National Micrographics Systems, Inc. v. United States

41 Cont. Cas. Fed. 77,140, 38 Fed. Cl. 46, 1997 U.S. Claims LEXIS 108, 1997 WL 296968
CourtUnited States Court of Federal Claims
DecidedMay 30, 1997
DocketNo. 96-193C
StatusPublished
Cited by3 cases

This text of 41 Cont. Cas. Fed. 77,140 (National Micrographics Systems, 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
National Micrographics Systems, Inc. v. United States, 41 Cont. Cas. Fed. 77,140, 38 Fed. Cl. 46, 1997 U.S. Claims LEXIS 108, 1997 WL 296968 (uscfc 1997).

Opinion

OPINION

MARGOLIS, Judge.

This government contracts case involves plaintiff’s effort to secure payment for a computer system that was delivered by plaintiff to the National Security Agency (“NSA”) facility at Fort George Meade, Maryland. [48]*48Plaintiff has asserted claims for a breach .of contract and for a taking in violation of the Fifth Amendment. The case is currently before the court on defendant’s motion to dismiss for lack of jurisdiction, or in the alternative for failure to state a claim upon which relief can be granted. Defendant first argues that this court lacks jurisdiction over plaintiffs claim and/or plaintiff has failed to state a claim upon which relief can be granted because there is no privity of contract between plaintiff, a subcontractor, and the government. Defendant also argues that plaintiff has failed to state a Fifth Amendment takings claim because plaintiff did not possess a legally-cognizable property interest in the computer system. After considering the record and oral arguments, the court agrees with the government that plaintiff has failed to state a claim for either breach of an implied-in-fact contract or a Fifth Amendment taking.

FACTS

The present controversy grew out of a contract between the United States, acting through the National Security Agency, and Minigraph, Inc. (“Minigraph”), a Delaware corporation doing business in the State of Maryland.1 On October 1, 1992, the NSA and Minigraph entered into a time and materials type contract, Contract No. MDA90493-C-B001, which called for Minigraph to perform certain engineering and technical support services at the NSA facility at Fort George Meade, Maryland. Because the NSA-Minigraph contract was structured as a time and materials type contract,2 Minigraph was required to “furnish the necessary materials, facilities, equipment and the services of skilled professional engineering and technical personnel to perform the requirements set forth in the Statement of Work for CALS Engineering Service Support.” The contract •specified that, pursuant to the requirements of FAR 16.601, Minigraph would be reimbursed, at cost, for any necessary materials. The contract further specified, by incorporating FAR 52.245-5(c)(2), that “[tjitle to all property purchased by the Contractor for which the Contractor is entitled to be reimbursed as a direct item of cost under this contract shall pass to and vest in the Government upon the vendor’s delivery of such property.”

In July 1995, Minigraph entered into a separate subcontract with plaintiff, National Micrographies Systems, Inc. (“NMS” or “plaintiff’), to provide a computer system that would be delivered by plaintiff directly to the NSA’s facility at Fort Meade. Under this arrangement, however, plaintiff would not be paid by the NSA. Instead, plaintiff was to receive payment for the computer system from Minigraph, the prime contractor. Under the terms of the prime contract, the NSA would reimburse Minigraph for the cost of the computer. See FAR 16.601.

On July 28, 1995, plaintiff delivered the computer system to the NSA facility at Fort Meade. At the time of delivery, the computer system was accompanied by a standard form which bore the National Micrographics Systems, Inc. logo and was entitled “DELIVERY TICKET.” In addition to a description of the merchandise delivered,3 the delivery ticket contained spaces marked “SHIPPED FROM” “SHIPPED TO” and “BILL TO.” The completed delivery ticket showed that the merchandise was “SHIPPED FROM” the subcontractor, plaintiff National Micro-graphics; was “SHIPPED TO” defendant, [49]*49the NSA, at Fort Meade; and was “BILLED TO” the prime contractor, Minigraph. The delivery ticket was signed and dated by Bill Byers, an employee of the NSA, in a space marked “RECEIVED BY.”

The delivery ticket also included the following language, which is pivotal to the present dispute:

NATIONAL MICROGRAPHICS RESERVES TITLE TO THE MATERIAL SOLD HEREUNDER AS SECURED FOR PERFORMANCE OF CUSTOMER’S OBLIGATION. SHOULD CUSTOMER FAIL TO PERFORM ANY PROVISIONS OF THIS AGREEMENT BY IT TO BE PERFORMED OR DEFAULT IN PAYMENT OF ANY CHARGES HEREUNDER WHEN DUE, NATIONAL MICROGRAPHICS SYSTEMS MAY REMOVE AND REPOSSESS ANY OR ALL MATERIAL HEREUNDER WITH OR WITHOUT NOTICE OR DEMAND, IN ADDITION EXERCISING SUCH OTHER RIGHTS AND REMEDIES AS MAY BE CONFERRED ON IT BY LAW.

Complaint at Exhibit 1.

On July 28,1995, the same date that plaintiff delivered the computer system to the NSA, plaintiff also forwarded an invoice for the computer system to Minigraph. In addition to a description of the merchandise being billed,4 the invoice, like the delivery ticket, contained spaces marked “BILL TO” and “SHIP TO.” Like the delivery ticket, the invoice indicated that the computer system was shipped to the NSA at Fort Meade, and was billed to Minigraph. According to the invoice, the total price for the delivered computer system was $25,965.23, payable to NMS in 30 days.

The parties agree that, some time after July 1995, the NSA prepared a check to pay Minigraph, in full, for the computer system. However, before Minigraph could pay plaintiff for the computer system, the check from the NSA to Minigraph was apparently intercepted by the Internal Revenue Service (“IRS”) to satisfy a delinquent tax lien against Minigraph. As a result, Minigraph never paid plaintiff the money plaintiff was owed — $25,965.23—for the computer system that plaintiff had delivered to the NSA on July 28, 1995. Unable to obtain payment from the prime contractor Minigraph,5 plaintiff sent a letter to the NSA’s contracting officer demanding return of the computer system or payment in full of the unpaid balance due on the delivered computer system, $25,965.23. After the NSA refused to pay for or return the computer, plaintiff filed suit in this court, alleging a breach of contract and/or an unconstitutional taking. Plaintiff is seeking a judgment against the United States in the amount of $25,965.23, or return of the computer system.

DISCUSSION

The government has moved to dismiss plaintiffs complaint on two grounds— lack of subject matter jurisdiction under RCFC 12(b)(1), and/or failure to state a claim upon which relief can be granted under RCFC 12(b)(4). In evaluating a challenge to jurisdiction under Rule 12(b)(1), this court must look no further than the allegations contained in the complaint to determine whether plaintiffs claims fall within the court’s Tucker Act jurisdiction. Trauma Serv. Group v. United States, 104 F.3d 1321, 1325 (Fed.Cir.1997) (“A well-pleaded allegation in the complaint is sufficient to overcome challenges to jurisdiction.”). By contrast, in evaluating a motion to dismiss under 12(b)(4), the court must consider the merits of plaintiffs claims, and may only dismiss the complaint when “it is beyond doubt that the plaintiff can prove no set of facts which would entitle him to relief.” Hamlet v. United States, 873 F.2d 1414, 1416 (Fed.Cir.1989) (citing Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-02, 2 L.Ed.2d 80 (1957)).

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Bluebook (online)
41 Cont. Cas. Fed. 77,140, 38 Fed. Cl. 46, 1997 U.S. Claims LEXIS 108, 1997 WL 296968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-micrographics-systems-inc-v-united-states-uscfc-1997.