McDermott Inc. v. United States

39 Cont. Cas. Fed. 76,614, 30 Fed. Cl. 332, 1994 U.S. Claims LEXIS 10, 1993 WL 560544
CourtUnited States Court of Federal Claims
DecidedJanuary 21, 1994
DocketNo. 93-9C
StatusPublished
Cited by2 cases

This text of 39 Cont. Cas. Fed. 76,614 (McDermott 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.

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McDermott Inc. v. United States, 39 Cont. Cas. Fed. 76,614, 30 Fed. Cl. 332, 1994 U.S. Claims LEXIS 10, 1993 WL 560544 (uscfc 1994).

Opinion

ORDER

HARKINS, Senior Judge.

The complaint in this ease was filed on January 11, 1993, and on February 22, 1993, plaintiff filed a complaint in the United States District Court for the District of Columbia, Civfi Action No. 93-0385. On June 22,1993, the district court denied defendant’s motion to transfer that case to this court, and stayed its proceedings pending final disposition of plaintiffs claims in this docket.

This ease is before the court on defendant’s motion to dismiss on the ground that the actions both in this court and in the district court are based upon the same operative facts, and therefore this court, under 28 U.S.C. § 1500, is without jurisdiction. All discovery is stayed pending disposition of the Section 1500 issue. See Order, May 25,1993.

Oral argument was heard on August 25, 1993. Defendant’s motion to dismiss under RCFC 12(b)(1), lack of jurisdiction over the subject matter, was denied. Defendant’s motion to dismiss was treated as if made under RCFC 12(b)(4), failure to state a claim upon which relief can be granted. See Order, August 25, 1993. During argument it became apparent that additional analysis was needed for disposition of the Section 1500 issue, and supplemental briefing was ordered for that purpose.

In addition to the motion papers listed in the August 25, 1993, order, the following papers are relevant:

Defendant’s Motion to Suspend Further Proceedings and Defendant’s Supplemental Brief Concerning the Application of 28 U.S.C. § 1500, filed November 8, 1993 Plaintiffs Response in Opposition to Defendant’s Motion to Suspend Further Proceedings, filed November 10, 1993
Plaintiffs Supplemental Brief in Opposition to Defendant’s Motion to Stay Proceedings or, in the Alternative, to Dismiss for Lack of Jurisdiction, with Appendix, separately bound, filed November 15, 1993

28 U.S.C. § 1500 provides:

[333]*333The United States Court of Federal Claims shall not have jurisdiction of any claim for or in respect to which the plaintiff or his assignee has pending in any other court any suit or process against the United States or any person who, at the time when the cause of action alleged in such suit or process arose, was, in respect thereto, acting or professing to act, directly or indirectly under the authority of the United States.

In the asbestos litigation, the Federal Circuit undertook a comprehensive examination of the purpose and case law interpretations of Section 1500, specifically overruled several eases that had created exceptions to the statute’s limitations, and announced rules applicable to the words, meaning, and intent of the section. The Federal Circuit held:

... 1) if the same claim is pending in another court at the time the complaint is filed in the Claims Court, the Claims Court has no jurisdiction, regardless of when an objection is raised or acted on; 2) if the same claim is filed in another court after the complaint is filed in the Claims Court, the Claims Court is by that action divested of jurisdiction, regardless of when the court memorializes the fact by order of dismissal; and 3) if the same claim has been finally disposed of by another court before the complaint is filed in the Claims Court, ordinary rules of res judicata and available defenses apply.

UNR Indus., Inc. v. United States, 962 F.2d 1013, 1021 (Fed.Cir.), aff'd sub nom. Keene Corp. v. United States, — U.S. —, 113 S.Ct. 2035, 124 L.Ed.2d 118 (1993).

Central to each rule, is the meaning of the words “same claim.” In UNR, the Federal Circuit reaffirmed its analysis of the word “claim” in Johns-Manville Corp. v. United States, 855 F.2d 1556 (Fed.Cir.1988), cert. denied, 489 U.S. 1066, 109 S.Ct. 1342, 103 L.Ed.2d 811 (1989). The word claim does not refer to a legal theory, but to a set of underlying facts. Section 1500 applies to all claims that arise from the same operative facts, whatever legal theories are proposed. The remedies sought, nature of relief, or elements of proof are not determinative. UNR Indus., Inc., 962 F.2d at 1023.

UNR on its facts involved applications of rule No. 1. On appeal, the Supreme Court affirmed, but specifically excluded from its decision application of rule No. 2, and whether Section 1500 would be implicated where there were two actions based on the same operative facts, but seeking completely different relief. Keene Corp. v. United States, — U.S. —,-n. 4,-n. 6, 113 S.Ct. 2035, 2041 n. 4, 2043 n. 6, 124 L.Ed.2d 118 (1993).

Note 4 states:
We do not decide whether the statute also continues to bar a plaintiff from prosecuting a claim in the Court of Federal Claims while he has pending a later-filed suit in another court “for or in respect to” the same claim. Cf. Tecon Engineers, Inc. v. United States, 170 Ct.Cl. 389, 343 F.2d 943 (1965), cert. denied, 382 U.S. 976[, 86 S.Ct. 545, 15 L.Ed.2d 468] (1966). As the dissenting judge noted below, this case does not raise that issue. UNR Industries, Inc. v. United States, 962 F.2d 1013, 1030, n. 5 (CA Fed.1992) (Plager, J., dissenting).
Note 6 states:
Because the issue is not presented on the facts of this case, we need not decide whether two actions based on the same operative facts, but seeking completely different relief, would implicate § 1500. Cf. Casman v. United States, 135 Ct.Cl. 647 (1956); Boston Five Cents Savings Bank, FSB v. United States, 864 F.2d 137 (CA Fed.1988).

At the argument on August 25,1993, counsel were requested to file supplemental briefs on the following:

1. Whether the operative facts on the McDermott claim in this court are the same as the operative facts as the McDer-mott claim in the district court. More narrowly, whether a little bit of factual similarity between the two cases is sufficient to put into operation the divesting procedure in UNR rule No. 2.
2. What is the status of Tecon Engineers, Inc. v. United States, 343 F.2d 943 (Ct.Cl. 1965), under the standards that have been established for the analysis of the effect of [334]*334dictum on subsequent eases in the same court. More narrowly, whether Tecon in fact has been overruled by the Federal Circuit.

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39 Cont. Cas. Fed. 76,614, 30 Fed. Cl. 332, 1994 U.S. Claims LEXIS 10, 1993 WL 560544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdermott-inc-v-united-states-uscfc-1994.