Domagala v. United States

39 Cont. Cas. Fed. 76,600, 30 Fed. Cl. 149, 1993 U.S. Claims LEXIS 315, 1993 WL 492666
CourtUnited States Court of Federal Claims
DecidedNovember 30, 1993
DocketNo. 92-883C
StatusPublished
Cited by2 cases

This text of 39 Cont. Cas. Fed. 76,600 (Domagala 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
Domagala v. United States, 39 Cont. Cas. Fed. 76,600, 30 Fed. Cl. 149, 1993 U.S. Claims LEXIS 315, 1993 WL 492666 (uscfc 1993).

Opinion

OPINION

MARGOLIS, Judge.

This contract case is before the court on defendant’s motion to dismiss and to suspend discovery. The defendant, the United States, argues that the court lacks jurisdiction to hear the plaintiffs claims. According to the defendant, the court must dismiss the plaintiffs complaint because the plaintiff neither alleges facts sufficient to establish the existence of an express or implied contract nor submitted a claim to a contracting officer for final decision. Defendant also contends the equitable relief plaintiff seeks is beyond the court’s remedial powers. The plaintiff, John R. Domagala, doing business as Northeast Transcripts, asserts that the court may properly exercise jurisdiction over his claims. The plaintiff contends that the facts show an implied contract between Northeast and the United States, that Northeast submitted a claim to the contracting officer for final decision, and that the request for equitable relief is properly before the court as incidental to a damages claim. After hearing oral argument, and after carefully reviewing the record, the court grants the defendant’s motion to dismiss.

FACTS

Northeast Transcripts (“Northeast”) provided medical record transcription services to the Department of Veterans Affairs (“VA”) at VA facilities in Buffalo, Batavia and Rochester, New York pursuant to a contract. Northeast’s contract with the VA expired in mid 1991. On February 28, 1991, the VA solicited bids to perform the transcription services after Northeast’s contract ended. The new contract called for one base year, beginning May 1, 1991, with three renewal option periods.

The contracting officer, Carol Saltarelli (“Saltarelli”), opened the bids for the new contract on March 28, 1991. Northeast’s bid was fourth lowest of the five bids Saltarelli received. Saltarelli determined that the lowest bidder, Automation Management Services Co. (“AMSC”), was not responsible. While the Small Business Administration considered whether to issue a Certificate of Competency to AMSC, Saltarelli and Northeast agreed to extend Northeast’s transcription services under the old contract until June 30, 1991.

[151]*151On June 26, 1991, Saltarelli awarded the contract to Buffalo Stenographers (“Buffalo”), the second lowest bidder. Soon thereafter, Saltarelli determined that Buffalo could not meet the contract requirements. Saltar-elli obtained authority to conduct an emergency procurement if Buffalo were terminated for default. On July 12, 1991, Saltarelli issued a purchase order to Northeast to perform transcription services to handle the backlog of work created by Buffalo’s performance problems. The purchase order was authorized on a sole source basis because it was an emergency procurement. Saltarelli awarded five purchase orders to Northeast for services to be performed between August 11, 1991 and December 31, 1991.

Following Buffalo’s termination for default, the VA awarded the contract to the next lowest bidder, Executive Assistance. The VA notified Northeast of this award on December 31,1991. The VA paid Northeast for all services performed under the five emergency purchase orders at the agreed upon rate.

John R. Domagala (“Domagala”) alleges, and the Government denies, that Saltarelli promised Northeast on July 10,1991 that she would award the new contract to Northeast if Northeast performed the emergency procurements. Domagala further asserts that Northeast demanded execution of the new contract on several occasions and that Saltar-elli assured them that they had won the contract, but paperwork delayed the process.

Domagala claims Northeast filed a written protest of the contract award with Saltarelli on January 2, 1992, and a more detailed protest with the VA on January 6, 1992. On February 12, 1992, Northeast filed a letter protesting the contract award to Executive Assistance with the General Accounting Office (“GAO”). Northeast sent copies of this letter to Saltarelli and other VA officials. The Comptroller General dismissed the protest on February 18, 1992 for failure to state a valid ground for protest. This lawsuit followed.

DISCUSSION

The Government moves, pursuant to Rule 12(b)(1) of the Rules of the United States Court of Federal Claims, to dismiss Domagala’s complaint for lack of subject matter jurisdiction. As the plaintiff, Doma-gala bears the burden of establishing that the court may properly adjudicate this ease. Pasco Enterprises v. United States, 13 Cl.Ct. 302, 305 (1987). In considering the Government’s motion, the court must review the facts in the light most favorable to Domagala. Id. at 303.

The Court of Federal Claims is a court of special jurisdiction. United States v. Testan, 424 U.S. 392, 400, 96 S.Ct. 948, 954, 47 L.Ed.2d 114 (1976). The court may not adjudicate claims against the United States unless Congress expressly grants such authority. Id. The principal scope of the court’s jurisdiction includes “any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States.” 28 U.S.C. § 1491(a)(1). The court’s jurisdiction over contract claims against the Government is, however, limited to those cases where the contractor submits a written claim to a contracting officer for a final decision. 41 U.S.C. § 605(a); see Paragon Energy Corp. v. United States, 645 F.2d 966, 227 Ct.Cl. 176, 183-184 (1981). The court may also grant equitable relief if it is associated with and subordinate to a monetary award. 28 U.S.C. § 1491(a)(3); McEniry v. United States, 7 Cl.Ct. 622, 625 (1985). Domagala argues that the claims set forth in its complaint allege a contract implied in fact. Thus, in order for Domagala to prevail on the Government’s motion to dismiss, the court must find: (1) an implied in fact contract between Northeast and the VA; (2) that Northeast submitted a claim to a contracting officer for final decision; and (3) that Domagala’s claims for equitable relief are incidental to a damages claim. Because Domagala cannot prove any set of facts under which the court could find either an implied in fact contract between the parties or submission of a claim to the contracting officer for a final decision, the court dismisses the complaint.

[152]*152The facts contained in Domagala’s complaint against the United States cannot establish the existence of an implied in fact contract between Northeast and the VA. An implied in fact contract with the United States requires findings of: mutuality of intent to contract; consideration; lack of ambiguity in offer and acceptance; and actual authority of the Government agent whose conduct is relied upon to bind the Government. City of El Centro v. United States, 922 F.2d 816, 820 (Fed.Cir.1990).

The court must dismiss this cause of action because Saltarelli did not have authority to bind the Government in the manner in which Domagala alleges.

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

Related

Singleton v. United States
54 Fed. Cl. 689 (Federal Claims, 2002)
Heydt v. United States
41 Cont. Cas. Fed. 77,173 (Federal Claims, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
39 Cont. Cas. Fed. 76,600, 30 Fed. Cl. 149, 1993 U.S. Claims LEXIS 315, 1993 WL 492666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/domagala-v-united-states-uscfc-1993.