Hamilton Stores, Inc. v. Hodel

925 F.2d 1272, 1991 WL 14059
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 11, 1991
DocketNo. 86-1376
StatusPublished
Cited by18 cases

This text of 925 F.2d 1272 (Hamilton Stores, Inc. v. Hodel) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton Stores, Inc. v. Hodel, 925 F.2d 1272, 1991 WL 14059 (10th Cir. 1991).

Opinion

HOLLOWAY, Chief Judge.

Plaintiff-appellant Hamilton Stores, Inc. (“HSI”), a Delaware corporation, commenced this suit against the Secretary of the Interior (“the Secretary” or “the government”) and other officials of the Department of the Interior in the United States District Court for the District of Wyoming. The dispute concerns the alleged failure of the Secretary to honor HSI’s contractual and statutory rights as a concessioner providing various visitor services in Yellowstone National Park pursuant to a long-term contract with the National Park Service (“NPS”), an agency of the Interior Department. The district court granted summary judgment for the Secretary and dismissed HSI’s cause with prejudice. Hamilton Stores, Inc. v. Hodel, No. C85-0378-81 (unpublished order). The principal issues on appeal are (1) whether the district court had jurisdiction to consider HSI’s claims for injunctive, mandamus, and declaratory relief, and (2) whether the court appropriately entered summary judgment for the federal defendants.

I

The Secretary of the Interior, acting through the Director of the National Park Service, is empowered to enter into contracts with private concessioners selected to provide visitor services in the national parks. See National Park Service Act of 1916, 16 U.S.C. 3; Concessions Policy Act of 1965, 16 U.S.C. 20, et seq. The NPS entered into such a concession contract (Contract No. 14-10-9-900-227) with the Yellowstone Park Company (“YPC”) in 1966 (“1966 contract”). This contract with YPC authorized the company to provide a broad range of services to Yellowstone National Park visitors.1 In April of 1970 the [1274]*1274NPS entered into another concession contract (Contract No. 14-10-9-9-990-2) with HSI (“1970 contract”), authorizing HSI to provide a substantially similar list of services within Yellowstone National Park.2 Both the 1966 YPC contract and the 1970 HSI contract also contain substantially similar “preferential right” provisions3 giving the concessions qualified rights of first refusal 4 regarding “new or additional accommodations, facilities or services” of the type authorized to be provided under the 1966 and 1970 contracts. The term “new or additional accommodations, facilities or services” is not defined in the concession contracts, nor in the applicable statutes and regulations. However, both the 1966 YPC contract and the 1970 HSI contract contain the following provision (Section 16(b)) relating to existing and/or potential competitors:

Nothing contained in this section or elsewhere in this contract shall be construed as prohibiting or curtailing operations now authorized by the Secretary to provide accommodations therein for the public. This subsection shall also include the successors or assigns of such conces-sioners, when approved by the Secretary.

1966 YPC Contract at 16; 1970 HSI Contract at 17.

In 1979 the NPS declared YPC to be an unsatisfactory concessioner, revoked its au[1275]*1275thority to provide facilities and accommodations earlier permitted, terminated NPC’s contractual relationship with YPC, and began searching for a concessioner to replace YPC. Brief of Appellant at 7. To facilitate the search, NPS issued a prospectus in August of 1979 soliciting offers from all qualified bidders for a two-year interim contract5 for “the concession currently operated by the Yellowstone Park Company.” 1979 Prospectus at 1. Shortly after the issuance of the 1979 Prospectus, NPS and HSI officials negotiated and executed a “Memorandum of Understanding” (“MOU”) clarifying the scope of the respective rights of HSI and YPC’s “successor" to sell certain types of gifts in Yellowstone National Park. MOU at 1.

The parties to the August 1979 MOU expressly stipulated that: “[i]t was agreed that the language authorizing gift operations in each of the applicable current contracts did not duplicate or conflict with either parties [sic] contract authorization.” Id. HSI was provided with a copy of the prospectus, but HSI did not submit a proposal, and the interim contract was awarded to a third company, TWA Services, Inc. (“TWS”), effective November 1, 1979 and covering the period through October 31, 1981. Brief of Appellant at 11.

In June of 1981 the NPS issued another prospectus inviting bids for the long-term operation of the concession then being operated by TWS under the 1979 interim contract. Again HSI did not bid for the concession and in February of 1982, the NPS and TWS entered into a five-year renewable contract (Contract No. CC 1570-2-0001), authorizing TWS to continue operating the concession it had begun operating in 1979.

It is HSI’s position that the process by which the Secretary awarded the 1979 contract to TWS violated the Department of the Interior’s regulations governing awards of national park concession contracts.6 More specifically, HSI claims that the Secretary illegally solicited and awarded the 1979 contract to TWS pursuant to the procedures outlined in 36 C.F.R. § 51.4 (1989) (“Solicitation and award of concession contracts and permits where no right of preference exists.”), when the NPS was legally obligated to follow the procedures set forth in 36 C.F.R. § 51.6 (1980) (“Preferential right for additional services where a right to additional services and facilities exists by specific contract provisions.”).7 Brief of Appellant at 8.

HSI argues that in 1978 and subsequently it has consistently complained about encroachments on its contract rights by a new gift shop’s operations at Grant Village. Brief of Appellant at 11. It says that there were encroachments by TWS and the NPS. HSI’s affidavit from Mr. Povah detailed expanding operations in the areas of merchandising, food and beverage service, automobile service stations, studio shops and stands selling pictorial souvenirs, maps and recordings. Id. at 12. On August 11, 1982, HSI wrote a letter to the NPS alleging that a gift shop to be built at Grant Village and operated by TWS would encroach on HSI’s exclusive contract rights, and that the prospectus on which the TWS contract was based had provided [1276]*1276the concessioner would be limited to operating gift shops in its lodging facilities. Brief for Federal Appellees at 14.

II

HSI initially filed an action in the District of Wyoming against the Secretary for damages pursuant to the Federal Tort Claims Act in 1985. The tort claims suit was dismissed without prejudice for lack of jurisdiction. Later HSI attempted to file with the NPS an administrative claim for damages under the Contract Disputes Act, 41 U.S.C. § 602, et seq., but the filing was rejected for failure to comply with the certification requirements of § 605(c)(5) of the Act.

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Hamilton Stores, Inc. v. Hodel
925 F.2d 1272 (Tenth Circuit, 1991)

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Bluebook (online)
925 F.2d 1272, 1991 WL 14059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-stores-inc-v-hodel-ca10-1991.