Mar-Pak Corp.

203 Ct. Cl. 718, 1973 U.S. Ct. Cl. LEXIS 174, 1973 WL 5069
CourtUnited States Court of Claims
DecidedNovember 30, 1973
DocketNo. 244-73
StatusPublished
Cited by4 cases

This text of 203 Ct. Cl. 718 (Mar-Pak Corp.) 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
Mar-Pak Corp., 203 Ct. Cl. 718, 1973 U.S. Ct. Cl. LEXIS 174, 1973 WL 5069 (cc 1973).

Opinions

Contracts; interest on award; res judicata; statute of limitations; Armed Services Procurement Regulations; debarment. — On November 30,1973 the court issued the following order:

Before Davis, Skelton and Nichols, Judges

The defendant has moved to dismiss, alleging the instant action to be barred by res judicata because of our decision in Mar-Pak Corp v. United States, No. 154-72. The motion is well taken, and to explain why we summarize the facts and holding in the prior case:

In 1956, plaintiff entered into a series of contracts with the Air Force for the demolition of certain aircraft. In 1959, prior to completion of the contracts a dispute arose as to whether plaintiff was entitled to a rental charge for equipment, or a depreciation charge, and certain overhead expenses. This dispute resulted in an investigation into the possible violation by plaintiff of certain criminal and civil statutes. Also as a result of the disputes plaintiff sought relief at the ASBCA, but at the request of the Air Force these proceedings were suspended awaiting agency and court action arising from the Air Force investigation. On January 28, 1968, the Government filed a civil suit against plaintiff in the United States District Court for the Northern District of [719]*719Ohio. Subsequently this action was dismissed by stipulation whereby the Government was to retain some $6,000 of $10,000 which concededly was owed to the plaintiff, paying $4,000. Thereafter, proceedings at the ASBCA were reinstated. On August 4,1971, the ASBCA allowed plaintiff’s claim in part and denied it in part. Pursuant to the holding of the ASBCA the Government paid to plaintiff $36,819.21 on March 6,1972.

Plaintiff’s claim was comprised of four counts. In count I plaintiff claimed interest of six percent on the amount awarded by the ASBCA from May 31,1959 to March 6,1972. In support of this claim plaintiff pointed to cases where this court has allowed the recovery of interest by a contractor even where it was not specifically provided for by statute and averred that the situation at bar should be viewed as a taking-on the part of the Government for which it should pay interest.

In count II of its claim, plaintiff contended that the stipulation entered into to dismiss the civil suit in the District Court for the Northern District of Ohio was obtained by coercion, to wit: defendant had sums of money due and owing plaintiff but refused payment until the stipulation was signed and defendant represented to plaintiff that upon the dismissal of the court proceedings the proceedings at the ASBCA would be reinstituted. Plaintiff argued that the stipulation should be viewed as a contract with the Government entered into as the result of Government coercion and therefor void. The damages claimed under this count included the $6,000 retained by the Government, interest on that amount, and the attorney fees and court costs incurred in defending the civil suit.

Plaintiff’s last two counts, III and IV, rested upon the allegation that it was placed upon a suspension list without the notification prescribed by regulation. As such plaintiff was unable to obtain any contract awards. However, since plaintiff was unaware that it was on the list it proceeded to expend funds in bid preparations. Plaintiff contended that it should be able to recover those costs incurred in attempting to obtain contracts it was precluded from winning.

Plaintiff also claimed in count III overhead and administrative expenses, $23,767.59, incurred during Air Force Audit [720]*720after physical performance of its contracts. In count IV it also claimed executive salaries, professional fees, and travel expenses in the amount of $115,879.78, in defending itself in litigation as well as in preparing and submitting futile bids.

As to interest, defendant set out the general rule: “that interest cannot be recovered against the United States upon unpaid accounts or claims in the absence of an express provision to the contrary in a relevant statute or contract.” United States v. Thayer-West Point Hotel Co., 329 U.S. 585, 588 (1947). A review of the pertinent cases supports this contention. See, Bonnar v. United States, 194 Ct. Cl. 103, 438 F. 2d 540 (1971); Algonac Mfg Co. v. United States, 192 Ct. Cl. 649, 428 F. 2d 1241 (1970). The alleged exceptions to this rule pointed to by plaintiff in the cases of Phillips Constr. Co. v. United States, 179 Ct. Cl. 54, 374 F. 2d 538 (1967), and Bell v. United States, 186 Ct. Cl., 189, 404 F. 2d 975 (1968), are not in point. Phillips was a Capehart Act case involving special factors. In Bell we applied a DOD policy allowing interest as part of equitable adjustments allowable where contractor actually paid the interest because of Government delay in payment. The parties can cite no case where interest was allowed because of delay on the part of the Government in the payment of a claim, without some other factors, and 28 U.S.C. § 2516(a) would be violated if we allowed interest here.

Plaintiff also asserted that in cases of a taking one is entitled to interest as part of his recovery of just compensation. This is true. However, plaintiff failed to show wherein the activities of defendant constituted a taking. The claims of plaintiff under its count I failed to state a cause of action.

Plaintiff’s claims under count II also failed to state a cause of action over which this court had jurisdiction to render relief. Even if the stipulation entered into as part of the District Court proceedings is viewed as a contract, that contract is subsumed by the judgment of the District Court to dismiss the cause of action and as such cannot be collaterally attacked in this court. See, Carney v. United States, 199 Ct. Cl. 160, 462 F. 2d 1142 (1972). The same is true as to expenses of whatever kind incurred in resisting the District [721]*721Court suit. If plaintiff was entitled to costs, it was for the District Court to award them.

In opposing plaintiff’s claims under its counts III and IV, defendant contended that plaintiff was not placed on a debarred list, which ¡by ASPB 1-604.3 would have necessitated notice to the debarred party. If on any list plaintiff was on an Air Material Command Experience List as to which there was no requirement of notice. On the other hand, this list did not expressly debar a bidder. It only notified procurement personnel of improper and unsatisfactory experience with the bidder, and let them draw their own conclusions. Defendant, due to “routine” destruction of records, was unable to state whether plaintiff was on this list, nor what contract awards plaintiff lost by being on it. Plaintiff submitted a list of contracts on which it was “best biddei’” but did not receive the awards, all dates being in 1960. Its president stated he did not actually know of the alleged debarment until 1968. However, we believe that losing a series of awards whereon plaintiff was “best bidder” was sufficient to put it on inquiry, and therefore the six-year statute of limitations (28 U.S.C. § 2501) was not tolled. Japanese War Notes Claimants Ass’n. v. United States, 178 Ct. Cl. 630, 373 F. 2d 356, cert. denied, 389 U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
203 Ct. Cl. 718, 1973 U.S. Ct. Cl. LEXIS 174, 1973 WL 5069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mar-pak-corp-cc-1973.