Answer at ¶ 19; see Marbled Murrelet (Brachyramphus Marmoratus) v. Babbitt, 918 F.Supp. 318 (W.D.Wash.1996).

On June 20, 1991, the FWS published a proposed rule to list the marbled murrelet as a threatened species. 56 Fed.Reg. 28362-01 (1991); Complaint at ¶ 20; Answer at ¶20. Effective September 28, 1992, the FWS listed the marbled murrelet of Washington, Oregon, and California as a threatened species under the ESA. 57 Fed.Reg. 45,328 (1992).

There are several factual disputes regarding the events that occurred between the Forest Service and Croman in 1992 as a result of growing environmental concerns for the marbled murrelet. The most pertinent disputes are the following: whether or not the Forest Service unilaterally suspended the contract; and if the Forest Service did in fact order the suspension, when was the suspension ordered and under what circumstances.

The government argues that there is no clear evidence that the Forest Service unilaterally suspended the contract and that the lack of documentary evidence of a unilateral suspension makes the question of whether or not a breach occurred difficult to determine. Transcript of oral argument held on August 12, 1999 (“Tr.”) at 24-28 (“the difficulty in the analysis in this ease is the absence of any clear statements of what constitutes the alleged acts that breached the contract”). The government has asserted several alternative defenses to Croman’s allegations because “entirely different reasons might have justified the suspension at different points in time.” Id. at 27.

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Croman Corp. v. United States, 44 Fed. Cl. 796, 1999 U.S. Claims LEXIS 238, 1999 WL 791075 (uscfc 1999).

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