Quality Trust, Inc.

CourtArmed Services Board of Contract Appeals
DecidedOctober 11, 2022
DocketASBCA No. 62576
StatusPublished

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Bluebook
Quality Trust, Inc., (asbca 2022).

Opinion

ARMED SERVICES BOARD OF CONTRACT APPEALS Appeal of - ) ) Quality Trust, Inc. ) ASBCA No. 62576 ) Under Contract No. FA2517-19-P-A083 )

APPEARANCE FOR THE APPELLANT: Mr. Lawrence M. Ruiz President

APPEARANCES FOR THE GOVERNMENT: Jeffrey P. Hildebrant, Esq. Deputy Chief Trial Attorney Lt Col Keric D. Clanahan, USAF Trial Attorney

OPINION BY ADMINISTRATIVE JUDGE STINSON ON APPELLANT’S MOTION FOR DEFAULT JUDGMENT

Pending before the Board is a motion for default judgment filed by Quality Trust, Inc. (QTI), on August 30, 2022, alleging that the government failed to comply with the requirements of our Order dated June 23, 2022, as well as a second, unspecified Order. Appellant requests that we enter a default judgment against the government for these alleged failures to comply (app. mot. at 1). The government’s September 2, 2022, response states that QTI’s motion “is an unsupported complaint that the respondent . . . has not adhered to ASBCA Rule 8 discovery requirements and the orders of the Board regarding discovery,” and that to the extent “appellant is requesting sanctions under Rule 16, it has not identified any request to which the government did not reply” (gov’t resp. at 1).

On September 23, 2022, QTI filed its reply, entitled “MOTION FOR CONTEMPT OF COURT, SUMMARY JUDGMENT, OR DIRECTED VERDICT,” in which appellant essentially restated arguments presented in its motion for default, and sought additional relief, including its request that the Board enter judgment as a matter of law pursuant to FED. R. CIV. P. 50. 1 On September 27, 2022, the government filed a reply to appellant’s September 23, 2022, filing, stating that the government has complied with Board orders, appropriately responded to appellant’s discovery requests, and that appellant has presented no evidence the government acted in such a way as to warrant a

1 In its September 23, 2022, filing, QTI alleges the government failed “to comply with (3) court orders within reasonable time” (app. reply at 2). However, QTI’s September 23, 2022, filing does not specifically identify the third Order with which the government allegedly did not comply. finding of contempt, or that appellant is entitled to entry of summary judgment, directed verdict, or judgment as a matter of law (gov’t reply at 1-3).

BACKGROUND

QTI’s motion for default judgment alleges that our June 23, 2022, Order, “directed the respondent to submit a status report every 30 days for the next three months, to see whether additional discovery is necessary,” and that “[i]f additional discovery was needed, the parties were to provide a general description of that discovery, and in the event more time is needed for the appellant, then a Supplemental Status Report can be sent in requesting more time” (app. mot. at 1). QTI misstates both the content and requirements of our June 23, 2022 Order. Indeed, in an earlier status report filed by QTI on July 21, 2022, appellant made a similar argument regarding our June 23, 2022 Order, misstating both the content and requirements of the that Order.

By Order dated July 25, 2022, we responded to QTI’s July 21, 2022 status report, stating that our June 23, 2022 Order, “dealt with possible settlement, and directed the government, on behalf of both parties, or the parties separately, to file reports every 30 days setting forth the status of settlement negotiations.” We noted that the June 23, 2022 Order, did not provide, as suggested by appellant, that “[i]f additional discovery was needed, the parties were to provide a general description of that discovery, and in the event more time is needed for the appellant, then a Supplemental Status Report can be sent in requesting more time.” QTI’s motion for default makes no mention of this clarification set forth in our July 25, 2022 Order. The government’s response to appellant’s motion for default judgment states that the government “has strictly adhered to the requirement [of the June 23, 2022 Order] that the government file a joint or unilateral status report every 30 days setting forth the details of any progress towards settlement,” with “[t]he last such report, filed unilaterally by the government on August 8, 2022” (gov’t resp. at 1). 2

QTI’s motion for default judgment also argues that the government failed to respond to certain discovery requests. Specifically, appellant states:

The appellant had sent in interrogatories for the respondent to simply put a yes or no answer, or an Admit or Deny similar to the Air Forces request that we honored in good faith. By way of two Orders issued by the Honorable Judge David B. Stinson, with the last Order requesting the Respondent to answered [sic] back before the August 8th due

2 On September 21, 2022, the government filed an additional report regarding the status of settlement negotiations, stating that “[t]he parties unfortunately remain at an impasse and the government does not foresee a negotiated solution.” 2 date to the board. Accordingly the Air Force, in spite of the Appellants pleas and the Board, they finally answer back with a negative response in lieu of giving us a simple yes or no answer or a Deny or Admit. The Appellant kindly answered the Respondents Interrogatories in this matter, why could they not simply answer back treating their neighbor as they treat themselves.

(App. mot. at 1)

Presumably, appellant is referencing our July 25, 2022 Order, wherein we also discussed outstanding discovery issues. In that Order, we noted that QTI previously had submitted a May 7, 2022, document entitled “Appellant’s Request for Admission Answers,” which appeared to be an updated version of an earlier request for admissions by appellant, that the government previously had answered. 3 In that document, appellant stated, “[w]ith the passing of time, and exchange of three trial attorneys and a second Judge assigned, the appellant kindly request: that you reiterate your position and assist by simply putting an ADMIT or DENY RESPONSE BY EACH UNDERLINED ADMIT OR DENY . . . .” Our July 25, 2022 Order, instructed that “[t]o the extent the government has not responded to appellant’s request dated May 7, 2022, the government is ORDERED to submit a response no later than August 8, 2022.”

In its motion for default judgment, QTI admits that the government responded to appellant’s May 7, 2022, request, stating that “they finally answer back with a negative response in lieu of giving us a simple yes or no answer or a Deny or Admit” (app. mot. at 1). The government responds likewise, stating that it “submitted its final discovery response to the appellant - a revised response to the appellant’s May 7, 2022 Request for Admissions - via email on August 8, 2022” (gov’t resp. at 2). The government argues, however, that “appellant’s allegation that the government gave a ‘negative response in lieu of giving us a simple yes or no answer or a Deny or Admit’ does not identify what request was made or the ‘negative response’ from the government to which appellant is referring” (gov’t resp. at 1). 4 In its September 27, 2022 reply, the government explained

3 QTI previously had filed a “Motion for Discovery,” dated April 20, 2022, and by Order dated April 25, 2022, appellant was ordered to provide additional information “[t]o assist the Board in understanding the specific information requested (and whether that information previously was requested by appellant).” Appellant was given until May 9, 2022, to provide that additional information. Other than submit its restated request for admissions, appellant’s May 7, 2022, submission did not respond directly to any of the requests for clarification set forth in our April 25, 2022 Order.

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Bluebook (online)
Quality Trust, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/quality-trust-inc-asbca-2022.