Sarang Corp. v. United States

76 Fed. Cl. 560, 2007 U.S. Claims LEXIS 156, 2007 WL 1530371
CourtUnited States Court of Federal Claims
DecidedMay 25, 2007
DocketNo. 06-506C
StatusPublished
Cited by9 cases

This text of 76 Fed. Cl. 560 (Sarang Corp. 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
Sarang Corp. v. United States, 76 Fed. Cl. 560, 2007 U.S. Claims LEXIS 156, 2007 WL 1530371 (uscfc 2007).

Opinion

MEMORANDUM OPINION AND ORDER

BRADEN, Judge.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY.1

On May 11, 2002, Plaintiff and the United States Department of Agriculture Forest Service (“Forest Service” or “Government”) entered into Contract No.- 50-3434-1-1524 requiring Plaintiff to perform certain construction-related services (“Contract”). See Am. Compl. II5; see also Gov’t Mot. at 1. On March 17, 2003, Plaintiff submitted an Application for Payment of $258,993 to the contracting officer (“CO”). See App. A at 1. On June 25, 2003, Plaintiff submitted a Request for Equitable Adjustment to the CO for $198,263 for work performed outside the scope of the Contract, as a result of changes alleged to have been directed by the Forest Service. See App. B at 1 (“We [Plaintiff] request additional sums ... incurred due to changes in the scope of work as directed by the COR and extra costs associated with changes in field conditions.”). On December 2, 2003, the CO signed the Certificate for Payment to Plaintiff in the amount of $258,993, but withheld $25,000, because of a continuing dispute over Plaintiffs June 25, 2003 Request for Equitable Adjustment. See App. A at 1 (CO noted on December 2, 2003 Certificate for Payment; “Work is 100% complete. Withholding of $25,000 pending final calculation of request for adjustment including late penalty.”).

On July 19, 2005, the CO sent Plaintiff a letter rejecting the June 25, 2003 “certified claim,” but proposing a settlement in the amount of $50,886: See App. B at 5 (“As indicated in my letter dated May 11, 2005, I am in receipt of your certified claim in the amount of $198,263.00____ I am willing to offer you $50,886.00 in full settlement of your claim.”) On October 14, 2005, the parties entered into the Settlement Agreement for Plaintiffs June 25, 2003 Request for Equitable Adjustment, whereby the Forest Service agreed to pay $50,886 as “full accord and satisfaction of all amounts to which [Plaintiff] is entitled to in payment of the Request for Equitable Adjustment^]” Id. at 3. The Forest Service, however, did not immediately remit the settlement amount of $50,886, and/or the $25,000 balance on the Contract. See Am. Compl. H 7; see also Gov’t Mot. at 2.

On July 7, 2006, Plaintiff filed a Complaint in the United States Court of Federal Claims, seeking $25,000 for breach of the Contract and $50,886 for breach of the Settlement Agreement, pursuant to Federal Acquisition Regulation (“FAR”) § 33.210.2 See Compl. Hf 8, 9. In addition, the Complaint requested penalty interest, pursuant to the [562]*562Prompt Payment Act (“PPA”), 31 U.S.C. § 3901 et seq., and FAR § 33.208, as well as attorney fees and costs, pursuant to the Equal Access to Justice Act, 28 U.S.C. § 2412. See Compl. at 4 (Prayer for Relief).

On July 21, 2006, the Forest Service paid Plaintiff $25,000 for the balance due on the Contract. See App. C; see also Am. Compl. HH 6-7. On August 15, 2006, the Forest Service paid Plaintiff $50,886 to satisfy the Settlement Agreement. Id.

On October 13, 2006, Plaintiff filed a Motion to Amend the July 7, 2006 Complaint, that the court granted. The Amended Complaint3 seeks a declaratory judgment that the Forest Service’s payments to Plaintiff were “late” as defined by the PPA. See Am. Compl. at 5 (Prayer for Relief). The Amended Complaint also seeks an award of late payment interest in the amount of “$2,683.00 under the first cause of action” and “$1,756.55 under the second cause of action,” pursuant to the PPA and FAR § 33.208. Id. at 5-6.4

On January 8, 2007, the Government filed a Motion to Dismiss for lack of subject matter jurisdiction and failure to state a claim. On February 15, 2007, Plaintiff filed a Response. On February 20, 2007, Plaintiff filed a Motion to Correct the Response, that the court granted. On March 5, 2007, Plaintiff filed the Corrected Response. On April 18, 2007, the Government filed a Reply.

II. DISCUSSION.

A. Jurisdiction.

The United States Court of Federal Claims has “jurisdiction to render judgment upon any claim against the United States founded either upon the Constitution, or any Act of Congress or any regulation of an executive department, or upon any express or implied contract with the United States, or for liquidated or unliquidated damages in cases not sounding in tort.” 28 U.S.C. § 1491(a)(1). The Tucker Act, however, is “only a jurisdictional statute; it does not create any substantive right enforceable against the United States for money damages.” United States v. Mitchell, 445 U.S. 535, 538, 100 S.Ct. 1349, 63 L.Ed.2d 607 (1980) (quoting United States v. Testan, 424 U.S. 392, 398, 96 S.Ct. 948, 47 L.Ed.2d 114 (1976)). Therefore, in order to come within the jurisdictional reach of the Tucker Act, a plaintiff must identify and plead a constitutional provision, federal statute, independent contractual relationship, and/or executive agency regulation that provides a substantive right to money damages. See Todd v. United States, 386 F.3d 1091, 1094 (Fed.Cir.2004) (“jurisdiction under the Tucker Act requires the litigant to identify a substantive right for money damages against the United States separate from the Tucker Act.”).

1. The United States Court Of Federal Claims Has Jurisdiction To Award Interest.

a. Under The Contract Disputes Act, 41 U.S.C. § 611.

The United States Court of Federal Claims has “jurisdiction to render judgment upon any claim by or against, or dispute with, a contractor arising under ... the Contract Disputes Act of 1978 [41 U.S.C. § 601, et seq.].” 28 U.S.C. § 1491(a)(2); see also 41 U.S.C. § 609(a) (“Except as provided in paragraph (2), and in lieu of appealing the decision of the contracting officer under section 605 of this title to an agency board, a contractor may bring an action directly on the claim in the United States Court of Federal Claims, notwithstanding any contract provision, regulation, or rule of law to the contrary.”). Although it is well established that “ ‘interest cannot be recovered in a suit against the [Gjovernment in the absence of an express waiver of sovereign immunity [563]*563from an award of interest,’ ” Congress has authorized such a waiver under the Contract Disputes Act (“CDA”), 41 U.S.C. § 611. Richlin Sec. Serv. Co.

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76 Fed. Cl. 560, 2007 U.S. Claims LEXIS 156, 2007 WL 1530371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sarang-corp-v-united-states-uscfc-2007.