Montana Fish, Wildlife, & Parks Foundation, Inc. v. United States

91 Fed. Cl. 434, 2010 U.S. Claims LEXIS 69, 2010 WL 125971
CourtUnited States Court of Federal Claims
DecidedJanuary 11, 2010
DocketNo. 09-568C
StatusPublished
Cited by9 cases

This text of 91 Fed. Cl. 434 (Montana Fish, Wildlife, & Parks Foundation, 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.

Bluebook
Montana Fish, Wildlife, & Parks Foundation, Inc. v. United States, 91 Fed. Cl. 434, 2010 U.S. Claims LEXIS 69, 2010 WL 125971 (uscfc 2010).

Opinion

OPINION AND ORDER

LETTOW, Judge.

This unusual action combines a pre-award bid protest with a claim for damages under the Contract Disputes Act, 41 U.S.C. §§ 601-613. At issue is a contract between the United States Department of Interior, Bureau of Reclamation (the “Department”), and the Montana Fish, Wildlife, and Parks Foundation (the “Foundation”) for the administration of the Montana Fish and Wildlife Conservation Trust (the “Trust”). Compl. ¶ 1. The Foundation alleges that the Department has breached the Trust Agreement by attempting to terminate the Foundation as trustee of the Trust through the implementation of a unilateral amendment to the Trust Agreement, followed by the government’s solicitation of offers to serve as a replacement trustee. Id. at ¶1¶ 1, 47, 68. In its protest, the Foundation has asked the court to (i) enjoin the government from soliciting proposals for a new manager of the Trust, and (ii) issue a declaratory judgment that the unilateral changes made to the Trust Agreement by the government are invalid. Compl. at 19 (Prayer for Relief ¶¶ 1-2). Additionally, the Foundation seeks money damages for breach of the Trust Agreement, averring that the contracting officer has issued a decision in accord with the Contract Disputes Act that provides a jurisdictional predicate for its contractual claim. Compl. at 20 (Prayer for Relief, ¶ 5); see also id. ¶ 67. The action was filed on August 27, 2009. A hearing on plaintiffs application for a temporary restraining order was held the next day, on August 28, 2009. At the hearing, the government agreed to stay both its solicitation for a new trustee1 and its amendment to the Trust [438]*438Agreement. Hr’g Tr. 5:23-25, 7:6-11 (Aug. 28, 2009) (“Aug. Hr’g Tr.”). In light of the government’s agreement, the parties stipulated that plaintiffs application for a temporary restraining order had become moot. Aug. Hr’g Tr. 9:1-10.

In accord with the court’s order issued on August 28, 2009, the day of the hearing on temporary relief, the government filed the administrative record in this case on September 30, 2009 pursuant to Rule 52.1(a) of the Rules of the Court of Federal Claims (“RCFC”). The parties subsequently discussed supplementing the administrative record relating to the termination and new solicitation but were unable to reach an agreement in that regard, and the Foundation filed a motion to supplement the administrative record on October 21, 2009. See Pl.’s Mot. to Supplement. The government responded to the Foundation’s motion by opposing supplementation, arguing that the documents sought to be added to the administrative record either do not exist or were not considered by the agency in reaching its decision to terminate the Trust and solicit offers for a replacement trustee. Def.’s Opp’n at 1.

Reflective of the procedural complexity of this case, the government has filed motions to stay the filing of its answer pending briefing and resolution by the court of motions related to the pre-award bid protest, see Def.’s Mot. to Stay the Filing of its Answer at 1-2 (“Def.’s Mot. to Stay”), and to bifurcate the proceedings in this case into bid-protest and, if necessary, contract phases. See Def.’s Mot. to Bifurcate at 1. The Foundation opposes these motions on two grounds: (1) that the administrative record fails to address all of the claims in the complaint, and (2) that the bid-protest and eon-tractual claims are so intertwined that the bid protest cannot be resolved without addressing the merits of the contract claim. Pl.’s Resp. to Mot. to Stay Filing of Answer at 1 (“Pl.’s Opp’n to Def.’s Mot. to Stay”). The several motions have been fully briefed and a hearing was held on December 18, 2009.

BACKGROUND2

In 1998, as Title X of the Omnibus Consolidated and Emergency Appropriations Act, Congress passed the Canyon Ferry Reservoir, Montana, Act, Pub.L. No. 105-277, §§ 1001-1009, 112 Stat. 2681-710 (1998), amended at Pub.L. No. 106-113 §§ 401-405, 113 Stat. 1501A-307 (1999). See AR 1-9 (Canyon Ferry Reservoir, Montana, Act (the “Act”)).3 Section 1007 of the Act directs “[t]he Secretary [of the Interior], in consultation with the [Montana] congressional delegation and the [governor of [Montana], [to] establish a nonprofit charitable permanent perpetual public trust.” AR 6 (Act, § 1007(a)). The Trust was to be funded through the sale of federally owned cabin sites along the Canyon Ferry Reservoir to private parties, and the funds obtained were to be used to acquire new public lands for fish and wildlife conservation purposes. AR 2 (Act, § 1002).4 The Act provided that “[t]he Trust shall be managed by a trust manager,” who shall, among other obligations, “be responsible for investing the corpus of the Trust.” AR 6 (Act, § 1007(c)(1)).

On December 19, 2001, the Department posted a notice in Commerce Business Daily soliciting proposals for a manager of the Trust. Compl. ¶ 20. The Foundation responded to the solicitation, submitting a bid to serve as trust manager in exchange for a [439]*439total fee of 1.25% of the market value of the trust assets on an annual basis, assessed quarterly. Compl. ¶¶ 22-23. The Foundation avers that its bid was “based on an understanding that the term of the [cjontraet was [to be] perpetual.” Compl. ¶ 26. The Foundation was awarded the contract, and on June 5, 2002, the Department and the Foundation entered into the Trust Agreement. AR 26-32 (Trust Agreement (June 5, 2002)). Notably, the Trust Agreement does not contain an end date or a termination-for-convenience clause. See id.5 However, Section 6.2 of the Trust Agreement grants the government, as trustor, the right to amend the Trust unilaterally “to more fully accomplish the trust purposes.” Id. at 31.

The Foundation avers that the government is bound by Section 6.3 of the Trust Agreement to comply with Montana trust and contract law and that it has failed to do so. Compl. ¶¶ 35-36. This Section, titled “Si-tus,” mandates that “all questions relating to performance [under the Trust] shall be adjudged and resolved in accordance with the laws of the [S]tate of Montana.” AR 31 (Trust Agreement). The government addressed the issue of what law applies during the hearing in December, arguing that the court should apply “federal procurement law,” or the common law of contracts assembled in the Restatement of Contracts. See Dee. Hr’g Tr. 10:20 to 12:22. What body of laws the court should apply in addressing the merits of plaintiffs claims is an open question that the court need not resolve at this juncture.

The government concedes that “the Foundation was for the most part successful in accomplishing the purposes of the [Trust].” Def.’s Opp’n at 2. However, according to the government, concerns were raised that the Foundation was receiving too much compensation under the terms of the Trust Agreement, and, in response, the Assistant Secretary of the Interior appointed a steering group to review the Trust. Id. In September 2005, a field team appointed by the steering group issued a report to the Secretary of the Interior. See AR 39-83 (Field Team Report (Sept.2005)). The report recommended that the Secretary consider amending the Trust Agreement “as needed to more fully accomplish the trust purposes.” Id. at 42.

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Cite This Page — Counsel Stack

Bluebook (online)
91 Fed. Cl. 434, 2010 U.S. Claims LEXIS 69, 2010 WL 125971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montana-fish-wildlife-parks-foundation-inc-v-united-states-uscfc-2010.