Parker Beach Restoration, Inc. v. United States

58 Fed. Cl. 126, 2003 U.S. Claims LEXIS 266, 2003 WL 22416831
CourtUnited States Court of Federal Claims
DecidedSeptember 30, 2003
DocketNo. 02-231 C
StatusPublished
Cited by6 cases

This text of 58 Fed. Cl. 126 (Parker Beach Restoration, 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
Parker Beach Restoration, Inc. v. United States, 58 Fed. Cl. 126, 2003 U.S. Claims LEXIS 266, 2003 WL 22416831 (uscfc 2003).

Opinion

OPINION

DAMICH, Chief Judge.

I. Introduction

Before the Court is Defendant’s Motion for Summary Judgment on Release from Liability and Authorization and Consent (hereinafter “Def.’s Mot.”). The United States (Defendant) seeks dismissal of the patent infringement claim asserted by Parker Beach Restoration, Inc. (Plaintiff). This claim alleged infringement of United States Letter Patent No. 4,710,056 (hereinafter “ ’056 patent”), which Plaintiff brought pursuant to the Court’s jurisdiction under 28 U.S.C. § 1498. Plaintiff claims that Defendant infringed the ’056 patent when the United States Air Force participated in a research and development project with Benedict Engineering Company, Inc. (hereinafter “BEC”), a government contractor, involving the use and deployment of mesh-net beach restoration devices (hereinafter “Project Devices”). Because Defendant is released from liability for infringement under the Confidential Settlement Agreement (hereinafter “Agreement”) that was executed by Plaintiff and BEC during a prior suit involving those parties in the Northern District of Florida, summary judgment for the Defendant is appropriate. Further, even if the release did not apply to Defendant, summary judgment would be appropriate because the Government did not give its authorization and consent to BEC to use an infringing device in connection with the project under 28 U.S.C. § 1498.

For the reasons set forth herein, Defendant’s Motion for Summary Judgment is GRANTED.

II. Background

Defendant entered into a Cooperative Research and Development Agreement (hereinafter “GRADA”) with BEC. The purpose of the GRADA was “to determine the effectiveness of using porous (net) groynes to accrete sand on shore to extend and re-nourish beaches which are eroding.” GRADA App. A H 1.0; App. to Def.’s Mot. for Summ. J. on Release from Liability and Authorization and Consent at A41 (hereinafter “Def.’s App.”). The GRADA did not include the Government’s standard authorization and consent clause as set forth by 48 C.F.R. §§ 27.202-1(a), 52.227-1.1 The GRADA did include a non-indemnity clause in the event that infringement occurred, making no guarantee that the project would not infringe an existing patent. GRADA 1110.3; Def.’s App. at A37.2 The GRADA also contained a provision [128]*128stating that “the parties to this Agreement ... are independent contractors and are not agents of each other ____ Neither party is authorized or empowered to act on behalf of the other .GRADA H 11.3; Def.’s App. at A38. Pursuant to the GRADA, BEG utilized Project Devices that allegedly infringed the ’056 patent. These accused acts of infringement occurred on the grounds of Eglin Air Force Base (hereinafter “Eglin AFB”) from November 2000 until May 1, 2001.

Plaintiff brought a lawsuit against BEG in the Northern District of Florida for infringement of the ’056 patent. BEG moved for summary judgment, claiming that, because the Project Devices were manufactured for the Government, BEG was immune from liability under 28 U.S.C. § 1498. The district court granted partial summary judgment, holding that BEG was immune from lawsuit for infringement by the devices used at Eglin AFB. The district court instead found that “Plaintiffs only remedy ... is against the United States as outlined in § 1498.” Def.’s App. at A26. The court held, inter alia, that Defendant used Plaintiffs beach restoration devices, because the system “was installed and accreted sand on the USAF’s beach and USAF personnel monitored and maintained the system.” Def.’s App. at A23. On the issue of authorization and consent, the court was not persuaded that the lack of an express authorization and consent clause meant that no authorization and consent was given. Id. at A24. Based on the facts, the court found implied authorization and consent. Specifically, the court found persuasive the fact that the GRADA set forth the specific system to be installed, which was not merely “a collateral device” chosen by BEG. Id. at A25. Furthermore, the court found that the non-indemnification clause did not “state that the government is not liable to another for the use of a patented item.” Id. (emphasis in original). Plaintiff and BEG resolved the remaining issues of infringement under the Agreement, and the district court case was dismissed with prejudice pursuant to the Agreement and upon request of the parties. Id. at A138. Plaintiff then filed the current case against the United States.

III. Analysis

A. Standard

Summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). “The evidence of the nonmovant is to be believed, and all justifiable inferences are to be drawn in his favor.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

B. Principles of Contract Interpretation

“It is well settled that contracts to which the government is a party ... are normally governed by federal law, not by the law of the state where they are made or performed.” Prudential Ins. Co. of Am. v. United States, 801 F.2d 1295, 1298 (Fed.Cir. 1986). In the case at bar, however, Defendant was not a party to the Agreement and the parties agree that the Court must apply Florida law. Def. Mot. at 6; PL’s Opp’n to Def.’s Mot. for Summ. J. on Release from Liability and Authorization and Consent at 10 (hereinafter “Pi’s Opp’n”); see also Augustine Med., Inc. v. Progressive Dynamics, Inc., 194 F.3d 1367, 1370 (Fed.Cir.1999); Sun Studs, Inc. v. Applied Theory Assoc., Inc., 772 F.2d 1557, 1561 (Fed.Cir.1985). The relevant state law in the present case is Florida law because the Agreement was executed in Florida, and the parties to the Agreement agreed that it would “be governed according to the internal laws of the State of Florida.” Def.’s App. at A125. “Under Florida law, settlement agreements are governed by the law of contracts.” U.S. Fife Ins. Co. v. Caulkins Indiantoum Citrus Co., 931 F.2d 744, 749 (11th Cir.1991). As the Agreement is a settlement agreement by nature, it will be governed by Florida contract law.

According to Florida contract law, “[t]he first step in construing an agreement is to [129]*129determine whether the language is ambiguous. If the agreement is found to be free of ambiguity, its meaning can be declared by the court without the use of extrinsic evidence.” Monahan v. C.I.R.,

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Bluebook (online)
58 Fed. Cl. 126, 2003 U.S. Claims LEXIS 266, 2003 WL 22416831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-beach-restoration-inc-v-united-states-uscfc-2003.