Nab-Lord Associates v. United States

682 F.2d 940, 29 Cont. Cas. Fed. 82,627, 230 Ct. Cl. 694, 1982 U.S. Ct. Cl. LEXIS 337
CourtUnited States Court of Claims
DecidedJune 2, 1982
DocketApp. No. 36-80
StatusPublished
Cited by16 cases

This text of 682 F.2d 940 (Nab-Lord Associates 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
Nab-Lord Associates v. United States, 682 F.2d 940, 29 Cont. Cas. Fed. 82,627, 230 Ct. Cl. 694, 1982 U.S. Ct. Cl. LEXIS 337 (cc 1982).

Opinion

SMITH, Judge,

delivered the opinion of the court:

In this contract appeal we are asked to decide whether the Postal Service Board of Contract Appeals (board) should [695]*695be upheld in denying petitioner interest under the Contract Disputes Act1 (act). We hold that petitioner is not entitled to such interest.

On February 25, 1975, petitioner, a joint venture combination of Nab Construction Corporation and Lord Electric Company, Inc., entered into a contract with the United States Postal Service. The contract called for petitioner to install and make alterations in a mail handling system for a New York City postal facility. From time to time, disputes arose between the parties as to the contract’s requirements. Several of these disputes were brought before the board for resolution, in all instances prior to the effective date of the act. The board, at that time considering, as requested, only the question of entitlement, held on October 31, 1977, that petitioner was entitled* to supplemental payments for contract adjustments on claims 318, 337, 362, and 373, and on January 23, 1978, it held similarly for petitioner on claims 190 and 347. The board remanded the claims to the contracting officer for negotiation by settlement of the amount of equitable adjustment due petitioner on each of the claims. Petitioner then presented the contracting officer with three requests for quantum relief on March 1, 1978 (claim 347 — totaling $76,565), March 8, 1978 (claims 318, 337, 362, and 373 — totaling $866,873), and May 15, 1978 (claim 190 — totaling $27,043).2 Each request included an item for interest, at that time grounded only upon an implied contract provision. The quantum claims were settled by agreement with the contracting officer; the March 8 claims being settled on December 15, 1978; the [696]*696May 15 claim on March 28, 1979; and the March 1 claim on September 11,1979.

In each settlement agreement, petitioner reserved the right to claim an entitlement to interest. Petitioner exercised that right by submitting claims to the contracting officer for "interest and/or loss of profit.” These interest claims were filed on February 21, 1979 (for interest on the March 8, 1978, claims), on May 14, 1979 (for the May 15, 1978, claim), and on July 24, 1979 (for the March 1, 1978, claim). The contracting officer denied each of the interest claims on June 18, June 18, and August 30, 1979, respectively.

The contracting officer’s final decisions on the interest claims were appealed to the board. The board, in its July 15, 1980, decision, held that petitioner was not entitled to interest under the act since petitioner did not have any "claims” under the act. The reason given by the board was that the underlying claims were "settled in negotiation without dispute.”3 Therefore, it concluded, there were, by definition, no quantum claims to which the interest claims could attach. The board later denied petitioner’s motion for reconsideration.4

Petitioner appealed the board’s decision to this court on December 22,1980.5

Three issues are before us for decision. First, whether petitioner made a valid election to come under the act when [697]*697it waited until it filed its complaints with the board to make the election. We hold that it did as to claims 318, 337, 362, 373, and 347.6 Second, whether petitioner’s quantum claims were pending before the contracting officer on March 1, 1979, the effective date of the act. We hold that they were not. Third, if the quantum claims were not pending before the contracting officer on the effective date, whether petitioner is entitled to receive interest under the act on the quantum claims.7 We hold that it is not.

Respondent’s primary argument contends that petitioner failed to invoke the provisions of the act when petitioner delayed requesting that the act apply until it filed its complaints with the board.8 Petitioner argues that its election under the act was proper. We hold for petitioner on this threshold issue.

As stated above, on all the claims involved in this case petitioner requested that interest be paid on the quantum settlements. When each of the quantum demands was settled, petitioner and the contracting officer agreed that petitioner would be able to reserve its interest claim. Later, the interest claims were submitted to the contracting officer and all were denied. Each time after the contracting officer made his final decision on the interest claims, he notified petitioner of the result through a "final decision letter.” These letters included a paragraph which informed petitioner of his appeal rights. The paragraph stated that:

This is the final decision of the contracting officer. Decisions on disputed questions of fact and on other questions that are subject to the procedures of the Disputes Clause may be appealed in accordance with the Disputes Clause. You may elect to appeal this decision to [698]*698the Postal Service Board of Contract Appeals pursuant to the Contracts and Disputes Act of 1978 [sic]. If you decide to make an appeal to the Board of Contract Appeals, written notice thereof (preferably in triplicate), must be mailed or otherwise furnished to the contracting officer within ninety days from the date you receive this decision. The notice should identify the contract by number, reference this decision, and indicate that an appeal is intended. In lieu of appealing this decision to the Board of Contract Appeals, you may bring an action directly on the claim in the United States Court of Claims. Any such action must be filed within twelve months from the date you receive this decision.

Petitioner responded in the same manner to each of these letters. Petitioner’s reply read:

Reference is made to the Contracting Officer’s letter * * * concerning his final decision with respect to interest on * * * [the] Claim * * * at the above project.
Please be advised that we appeal this decision in accordance with paragraph 3, Disputes, of the General Provisions. The contractor is reserving the issue as to whether the question being appealed is one of law or fact.

However, in petitioner’s complaints to the board, it claimed that it was entitled to interest either under the general interest provision found in a Federal Procurement Regulation or under section 12 of the act, 41 U.S.C. §611. Petitioner later withdrew its claim that its contract invoked the general interest provision. In its opinion, the board only addressed the issue whether petitioner was entitled to interest under the act.

Our analysis of whether a contractor properly invokes the provisions of the act can be found in Tuttle/White Constructors, Inc. v. United States.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

AICI-Archirodon JV
Armed Services Board of Contract Appeals, 2025
Detroit International Bridge Co. v. United States
39 Cont. Cas. Fed. 76,711 (Federal Claims, 1994)
CPT Corp. v. United States
37 Cont. Cas. Fed. 76,282 (Court of Claims, 1992)
Essex Electro Engineers, Inc. v. United States
37 Cont. Cas. Fed. 76,042 (Court of Claims, 1991)
Mayfair Construction Company v. The United States
841 F.2d 1576 (Federal Circuit, 1988)
Santa Fe, Inc. v. United States
34 Cont. Cas. Fed. 75,385 (Court of Claims, 1987)
Dewey Electronics Corp. v. The United States
803 F.2d 650 (Federal Circuit, 1986)
Hoffman Construction Co. v. United States
32 Cont. Cas. Fed. 73,279 (Court of Claims, 1985)
Esprit Corp. v. United States
32 Cont. Cas. Fed. 73,069 (Court of Claims, 1984)
Recon Paving, Inc. v. The United States
745 F.2d 34 (Federal Circuit, 1984)
The United States v. W.H. Moseley Company
730 F.2d 1472 (Federal Circuit, 1984)
P.J. Maffei Building Wrecking Corp. v. United States
31 Cont. Cas. Fed. 71,307 (Court of Claims, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
682 F.2d 940, 29 Cont. Cas. Fed. 82,627, 230 Ct. Cl. 694, 1982 U.S. Ct. Cl. LEXIS 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nab-lord-associates-v-united-states-cc-1982.