Guam Industrial Services, Inc. v. Rumsfeld

383 F. Supp. 2d 112, 2005 U.S. Dist. LEXIS 17676, 2005 WL 2035757
CourtDistrict Court, District of Columbia
DecidedAugust 24, 2005
DocketCivil Action 05-1599 (RMU)
StatusPublished
Cited by4 cases

This text of 383 F. Supp. 2d 112 (Guam Industrial Services, Inc. v. Rumsfeld) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guam Industrial Services, Inc. v. Rumsfeld, 383 F. Supp. 2d 112, 2005 U.S. Dist. LEXIS 17676, 2005 WL 2035757 (D.D.C. 2005).

Opinion

MEMORANDUM OPINION

RICARDO M. URBINA, District Judge.

Denying the Plaintiff’s Motion for a Temporary Restraining Order

I. INTRODUCTION

This matter comes before the court on the motion of Guam Industrial Services (“GIS”) for a temporary restraining order (“TRO”). GIS owns and operates Guam Shipyard, which repairs and otherwise services maritime vessels. Compl. ¶ 2. The Guam Shipyard is the only U.S.citizen owned and controlled commercial shipyard west of the International Dateline. Id. GIS claims that the United States Navy’s (“Navy”) bid proposal and contract award practices with shipyards not located in the United States or Guam violate 10 U.S.C. § 7310. GIS seeks to enjoin the defendants 1 from soliciting bid proposals and contracting for repairs of Navy vessels from shipyards not located in either the United States or Guam. GIS now seeks a TRO to prevent the defendants from servicing the Navy vessel SS Petersburg by a shipyard in Singapore. Because GIS has not demonstrated that the SS Petersburg’s homeport is in the United States, it fails to demonstrate a substantial likelihood of success on the merits. Because the harms alleged by the plaintiff concern loss of business, GIS fails to demonstrate irreparable harm. Because the Navy’s military interest in expeditious Navy vessel repairs is compelling, the public interest does not favor the plaintiff. Accordingly, the court denies the plaintiffs motion for a TRO. 2

II. BACKGROUND

The plaintiff owns and operates Guam Shipyard, located in the U.S. Territory of Guam. Pl.’s Mot. at 4. The Guam Shipyard employs approximately two hundred and fifty people—all U.S. citizens, and is “the only United States-citizen owned and controlled shipyard that can service United States Navy, Military Sealift Command (“MSC”), and [Maritime Administration, (“MARAD”) ] ships that are under the jurisdiction of the Secretary of Navy and located in the Pacific and Indian Oceans.” Id.

A select group of Navy vessels are part of the Navy’s Prepositioning Program, a program funded and administered by the Navy and controlled by the Navy’s Sealift Command. Id. at 4; Defs.’ Opp’n at 2. These ships are positioned by the Navy in strategic oceanic locations, “making it possible to deploy equipment, fuel, and supplies to support U.S. military forces on short notice during times of war or as a result of other contingencies.” Id. at 5.

*115 The Navy also maintains a fleet of maritime vessels in the United States Ready Reserve Force (“RRF”), which are a select group of ships within the National Defense Reserve Fleet, are maintained by the DOT’S MARAD, and are funded from the Navy-controlled National Defense Sealift Fund. Id. at 2; Pl.’s Mot. at 2-3.

The Navy vessel SS Petersburg is designated both within the Prepositioning Program and the National Defense Reserve Fleet. Id. at 4-5. While on assignment as a vessel in the RRF, the SS Petersburg is maintained and controlled by the DOT’s MARAD, but when activated under the Navy’s strategic Prepositioning Program, the vessel is maintained and controlled by the Navy and the Navy’s Military Sealift Command. Def.’s Opp’n at 2.

The SS Petersburg has been located or “prepositioned” in the U.S. Territory of Guam at the Delta-Echo Pier in Apra Harbor for the past three years. Id. at 5. Daily control of the SS Petersburg is delegated to one of three Maritime Preposi-tioning Ship squadrons (“MSPRONs”). Id. The vessel’s specific mission while located in Guam is to provide offshore petroleum distribution services to the Defense Logistic Agency. Id.

On June 21, 2005, the Interocean American Shipping Corporation (“IASC”), a corporation that provides ship management services to MARAD for the SS Peters-burg, Defs.’ Opp’n, Attach. 2, Cahill Decl. ¶ 6, began soliciting bids for drydoek work and repairs of the SS Petersburg, Pl.’s Mot., Attach. 1, Pothen Decl. ¶ 9. In response to this solicitation, the Guam Shipyard submitted a bid proposal. Id. On August 16, 2005, IASC accepted a bid from the Keppel Shipyard in Singapore for the repair work to the SS Petersburg. Cahill Decl. ¶ 11; PL’s Mot. at 1.

Although the SS Petersburg will not enter the drydoek portion of the Singapore shipyard until August 28, 2005, repair work on the SS Petersburg commenced on August 23, 2005. Cahill Decl. ¶ 11. Upon learning that repair work on the SS Pe-tersburg had begun, the plaintiff, on August 23, 2005, filed its instant motion for a TRO. Because the plaintiffs alleged harm had already commenced, the court ordered an expedited briefing schedule. As all submissions have now been made, the court turns to the merits of the plaintiffs motion.

III. ANALYSIS

A. Legal Standard for a Motion for a Temporary Restraining Order

This court may issue interim in-junctive relief only when the movant demonstrates:

(1) a substantial likelihood of success on the merits, (2) that it would suffer irreparable injury if the injunction is not granted, (3) that an injunction would not substantially injure other interested parties, and (4) that the public interest would be furthered by the injunction.

Mova Pharm. Corp. v. Shalala, 140 F.3d 1060, 1066 (D.C.Cir.1998) (quoting CityFed Fin. Corp. v. Office of Thrift Supervision, 58 F.3d 738, 746 (D.C.Cir.1995)); see also World Duty Free Americas, Inc. v. Summers, 94 F.Supp.2d 61, 64 (D.D.C.2000). It is particularly important for the movant to demonstrate a substantial likelihood of success on the merits. Cf. Benten v. Kessler, 505 U.S. 1084, 1085, 112 S.Ct. 2929, 120 L.Ed.2d 926 (1992) (per curiam). Indeed, absent a “substantial indication” of likely success on the merits, “there would be no justification for the court’s intrusion into the ordinary processes of administration and judicial review.” Am. Bankers Ass’n v. Nat’l Credit Union Admin., 38 F.Supp.2d 114, 140 (D.D.C.1999) (internal quotation omitted).

*116 The four factors should be balanced on a sliding scale, and a party can compensate for a lesser showing on one factor by making a very strong showing on another factor. CSX Transp., Inc. v. Williams, 406 F.3d 667, 670 (D.C.Cir. May 3, 2005) (citing CityFed Fin. Corp., 58 F.3d at 747). “An injunction may be justified, for example, where there is a particularly strong likelihood of success on the merits even if there is a relatively slight showing of irreparable injury.” CityFed Fin. Corp., 58 F.3d at 747.

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383 F. Supp. 2d 112, 2005 U.S. Dist. LEXIS 17676, 2005 WL 2035757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guam-industrial-services-inc-v-rumsfeld-dcd-2005.