Jennings v. United States

126 Fed. Cl. 764, 2016 U.S. Claims LEXIS 661, 2016 WL 3044120
United States Court of Federal Claims·Decided May 26, 2016·No. 14-132 C·Published

Opinion

Breach of Contract; Contracts of Adhesion; Due Process Clause; Restatement (Seoond) of CONTRACTS § 78 cmt. c (Unenforceable Promises); § 79 cmt. e (Gross Inadequacy of Consideration); § 86 cmt. e (Unenforceable Contracts); 28 U.S.C. § 1491 et seq. (Tucker Act Jurisdiction); 41 U.S.C. § 7102 et seq. (Contract Disputes Act).

MEMORANDUM OPINION AND ORDER DENYING THE GOVERNMENT’S PENDING MOTIONS AND REQUIRING THE GOVERNMENT TO SHOW CAUSE WHY THE COURT SHOULD NOT DETERMINE THAT SECTIONS C.2.10, C.3.K6), AND C.3.4(j) OF THE MARCH 9, 2012 CONTRACT ARE UNLAWFUL AND UNENFORCEABLE

SUSAN G. BRADEN, Judge.

I. RELEVANT FACTUAL BACK *766 GROUND. 1

On March 9, 2012, the United States Postal Service (“USPS”) renewed contract No. HCR-726A1 (the “Contract”) with Ms. Tabe-tha Jennings to provide daily mail transportation services from Leslie, Arkansas to Tim-bo, Arkansas for. $34,000 per year. Gov’t App, Al-48, A69; see also Am. Compl. Ex. 1. Prior to that time, Ms. Jennings served seven years as a rural contract carrier for the USPS without any issues related to her performance. Am. Compl. ¶¶4-5. On February 21, 2018, Ms. Jennings was terminated for “failure to perform in accordance with the terms of [the] [Contract.” Gov’t App. A66.

A. The Contractual Provisions At Issue.

The Contract consisted of a thirteen page “Statement of Work and Specifications” that prefaced thirty-five additional pages of boilerplate “Terms and Conditions.” Gov’t App. Al-48. The Contract term was from April 1, 2012 to March 31, 2018. Am. Compl. ¶ 5. The provisions relevant to the Memorandum Opinion And Order follow.

Section C.2.10 of the Contract provides that

[t]he supplier must have adequate contingency plans in plaee[,] should the me of postal facilities be terminated or limited. In no event shall the [USPS] be held liable for, or incur any additional cost associated with, such use or the termination of such use during the contract term.

Gov’t App. A26 (emphasis added).

Section C.3.1(6) of the Contract provides that the USPS

may terminate this contract, or any part hereof, for default by the supplier, or if the supplier fails to provide the [USPS], upon request, with adequate assurances of future performance.

Gov’t App. A27.

Section C.3.4Q) of the Contract provides that

[t]he supplier must proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the contracting officer.

Gov’t App. A32 (emphasis added).

In addition, Section C.3.8 of the Contract, provides, as a ground for termination for cause:

a. The supplier’s failure to perform service according to the terms of the eontract[.] Gov’t App. A34.

B. Relevant Facts,

On January 18, 2013, the Contracting Officer sent Ms. Jennings a letter denying her “access to the mail and facilities ... based on a disqualifying event in the course of contract performance.” Am. Compl. Ex. 5. The Notice of Temporary Denial of Access stated that:.

On January 18, 2013, you conducted yourself in an unprofessional manner and disrupted the mail processing operations at the Leslie post office.
Consequently, I am temporarily denying you further access to the mails and all Postal Facilities. This temporary denial of access is pending further investigation in the matter and will remain in effect until you receive further correspondence from this office. You are afforded an opportunity by notice of this letter to present in writing any information that you believe to be material to this incident and would like for me to consider when making my final decision in the matter. Any such information is to be submitted to this office no later than Friday, January 25, 2013. You will be *767 notified when a permanent decision has been made.
• If you have not already done so, you are instructed to return the drivers ID badge to the Administrative Official.
• By copy of this letter, the US Postal Inspection Service is made aware of this decision.
Despite the temporary denial of access to the mail, it is still your responsibility to ensure that service is provided on this contract. Failure to do so may result in other action, including a contract termination for default.

Am. Compl. Ex. 5 (bold in original) (emphasis added).

On January 25, 2013, Ms. Jennings responded to the Contracting Officer’s Notice. Gov’t App. A73-76. 2

On February 14, 2013, the Contracting Officer issued a letter permanently denying Ms. Jennings access to the Postal facilities. Am. Compl. Ex. 7. The following reasons were cited:

On January 18, 2013, you were issued a temporary denial of access to the mails and Postal facilities. The temporary denial of access referenced an option for you to respond by January 25, 2013. Your response to the temporary denial of access was received via email on January 25, 2013.
Your response, as well as the background information we received from local Postal officials, appears to indicate that in at least two separate instances on January 18, 2013, you refused to follow instructions provided by an authorized Postal Service supervisor. In addition, it appears that you allowed an unauthorized person to gain access to the mails, 3 which is disruptive to our operations and violates the terms of your contract. Finally, your response does not provide any indication that you would attempt to avoid these occurences [sic] in the future.
Consequently, I am permanently denying you access to the mails and all Postal Facilities. This permanent denial is effective immediately.
• If you have not already done so, you are instructed to return the ID badge to the Administrative Official.
• By copy of this letter, the US Postal Inspection Service is made aware of this decision.

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Jennings v. United States, 126 Fed. Cl. 764, 2016 U.S. Claims LEXIS 661, 2016 WL 3044120 (uscfc 2016).

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