Lite MacHines Corporation v. United States

CourtUnited States Court of Federal Claims
DecidedMarch 14, 2025
Docket18-1411
StatusPublished

This text of Lite MacHines Corporation v. United States (Lite MacHines Corporation 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
Lite MacHines Corporation v. United States, (uscfc 2025).

Opinion

In the United States Court of Federal Claims No. 18-1411C Issued: February 5, 2025 Filed: March 14, 2025 1

* * * * * * * * * * * * * * * * * * * * LITE MACHINES CORPORATION, * * Plaintiff, * * v. * UNITED STATES, * * Defendant. * * * * * * * * * * * * * * * * * * * * * * *

Ronald J. Waicukauski, Price Waicukauski Joven & Catlin, LLC, Indianapolis, I.N., for plaintiff.

Elizabeth M. D. Pullin, Trial Counsel, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for defendant. With her were Franklin E. White, Jr., Assistant Director, Commercial Litigation Branch, Patricia M. McCarthy, Director, Commercial Litigation Branch, and Brett A. Shumate, Acting Assistant Attorney General, Civil Division, Department of Justice.

OPINION

HORN, J.

The above captioned case is part of a trio of cases which involve some of the same facts and issues, two of which are in this court and assigned to the undersigned. The first, Case No. 18-403C, is proceeding smoothly and without difficulties through discovery, and includes classified information. The complaint in the second, the above captioned case, Case No. 18-1411C, was filed after the first Lite Machines Corporation case, Case No. 18-403C, and has different counsel for plaintiff, Lite Machines Corporation. The third case was filed in the United States District Court for the Central District of California and is now on appeal in the United States Court of Appeals for the Federal Circuit.

1 The court’s Opinion was provided to the parties on February 5, 2025. After review, the court’s Opinion is issued for public distribution. On October 15, 2018, plaintiff filed a First Amended Complaint which alleged four counts in the above captioned case. Thereafter, the court granted defendant’s two motions for extension of time to file an answer, extending the due date of the Answer to December 21, 2018. On December 20, 2018, defendant filed a motion to dismiss plaintiff’s First Amended Complaint for failure to state a claim, and plaintiff filed its response on January 17, 2019. Following this, the court granted three more unopposed motions for extension of time for defendant to file its reply. Defendant filed its reply on February 22, 2019. Thereafter, with leave of the court, plaintiff filed a sur-reply on March 11, 2019. The court granted plaintiff’s motion for oral argument, and oral argument was held on April 1, 2019. On May 15, 2019, plaintiff moved for leave to file a Second Amended Complaint. On May 21, 2019, the undersigned granted defendant’s motion to dismiss the First Amended Complaint in part, and dismissed Counts I and III and deferred ruling on Counts II and IV, after considering all the facts in the case, both public and classified. On June 18, 2019, plaintiff filed a motion for reconsideration pursuant to Rule 59(a) of the Rules for the Court of Federal Claims (RCFC), “request[ing] that this Court reconsider its dismissal of LMC’s [Lite Machines Corporation] breach of contract claim (Count I) . . . LMC is not seeking reconsideration of the Court’s dismissal of Count III.” (alterations and omission added). The court held status conferences on July 3, 2019, and July 30, 2019, to further discuss procedures incident to arguing a case involving classified information. On August 27, 2019, defendant filed a motion to stay proceedings

until such time as plaintiff, Lite Machines Corporation (Lite), obtains counsel with the necessary security clearances. 2 Counsel for Lite has authorized us to state that Lite opposes this motion.

Lite performed a classified contract. Counsel for Lite must not only avoid making public classified information, counsel for Lite must also understand the distinction between public information and classified information to avoid mistakes. Theoretically, no classified information should be shared with Lite’s counsel, but this approach to litigation is difficult in practice. The risks associated with this approach are significant. Thus, it is in the interests of justice and judicial economy to stay these proceedings until Lite obtains counsel with the necessary security clearances.

(footnote in original). Plaintiff’s counsel filed a status report on October 28, 2019, stating that “[s]ince Lite’s counsel now has the necessary security clearances, the stay should be lifted and the Court should allow discovery to proceed without further delay.” (alteration added). The next day, October 29, 2019, defendant requested a hearing. Defendant justified its request, stating:

In short, it is likely that this case can be resolved without discovery. Moreover, discovery would pose logistical hurdles, require unnecessary expenses, and raise concerns about inadvertent disclosure of classified

2 “We [defendant] are referring to counsel of record.” (alteration added).

2 information. To permit a full and candid discussion of the need for discovery, we recommend that the hearing be held in a classified setting.

As recounted in the Opinion quoted above, Lite has previously sought leave to file a second amended complaint. This is another matter for discussion at the classified status conference.

The court held a hearing on November 15, 2019. Following the hearing, the parties filed a Joint Status Report on July 30, 2021, stating:

Since the last status conference on November 15, 2019, progress in this matter has been delayed because of ongoing issues with COVID-19 and complications arising from the classified nature of the case. In November 2020, Plaintiff requested a modification in the classified status of this matter and received a decision from the relevant agency authority in June 2021. On July 21, 2021, the parties had a meeting to discuss procedures going forward. No agreement was reached but further discussions are expected.

While these discussions on procedure are ongoing, Plaintiff proposes to move forward in the litigation by filing a new proposed amended complaint in this matter within 60 days, by September 29, 2021. Defendant, the United States, agrees with this deadline and is filing this report with the consent of Plaintiff.

Plaintiff filed its Second Amended Complaint on September 29, 2021, and an Unclassified Addendum to the Second Amended Complaint on December 22, 2021. Defendant filed a motion to dismiss the Second Amended Complaint on December 17, 2021. This court issued an Order on January 18, 2022, stating in part:

On January 11, 2022, the court held a hearing in the above captioned case. As discussed at the hearing, based on counsel’s representations, and in order to promote litigation efficiency, as well as to avoid continuing to litigate a motion which would not resolve the actual allegations plaintiff seeks to allege, on or before Monday, January 31, 2022, plaintiff may file a third amended complaint. Additionally, the plaintiff shall provide a side-by-side comparison between the substance of the allegations in each of the counts in the third amended complaint to the counts in the first amended complaint and the second amended complaint, indicating which allegations brought by plaintiff were resolved by the earlier decision in the court’s May 21, 2019 Opinion.

(emphasis in original). Plaintiff filed its Third Amended Complaint on January 31, 2022. Count I of plaintiff’s Third Amended Complaint appears to be based on the same question of law that served as the basis for Count I of plaintiff’s First Amended Complaint and that is at issue in plaintiff’s June 18, 2019 motion for reconsideration of the court’s decision.

3 On August 17, 2020, prior to plaintiff filing its Second Amended Complaint, Paul and David Arlton, plaintiff’s principals, filed suit against a third-party, AeroVironment, Inc., in the United States District Court for the Central District of California. See Arlton et al v.

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Lite MacHines Corporation v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lite-machines-corporation-v-united-states-uscfc-2025.