Grimberg Co. v. United States

30 Cont. Cas. Fed. 70,388, 1 Cl. Ct. 253, 1982 U.S. Claims LEXIS 2324
CourtUnited States Court of Claims
DecidedOctober 7, 1982
DocketNo. 510-82C
StatusPublished
Cited by13 cases

This text of 30 Cont. Cas. Fed. 70,388 (Grimberg Co. 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
Grimberg Co. v. United States, 30 Cont. Cas. Fed. 70,388, 1 Cl. Ct. 253, 1982 U.S. Claims LEXIS 2324 (cc 1982).

Opinion

MEMORANDUM AND ORDER ON PLAINTIFFS’ APPLICATION FOR TEMPORARY RESTRAINING ORDER AND MOTION FOR PRELIMINARY INJUNCTION

WILLI, Judge.

Plaintiffs instituted this suit on October 4, 1982, by filing a Complaint for Temporary Restraining Order, Preliminary Injunction, Permanent Injunction and Declaratory Judgment. Concurrently they filed a Motion for Temporary Restraining Order and a Motion for Preliminary Injunction. At 10 a.m. on October 5, 1982, argument was heard on those motions, the disposition of which is the subject of this memorandum and order.

This action is directed to two General Services Administration (GSA) contracts for the renovation of certain Government buildings. Plaintiff Grimberg was the second-low bidder on one of them (bid opening on July 8, 1982) and plaintiff Schlosser the same on the other (bid opening on September 13, 1982). In each instance the low bidder was P.W. Parker Inc. (Parker), a company with a wholly-owned subsidiary, R & P Contractors, Inc. (R & P).

The Invitation for Bid on each of the above contracts included the mandatory GSA clause entitled “Listing of Subcontractors,” a provision, the parties agree, designed to discourage post-award “bid shopping” by the successful prime for subcontract work. Hoel-Steffen Constr. Co. v. United States, 231 Ct.Cl. -, 684 F.2d 843, 850 (1982).

On both of its bids Parker identified R & P as subcontractor for performance of all mechanical work required under the contracts. In the same particular, plaintiffs, on the other hand, designated various independent suppliers for performance of such areas of the mechanical work as sheet metal, insulation, temperature controls and system balancing.

On July 12,1982, four days after the first bid opening, plaintiff Grimberg, believing that R & P lacked the functional capability to perform the items of mechanical work [254]*254mentioned above, lodged a protest with the GSA contracting officer challenging the responsiveness of Parker’s bid on the ground that the designation of R & P for all mechanical work violated the “Listing of Subcontractors” clause. By a letter of July 29, 1982, the contracting officer acknowledged receipt of the protest. His letter concluded: “The bids are being evaluated by the contracting officer, and you will be advised of his decision.”

On September 16,1982, following the bid opening of September 13, plaintiff Schlosser wrote the contracting officer to interpose, as to the second contract, essentially the same challenge as that made by plaintiff Grimberg to the first. The contracting officer acknowledged the protest by a letter of September 20,1982. That letter concluded: “The bids are being evaluated and you will be advised of our decision before an award is made.”

At the outset of the hearing on the pending motions the defendant, citing Section 133(a) of the Federal Courts Improvement Act of 1982, 96 Stat. 25, proferred a motion to dismiss this action, instituted October 4, 1982, for want of jurisdiction on the ground that on September 29, 1982, GSA had awarded Parker Contract GS-03B-98224 (Schlosser bid) and on September 30, 1982, had awarded the same firm Contract GS-11B-18208 (the Grimberg bid). The referenced provision amends section 1491, Title 28, United States Code, effective October 1, 1982, to read in pertinent part, as follows:

(3) To afford complete relief on any contract claim brought before the contract is awarded, the court shall have exclusive jurisdiction to grant declaratory judgments and such equitable and extraordinary relief as it deems proper, including but not limited to injunctive relief.

Defendant’s motion marked the first point in this proceeding at which the fact of award became affirmatively indicated. With plaintiffs theretofore unaware of such actions, their moving papers did not treat with the question of jurisdiction. The parties were accordingly afforded one day within which to file such further papers as they desired, addressing only that issue. Both sides have exercised that opportunity and their additional submissions have been carefully considered.

Rule 12(h)(3) of the Rules of this Court (identical to Rule 12(h)(3), FRCP) commands:

Whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action.

Among first principles is that which prescribes that the jurisdiction of the federal courts cannot be conferred by the prior action or consent of the parties. American Fire & Casualty Co. v. Finn, 341 U.S. 6, 17-18, 71 S.Ct. 534, 541-542, 95 L.Ed. 702 (1951). Put otherwise, the rule is that the parties cannot confer on a federal court jurisdiction that has not been vested in the court by the Constitution and Congress. The parties cannot waive lack of jurisdiction, whether by express consent, or by conduct, nor yet even by estoppel. Wright, Law of Federal Courts at 17 (3rd Ed.1976).

It is with the foregoing tenets in mind that I must determine whether this court may grant equitable relief in respect of a contract awarded prior to the institution of suit for such relief.

If the language of 28 U.S.C. § 1491, as amended, referring to a “[cjontract claim brought before the contract is awarded * * * ” can be susceptible of ambiguity, all subsisting doubt is removed by the legislative history attending the amendatory legislation. I refer specifically to statements of uniform purport appearing in the Reports of the House and Senate Committees on the Judiciary. Housing Authority of City of Omaha Nebraska v. United States Housing Authority, 468 F.2d 1, 7, n. 7 (8th Cir.1972). For present purposes those statements are significant not only for the proposition that this court is without equitable jurisdiction in a post-award situation but equally so for the principle that by its legislative action Congress did not intend to void the District [255]*255Court jurisdiction confirmed in Scanwell Laboratories, Inc. v. Shaffer, 424 F.2d 859 (CADC 1970), to redress grievances arising out of contracting activity, at least in those cases where, as here, award precedes suit for equitable relief.

In the House of Representatives the first version of H.R. 4482, 97th Cong., that contained the language found in Section 133(a) of the Act was the Bill as reported by the Judiciary Committee on November 4, 1981. Concerning that language, which represent ed a retrenchment from an earlier, more expansive charter conferring on the Claims Court the broad power to grant equitable relief in all controversies within its jurisdiction, the Committee’s Report states (H.Rep. No. 97-312, 97th Cong. 1st Sess., pp. 43 — 44):

The new section 1491(a) does give the new Claims Court the augmented power to grant declaratory judgments and give equitable relief in contract actions prior to award.

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Bluebook (online)
30 Cont. Cas. Fed. 70,388, 1 Cl. Ct. 253, 1982 U.S. Claims LEXIS 2324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grimberg-co-v-united-states-cc-1982.