J-Way Southern, Inc. v. United States Army Corps of Engineers

34 F.4th 40
CourtCourt of Appeals for the First Circuit
DecidedMay 10, 2022
Docket21-1144P
StatusPublished
Cited by7 cases

This text of 34 F.4th 40 (J-Way Southern, Inc. v. United States Army Corps of Engineers) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J-Way Southern, Inc. v. United States Army Corps of Engineers, 34 F.4th 40 (1st Cir. 2022).

Opinion

United States Court of Appeals For the First Circuit

No. 21-1144

J-WAY SOUTHERN, INC.,

Plaintiff, Appellant,

v.

UNITED STATES ARMY CORPS OF ENGINEERS,

Defendant, Appellee.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

[Hon. Patti B. Saris, U.S. District Judge]

Before

Thompson, Lipez, and Kayatta, Circuit Judges.

Ian J. Pinta, with whom Christopher Weld, Jr. and Todd & Weld LLP were on brief, for appellant. Anne Murphy, Attorney, Appellate Staff, Civil Division, with whom Nathaniel R. Mendell, Acting United States Attorney, Brian M. Boynton, Acting Assistant Attorney General, and Charles W. Scarborough, Attorney, Appellate Staff, Civil Division, were on brief, for appellee.

May 10, 2022 THOMPSON, Circuit Judge. Today, we write primarily for

the parties named in this case's caption, and we therefore assume

their familiarity with the facts and travel, as well as the issues

raised and arguments presented. This allows us to get straight to

it, offering the basics and some supplemental information as needed

along the way.

This matter arises out of a terminated June 2015 contract

for dredging waterways in Menemsha Harbor, Martha's Vineyard --

i.e., moving "sandy material from the channels and anchorage of

. . . Menemsha Creek" to Lobsterville Beach via a temporary

hydraulic pipeline. J-Way Southern ("J-Way") got this gig after

it was the lowest bidder on a United States Army Corps of Engineers

("USACE") solicitation for the dredging work. But J-Way's

performance, in USACE's view, was deficient: J-Way did not

complete the work within the timeframe set forth in the contract.

There was some procedural scuffling regarding J-Way's default on

the contract, and, ultimately, USACE terminated the contract.1 J-

1 A first termination for default was rescinded by USACE after J-Way argued in an administrative claim under the Contract Disputes Act ("CDA") that its delay was excusable, and that was followed by an agreement between J-Way and USACE to proceed. But J-Way again experienced delays and USACE determined the failure to perform was not excusable, and it therefore issued a second termination notice for default. USACE made a demand upon J-Way's performance bond to get the work done, and, thereafter, USACE and J-Way's surety executed a Takeover Agreement that led to a new contractor being procured by the surety. For its part, J-Way eventually (two-plus years after the default termination) submitted another administrative claim under the CDA, arguing the second default

- 2 - Way filed suit, alleging improper termination and breach of the

contract by USACE. In response, USACE moved to dismiss for failure

to state a claim. The district court granted USACE's dismissal

motion, ruling (as is relevant to our decision today) that J-Way's

claims were time-barred. J-Way S., Inc. v. United States, 516 F.

Supp. 3d 84, 94 (D. Mass. 2021). J-Way appeals.

After careful de novo review (see, e.g., N.R. by &

through S.R. v. Raytheon Co., 24 F.4th 740, 746 (1st Cir. 2022))

of the record, the parties' appellate submissions, and the

applicable law, we spy no basis to disturb the district court's

decision, which is comprehensive and well-reasoned. And "when

lower courts have supportably found the facts, applied the

appropriate legal standards, articulated their reasoning clearly,

and reached a correct result, a reviewing court ought not to write

at length merely to hear its own words resonate." deBenedictis v.

Brady-Zell (In re Brady-Zell), 756 F.3d 69, 71 (1st Cir. 2014);

see also Vargas-Ruiz v. Golden Arch Dev., Inc., 368 F.3d 1, 2 (1st

Cir. 2004) ("[W]hen a trial court accurately sizes up a case,

applies the law faultlessly to the discerned facts, decides the

matter, and articulates a convincing rationale for the decision,

there is no need for a reviewing court to wax longiloquent.").

termination was unlawful. No action was taken by USACE on that claim because it understood the claim to be time-barred. That second default termination is the impetus for the instant litigation.

- 3 - This case fits that mold. We thus affirm substantially on the

basis of Judge Saris' thorough decision.

Before we reach our brief discussion of the arguments

advanced on this appeal, though, we must pause to have a look at

a jurisdictional issue that was much debated below. That debate

hasn't been revisited before us on appeal, but "[t]his Court has

an independent duty to assess the existence of subject matter

jurisdiction." Almeida-León v. WM Cap. Mgmt., Inc., 993 F.3d 1,

11 n.13 (1st Cir. 2021) (citing Espinal-Domínguez v. Puerto Rico,

352 F.3d 490, 495 (1st Cir. 2003)).

Jurisdiction

When J-Way filed its complaint in district court, it

asserted admiralty jurisdiction because the parties' dispute arose

out of a maritime contract under the CDA, 41 U.S.C. § 7102(d).

Disagreeing with that jurisdictional premise, the government moved

to dismiss or transfer for lack of subject matter jurisdiction,

arguing, inter alia, that "[t]he contract is a standard Army Corps

construction contract, . . . and disputes arising from such

contracts have been resolved at specialty government contract

appeal boards or in the U.S. Court of Federal Claims for over 150

years." According to the government, its contract with J-Way was

"not a maritime contract in whole or in part" -- the contract

contemplated "digging earth, not [water] navigation," and thus was

"a standard federal construction contract." Indeed, the

- 4 - government, citing a history of dredging-contract-dispute cases

being heard in the Court of Federal Claims, insisted that court,

as well as agency boards, have always exercised jurisdiction over

matters such as this. J-Way retorted that the dispute did not

arise from a construction contract at all; rather, the dispute

clearly had its genesis in a maritime contract, with the contract's

principal purpose being the traditionally maritime activity of

dredging to make a waterway more navigable to promote commerce.

Accordingly, J-Way argued, the federal district court in which it

had filed its case actually enjoyed exclusive jurisdiction

pursuant to 28 U.S.C. § 1333(1) (providing that "[t]he district

courts shall have original jurisdiction, exclusive of the courts

of the States, of . . . [a]ny civil case of admiralty or maritime

jurisdiction") and the CDA, 41 U.S.C. § 7102(d) (excepting appeals

"arising out of maritime contracts" from the jurisdiction of the

Court of Federal Claims or the agency boards of contract appeals).

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