Seaboard Lumber Co. v. United States

34 Cont. Cas. Fed. 75,487, 15 Cl. Ct. 366, 1988 U.S. Claims LEXIS 76, 1988 WL 102125
CourtUnited States Court of Claims
DecidedMay 3, 1988
DocketNos. 610-84C, 632-84C, 677-84C, 33-85C, 85-85C, 95-85C, 423-85C, 664-85C, 37-86C, 38-86C, 135-86C, 364-86C, 442-86C, 553-86C, 780-86C, 64-87C, 363-87C, 285-87C, 435-87C, 561-87C, 589-87C, 681-87C, 750-87C, 800-87C, 28-88C, 54-88C, 68-88C, 69-88C, 70-88C and 71-88C
StatusPublished
Cited by10 cases

This text of 34 Cont. Cas. Fed. 75,487 (Seaboard Lumber Co. 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
Seaboard Lumber Co. v. United States, 34 Cont. Cas. Fed. 75,487, 15 Cl. Ct. 366, 1988 U.S. Claims LEXIS 76, 1988 WL 102125 (cc 1988).

Opinion

OPINION

SMITH, Chief Judge.

These consolidated cases, through plaintiffs’ motion to dismiss defendant’s counterclaims, call into question the constitutionality of the Contract Disputes Act of 1978 (CDA)1 as amended by the Federal Courts Improvement Act of 1982 (FCIA).2 The main issue presented in plaintiffs’ motion to dismiss is whether the Claims Court, an Article I tribunal, has jurisdiction to determine the defendant’s counterclaims3 which, according to plaintiffs, are common law breach of contract claims properly lodged only in an Article III tribunal. The plaintiffs’ second and related issue is whether the Seventh Amendment to the Constitution requires a jury trial of the defendant’s counterclaims. For the reasons stated below, we hold that the Claims Court has jurisdiction over the counterclaims and that the Seventh Amendment does not require that such counterclaims be tried before a jury.

Facts

The facts are not complicated. The underlying contracts are timber sales contracts between various contractors and the United States Forest Service. Under each of the contracts in question, the plaintiffs were required to remove a certain amount of timber by a certain date. According to the government, the plaintiffs have each failed to meet the requirements of their respective contracts. Thus, the government has determined them to be in default and has sought to recover damages from the plaintiffs through a contracting officer’s final decision adverse to them.

The majority of the contracts in question were executed after the March 1, 1979, effective date of the CDA, but before the October 1, 1982, effective date of the FCIA.4 The contracts each include a disputes clause which in substance mirrors the requirements of the CDA. The disputes clause provides in part:

C9.2 (disputes).
(a) This contract is subject to the Contract Disputes Act of 1978 (Pub.L. 95-563).
(b) Except as provided in the Act, all disputes arising under or relating to this contract shall be resolved in accordance with this provision.
(c) iii.... A claim by the government against the contractor shall be subject to a decision by the contracting officer.
[368]*368(f) The contracting officer’s decision shall be final unless the contractor appeals or files a suit as provided in the Act.

The CDA, incorporated into the contract by the disputes clause, currently provides that a contractor has two options when appealing a final decision of the contracting officer. The contractor may appeal within 90 days to the proper Board of Contract Appeals, 41 U.S.C. § 606 (1982), or within 12 months may file a direct access appeal in the United States Claims Court, 41 U.S.C. § 609(a)(3) (1982). However, at the time most of these contracts were entered into, the contractor had the option of a direct access appeal to the Article III Court of Claims rather than the Article I Claims Court.5

Plaintiffs have complied with the requirements of the CDA and are now appealing for trial de novo the contracting officer’s decision that they are in breach of contract. In this court the United States pursues its breach of contract claims through counterclaims against the various plaintiffs.

Discussion

A. Does the Claims Court have the power to review the constitutionality of a statute granting jurisdiction?

A preliminary question raised by the plaintiffs in their reply brief is whether this court has the power to determine that the CDA, as amended by the FCIA, is unconstitutional as applied to the plaintiffs in this case. For support for the proposition that the court cannot question the constitutionality of statutes granting the court jurisdiction, plaintiffs cite Johnson v. Robison, 415 U.S. 361, 94 S.Ct. 1160, 39 L.Ed.2d 389 (1974), and cases cited in that opinion. While, as Johnson noted, an administrative agency generally does not have the jurisdiction to make decisions regarding the constitutionality of a statute, it is also true that this court cannot be construed to be an administrative agency. On this point the Court of Claims stated, after recognizing that the Supreme Court in Williams v. United States, 289 U.S. 553, 53 S.Ct. 751, 77 L.Ed. 1372 (1933) had a few years earlier ruled it to be a legislative court:

[T]his court is a court, in fact as well as in name, and ... its decisions are judicial decisions. If it were not, the Supreme Court would not review its decisions, as it does, ... And we would suppose, unless the decision in the Williams case means to the contrary, that we are no more acting as a mere agent or arm of the legislature, when we decide our cases in the first instance, than is the Supreme Court, when it, under the appellate procedure prescribed in the statute decides them finally. Each court is assigned its place in the process of doing justice between the United States and those who have claims against it. That is the major portion of this court’s assignment. It is only a small part of the Supreme Court’s assignment. But one, when it is performing that assignment must be acting judicially, if the other is.

Pope v. United States, 53 F.Supp. 570, 100 Ct.Cl. 375, 383, rev’d on other grounds,6 323 U.S. 1, 65 S.Ct. 16, 89 L.Ed. 3 (1944) (footnotes omitted). Therefore, eases such as Johnson do not apply to an Article I court. Furthermore, this court has always exercised the power to determine its jurisdiction even when that consideration involved the constitutionality of a statute. United States v. La Abra Silver Mine, 29 Ct.Cl. 432 (1894) (opinion overruling defendant’s demurrer on the question of jurisdiction) 32 Ct.Cl. 462 (1897) (the court’s decision on the merits), aff'd, 175 U.S. 423, [369]*36920 S.Ct. 168, 44 L.Ed. 223 (1899); Ingalls Shipbuilding v. United States, 13 Cl.Ct. 757 (1987). Additionally, as noted in In-galls “the Claims Court Judges take the same oath to exercise their duties consistently with the Constitution, which Chief Justice Marshall referred to in Marbury v. Madison, 5 U.S. (1 Cranch) 137, 180, 2 L.Ed. 60 (1803).” Ingalls, 13 Cl.Ct. at 761. Thus, in order to comply with the oath, the court must fail to give effect to unconstitutional statutes and adjudicate only on those which it finds to be constitutional.

B. Do these cases require an exercise of the Article III judicial power of the United States?

1. Federal contract law actions are not suits at common law.

These cases present yet another chapter in the continuing saga of Justice Marshall’s distinction between “legislative” and “constitutional” courts. See American Ins. Co. v. Canter, 26 U.S. (1 Pet.) 511, 7 L.Ed. 242 (1828).

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Bluebook (online)
34 Cont. Cas. Fed. 75,487, 15 Cl. Ct. 366, 1988 U.S. Claims LEXIS 76, 1988 WL 102125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaboard-lumber-co-v-united-states-cc-1988.