S. J. Groves & Sons Co. v. United States

495 F. Supp. 201, 28 Cont. Cas. Fed. 80,878, 1980 U.S. Dist. LEXIS 9271
CourtDistrict Court, D. Colorado
DecidedAugust 8, 1980
DocketCiv. A. 79-K-125
StatusPublished
Cited by24 cases

This text of 495 F. Supp. 201 (S. J. Groves & Sons Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. J. Groves & Sons Co. v. United States, 495 F. Supp. 201, 28 Cont. Cas. Fed. 80,878, 1980 U.S. Dist. LEXIS 9271 (D. Colo. 1980).

Opinion

ORDER

KANE, District Judge.

This action by S. J. Groves & Sons Company against the United States Government and officers of the Department of Interior and Bureau of Reclamation involves a dispute regarding a government contract between Groves and the United States to construct the Current Creek Pipeline, Currant Creek Dam, and other features of the Bonneville Unit, Central Utah Project. Contract No. 14-06-D-7566, dated July 15, 1974, was bid, executed, and administered pursuant to the Federal Property and Administrative Services Act, 41 U.S.C. §§ 5 and 252. Plaintiff alleges that the defendant officers exceeded their statutory and contractual authority by directing corrective construction because testing in March, 1977 concluded that the pipe was faulty.

Plaintiff contends that the dispute, a matter of contract interpretation, arises under federal law and invokes jurisdiction under 28 U.S.C. § 1331(a) (federal question jurisdiction) and § 1361 (mandamus), and the Administrative Procedures Act, 5 U.S.C. §§ 701-706. Defendants move to dismiss, or in the alternative for summary judgment, on the grounds of lack of subject matter jurisdiction, failure to state a claim upon which relief can be granted, and failure to exhaust administrative remedies. Defendants assert that jurisdiction does not lie under § 1331 and that this dispute, being one grounded in contract and involving a controversy exceeding $10,000, is exclusively within the jurisdiction of the Court of Claims pursuant to 28 U.S.C. §§ 1346(a)(2) and 1491. The district court has concurrent jurisdiction of contract disputes involving less than $10,000. 28 U.S.C. § 1346(a)(2).

I agree that I do not have subject matter jurisdiction of this dispute and therefore dismiss the complaint. However, because of the perimeters of jurisdiction under § 1331 for purposes of judicial review of administrative actions are undefined and in *204 dispute among the circuits, 1 and because the complaint was not drafted as merely a claim for damages under a contract, thus not fitting neatly into Court of Claims jurisdiction, I will attempt to clarify the problem and bring my reasoning into focus.

I.

The pertinent facts follow: The pipeline was completed and delivered to the government in the fall of 1976. The government did not accept the pipeline as a finished project. On March 28, 1977, Groves filled the pipeline pursuant to Bureau directives and the contract. At this time the pipeline was found to be defective. Observation, testing, and consultation with technical experts continued from March, 1977, to March, 1978, to determine the cause of the failure. On March 14, 1978, Groves advised the Bureau in a detailed presentation that the failure was attributable to incorrect design, excessive ground water, landslides, and changed conditions after completion of the pipeline. The Bureau nonetheless directed Groves to make corrections beginning in 1978. Groves performed corrective construction several times during this period until the third filling on November 22, 1978, resulted in severe leakage and further corrections were aborted.

In response to Groves letter of December 5, 1978, requesting a determination of responsibility, the Bureau, in a letter dated January 5, 1979, stated that Groves was responsible for replacement or repair and directed further construction. On February 23, 1978, the contracting officer, defendant Robert B. Jansen, issued his findings of fact and directed Groves to proceed immediately with corrective measures. The findings concluded that faulty construction and laying of the pipeline resulted in the failure of the pipeline. On March 23, 1979, Groves filed its notice of appeal which was referred by Interior to the Board of Contract Appeals. Groves never filed a formal appeal although it requested four extensions of time. Groves then filed this action in district court on February 7, 1979.

In its five claims for relief Groves seeks to prevent the Bureau from directing plaintiff to replace or repair the. pipeline and from declaring plaintiff in breach of the contract for failure to perform the work, and declarations that the directives are outside the terms of the pontract and its disputes clause, that no further work is required under the contract or the maintenance warranty of three years and that reimbursement on the basis of reasonable costs plus overhead and profit be awarded plaintiff for all work performed to correct or test the cause of the failure in the pipeline after March 28, 1977, to present.

II

Groves invokes jurisdiction under 28 U.S.C. § 1331 and the Administrative Procedures Act, 5 U.S.C. §§• 701-706, and seeks determination that the Bureau actions are ultra vires. The Administrative Procedures Act alone does not create an independent basis of jurisdiction. “[T]he APA does not afford an implied grant of subject matter jurisdiction permitting federal judicial “review of agency action.” Califano v. Sanders, 430 U.S. 99, 107, 97 S.Ct. 980, 985, 51 L.Ed.2d 792 (1977). Accord Fry Bros. Corp. v. Department of Housing, 614 F.2d 732 (10th Cir. 1980). Federal question jurisdiction under § 1331 presents several problems as well.

In foreclosing the APA as a basis for jurisdiction, the Supreme Court in Sanders relied on the 1976 amendments to § 1331 which removed the amount in controversy requirement for suits against the United States. The Supreme Court concluded that the obvious result of the amendments was that § 1331 provided jurisdiction to review federal agency action “subject only to preclusion-of-review statutes created or re *205 tained by Congress . . . . ’ Califano v. Sanders, 430 U.S. at 105, 97 S.Ct. at 984. 2 At first blush, absent a law precluding judicial review, I could consider an APA claim pursuant to general federal question jurisdiction provided by § 1331. See Kennecott Copper Corp. v. Costle, 572 F.2d 1349, 1356 (9th Cir. 1978).

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Bluebook (online)
495 F. Supp. 201, 28 Cont. Cas. Fed. 80,878, 1980 U.S. Dist. LEXIS 9271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-j-groves-sons-co-v-united-states-cod-1980.