Newimar, S.A. v. United States

United States Court of Federal Claims·Decided November 17, 2022·No. 21-1897·Published

Opinion

In the United States Court of Federal Claims

NEWIMAR, S.A.,

Plaintiff,

v. No. 21-cv-1897

THE UNITED STATES, Filed Under Seal: November 14, 2022 Defendant, Publication: November 17, 2022 1 and

J&J MAINTENANCE, INC.,

Intervenor-Defendant

MEMORANDUM AND ORDER

On May 12, 2022, this Court entered Judgment in favor of Defendants (ECF No. 61) in a

bid protest action brought by Newimar, S.A. (Plaintiff or Newimar). Five months later, on October

12, 2022, Plaintiff filed a Motion for Stay of this Court’s Judgment Pending Appeal (Motion or

Motion to Stay). See ECF No. 67 (Mot.). Specifically, Plaintiff seeks a stay while the United

States Court of Appeals for the Federal Circuit (Federal Circuit) considers Plaintiff’s appeal, filed

on June 22, 2022. Mot. at 30. 2 Plaintiff also urges this Court to enjoin Defendant United States

(Defendant or the Government) and Intervenor-Defendant J&J Maintenance, Inc. (J&J) from

1 This Memorandum and Order was filed under seal in accordance with the Protective Order entered in this case (ECF No. 12) and was publicly reissued after incorporating all redactions proposed by the parties. (ECF No. 73.) The sealed and public versions of this Memorandum and Order are otherwise identical, except for the publication date and this footnote. 2 Citations throughout this Memorandum and Order reference the ECF-assigned page numbers, which do not always correspond to the pagination within the document. 1 taking further steps to implement or begin performance under the protested contract award pending

Plaintiff’s Appeal. Id.

Plaintiff’s Motion to Stay lacks merit. Accordingly, for the reasons described in this

Memorandum and Order, Plaintiff’s Motion is DENIED.

BACKGROUND

The facts of this dispute are detailed in this Court’s May 12, 2022 Memorandum and Order.

See Newimar S.A. v. United States, 160 Fed. Cl. 97 (2022) (Opinion); ECF No. 61 (Judgment).

For context, the Court briefly summarizes below the procedural history pertinent to the Motion.

The U.S. Department of the Navy (Navy) maintains the infrastructure for U.S. Naval

Station (NAVSTA) Rota along the Bay of Cádiz in Rota, Spain, which includes “a 670-acre

airfield, four active piers, hundreds of facilities, and approximately 373 family housing units.”

Newimar, 160 Fed. Cl. at 107. Plaintiff, the incumbent civilian contractor at NAVSTA Rota for

the last 25 years, filed this post-award bid protest on September 23, 2021 to challenge the Navy’s

contract award to J&J for future base operations support (BOS) services at NAVSTA Rota. Id. at

107. On May 12, 2022, after consideration of the parties’ briefs and after a lengthy and thorough

oral argument, this Court upheld the Navy’s award to J&J, denying Plaintiff’s Motion for

Judgment on the Administrative Record (MJAR), and granting the Government’s and J&J’s Cross-

MJARs. Id. at 142. On June 22, 2022, Plaintiff filed a Notice of Appeal. ECF No. 64. On

September 15, 2022, Plaintiff subsequently filed its opening appellate brief in the Federal Circuit;

Plaintiff, however, did not move the Federal Circuit for an expedited briefing schedule pursuant

to Federal Circuit Rule 27(c). Newimar S.A. v. United States, No. 22-1949, D.I. 16 (Fed. Cir. Sept.

15, 2022); see also Mot. at 7 (stating Plaintiff is not “formally requesting expedited relief” before

the Federal Circuit).

2 Since 2021, Plaintiff has continued to service NAVSTA Rota under a series of bridge

contracts with the Navy. See Declaration of Erin R. Quimby, United States Contracting Officer

(ECF No. 69-1) (Def.’s Aff.), ¶ 3. Plaintiff’s current bridge contract is set to terminate on

December 31, 2022. Id.; Mot. at 8. The Navy declined to further renew Plaintiff’s bridge contract,

and instead intends to proceed with its transition of the awarded contract to J&J, consistent with

this Court’s ruling. Def.’s Aff., ¶ 3; Mot. at 8–9. The contract award incorporates a 45-day phase-

in period for J&J, which the Navy intends to commence on November 16, 2022. Id.; see

Defendant’s Response to Plaintiff’s Motion for a Stay Pending Appeal (ECF No. 69) (Def.’s Resp.)

at 3. Plaintiff filed the present Motion to Stay only after it had received notice on September 30,

2022 of the Navy’s intention to transition the work to J&J and forgo renewal of another bridge

contract with Plaintiff. Def.’s Aff., ¶ 3; see ECF No. 71-3 (Navy letter to Plaintiff, dated

September 30, 2022).

APPLICABLE LEGAL STANDARDS

Plaintiff’s Motion seeks both a stay of this Court’s Judgment and entry of an injunction

pending resolution of its appeal by the Federal Circuit. Mot. at 30. Rule 62(d) of the Rules of the

United States Court of Federal Claims (Rule(s)) states that “[w]hile an appeal is pending from an

interlocutory order or final judgment . . . the court may suspend, modify, restore, or grant an

injunction on terms for bond or other terms that secure the opposing party’s rights.” Rule 62(d).

The imposition of such relief pending appeal is an exercise of judicial discretion that depends upon

the circumstances of the particular action. See ePlus, Inc. v. Lawson Software, Inc., 431 F. App’x

920, 920 (Fed. Cir. 2011) (citing Nken v. Holder, 556 U.S. 418, 433 (2009)) (noting that the

decision to stay a permanent injunction pending appeal “is not a matter of right [b]ut instead an

exercise of judicial discretion”).

3 The relief Plaintiff seeks here “is an ‘extraordinary and drastic remedy,’ which is not

granted lightly.” ACI Techs., Inc. v. United States, 162 Fed. Cl. 49, 43 (2022) (quoting G4S Secure

Integration LLC v. United States, 159 Fed. Cl. 249, 254–55 (2022)); see RLB Contracting, Inc. v.

United States, 120 Fed. Cl. 681, 682 (2015) (“An injunction pending appeal is an extraordinary

remedy and will not be lightly granted.”) (citing Acrow Corp. of Am. v. United States, 97 Fed. Cl.

182, 183 (2011)). As the movant, Plaintiff “bears the burden of showing the circumstances justify

an exercise of the court’s discretion . . . .” Beard v. United States, 451 F. App’x 920, 921 (Fed.

Cir. 2011); see also ACI Techs., 162 Fed. Cl. at 43 (quoting Telos Corp. v. United States, 129 Fed.

Cl. 573, 575 (2016)) (noting that “the party moving for a stay ‘carries the burden of establishing

the propriety of an injunction pending appeal . . . .’”).

While trial courts have discretion to issue stays or other injunctive relief pending appeal,

courts should consider:

(1) whether the movant has made a strong showing that it is likely to succeed on the merits; (2) whether the movant will be irreparably injured absent an injunction; (3) whether issuance of the injunction will substantially injure the other interested parties; and (4) where the public interest lies. 3

ACI Techs., 162 Fed. Cl. at 43 (quoting Telos Corp., 129 Fed. Cl. at 575). Courts acknowledge

that the first two factors are generally of primary importance to a court’s inquiry. See Acrow Corp.

of Am., 424 F. App’x at 948 (noting the first two factors are “the most critical”); see also Standard

Havens Prods., Inc. v. Gencor Indus., Inc., 897 F.2d 511, 512 (Fed. Cir. 1990) (noting courts need

not afford the factors equal weight). Courts, however, “adopt a flexible approach to balancing the

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