Morgan v. United States

55 Fed. Cl. 706, 2003 U.S. Claims LEXIS 60, 2003 WL 1737911
CourtUnited States Court of Federal Claims
DecidedMarch 25, 2003
DocketNo. 02-1630C
StatusPublished

This text of 55 Fed. Cl. 706 (Morgan 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
Morgan v. United States, 55 Fed. Cl. 706, 2003 U.S. Claims LEXIS 60, 2003 WL 1737911 (uscfc 2003).

Opinion

OPINION

BRUGGINK, Judge.

This is an action for breach of contract. Pending are the defendant’s motion to dismiss for lack of jurisdiction and plaintiffs motion to amend the complaint. The motion to dismiss is fully briefed. Further briefing on the motion to amend is deemed unnecessary, as is oral argument. For the reasons set out below, the motion to amend is denied and the motion to dismiss is granted.

BACKGROUND

Plaintiff, Mr. Johnny C. Morgan, owns a crop-dusting service in Ripley, Mississippi. [707]*707He entered into contracts in 1998, 1999, and 2000 for crop-dusting services with Southeastern Boll Weevil Eradication Foundation, Inc., a non-profit corporation organized in 1988 under the laws of the State Of Alabama. The services were to be performed in and around Hardeman County, Tennessee. The complaint alleges that the Foundation improperly terminated the contract.

The character of the Foundation is important to the outcome here, as defendant’s motion claims that the suit lacks jurisdiction because it is not directed against the United States, as it must be in this court. See 28 U.S.C. § 1491(a)(1) (2000). The Foundation has its roots in 7 U.S.C. § 1444a(d) (2000), which authorizes the Secretary of Agriculture to “carry out programs to destroy and eliminate cotton boll weevils in infested areas of the United States.” The statutory scheme envisages federal money granted to state and local entities who will be “responsible for the authority necessary to carry out the operations or measures.” 7 U.S.C. § 148 (repealed in 2000 and replaced by 7 U.S.C. § 7751(b)). The boll weevil eradication program is administered by USDA’s Animal and Plant Health Inspection Service (“APHIS”).

APHIS has entered into a Cooperative Agreement with the Foundation. APHIS provides thirty percent of the Foundation’s costs, and the agreement outlines respective rights and duties. The balance of the funds used by the Foundation comes from industry. After 1996, APHIS’ role is limited to monitoring progress, providing technical advice, and giving guidance regarding use of federal funds. APHIS has transferred federal property, such as radios and vehicles, to the Foundation, but it does not supervise how the Foundation uses its equipment.

It is undisputed that plaintiff’s contract was with the Foundation, and not the Department of Agriculture or APHIS. Nor was APHIS involved in decisions made by the Foundation in connection with plaintiffs services.

After termination, plaintiff sued Hardeman County and the Foundation in the United States District Court for the Western District of Tennessee pursuant to 42 U.S.C. § 1983 (2000), alleging violations of rights under the Fifth and Fourteenth Amendments to the Constitution, and alleging breach of contract by the Foundation. The Foundation sought dismissal of the contract claim on the ground that it should be brought in this court and sought dismissal of the § 1983 claim because the Foundation was allegedly a federal agency, not amenable to suit. The district court agreed with the Foundation on both counts and dismissed the complaint for lack of jurisdiction. It held that, “Because [the Foundation] is furthering a Congressional mandate and is under Federal governmental control as to how that mandate is carried out” it was a federal agency for purposes of eradication activities. It was thus entitled to protection under § 1983 as “the sovereign.” The court dismissed the contract claims on the ground that the claim was within this court’s exclusive jurisdiction pursuant to the Contract Disputes Act (“CDA”), 41 U.S.C. §§ 601-613 (2000). The court did not, however, transfer the matter here.

Plaintiff has now brought a complaint in this court, suing the Foundation. After defendant filed its motion to dismiss, plaintiff sought leave to file an amended complaint which, it asserts, would cure any potential jurisdictional shortcomings of the first complaint.

DISCUSSION

It is understandable that plaintiff brought this action in this court, concluding from the district court opinion that this is the proper forum. Unfortunately for plaintiff, we respectfully disagree with the district court’s assessment of our jurisdiction.

For purposes of evaluating the claim, we will assume that the grounds for jurisdiction have been restated as set out in the proposed amended complaint. That formulation does not assist plaintiff, however.

The proposed amended complaint properly is captioned against the United States, and asserts that it acted through the Foundation. The complaint, if amended, would assert jurisdiction under the Tucker Act, 28 U.S.C. § 1491(a)(1), specifically through a contract with the United States. This court is indeed [708]*708a proper forum to address contract claims against the United States. To the extent the contract is not subject to the CDA and the claim is for damages in excess of $10,000, as is the case here, it is the exclusive judicial forum, see 28 U.S.C. § 1346(a)(2). If the contract is subject to the CDA, irrespective of the amount sought, the court is the only judicial forum, although the appropriate board of contract appeals would have concurrent jurisdiction. See 41 U.S.C. §§ 607, 609.

The district court dismissed, in part, on the grounds that the contract was subject to the CDA and thus had to be brought here to obtain judicial review. The subject matter of the contract-crop dusting services—would, indeed, seem to fall within the sweep of the CDA. See 41 U.S.C. § 602(a)(2). If that were the ease, plaintiff would face a preliminary obstacle-he would first have to obtain a decision by a contracting officer, presumably of the Department of Agriculture. As defendant points out, this is a jurisdictional requirement. See 41 U.S.C. § 605. Such a decision was not obtained and the case would need to be dismissed without prejudice until a decision was obtained.

We decline to rely on that ground, however, as it does not address the more basic problem with the suit. The district court, in addressing plaintiffs civil rights claim against the Foundation under 42 U.S.C. § 1983, concluded that the Foundation enjoyed immunity as a federal agency under that provision. The indicia relied on by the court were that the Foundation was organized in response to federal legislation, received federal grant funds, and was subject to federal regulatory requirements.

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Related

D. R. Smalley & Sons, Inc. v. The United States
372 F.2d 505 (Court of Claims, 1967)
D. R. Smalley & Sons, Inc. v. United States
181 Ct. Cl. 1213 (Court of Claims, 1967)
D. R. Smalley & Sons, Inc. v. United States
389 U.S. 835 (Supreme Court, 1967)

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Bluebook (online)
55 Fed. Cl. 706, 2003 U.S. Claims LEXIS 60, 2003 WL 1737911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-v-united-states-uscfc-2003.