PCL Construction Services, Inc. v. United States

84 Fed. Cl. 601, 2008 U.S. Claims LEXIS 330, 2008 WL 5000032
United States Court of Federal Claims·Decided November 14, 2008·No. Nos. 95-666C, 96-442C·Published·Cited by 4 cases

Opinion

ORDER

HORN, Judge.

FINDINGS OF FACT

This opinion (PCL VI) is one in a long series of opinions regarding multiple cases and claims filed by plaintiff. This opinion addresses the claim by PCL Construction Services, Inc. (PCL) that it is entitled to interest pursuant to the Prompt Payment Act, 31 U.S.C. § 3901 et seq. (1994), and the Post-Judgment Interest Statute, 28 U.S.C. § 1961 (1994), regarding funds previously retained by the United States Department of the Interior, Bureau of Reclamation (USBR) and subsequently awarded to PCL by this court in an earlier opinion. See PCL Constr. Servs., Inc. v. United States, 53 Fed.Cl. 479 (2002) (PCL III ).1 The facts underlying the PCL construction contract with the USBR are fully articulated in the earlier United States Court of Federal Claims opinions, PCL Construction Services, Inc. v. United States, 41 Fed.Cl. 242 (1998) (PCL I); PCL Construction Services, Inc. v. United States, 47 Fed.Cl. 745 (2000) (PCL II); PCL Construction Services, Inc. v. United States, 53 Fed.Cl. 479 (2002) (PCL III); PCL Construction Services, Inc. v. United States, 96 Fed.Appx. 672 (Fed.Cir.2004) (PCL IV); and PCL Construction Services, Inc. v. United States, 84 Fed.Cl. 408 (2008) (PCL V), and are incorporated in this opinion. Certain facts pertinent to this opinion, however, are reiterated briefly below.

The USBR awarded Contract No. 1-CC-30-09050 to PCL to construct a Visitor Center and Parking Structure at the Hoover Dam. PCL submitted Invoice No. 42 to the USBR on April 24,1995, requesting payment for work completed in March and April, 1995 on the Parking Structure and Visitor Center at the Hoover Dam. In a letter dated July 28, 1995, USBR informed PCL that it was retaining money from PCL pursuant to the contract: “Continued withholding of funds is necessary for the protection of the Government’s interests in accrued liquidated damages, outstanding required submittals, and credits due the Government for changes and/or reductions in the work.” The government retained $1,351,838.00 as of April 24, 1995.

In a letter dated August 4, 1995, PCL requested release of the retainage, claiming that the government was not entitled to retain the monies because the contract had been substantially performed and the government had not assessed liquidated damages against PCL. In that same August 4, 1995 letter, the plaintiff also stated: “The USBR is subject to “Prompt Payment clause provisions.” ” In a letter dated August 22, 1995, the USBR denied the request for release of the retainage, stating again: “As indicated in the Construction Engineer’s letter to you dated July 28, 1995, continued retention of funds is necessary for the protection of the Government’s interests in accrued liquidated damages and other items.” PCL and the government subsequently attempted to resolve the issues without success.

On November 22, 1995, PCL submitted a certified claim to the USBR in the amount of “$1,351,838.00, plus interest,” for monies retained. PCL notified USBR that PCL had “substantially completed the work required by the contract on May 11, 1995,” and was entitled to the retained monies. PCL also stated it would perform no additional work related to the contract “to avoid further damages.” PCL’s letter of November 22, 1995, stated: “PCL will therefore perform no additional work related to the contract; and, PCL is advising its subcontractors that any work performed for the Bureau on this contract will be at their own risk.”

Subsequently, PCL filed three complaints in the United States Court of Federal Claims (Case Nos. 95-666C, 96-442C and 06-144C), arising from the construction project at the Hoover Dam for the USBR. The first complaint (Case No. 95-666C) claimed [603]*603$31,040,071.00, based upon alleged breach of contract and illegality of the contract. See PCL I, 41 Fed.Cl. 242 and PCL II, 47 Fed. Cl. 745, aff'd, PCL IV, 96 Fed.Appx. 672. After extensive discovery and a lengthy trial, the court issued an opinion denying PCL’s alleged breach of contract, and finding that the incomplete portion of the contract was properly terminated for default. See PCL II, 47 Fed.Cl. 745.2

The second complaint (Case No. 96-442C) demanded the monies retained by USBR, stating: “PCL is entitled to recover $1,351,838 for the breach of the Contract due to the illegally withheld retainage, plus CDA [Contract Disputes Act, 41 U.S.C. § 601 et seq. (1994) ] interest.” (emphasis added). In PCL III, the court found in favor of PCL in the amount of “$1,351,838.00 plus interest,” for improperly withheld retainage. See PCL III, 53 Fed.Cl. 479; see also Order, Case Nos. 95-666C, 96-442C, at 2 (Dec. 19, 2002) (unpub.) (directing entry of judgment). In PCL III, the court found that based on the inability of the parties to establish a clear apportionment of delays and responsibility for incomplete work, the retained money should be released to PCL. Id. at 492-93. The court concluded that both parties appeared to have shared responsibility for the delays to some degree. PCL III, 53 Fed.Cl. at 484-92. As to whether there was incomplete work, the court upheld the USBR’s termination for default based on the existence of incomplete work: “The plaintiff also asked the court to set aside the government’s termination for default. The court finds that the separable, incomplete portion of the contract was subject to a proper termination for default.” PCL II, 47 Fed.Cl. at 812. On December 30, 2002, PCL was awarded the $1,351,838.00 in retainage, plus interest, by the court.

In its third complaint, Case No. 06-144C, PCL attempted to revisit the issues surrounding contract performance, alleging entitlement to monies for delays and contract changes, rather than relying on the breach of contract theory resolved in PCL II, 47 Fed. Cl. 745. The court dismissed the complaint, finding that the same claims could have been brought in the breach of contract complaint which was resolved in the breach of contract trial opinion, PCL II, 47 Fed.Cl. 745, and, thus, applied the doctrine of res judicata. See PCL V 84 Fed.Cl. 408.

Following issuance of the opinion in PCL III on retainage, the United States Department of Justice sent a July 7, 2003 letter to the Judgment Fund Branch of the United States Department of the Treasury, certifying the award of the retained monies in the amount of $1,351,838.00, “plus CDA interest,” to PCL. PCL received the monies in the form of a check dated September 12, 2003, in the amount of $1,984,690.09, including $632,852.09 in CDA interest.

On October 2, 2003, PCL sent a letter to the Department of the Treasury, requesting payment of an additional $45,131.70. PCL claimed that, although it had been paid $1,984,690.09, according to its calculations, the government still owed PCL $45,131.70. PCL claimed $44,027.33 in Prompt Payment Act interest from May 24,1995 to November 22, 1995; $591,993.93 in CDA interest from the date of the certified claim until payment, and $41,962.53 in post-judgment interest, for total interest of $677,983.79, plus the retain-age principal of $1,351,838.00, for a total of $2,029,821.79 due.

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PCL Construction Services, Inc. v. United States, 84 Fed. Cl. 601, 2008 U.S. Claims LEXIS 330, 2008 WL 5000032 (uscfc 2008).

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