Maney Aircraft Parts, Inc. v. United States

479 F.2d 1350, 202 Ct. Cl. 54, 1973 U.S. Ct. Cl. LEXIS 65
CourtUnited States Court of Claims
DecidedJune 20, 1973
DocketNo. 191-70
StatusPublished
Cited by7 cases

This text of 479 F.2d 1350 (Maney Aircraft Parts, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maney Aircraft Parts, Inc. v. United States, 479 F.2d 1350, 202 Ct. Cl. 54, 1973 U.S. Ct. Cl. LEXIS 65 (cc 1973).

Opinions

SkeltoN, Judge,

delivered the opinion, of the court:

The facts in this case are set forth in detail in our prior opinion in Maney Aircraft Parts, Inc. v. United States, 197 Ct. Cl. 159, 453 F. 2d 1260 (1972), and for that reason will not be repeated here, except to the extent deemed necessary for this opinion.

This is a contract case in which the contract was terminated for default by the contracting officer. The contract con-tamed the usual disputes clause requiring the contractor to appeal the decision of the contracting officer to the Armed Services Board of Contract Appeals (the Board) in writing within 30 days from the date of receipt of the decision, otherwise the decision of the contracting officer shall be final and conclusive. The contracting officer sent his decision by telegram to the contractor’s principal place of business on-'Saturday, June 21, 1969. The contractor’s place of business was not open for business on Saturdays, but on this particular day an accountant of the contractor was at the contractor’s place of business doing some work and received the telegram and signed a receipt for it. The accountant did not ordinarily receive the contractor’s mail or telegraphic messages. The telegraphic decision was not brought to the attention of any responsible official of the contractor until the following Monday, June 23,1969. The contractor sent a telegraphic appeal to the Board on July 22,1969, which was '31 days after the contracting officer’s telegraphic decision was delivered to the contractor’s accountant at its place of business. The Board dismissed the appeal on the ground that it was untimely and that because of such late filing the Board had no authority, jurisdiction, or power to consider it. The plaintiff appealed to this court, claiming that the appeal was timely. Both parties filed motions for summary judgment. We suspended all- proceedings including action on both motions for 90 days for reasons set out below. ¡However, we held that “[W]e find no error of law, no arbitrariness, or any lack of substantial support for the underlying factual findings in the holding [of the Board] that plaintiff’s appeal was out-of-time.” [Id. at 162-63, 453 F. 2d at 1262.] In so holding we said:

[57]*57Nevertheless, we are constrained to point ont once again that the Board is not powerless to waive or extend the 30-day period specified in the contract — as the Board still seems to believe, see L & V Machine & Tool Works Inc., ASBCA No. 15243, 71-2. BCA ¶ 9035. We indicated in Moran Bros. Inc. v. United States, 171 Ct. Cl. 245, 250, 346 F. 2d 590, 593 (1965), that such time limits are not jurisdictional and may be waived in proper cases. 'In our order of June 11,1965 in Maitland v. United States, Ct. Cl. No. 74-62, suspending proceedings here so that plaintiff could ask the Board to waive the time-limit, we cited Moran Bros, and said: “We see no reason why the Board, in its sound discretion, may not elect to entertain this appeal and avoid a harsh result, if the allegations of plaintiff are as stated.” ’In Schlesinger v. United States, 181 Ct. Cl. 21, 28-29, 383 F. 2d 1004, 1008 (1967), we again recognized the discretion of the Board to toll or waive the contractual time-limit for appeal. We remain of the same view.
* '* * Although we'have held that we cannot overturn the Board’s finding of untimeliness, we do feel that “the Board !ha[s] leeway to find that the 30-day provision should * * * be considered tolled or waived.” Schlesinger v. United States, supra, 181 Ct. Cl. at 29, 383 F. 2d at 1008. While we do not hold that the Board must exercise its discretion favorably to plaintiff, we think that it should consider that possibility squarely, and not simply deem itself powerless to act. [Footnote omitted.] [Id. at 163-64, 453 F. 2d at 1262-63.]

. We suspended proceedings for 90 days to allow the plaintiff to seek a discretionary waiver of the contractual time limit for its appeal from the Board.

Thereafter, the plaintiff filed a petition with the Board asking for “a discretionary waiver of the contractual time limit of 30 days and for the right to proceed to try its appeal on the merits.”

The Board, in a decision dated April 28, 1972, signed by 12 of its members, with one member dissenting, refused to exercise its discretion to waive the requirement of appeal within 30 days of receipt of the contracting officer’s final decision, as suggested by this court, saying:

* * * However, in this instance, the Board must respectfully decline to follow the Court of Claims’ [58]*58suggestion concerning its discretion to waive the requirement of appeal within thirty days of receipt of the contracting officer’s final decision.
* * * Consistently, from the time of the Charter creating the Board’s predecessor, the War Department Board of Contract Appeals, on 8 August 1942, the present Board and its predecessor Boards have held that the filing of a timely notice of appeal is a condition precedent to the Board’s authority to consider an appeal on its merits. * * * [Id. at 8.]

The Board concluded by saying:

* * * [T]he Board is unwilling to make such a reversal of its uniform, long-standing decisions as to take discretionary jurisdiction over untimely appeals.
# * * * *
Appellant’s petition for discretionary waiver of the contractual time limit is denied and the reinstated appeal dismissed. [Id. at 4-fi.]

Thereafter, both ‘parties returned to this court and urged their motions for summary judgment. The plaintiff says that the Board erred in refusing to exercise its discretion to waive the 30-day time limit for the contractor’s appeal in this case as suggested by this court in our prior opinion. The defendant argues that the action of the Board should be upheld, and that, in any event, the Board did in fact exercise its discretion. We agree with the plaintiff. It is clear from the above-quoted language from the Board’s opinion that it flatly refused to exercise its discretion as to a waiver of the 30-day time limit for plaintiff’s appeal, as suggested by the court. Therefore, the only question to be decided is whether the Board erred.

We think the Board was sincere in its belief that it did not have the power nor authority to waive the 30-day time limit for the plaintiff’s appeal, in the exercise of its discretion. However, we made it perfectly clear in our prior opinion in this case that it did have such power and authority. Other decisions of this court support this principle. In Moran Bros., Inc. v. United States, 171 Ct. Cl. 245, 250, 346 F. 2d 590, 593 (1965), we held:

[59]*59Defendant vigorously argues that the time limit is jurisdictional and may not be waived by the contracting officer, the appeals tribunal, or the head of the agency. This position has been taken by several, if not all, of the contract appeals boards; see e.g., Keenan Pipe & Supply Co., 1962 BCA. 17110 (ASBCA 1962). We do not agree that this provision may never be waived.

In Arthur Venneri Co. v. United States, 180 Ct. Cl. 920, 381 F. 2d 748 (1967), we stated that the disputes clause is contractual rather than jurisdictional (at 925, n. 3, 381 F. 2d at 751, n. 3). In Schlesinger v.

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Bluebook (online)
479 F.2d 1350, 202 Ct. Cl. 54, 1973 U.S. Ct. Cl. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maney-aircraft-parts-inc-v-united-states-cc-1973.