Scott Timber Co. v. United States

65 Fed. Cl. 131, 2005 U.S. Claims LEXIS 143
United States Court of Federal Claims·Decided April 14, 2005·No. Nos. 94-784C, 96-204C·Published·Cited by 1 cases

Opinion

OPINION AND ORDER

GEORGE W. MILLER, Judge.

On February 18, 2005, defendant filed a Motion for Reconsideration. Defendant sought reconsideration of the Court’s decision in Scott Timber Co. v. United States, 64 Fed.Cl. 130 (2005) (“Scott V’), denying in part defendant’s motion for summary judgment as to damages in Case No. 94-784C and defendant’s cross-motion for summary judgment as to damages in Case No. 96-204C. Defendant sought reconsideration of the Court’s holding that the doctrine of constructive termination did not apply to the timber sale contracts at issue in these consolidated cases. Pursuant to the Court’s order of March 3, 2005, plaintiff filed an opposition on March 18, 2005. For the reasons set forth below, defendant’s motion for reconsideration is DENIED.

Motions for reconsideration are governed by Rule 59 of the Rules of the Court of Federal Claims (“RCFC”), and are granted at the sole discretion of the court — not as a matter of right. See Yuba Natural Resources, Inc. v. United States, 904 F.2d 1577, 1583 (Fed.Cir.1990); Fru-Con Constr. Corp. v. United States, 44 Fed.Cl. 298, 300 (1999), aff'd, 250 F.3d 762 (Fed.Cir.2000). A motion for reconsideration pursuant to RCFC 59 “ ‘is not intended to give an unhappy litigant an additional chance to sway the court.’” Bishop v. United States, 26 Cl.Ct. 281, 286 (1992) (quoting Circle K Corp. v. United States, 23 Cl.Ct. 659, 664-65 (1991)).

On a motion for reconsideration, “[a] party must demonstrate extraordinary circumstances that justify relief to advance its claim and overcome the court’s natural skepticism regarding such motions. Anchor Sav. Bank, FSB v. United States, 63 Fed.Cl. 199, 200 (2004) (citing Fru-Con Constr. Corp., 44 Fed.Cl. at 300). These ‘extraordinary circumstances’ may be present if the movant is able to show: ‘(1) that an intervening change in the controlling law has occurred; (2) that previously unavailable evidence is now available; or (3) that the motion is necessary to prevent manifest injustice.’ ” Id. (quoting Fru-Con Constr. Corp., 44 Fed.Cl. at 301); see Bishop, 26 Cl.Ct. at 286. “If that is the case and the movant can demonstrate that these circumstances contributed to a ‘manifest error of law, or mistake of fact’ in the court’s prior ruling, only then may reconsideration be proper.” Id. (quoting Bishop, 26 Cl.Ct. at 286).

The issue of constructive termination was fully argued in the parties’ briefs and during oral argument. See Def. Mot. for Summ. J., Case No. 94-784C, at 32-39; PL Opp. at 29-38; Def. Reply at 14-17; Pl. Surreply at 1-6; Transcript of Proceedings, Scott Timber Inc. v. United States, (Fed.Cl. July 15, 2004) at 8-11, 29-38, 40, 46, 58, 60-68, 89-94; Def. Cross-Mot. for Summ. J., Case No. 96-204C, at 7-8; Pl. Opp. at 25-38; Def. Reply at 9-17; PL Surreply at 1-9; Def. Sur-Surreply at 1-4. Defendant, however, argues that the Court made a manifest error of law in its opinion and order of February 8, 2005:

The Court’s statement that constructive termination apples [sic] Vhen the Government attempts to terminate a contract, but fails to do so for a legally sufficient reason’ fails to recognizes [sic] that the controlling case law establishes that the doctrine of constructive termination applies regardless of whether the Government has attempted to terminate contracts.

Def. Mot. for Reconsideration at 2.

Defendant argues that the Supreme Court in College Point Boat Corp. v. United States, 267 U.S. 12, 45 S.Ct. 199, 69 L.Ed. 490 (1925), approved the constructive termination of a contract “in the absence of any attempt by the Government to terminate the contract unilaterally prior to the assertion of the doctrine of constructive termination.” Def. Mot. for Reconsideration at 3. College Point does not support defendant’s argument. The Supreme Court recounted the facts of that case as follows:

On October 25, 1918, the College Point Boat Corporation agreed to manufacture for the Navy Department 2,000 collision mats. The United States agreed to pay therefor $641,200, and to supply the required canvas. On November 11,1918, the [133] Armistice was signed. Soon after, the Navy Department informed the Corporation that the mats would probably not be needed, suggested that it stop operations, and asked it to submit a proposition for cancellation of the contract. This notification and request were received before the process of manufacture had been begun; but the Corporation had expended large sums in necessary preparations. Negotiations for settlement followed. They extended over nearly eight months and proved inconclusive. Without prejudice to the rights of either party, the United States made a partial settlement by taking over at cost raw materials which the Corporation had purchased or contracted for.

College Point, 267 U.S. at 13-14, 45 S.Ct. 199 (emphasis added). The Navy in College Point clearly attempted to cancel the contract. It suggested that the contractor stop its operations and, thereafter, “the parties negotiated, seeking to find a basis on which they could agree to cancel and liquidate the obligation of the Government.” Id. The Court held that “[a]s [the Navy’s] efforts to procure consent to cancel proved futile, stopping the work was an anticipatory breach.” Id. The Government failed to properly terminate the contract in College Point, but it is clear that the Government attempted to terminate the contract. As articulated by the Court of Claims in John Reiner & Co. v. United States, 163 Ct.Cl. 381, 325 F.2d 438 (1963), cert. denied, 377 U.S. 931, 84 S.Ct. 1332, 12 L.Ed.2d 295 (1964), in College Point, the “defendant purported to cancel a Navy contract in mid-stream, without benefit of any power of termination reserved in the agreement and without knowledge that the Navy had such authority under a World War I statute.” Id. at 443.

This Court noted in its Opinion and Order of February 8, 2005, that the instant cases are distinguishable from College Point. First, unlike the Department of the Navy in College Point, the Forest Service was aware that it had a right to cancel the timber sale contracts pursuant to Clause C8.2. Scott, 64 Fed.Cl. 130, 132, 2005 U.S. Claims LEXIS 35 *38. Second, unlike the Navy in College Point, the Forest Service made no attempt to cancel the timber sale contracts. The Forest Service simply continued its suspension of the contracts.

Free access — add to your briefcase to read the full text and ask questions with AI

Scott Timber Co. v. United States, 65 Fed. Cl. 131, 2005 U.S. Claims LEXIS 143 (uscfc 2005).

65 Fed. Cl. 131 (Scott Timber Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Florida Power & Light Co. v. United States
66 Fed. Cl. 93 (Federal Claims, 2005)