Jem Transport, Inc. v. United States

120 Fed. Cl. 189, 2015 U.S. Claims LEXIS 198, 2015 WL 871160
CourtUnited States Court of Federal Claims
DecidedMarch 2, 2015
Docket14-518
StatusPublished
Cited by7 cases

This text of 120 Fed. Cl. 189 (Jem Transport, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jem Transport, Inc. v. United States, 120 Fed. Cl. 189, 2015 U.S. Claims LEXIS 198, 2015 WL 871160 (uscfc 2015).

Opinion

Breach of Contract; Partial Motion to Dismiss; Partial Motion for Summary Judgment; Contract Formation; Offer and Acceptance; Authority to Contract on Behalf of the United States; Contracts Disputes Act; Demand of Sum Certain

OPINION

FIRESTONE, Judge.

Plaintiff JEM Transport, Inc. (“JEM”) brings this breach of contract case against the defendant United States Postal Service (“USPS” or “government”) alleging that USPS failed to (1) recognize an alleged contract extension between the plaintiff and USPS for mail delivery and (2) pay plaintiff for work allegedly performed under the original contract. According to the complaint filed on June 17, 2014, plaintiff and USPS had agreed to extend plaintiffs contract from its expiration date of April 30, 2012, to June 30, 2015. JEM alleges that when JEM’s president signed a USPS document that would have renewed JEM’s contract, JEM accepted the government’s offer and created a binding contract, notwithstanding the fact that the USPS contracting officer never countersigned the document. In the alternative, plaintiff argues that the parties’ actions with regard to an extension created a contract implied-in-faet. Plaintiff alleges that when the government subsequently treated JEM’s contract as expired on May 1, 2012, the government was in breach of that con *191 tract. In addition, plaintiff claims that USPS has not paid JEM all the money USPS owes to JEM under the initial contract.

The government has filed a motion for partial summary judgment and partial dismissal for lack of jurisdiction. See Def.’s Mot. for Partial Dismissal and for Partial Summ. J., ECF No. 6 (“Def.’s Mot.”). The government moves for summary judgment on JEM’s breach of contract claim arising from the alleged contract extension, arguing that the claim fails as a matter of law because the parties never entered into either an express or implied-in-faet contract to'extend JEM’s contract to June 2015. The government asserts that a contracting officer’s signature was required to create a binding contract and, since he never countersigned the modification documents, no contract for an extension was ever formed. Further, the government argues that plaintiffs claim for unpaid payments under the initial contract must be dismissed because JEM did not first file a valid demand for payment with the contracting officer as required by the Contract Disputes Act (“CDA”), 41 U.S.C. § 7103(a), and thus the court lacks jurisdiction.

In its opposition, plaintiff argues, among other things, that the government’s motion should be denied as premature because JEM has not had an opportunity to seek discovery. Plaintiff claims that it needs discovery to support its theory that USPS contracting officer did not wish to extend JEM’s contract because of bias against plaintiff. Pl.’s Opp. to Def.’s Mot. for Partial Dismissal and for Partial Summ. Jl, ECF No. 9 (“Pl.’s Opp.”).

For the reasons stated below, the court now GRANTS defendant’s motion for partial dismissal and partial summary judgment in full. The court finds that plaintiffs signature alone was not sufficient to extend its contract with USPS when the undisputed facts show that the contract required a person with authority to bind the government to countersign the documents before a contract was formed. Accordingly, the only contract between the plaintiff and the USPS expired on April 30, 2012, so the government cannot be liable for a breach of contract alleged to occur after that date. The government is therefore entitled to summary judgment on JEM’s breach of contract claims arising from an alleged contract extension. 1 Further, the court finds that additional discovery on this point would be futile. JEM did not have a right to a renewal of its contract beyond the contract’s expiration date, and even if the plaintiff could show animus on behalf of the contracting officer, that would not create a contract between JEM and USPS. Finally, the court agrees with the government that it does not have jurisdiction over the plaintiffs claim that USPS failed to pay JEM the money it owed under the contract. The letter JEM sent to the USPS alleging that USPS owed money to JEM did not include the sum of money that JEM alleged USPS owed, as required by the relevant regulations, see 48 C.F.R. § 52.233-l(c). Therefore, this claim must be dismissed. 2

*192 I. STATEMENT OF FACTS

Though the parties disagree about certain facts in this case, a large part of the record is undisputed. USPS enters into Highway Contract Route (“HCR”) agreements commissioning private entities to deliver the mail for specified routes. In September of 2008, USPS entered into HCR 331M9 (“the contract”) with JEM. The contract was for JEM to deliver mail from several USPS facilities in southern Florida. See generally Def.’s Mot. A8-87. The contract was initially set to expire on March 11, 2011, and contemplated a potential renewal upon “mutual agreement of the parties.” Id. A179.

In January of 2011, USPS sent JEM an “Inquiry Concerning Renewal of Transportation Services Contract.” Pl.’s Opp. Ex. A. The Inquiry was “sent only to determine whether or not [JEM is] interesting in renewing [its] contract” to extend until June of 2015. Id. at 1. JEM indicated that it would be interested in the renewal. Id. at 2. However, before the contract could be renewed, USPS initiated a process known as an “Article 32 proceeding,” in which USPS “evaluates the need to subcontract work that could be performed by the bargaining unit.” Def.’s Mot. A2. The Article 32 evaluation had the potential to affect the routes covered by JEM’s contract. USPS and contractors typically enter into these types of contracts for four-year terms, but until the Article 32 process was completed, the parties were only able to enter into short-term contract éxten-sions. On March 23, 2011, the contract was renewed to an expiration date of October 31, 2011. See Def.’s Mot. A88-124. On October 25, 2011, the contract was renewed to an expiration date of April 30, 2012, see Def.’s Mot. A125-28.

On April 5, 2012, Keith Harris, the contracting officer for JEM’s contract with USPS, informed his staff that the Article 32 process relating to JEM’s contract had concluded, and as a result, the contract “could ■ now be extended.” Def.’s Mot. A3. On April 6, 2012, Sheila Mobley, a Purchasing and Supply Management Specialist at USPS, sent JEM Transport documents which would have modified the contract to extend until June 30, 2015. Def.’s Mot., Deel. of Keith Harris (“Harris Decl.”) ¶ 10; Pl.’s Opp., Deck of Joseph Melchiori (“Melchiori Deck”), ¶ 30-31. The email from Ms. Mobley requested that JEM’s president, Joseph Melchiori, sign the document attached to the email and stated that “[t]his contract has been renewed full term.” Pl.’s Opp. Ex. C at 1. Mr. Melchiori signed the document and returned it to USPS that same day. Melchiori Deck ¶ 30-31. However, Mr. Harris never countersigned the extension documents.

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Cite This Page — Counsel Stack

Bluebook (online)
120 Fed. Cl. 189, 2015 U.S. Claims LEXIS 198, 2015 WL 871160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jem-transport-inc-v-united-states-uscfc-2015.