Louis Leustek & Sons, Inc. v. United States

41 Fed. Cl. 657, 1998 U.S. Claims LEXIS 208, 1998 WL 538503
CourtUnited States Court of Federal Claims
DecidedAugust 25, 1998
DocketNo. 95-228C
StatusPublished
Cited by3 cases

This text of 41 Fed. Cl. 657 (Louis Leustek & Sons, 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
Louis Leustek & Sons, Inc. v. United States, 41 Fed. Cl. 657, 1998 U.S. Claims LEXIS 208, 1998 WL 538503 (uscfc 1998).

Opinion

[658]*658OPINION

HORN, Judge.

This case comes before the court on the defendant’s motion for summary judgment filed pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (RCFC). The plaintiff, Louis Leustek & Sons, Inc., entered into a contract with the defendant, the United States acting through the United States Forest Service (the Forest Service) to construct roads, boat accesses, parking lots and other related items in the Superior National Forest. According to the allegations in the complaint, work commenced on or about October 18, 1989. A suspension of work order was issued by the defendant on November 2, 1989. The plaintiff filed a complaint in this court alleging that the defendant unreasonably suspended work on the contract for an unreasonable amount of time. The plaintiff alleges that the suspension of work caused the plaintiff to incur additional expenses which the defendant is contractually required to pay to the plaintiff as an adjustment for increased costs. The defendant states that the suspension of work was reasonable and was continued for a reasonable amount of time in light of the administrative procedures that were undertaken by the defendant to address the environmental objections to the project which were raised by two homeowners, Dr. and Mrs. Sommers, who lived near the project on which the plaintiff had contracted to work.

FACTS

Regulations issued pursuant to the National Environmental Policy Act (NEPA) require federal agencies to prepare an “environmental assessment” to “[b]riefly provide sufficient evidence and analysis for determining whether to prepare an environmental impact statement or a finding of no significant impact.” 40 C.F.R. § 1508.9(a)(1) (1989).1 A “Finding of No Significant Impact” is defined in the Code of Federal Regulations as follows: “a document by a Federal agency briefly presenting the reasons why an action, not otherwise excluded (§ 1508.4), will not have a significant effect on the human environment and for which an environmental impact statement therefore will not be prepared.” 40 C.F.R. § 1508.13. Federal agencies are directed to:

(a) Make diligent efforts to involve the public in preparing and implementing their NEPA procedures.
(b) Provide public notice of NEPA-related hearings, public meetings, and the availability of environmental documents so as to inform those persons and agencies who may be interested or affected.

40 C.F.R. § 1506.6.

The Forest Service “provides a process by which a person or organization interested in the management of the National Forest System may obtain review of an intended action by a higher level official.” 36 C.F.R. § 217.1. An interested person or organization may request that the Forest Service stay the implementation of a project or activity. 36 C.F.R. § 217.10(a). The Forest Service’s regulations also provide that “[f]or a period not to exceed 20 days following the filing of a first level notice of appeal, the Reviewing Officer shall accept requests to intervene in the appeal from any interested or potentially affected person or organization.” 36 C.F.R. § 217.14(a). The Forest Service’s “appeal record is open to public inspection at any time during the review.” 36 C.F.R. § 217.15(f).

The plaintiff, Louis Leustek & Sons, Inc., is a Minnesota corporation that is engaged in the business of general construction, road construction and earthwork. “In the spring of 1989, the United States Forest Service decided to proceed upon a project plan for the reconstruction and paving of a major entrance into the Boundary Waters Canoe Area in Northern Minnesota. The project was known as the Moose Lake Road reconstruction and paving project.” On May 11, 1989, Roger E. Baker, the United States District Ranger for the Kawishiwi Ranger District, selected a project plan that included paving the Moose Lake landing. District Ranger Baker stated that the projects encompassed by his decision would be integrated into the Moose Lake Road reconstruction [659]*659and paving project and that these projects did “not constitute a major federal action that would affect the quality of the human environment.”

Dr. and Mrs. Sommers are home owners whose property is adjacent to Moose Lake Road. By a letter dated June 12, 1989, the Sommers appealed District Ranger Baker’s May 11, 1989 decision pursuant to 36 C.F.R. § 217. Dr. and Mrs. Sommers objected to a number of District Ranger Baker’s determinations, including the decision to reconstruct, alter and pave Moose Lake Road and the decisions related to the construction and reconstruction of parking lots in the area. The defendant alleges that the Sommers did not request that the Forest Service stay the project. According to the joint stipulations of fact filed with the court, the plaintiff believes that a request for a stay should have been implied from the objections made in the Sommers’ June 12, 1989 letter. On July 27, 1989, Forest Supervisor David A. Filius affirmed the District Ranger’s decision on all six points raised in the Sommers’ appeal. Forest Supervisor Filius also found that the Sommers’ objections were primarily directed at the Moose Lake Road project, and because this project had been approved several years prior to the Sommers’ appeal, their appeal was untimely. The Sommers pursued a second level appeal with Regional Forester Floyd J. Marita in a letter dated August 5, 1989. The defendant alleges that the Sommers did not request a stay of the project in their letter to Regional Forester Marita while, as indicated above, the plaintiff believes that a request for a stay should have been implied from the objections in the Sommers’ June 12, 1989 letter.

The Forest Service issued a solicitation for work on the Moose Lake Road project on August 22, 1989. On September 29, 1989, the Forest Service awarded the plaintiff contract number 50-63A9-4M: (the contract).2 The plaintiff states that “[tjotally unknown to Leustek, the Sommers, nearby residents, had been proceeding with objections to this project since June. Technically, the Sommers had not requested a stay of the project, so the Government decided to simply proceed with the construction while at the same time processing the Sommers’ appeal.” Pursuant to the contract as awarded, the plaintiff was required to perform road construction on four independent construction jobs, a base job and three options. The base project consisted of the reconstruction of 3.4 miles of road, while the options consisted of the Moose Lake Boat/Canoe access; reconstruction of 0.8 miles of the Ojibway Lake Road, boat access and parking lot; and the Secret/Blackstone Lake Access Road.

The contract included a suspension of work clause, 48 C.F.R.

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Bluebook (online)
41 Fed. Cl. 657, 1998 U.S. Claims LEXIS 208, 1998 WL 538503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louis-leustek-sons-inc-v-united-states-uscfc-1998.