Rovina v. United States

33 Cont. Cas. Fed. 74,573, 10 Cl. Ct. 634, 1986 U.S. Claims LEXIS 806
CourtUnited States Court of Claims
DecidedSeptember 3, 1986
DocketNo. 362-85C
StatusPublished
Cited by2 cases

This text of 33 Cont. Cas. Fed. 74,573 (Rovina v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rovina v. United States, 33 Cont. Cas. Fed. 74,573, 10 Cl. Ct. 634, 1986 U.S. Claims LEXIS 806 (cc 1986).

Opinion

OPINION

YOCK, Judge.

In this action before the Court on cross-motions for summary judgment, plaintiff seeks review, pursuant to the Wunderlich Act, 41 U.S.C. §§ 321, 322 (1982), of two decisions by the Armed Services Board of Contract Appeals (Board or ASBCA). The Board, in essence, affirmed two refusals by the contracting officer to render a final decision on plaintiff’s equitable adjustment contract claim. Plaintiff requests that the Board decisions be found erroneous as a matter of law or are otherwise not based on substantial evidence. Defendant requests that this action be dismissed for lack of jurisdiction or, in the alternative, on the merits.

For the reasons discussed herein, the plaintiff’s claim is dismissed without prejudice.

Facts

On February 21, 1979, plaintiff was awarded contract No. 50-9051-001 (the contract) by defendant for the disposal and demilitarization of six different types of military ammunitions (shells) located in Italy. Plaintiff paid defendant some $407,-795 for the privilege of demilitarizing the shells and in return received title to the residual products. The contract also provided that adjustments in price would be made in the event of misdescription of a line item or upon performance cost increases due to changes in demilitarization methods mandated by defendant’s contracting officer.

At some point in the fall of 1979, plaintiff informed defendant of two line item misde-scriptions. The contracting officer acknowledged the misdescriptions and the parties agreed upon a price adjustment in favor of plaintiff for one item, but disagreed upon the price adjustment of the other.

On October 13, 1979, explosions occurred at plaintiff’s facility during the demilitarization process. The explosions, most unfortunately, resulted in the deaths of five [636]*636people, as well as in extensive damage to plaintiffs plant and equipment and to the property of third parties.

Following the explosion, Italian authorities arrested and criminally charged plaintiffs principals in connection with the incident. Subsequently, the U.S. Government contracting officer was criminally indicted as well.

Following this explosion, all work under the contract was suspended. At some point thereafter, plaintiff entered a liquidation proceeding, which is an Italian form of bankruptcy.1 On April 22, 1981, the liquidator for the plaintiff instituted a civil action in Italy against the Governments of the United States and Italy. The action alleged that the defendant (and Italy) was responsible for the explosion and damages because it knowingly sold defective ammunition to the plaintiff. Relief requested included recovery for damages to plaintiffs property, lost profits on the contract, indemnification for liability to injured third parties, as well as restitution for amounts plaintiff overpaid for the shells. Pursuant to Italian law, the Italian civil proceeding was suspended pending disposition of the Italian criminal case.

During the summer of 1982, plaintiff was instructed by the U.S. Government to complete the demilitarization process using methods different from those specified in the contract. Thereafter, on August 6, 1982, the liquidator submitted a claim to the contracting officer for an equitable adjustment in regard to the following items:

(a) Additional costs of changed demilitarization methods and procedures in the performance of the contract;

(b) The additional costs of site preparations and cleanup;

(c) The costs incurred for the idle time of the plant resulting from the contracting officer directed suspension period; and

(d) The cost of special facilities and equipment which were required to complete performance.

The total amount requested was some $2,572,355. After initially acknowledging the plaintiffs claim by a letter dated September 1, 1982, the contracting officer noticed that the claim was not properly certified in accordance with the statutory mandate contained in section 813 of the Department of Defense Authorization Act of 1979, 10 U.S.C. § 2304 note (Supp. Ill 1979), nor had the plaintiff made an election pursuant to section 16 of the Contract Disputes Act of 1978, Pub.L. No. 95-563, 41 U.S.C. § 601 et seq. (1982) (CDA). Therefore, after consulting her own legal counsel, and coordinating her actions with the U.S. Department of Justice in light of the Italian litigation involving the United States and the contractor, the contracting officer again responded to the plaintiff by letter on October 18, 1982. This letter indicated that the plaintiff would have to elect whether to proceed under the CDA or under the Disputes clause of the contract, and in any event, a proper certification of the claim was essential before she could proceed to decide it.

Instead of responding to the contracting officer, the plaintiff, on November 1, 1982, filed an appeal with the Armed Services Board of Contract Appeals (Board or ASBCA). That appeal, ASBCA No. 27753 (the first appeal) alleged that the contracting officer’s October 18,1982 letter and the surrounding circumstances “eonvey[s] the intention to deny the claims on the merits, while delaying the process of claim review by a plethora of technical impediments.” The plaintiff then requested that the Board forthwith decide the equitable adjustment claim or order the contracting officer to do so. Government counsel thereafter moved the Board to dismiss the appeal on the grounds that the claim had not been properly certified and thus the contracting officer was well within her rights not to issue a final decision until the appropriate certification had taken place.

On June 15, 1983, the ASBCA dismissed the plaintiff’s first appeal without prejudice, holding that:

[637]*637In the absence of a proper certification the contracting officer was under no duty to render a decision on appellant’s claim or request for equitable adjustment. The contracting officer tried several times to obtain a proper certification and never did so before appellant filed its “appeal” with the Board.
We conclude that the contracting officer was well within her rights in demanding a proper certification as a basis for deciding appellant’s claim. The delay of which appellant complains was caused by appellant; not the contracting officer. There was not, therefore, any basis on which we could conclude that the contracting officer either refused to issue a final decision or unduly delayed the processing of the claim. Consequently, the exception to the requirement for a final decision is not for application.
It is clear that no final decision has been issued. Without one, this appeal is premature. It must be dismissed.

By letter dated July 20, 1983, the plaintiff resubmitted the same equitable adjustment claim to the contracting officer. This time, however, the plaintiff reduced the amount claimed from $2,572,355 to some $1,863,663, and properly certified the claim.

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Cite This Page — Counsel Stack

Bluebook (online)
33 Cont. Cas. Fed. 74,573, 10 Cl. Ct. 634, 1986 U.S. Claims LEXIS 806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rovina-v-united-states-cc-1986.