Hoskins Lumber Co., Inc., Plaintiff/cross-Appellant v. United States

20 F.3d 1144, 1994 WL 101292
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 5, 1994
Docket92-5091, 92-5108
StatusPublished
Cited by23 cases

This text of 20 F.3d 1144 (Hoskins Lumber Co., Inc., Plaintiff/cross-Appellant v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoskins Lumber Co., Inc., Plaintiff/cross-Appellant v. United States, 20 F.3d 1144, 1994 WL 101292 (Fed. Cir. 1994).

Opinions

DECISION

RADER, Circuit Judge.

Hoskins Lumber Co., Inc. (Hoskins) and the United States Forest Service (Forest Service) cross appeal from the United States Court of Federal Claims’ decision that Hos-kins defaulted on its timber contract. Hoskins Lumber Co. v. United States, 24 Cl.Ct. 259 (1991). This court affirms the decision of the Court of Federal Claims on default. Following the default, the Forest Service dedicated the area covered by the contract as protected habitat for the Northern Spotted Owl. Because the Government did not resell this timber, the trial court declined to award damages to the Government for Hoskins’ default. Hoskins Lumber Co. v. United States, No. 323-88 C (Fed.Cl. Jan. 31, 1992). Be[1146]*1146cause the contract expressly contained a method of damages calculation if the timber was not resold, this court reverses and remands to the Court of Federal Claims for a determination of the damages under the contract.

BACKGROUND

On October 13, 1978, Hoskins entered into the Griffith Middlefork 78 Timber Sale, Contract No. 062778. By contract terms, Hos-kins agreed to cut, remove, and pay for timber from the Alsen Ranger District of the Siuslaw National Forest. The parties later agreed to extend the contract completion date to December 31, 1984.

In the late 1970s and early 1980s, the timber market collapsed. In response to tumbling timber market prices, the Forest Service authorized the Multi-Sale Extension Program (Program). Under the Program, timber contract holders could extend their contract termination dates by up to five years. The Final Notice of the Program, published in the Federal Register, gave February 16,1984 as the deadline for contractors to file under the Program. Extension of Certain Timber Sale Contracts, 48 Fed.Reg. 54,812 (1983) (to be codified at 36 C.F.R. § 223).

In April 1983, several contractors, including Hoskins, filed a class action suit requesting relief from timber contracts on the basis of impracticability. On February 15, 1984, the district court issued an injunction preventing the Government:

(1) from enforcing in any manner the contracts at issue in this action ...; (2) from enforcing the current February 15, 1984 deadline ...; and (3) [granting] the members of plaintiffs’ class 30 days following the dissolution of the preliminary injunction to submit and have considered by the [Government] a five-year plan

North Side Lumber Co. v. Block, Civ. No. 83-490-BU (D.Or.1984).

On February 16, 1984, Hoskins asked the Regional Forester if he interpreted the North Side injunction as allowing Hoskins thirty days beyond dissolution of the injunction to file under the Program. The Regional Forester responded affirmatively. On March 21,1984, the Contracting Officer (CO) notified Hoskins that its contract was subject to the North Side injunction. On October 29, 1984, the CO notified Hoskins that its contract would “conditionally” extend until thirty days after dissolution of the injunction.

On February 20, 1985, the Court of Appeals for the Ninth Circuit ruled that the North Side district court lacked subject matter jurisdiction over this contract claim. North Side Lumber Co. v. Block, 753 F.2d 1482 (9th Cir.) cert. denied, 474 U.S. 931, 106 S.Ct. 265, 88 L.Ed.2d 271 (1985). The Government offered a settlement by which contractors could file under the Program in exchange for dismissal with prejudice. A letter from the Forest Service stated that:

The Forest Service contends that it does not have to accept MSEP’s [Multi-Sale Extension Plans] from class members, except from those who choose to accept and sign the settlement agreement.

Hoskins elected not to take the settlement.

On March 28, 1986, the CO notified Hos-kins that it was in default. The Forest Service rejected as untimely Hoskins’ filing under the Program. Hoskins filed after February 15, 1984 deadline, but within thirty days of dissolution of the invalid injunction.

Hoskins sought relief in the Court of Federal Claims. Both parties moved for summary judgment. The trial court granted the summary judgment motion of the Forest Service “as to liability,” but awarded no damages. Hoskins Lumber, 24 Cl.Ct. at 268. Later the Court of Federal Claims dismissed the Forest Service’s counterclaim for damages. Hoskins Lumber Co. v. United States, No. 323-88 C (Fed.Cl. Jan. 31, 1992). Both parties appealed.

DISCUSSION

This court reviews judgments of the Court of Federal Claims for clear errors in factual determinations and errors in legal determinations. Transamerica Ins. Corp. v. United States, 973 F.2d 1572, 1576 (Fed.Cir.1992). Neither party disputes the trial court’s factu[1147]*1147al determinations in this ease. This court reviews the trial court’s determinations of law, including contract interpretation, de novo. B.D. Click Co. v. United States, 614 F.2d 748, 752, 222 Ct.Cl. 290 (1980).

Timeliness

The North Side injunction granted the members of the class thirty days after the dissolution of the injunction to file under the Program. Hoskins’ case before the Court of Federal Claims sought to enforce deadlines in the injunction. Hoskins requested the trial court to honor the invalid injunction’s thirty-day grace period for filing under the Program. The Court of Federal Claims determined:

Giving effect to an order issued by a court without jurisdiction violates basic principles of judicial power_ Dissolution of the North Side injunction meant that the Forest Service could enforce the contract without showing contempt for the court order, and enforce the February 15, 1984 deadline as well.

Hoskins Lumber, 24 Cl.Ct. at 263 (citations omitted). This court detects no error in this determination.

The Supreme Court’s holding in United States v. United Mine Workers, 330 U.S. 258, 67 S.Ct. 677, 91 L.Ed. 884 (1947), does not support Hoskins’ reliance on the terms of an injunction issued without jurisdiction. In United Mine Workers, the Court affirmed a trial court’s inherent power to enforce its injunctions. When the union in that case engaged in enjoined conduct, the district court held it in criminal contempt. Although later rulings invalidated the injunction, the union had nonetheless violated a court order. Therefore, the Court upheld the charge of criminal contempt. Id. at 303, 67 S.Ct. at 701; see also Hampton Tree Farms, Inc. v. Yeutter, 956 F.2d 869 (9th. Cir.), cert. denied, — U.S. -, 113 S.Ct. 56, 121 L.Ed.2d 25 (1992).

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20 F.3d 1144, 1994 WL 101292, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoskins-lumber-co-inc-plaintiffcross-appellant-v-united-states-cafc-1994.