McCloskey & Co. v. United States

530 F.2d 374, 22 Cont. Cas. Fed. 80,020, 208 Ct. Cl. 697, 1976 U.S. Ct. Cl. LEXIS 140
CourtUnited States Court of Claims
DecidedJanuary 28, 1976
DocketNo. 406-74
StatusPublished
Cited by11 cases

This text of 530 F.2d 374 (McCloskey & Co. 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
McCloskey & Co. v. United States, 530 F.2d 374, 22 Cont. Cas. Fed. 80,020, 208 Ct. Cl. 697, 1976 U.S. Ct. Cl. LEXIS 140 (cc 1976).

Opinion

Dureee, Senior Judge,

delivered the opinion of the court:

'Plaintiff’s present contract claims arise from its construction of the District of Columbia (now Robert F. Kennedy) Stadium. In 1960, plaintiff contracted with the District of Columbia Armory Board (Board) for the construction of a stadium facility in the District of Columbia. The Armory Board’s contracting officer accepted the stadium as complete on April 9, 1962. Following completion of the stadium, plaintiff filed various contract claims with the contracting officer. The contracting officer denied all of plaintiff’s claims.

Thereafter, plaintiff appealed the contracting officer’s denial of its claims to the District of Columbia Contract Appeals Board, the forum designated in the parties’ contract to hear such claims. That Board denied plaintiff’s claims entirely. Plaintiff subsequently petitioned this court under our general jurisdiction statute (28 U.S.C. § 1491) for review of the District of Columbia Contract Appeals Board decision under the standards of the Wunderlich Act (41 U.S.C. §§321, 322). Defendant responded to plaintiff’s petition with a Rule 38 (b) motion to dismiss for lack of court jurisdiction. Defendant’s motion is granted.

The court’s general jurisdictional statute, 28 U.S.C. § 1491, restricts our jurisdiction to claims against the United States founded upon an express or implied contract with the United States.

In order to present an actionable contract claim cognizable within this jurisdiction the contract sued upon must be one which can be satisfied out of appropriated funds. Manning v. United States, 200 Ct. Cl. 756 (1973). This is because, as we explained in Kyer v. United States, 177 Ct. Cl. 747, 751-52, 369 F. 2d 714, 717-18 (1966), cert. denied, 387 U.S. 929 (1967);

[699]*699The jurisdiction of this court under the Tucker Act encompasses “any claim against the United States: * * * founded upon any express or implied contract with the United States; * * While the terms of this statute are broad, its words must be read in conjunction with and must be regarded as limited by 'another statute which provides that our judgments are paid only from appropriated funds. Thus, to remain within the framework of our jurisdiction, it is essential that the contract sued on be one which could have been satisfied out of appropriated funds. It is not enough to say, as plaintiff does, that his contract was one to which the United States was a party. To be actionable in this court, that contract must be one which, in the contemplation of Congress, could obligate public monies. G. L. Christian & Associates v. United States, 160 Ct. Cl. 1, 14, 312 F. 2d 418, 425, cert. denied, 375 U.S. 954 (1963). If Congress has indicated that public funds shall not be involved, we cannot grant the relief requested. * * *1

In the instant case, the United States was neither directly a party to the underlying contract nor, more importantly, were appropriated public funds involved.

Congress created the District of Columbia Armory Board in 1948 “* * * to provide facilities for the quartering and training of the Militia of the District of Columbia, and, secondarily, to provide suitable facilities for major athletic events, conventions, concerts, and such other activities as may be in the interest of the District of Columbia * * 2 D.C. Code § 1701.2

At the time of its creation, Congress provided the Board with a permanent revolving working capital fund to cover the Board’s expenses in the exercise of its initial responsibilities. Congress later expanded the Board’s use of this fund to include its office and sundry expenses, and for change-making purposes in connection with the Board’s operation of the stadium. 2 D.C. Code § 1708.

In 1957 Congress authorized the Board to contract for construction of a stadium facility in the District of Columbia. 2 D.C. Code § 1720. Congress directed that “the cost of planning, designing and constructing such stadium” [700]*700should come not from an appropriation of public funds but rather from the Board’s issuance of bonds. 2 D.C. Code § 1722. The Congressional-authorizing legislation placed several restrictions on the Board’s bond-issuing authority including the condition that the issuance of the bonds “shall be so calculated as to produce, at the price of their sale, the cost of the stadium constructed pursuant to this subchapter.” 2 D.C. Code § 1722.

Under the Congressionally-enacted stadium financing scheme all proceeds from the Board’s bond sales were to be placed in an operating fund and that fund utilized for all the costs of stadium construction. 2 D.C. Code § 1724. In addition to the operating fund for payment of stadium construction costs, Congress authorized the creation of a sinking fund for retirement of the Board’s principal and interest obligations on its bond issues. Into this fund were to be placed the excess of the operating fund, if any, after the payment of construction and other specified stadium expenses and all stadium operating revenues. In the event that the amount in the sinking fund was insufficient to meet the Board’s bond obligations, Congress authorized the Board, acting through the Commissioners of the District of Columbia, to request sufficient 'amounts out of the revenues of the District of Columbia, or borrow ,the necessary funds from the Secretary of the Treasury from specified funds held by the Secretary. Board loans from the Secretary of the Treasury were to be repaid promptly with interest. 2 D.C. Code § 1727.

Incident to the Board’s 'authorization to construct the stadium Congress directed the Secretary of the Interior to acquire and prepare a designated site for construction of the stadium. 2 D.C. Code § 1721. In addition, Congress provided that all bonds issued by the Board would be guaranteed as to both principal and interest by the United States. 2 D.C. Code § 1727. Further, Congress required the Board to make annual financial reports to the Congress, and provided that after the payment of the stadium bonds and interest, but not later than 2007, all right, title and interest in the stadium shall vest in the United States. 2 D.C. Code §8 1728.1725.

[701]

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Cite This Page — Counsel Stack

Bluebook (online)
530 F.2d 374, 22 Cont. Cas. Fed. 80,020, 208 Ct. Cl. 697, 1976 U.S. Ct. Cl. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccloskey-co-v-united-states-cc-1976.