Mills v. United States

69 Fed. Cl. 358, 2006 U.S. Claims LEXIS 24, 2006 WL 242660
CourtUnited States Court of Federal Claims
DecidedJanuary 31, 2006
DocketNo. 05-216C
StatusPublished
Cited by2 cases

This text of 69 Fed. Cl. 358 (Mills 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
Mills v. United States, 69 Fed. Cl. 358, 2006 U.S. Claims LEXIS 24, 2006 WL 242660 (uscfc 2006).

Opinion

MEMORANDUM OPINION AND FINAL ORDER

BRADEN, Judge.

Jerry C. Mills, doing business as JCM Timber Company, (“Plaintiff’), seeks monetary and equitable relief for the Government’s alleged breach of a timber sale contract.

RELEVANT FACTS1

On March 1, 2000, the United States Department of Agriculture Forest Service (“Forest Service”) issued a Timber Sale Prospectus (“the Request”), requesting bids to purchase timber located in the Desoto National Forest, in Greene County, Mississippi. See Compl. Ex. A (Mar. 1, 2000 Timber Sale Prospectus). The Request specified a minimum acceptable dollar amount for certain timber: $129.00 per CCF2 of pine sawtim-ber; $17.00 per CCF of hardwood sawtim-ber; $26.00 per CCF of pine small round-wood; and $1.00 per CCF of hardwood small roundwood. See Compl. Ex. A at 2. The Request also specified that the party awarded the Timber Sale Contract would be required to construct certain specified roads. See Compl. Ex. A at 3.3 In addition, the Request indicated that the advertised price for timber did not include the cost of constructing any necessary roads and the awar-dee would be responsible for such costs, [360]*360without reimbursement from the Forest Service. See Compl. Ex. A at 2-3.

On March 15, 2000, Plaintiff entered into Timber Sale Contract No. 303599 with the Forest Service (“the Contract”). See Compl. Ex. B (Mar. 15, 2000 Timber Sale Contract). The Contract listed the following agreed upon timber rates: $138.00 per CCF of pine sawtimber; $18.00 per CCF of hardwood sawtimber; $29.00 per CCF of pine small roundwood; and $3.00 per CCF of hardwood small roundwood. See Compl. Ex. B at 24 (§ AT5b). The Contract specified a termination date of November 30, 2002. See Compl. Ex. B at 21. The Contract, however, provided for three circumstances where rate adjustments would be permissible: 1) pursuant to a scheduled rate redetermination, 2) because of modifications under the Forest and Rangeland Renewable Resource Planning Act of 1974 (16 U.S.C. § 1600), or 3) after catastrophic damage to the timber. See Compl. Ex. B at 34-35 (§§ CT3.31, CT3.312, CT3.32).

On October 20, 2000, the Contracting Officer suspended the Contract, pursuant to § CT6.01,4 because a different lawsuit was filed against the Forest Service, the subject of which included the timber at issue in the Contract. See Compl. Ex. D (Oct. 20, 2005 Letter). Section CT6.01 provides that, if a suspension, pursuant to this Section, exceeds 30 days, Plaintiffs “sole and exclusive remedy shall be ... Contract Term Adjustment!!,] pursuant to § BT8.21, plus out-of-pocket expenses incurred as a direct result of interruption or delay of operations!!.]” See Compl. Ex. B at 46. Although the Contract does not define “out-of-pocket expenses,” § CT6.01 specifically excludes “lost profits, attorney’s fees, replacement cost of timber, or other anticipatory losses suffered by Purchaser.” Id.

Thereafter, Plaintiff requested, pursuant to § CT4.229, a refund of the down payment paid to the Forest Service when the Contract was executed.5 See Gov’t App. at 1 (Dec. 4, 2000 Letter). On December 4, 2000, the Contracting Officer sent Plaintiff a letter indicating that $35,600.00 of the down payment would be returned, with $1,000.00 being retained. Id. This letter also indicated that, before operations could resume under the Contract, the full down payment would need to be returned to Forest Service. See Gov’t App. at 1.

On February 25, 2003, the Contracting Officer advised Plaintiff that the suspension was lifted and the balance of the down payment would have to be returned before operations could continue. See Compl. Ex. E (Feb. 25, 2003 Letter). Plaintiff also was informed that the Contract’s termination date was extended to April 11, 2005. Id.

On April 16, 2003, Plaintiff presented a certified claim to the Contracting Officer, asserting that timber prices fell dramatically during the Contract’s suspension, causing Plaintiff to incur a loss of $178,961.31.6 See Compl. Ex. F (Apr. 16, 2003 Claim).

[361]*361On May 14, 2003, the Contracting Officer responded reminding Plaintiff that repayment of the $35,743.67 down payment, including $118.67 in interest and $25.00 for administrative costs was past due. See Gov’t App. at 22 (May 14, 2003 Letter).

On June 3, 2003, the Contracting Officer advised Plaintiff that he was entitled to submit a claim for out-of-pocket expenses incurred during the suspension and Forest Service planned to draft new proposed contract rates. See Compl. Ex. G at 1 (June 3, 2003 Letter). Plaintiff was further advised that if the parties “come to an agreement in these two matters,” the Contracting Officer would “prepare an Agreement to Modify the Contract to formally establish the new [timber] rates.” Id. On June 18, 2003, Plaintiff responded indicating that he would be prepared to repay the down payment once new timber rates were agreed upon. See Compl. Ex. H (June 18, 2003 Letter). Plaintiff also reasserted the expenses itemized in the April 16, 2003 letter. Id.

In a letter dated July 7, 2003, the Contracting Officer informed Plaintiff an appraisal was completed and “if all parties accept a settlement,” the contract timber rates would be set at: $92.04 per CCF of pine sawtimber; $31.62 per CCF of hardwood sawtimber; $9.41 per CCF of pine small roundwood; and $3.96 per CCF of hardwood small round-wood. See Compl. Ex. I at 1 (July 7, 2003 Letter). The Contracting Officer, however, did not enclose an Agreement to Modify with the July 7, 2003 letter. See Pl. Resp. PFF ¶ 39.

On July 11, 2003, the Contracting Officer sent another letter to advise Plaintiff that repayment of the down payment continued past due and enclosed a revised Bill for Collection in the amount of $36,421.33, which includes the deposit, plus $237.33 in interest, $50.00 in administrative costs, and a $534.00 penalty. See Compl. Ex. J (July 11, 2003 Letter). On August 1, 2003, Plaintiff paid this amount in full. See Compl. Ex. K (Aug. 1,2003 Facsimile Transaction Receipt).

On May 7, 2004, the Contracting Officer sent Plaintiff a proposed Agreement to Modify that contained proposed timber rates different from those listed in the Contracting Officer’s July 7, 2003 letter.7 See Compl. Ex. L (May 7, 2004 Letter). Therein, the Contracting Officer explained that “[t]his proposal is the result of the recently published rule in the Federal Register for rate redetermination.” Compl. Ex. L at 1; see also Modification of Timber Sale Contracts, 69 FED. REG. 18,813 (Apr. 9,2004).

On May 21, 2004, Plaintiff responded to the proposed Agreement to Modify noting the inconsistency between the proposed timber rates in the Contracting Officer’s July 7, 2003 letter and those included in the May 7, 2004 proposed Agreement to Modify. See Compl Ex. M (May 21, 2004 Letter).

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Bluebook (online)
69 Fed. Cl. 358, 2006 U.S. Claims LEXIS 24, 2006 WL 242660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mills-v-united-states-uscfc-2006.