Drexel Heritage Furnishings, Inc. v. United States

31 Cont. Cas. Fed. 71,751, 3 Cl. Ct. 718, 1983 U.S. Claims LEXIS 1572
CourtUnited States Court of Claims
DecidedNovember 10, 1983
DocketNo. 661-83C
StatusPublished
Cited by9 cases

This text of 31 Cont. Cas. Fed. 71,751 (Drexel Heritage Furnishings, Inc. 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
Drexel Heritage Furnishings, Inc. v. United States, 31 Cont. Cas. Fed. 71,751, 3 Cl. Ct. 718, 1983 U.S. Claims LEXIS 1572 (cc 1983).

Opinion

DENIAL OF TEMPORARY RESTRAINING ORDER

TIDWELL, Judge.

Very late in the day on November 2,1983 plaintiff filed a complaint asking for declaratory and injunctive relief, a motion for a preliminary injunction, and a motion for a temporary restraining order to prevent defendant from making an award under General Services Administration (GSA) RFP No. FNPS-57-1491-N-5HI-83 pending the outcome of plaintiff’s bid protest to the General Accounting Office (GAO) and that GAO be directed by the court to retain jurisdiction of plaintiff’s previously filed protests and issue an expedited decision. The following day, November 3, 1983, the court placed a conference call with counsel for plaintiff and defendant to discuss the status of the contract award and to schedule a hearing. At that time, defendant, the United States, indicated that award had not yet been made and agreed not to award a contract under the referenced RFP until 11 [720]*720days hence, November 14, 1983. A hearing was set for November 8, 1983 on plaintiff’s motion for a temporary restraining order. An order was filed accordingly.

On November 7, 1983 plaintiff filed its First Amended Complaint. On November 8, 1983 defendant filed a Motion for Summary Judgment and Opposition to Plaintiff’s Request for Injunctive Relief. Also, late in the morning of November 8, 1983 Ethan Allen, Inc. filed a motion to intervene, with a memorandum of points and authorities in support thereof.1 A hearing was held on November 8, 1983 at 2:30 p.m. lasting approximately three hours.

Plaintiff’s First Amended Complaint was substantially similar to its original Complaint except that it prayed for different relief than had been previously requested, to wit: “(t)hat the Court declare defendant’s solicitation unlawful as a result of its unequal treatment of offerors and its ambiguous and late modification of the contract,” and that the court enjoin defendant from awarding a contract under the referenced solicitation until defendant had resolved plaintiff’s protest of a Walsh-Healy Act violation2 filed recently by plaintiff against the intervenor.3

At the hearing counsel for defendant asked plaintiff to clarify the relief requested in the Amended Complaint since it appeared that plaintiff had abandoned its initial request for relief and was now asking only for a “cancellation of the solicitation and/or apparently a restraining order until the Walsh-Healy matter is resolved”. Transcript at 6. Plaintiff assured the court that its intention was not to abandon its claim for relief under the original complaint but to add the additional claims set forth in the Amended Complaint. RUSCC 15(e)(1) requires a party amending a pleading to “include so much of the prior pleading as may be required to show clearly how the pleading is to stand amended”. However, RUSCC 15(b) allows pleadings to be amended as justice requires to include issues otherwise raised by the parties which are not included in the pleadings. Therefore, even though plaintiff’s Amended Complaint was unartfully drafted and did not specifically set out the way in which the original complaint was to be amended, in the interest of justice, this court will consider all claims raised in plaintiff’s Complaint and Amended Complaint.

Since the jurisdiction of this court to grant injunctive and declaratory relief in pre-award bid protests is statutory and decisions from this court and the Court of Appeals for the Federal Circuit have construed it narrowly,4 it is appropriate to examine whether the court has jurisdiction in the present case.5

This court’s injunctive authority over pre-award contract cases derives from section 133(a) of the Federal Courts Improvement Act of 19826 codified at 28 U.S.C. § 1491(a)(3). Ingersoll-Rand Company v. United States, 2 Cl.Ct. 373, 375-76 (1983) (KOZINSKI, C.J.). Section 1491(a)(3) limits the court’s injunctive authority to “contract claim[s] brought before the contract is awarded.” Thus, the court’s authority to grant equitable relief under 28 U.S.C. 1491(a)(3) is based on the existence of a “contract claim”. Hero, Inc. v. United States, 3 Cl.Ct. 413 at 415-416 (1983) (WHITE, S.J.). Chief Judge Kozinski in Ingersoll-Rand read this short phrase as referring to two separate contracts;7 the [721]*721second contract being the subject of the proposed award and the first contract being an implied-in-fact contract between the United States and bidders on the underlying contract.8 He further stated that this “[implied-in-fact] contract arises from the bid solicitation process and guarantees that a bid submitted in conformity with the requirements of the invitation for bids will be fully and fairly considered.” See Keco Industries, at footnote 8, 192 Ct.Cl. at 778; Heyer Products, at footnote 8, 140 F.Supp. at 412-413, 135 Ct.Cl. at 69-70. It is this implied contract which forms the jurisdictional basis for this court’s authority to grant equitable relief under 28 U.S.C. 1491(a)(3). See Hero, supra at 416; Inger-soll-Band, supra at 375-76.

Consistent therewith, it follows that the court has no jurisdiction over a suit for equitable relief under 28 U.S.C. 1491(a)(3) by a non-bidder in connection with a government contract. Hero, supra at 416.

However, in this case plaintiff is an “offeror” having submitted an initial offer in response to RFP No. FNPS-57-1491-N5-N-83. In addition, no award has yet been made. Thus, plaintiff’s motion is timely in that it was filed pre-contract award and plaintiff has standing to seek equitable relief pursuant to previous decisions of this court as set forth above.

In Heli-Jet Corporation v. United States, 2 Cl.Ct. 613 (1983) (YANNELLO, J.), the court stated that “[Equitable relief] should be granted only in infrequent and limited circumstances where such relief is clearly appropriate” and that plaintiff must sustain the burden of showing it is clearly entitled to such relief. Upon consideration of the parties’ documentary evidence and oral argument, the court finds that the plaintiff has not met its heavy burden of demonstrating that the GSA’s procurement actions were irrational or unreasonable. In Baird Corp. v. United States, 1 Cl.Ct. 662 (1983) (LYDON, J.), the court held that “(j)udicial review of an agency’s preaward procurement decision is, and should be, extremely limited in scope. The court should not substitute its judgment in such matters for that of the agency, but should intervene only when it is clearly determined that the agency’s determinations were irrational or unreasonable (citations omitted).” Injunc-tive relief is drastic in nature, and where such relief is sought, the court must exercise great caution. Even then, the aggrieved bidder must establish its right to this drastic relief by clear and convincing evidence. N.V. Philips Gloeilampenfabrieken v. United States, 1 Cl.Ct. 783 (1983) (YOCK, J.).

The court considered several factors in denying the plaintiff’s applications.

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31 Cont. Cas. Fed. 71,751, 3 Cl. Ct. 718, 1983 U.S. Claims LEXIS 1572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/drexel-heritage-furnishings-inc-v-united-states-cc-1983.