Scott Timber Co. v. United States

42 Cont. Cas. Fed. 77,312, 40 Fed. Cl. 492, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21149, 1998 U.S. Claims LEXIS 149, 1998 WL 113938
CourtUnited States Court of Federal Claims
DecidedMarch 12, 1998
DocketNos. 94-784C, 96-204C
StatusPublished
Cited by20 cases

This text of 42 Cont. Cas. Fed. 77,312 (Scott Timber Co. 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
Scott Timber Co. v. United States, 42 Cont. Cas. Fed. 77,312, 40 Fed. Cl. 492, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21149, 1998 U.S. Claims LEXIS 149, 1998 WL 113938 (uscfc 1998).

Opinion

OPINION

MARGOLIS, Judge.

This contract case is currently before the Court on plaintiffs motion for partial summary judgment on the issue of liability, and defendant’s cross-motion for summary judgment. Plaintiff argues that the government lacked contractual authority to suspend plaintiffs timber harvesting operations under the contracts at issue in this ease, and therefore the government is liable to plaintiff for breach of contract. Defendant argues that it did not breach the contracts at issue because, under the express terms of those contracts, the government reserved the right to unilaterally suspend plaintiffs operations. Alternatively, defendant argues that the government is shielded from liability for any alleged breach of the contracts under the sovereign acts doctrine.

After considering the arguments presented by both parties in their briefs and at oral argument, the Court finds that the Forest Service did possess contractual authority to suspend plaintiffs performance under each of the contracts at issue. Therefore, plaintiffs motion for summary judgment on the issue of liability must be denied. However, there is a genuine issue of material fact as to whether the Forest Service acted reasonably in exercising its authority to suspend the contracts. Therefore, defendant’s motion for summary judgment must also be denied.

BACKGROUND

These consolidated cases concern 11 separate contracts that were made between plaintiff, Scott Timber Company (“Scott”), and defendant, the United States, acting through the United States Department of Agriculture, United States Forest Service (“Forest Service”), for the sale and harvest of timber in the Siskiyou and Siuslaw National Forests in Oregon. The sales at issue in this case were specifically authorized by Section 318 of the Department of the Interior Appropriations Act of 1990, Pub.L. No. 101-121, 103 Stat. 741 (1989), and are therefore commonly referred to as “Section 318 sales.” By enacting Section 318 — a law that was known as the “Northwest Timber Compromise” — Congress mandated that “[t]he Forest Service shall offer ... an aggregate timber sale level of seven billion seven hundred million board feet of net merchantable timber from the national forests of Oregon and Washington for fiscal years 1989 and 1990.” Pub.L. No. 101-121,103 Stat. 701, 745-50.

After conducting environmental analyses of the Section 318 sales at issue-in this ease, the Forest Service issued “Findings of No Significant Impact” (“FONSIs”) for each of the sale areas. Subsequently, the Forest Service solicited competitive bids for the sales between February 21, 1990, and September 10, 1990. Scott Timber was the high [495]*495bidder on 11 sales, and as a result was awarded the following contracts:

Timber Sale Area Contract No. Estimated Volume1 Date of Award
Toastberry 073842 3,820 MBF 7/3/90
Father Oak 073784 5,060 MBF 4/9/90
Beamer 712 085001 8,900 MBF 7/2/90
Formader 717 083410 2,400 MBF 7/20/90
Indian Hook 085126 15,200 MBF 9/17/90
Cat Track 074188 9,430 MBF 9/26/90
Maria Skyline 085209 12,700 MBF 9/25/90
Formader 103 085068 8,300 MBF 8/20/90
Skywalker 085118 7,700 MBF 9/10/90
Wapiti 305 083428 2,300 MBF 10/16/90
Raspberry 074121 12,900 MBF 9/26/90

For each contract that was awarded, Scott submitted, and the Forest Service approved, a “General Plan of Operation” that outlined Scott’s schedule of operations in each of the timber sale areas.

Despite the Forest Service’s award of the contracts and approval of Scott Timber’s operating plans, the Forest Service suspended Scott’s performance under all of the contracts on or about September 17, 1992, before Scott could begin harvesting timber in earnest. The decision to suspend Scott’s operations was prompted by concerns over the protection of a small, robin-like bird known as the “marbled murrelet” (Brachyramphus marmoratus). More specifically, the Forest Service’s decision was prompted by a Temporary Restraining Order (“TRO”), issued by Judge Barbara Rothstein of the United States District Court for the Western District of Washington, that prohibited the logging of any marbled murrelet habitat on the Siskiyou and Siuslaw National Forests. See Marbled Murrelet v. Lujan, No. C91-522R (W.D.Wash. September 16,1992).

Concerns about the protection of the marbled murrelet and its habitat had apparently been raised several years prior to the district court’s issuance of the TRO and the Forest Service’s resulting decision to suspend plaintiffs contracts. On January 12, 1988, the National Audubon Society and 32 of its chapters in Washington, Oregon, and California filed a petition with the United States Fish and Wildlife Service (“FWS”), requesting that FWS list the murrelet as a “threatened species.” On October 17,1988, FWS accepted the Audubon Society’s petition, and stated that “the petition presented substantial information indicating that [listing the murrelet as a threatened species] may be warranted.” 53 Fed.Reg. 40,479 (Oct. 17, 1988). FWS invited public comments on the possible listing of the murrelet until December 1, 1988.

On January 6, 1989, FWS issued a revised notice identifying the marbled murrelet as a Category 2 taxa, that is, a taxa for which information then in the possession of FWS indicated that “proposing to list as endangered or threatened is possibly appropriate.” 54 Fed.Reg. 554 (Jan. 6,1989). The January 6 notice also “eneourage[d] Federal agencies and other appropriate parties to take these taxa into account in environmental planning.” Id. By March 1989, the Forest Service had identified the marbled murrelet as a “sensitive species” in Region 6, an area that includes the states of Oregon and Washington. Other federal and state agencies, including the United States Bureau of Land Management, the Washington Department of Wildlife, and the Oregon Department of Fish and Wildlife, had also listed the murrelet as a sensitive species. In addition, the California Department of Fish and Game had listed the murrelet as a “species of special concern.”

Despite these actions, by April 1991 FWS had still not acted upon the Audubon Society’s January 12, 1988 petition to list the marbled murrelet as a threatened species. Therefore, on April 17,1991, several chapters of the Audubon Society filed suit against [496]*496FWS in the United States District Court for the Western District of Washington, seeking to compel FWS to make a final decision whether or not to list the murrelet. See Marbled Murrelet v. Lujan, No. C91-522 (W.D. Wash, filed April 17, 1991) (“murrelet listing suit”). Following the institution of the murrelet listing suit, FWS published a notice in the Federal Register proposing to list the marbled murrelet as a threatened species. See 56 Fed.Reg. 28,362 (June 20, 1991). On July 29, 1992, FWS issued another notice in the Federal Register extending the deadline for making a final determination on the proposal to add the murrelet to the list of threatened species until December 20, 1992. See 57 Fed.Reg. 33,478 (July 29,1992).

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42 Cont. Cas. Fed. 77,312, 40 Fed. Cl. 492, 28 Envtl. L. Rep. (Envtl. Law Inst.) 21149, 1998 U.S. Claims LEXIS 149, 1998 WL 113938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-timber-co-v-united-states-uscfc-1998.