Croman Corp. v. United States

49 Fed. Cl. 776, 2001 U.S. Claims LEXIS 130, 2001 WL 792850
CourtUnited States Court of Federal Claims
DecidedJuly 12, 2001
DocketNo. 98-405 C
StatusPublished
Cited by10 cases

This text of 49 Fed. Cl. 776 (Croman Corp. 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
Croman Corp. v. United States, 49 Fed. Cl. 776, 2001 U.S. Claims LEXIS 130, 2001 WL 792850 (uscfc 2001).

Opinion

OPINION AND ORDER

HEWITT, Judge.

This is a suit for damages alleged to have resulted from the suspension of a timber sale contract. The performance of the contract was delayed following the listing by the Fish and Wildlife Service of the United States Department of the Interior (Fish and Wildlife) of the marbled murrelet as a threatened species and the resulting investigation of a portion of the Klamath National Forest in California to determine whether that area was a murrelet habitat. Plaintiff, Croman Corporation (Croman), argues that it temporarily lost the benefit of its contract for the logging of the land in question and sustained damages as a result. Defendant, the United States, acting through the Forest Service of the Department of Agriculture (Forest Service), argues that plaintiff voluntarily suspended its own contract and that, even if the government were responsible for the suspension of the contract, plaintiff is not entitled to damages. The matter is before the court on the parties’ cross-motions for summary judgment on Counts II and III of the Amended Complaint. Count II alleges that defendant breached its duty not to hinder the performance of plaintiffs contract by unreasonably suspending logging operations, and Count III alleges that the contract constituted property that was taken by defendant in violation of the Fifth Amendment to the United States Constitution.

This is the second set of dispositive motions that the court has considered in this case. Plaintiff moved for summary judgment on liability on December 22, 1998, and defendant cross-moved for summary judgment and moved to dismiss on May 11, 1999. Defendant argued in its motion to dismiss that plaintiffs claim of a July 1992 suspension of contract operations had not been submitted to the contracting officer and was therefore outside the court’s jurisdiction. Defendant’s, Motion to Dismiss, Opposition to Plaintiffs Motion for Summary Judgment, and Cross Motion for Summary Judgment (Def.MTD) at 9-14. In an opinion filed on October 1, 1999, the court agreed and dismissed plaintiffs July 1992 suspension claim.1 Croman Corp. v. United States, 44 Fed.Cl. 796, 808 (1999). The court then examined whether a suspension of contract operations from October 9, 1992 to August 28, 1995 was unauthorized or unreasonable. Id. at 804-07. The court determined that the listing of the marbled murrelet on September 28, 1992 constituted a sovereign act and that the application of the sovereign acts doctrine authorized the suspension of operations in October 1992. Id. at 807. For that reason, the court granted summary judgment to defendant on Count I of plaintiffs Amended Complaint (Am. Compl), which alleged an unauthorized suspension of the contract. Id. The court declined to rule on the question of whether the steps taken by defendant after the initial suspension were unreasonable and constitut[779]*779ed a breach of an implied duty not to unduly hinder plaintiffs performance. Id.

On October 18, 1999, plaintiff sought reconsideration of the court’s October 1, 1999 opinion insofar as the court found the sovereign acts doctrine applicable. Plaintiffs Motion for Reconsideration (Pl.Mot.Reconsid.) at 1. The court denied the motion for reconsideration on October 28, 1999. By order of February 13, 2001, after briefing on the current set of dispositive motions, the court reopened consideration of its October 1,1999 opinion and invited further briefing of the sovereign acts issue. After review of the parties’ further briefing, the court WITHDRAWS the portion of subsection II.B.l of its October 1, 1999 opinion holding that the sovereign acts doctrine authorized the suspension of operations on plaintiffs contract because of the listing of the marbled murre-let as a threatened species. See Croman, 44 Fed.Cl. at 804-07. For the reasons discussed in section I.B below, however, the court’s conclusion in its October 1,1999 opinion that defendant is entitled to summary judgment on Count I of the Amended Complaint is undisturbed.

With respect to the current motions and for the following reasons, plaintiffs motion for summary judgment with respect to Count II is GRANTED in part and DENIED in part, and plaintiffs motion for summary judgment with respect to Count III is DENIED. Defendant’s motion for summary judgment is GRANTED in part and DENIED in part with respect to Count II. Defendant’s motion for summary judgment with respect to Count III is GRANTED.

1. Background

A. The Dispute

The contract is for the sale and harvest of timber located on the Happy Camp Ranger District of the Klamath National Forest (Kla-math) in California. Plaintiffs Corrected Proposed Findings of Uncontroverted Fact in Support of its Motions for Summary Judgment as to Counts II and III of the Amended Complaint,2 filed on February 9, 2001 (PI. Second PFUF) 11 ll.3 When the dispute arose, the contract was one of the oldest timber contracts still not fully performed. PLApp. at 243. 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. Plaintiffs Proposed Findings of Uncontroverted Fact (PI. First PFUF) 1ÍH1, 6. Plaintiff purchased the contract in 1979. Id. U 28.

The original contract was to terminate on March 31, 1974. PL Second PFUF 1113. Prior to plaintiffs purchase of the contract, the contract termination date was extended many times by agreement of the parties. Id. HI! 14-15, 17-21, 24. The contract contained a standard provision, Paragraph C8.22, allowing for adjustments to the contract termination date in certain circumstances. Appendix to Defendant’s Corrected Motion to Dismiss, Opposition to Plaintiffs Motion for Summary Judgment, and Cross Motion for Summary Judgment (Def.App.) at 77. The relevant portion of II C8.22 provided as follows:

“Contract Term Adjustment” means an extension under a written permit to delay ... for any of the three circumstances described in this Subsection. Under said circumstances, the contract term shall be adjusted in writing to include additional calendar days in one or more Normal Operating Seasons equal to the actual time lost____
... The three circumstances qualifying for a Contract Term Adjustment are:
(a) Purchaser experiences delay in starting scheduled operations or interruption in active operations either of which [780]*780stops 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.4

Id. at 76-77. After plaintiffs purchase of the contract, several Contract Term Adjustments were granted, extending the contract termination date. Pl. Second PFUF 111128-32.

On June 20, 1991, after the termination date of the contract had been extended to December 31, 1993, Fish and Wildlife published a proposed rule to list the marbled murrelet5 as a threatened species under the Endangered Species Act (ESA), 16 U.S.C.

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Bluebook (online)
49 Fed. Cl. 776, 2001 U.S. Claims LEXIS 130, 2001 WL 792850, Counsel Stack Legal Research, https://law.counselstack.com/opinion/croman-corp-v-united-states-uscfc-2001.