Sodexho Marriott Management, Inc. v. United States

61 Fed. Cl. 229, 2004 U.S. Claims LEXIS 172, 2004 WL 1570150
United States Court of Federal Claims·Decided July 2, 2004·No. No. 99-765C·Published·Cited by 7 cases

Opinion

OPINION

YOCK, Senior Judge.

Sodexho Marriott Management, Inc., f/k/a Marriott Management Services (“Marriott”), filed suit against the United States claiming entitlement to reimbursement for expenditures totaling $127,576.15. Marriott alleges that it is owed this money under a food service contract it entered into on December 1, 1991, with the Morale, Welfare and Recreation (“MWR”) 0160, Marine Corps Recruit Depot/Eastern Recruiting Region, Parris Island, South Carolina (“Parris Island MWR”). Specifically, Marriott asserts that it is entitled to reimbursement for costs incurred for the installation of fixtures in the building in which the relevant food services operation was located.

On September 14, 1999, Marriott filed its two-count Complaint alleging that it is legally entitled to this money either under its express contract with the Parris Island MWR (Count I: Breach of Contract) or, in the alternative, as compensation for a taking (Count II: Taking Without Just Compensation). Both counts seek monetary damages, prejudgment interest, reasonable attorney fees, and costs. The Complaint asserts that this Court has jurisdiction over those claims under the Contract Disputes Act (“CDA”) and the Tucker Act. On March 31, 2000, the defendant filed Defendant’s Partial Motion to Dismiss and Motion for Summary Judgement. On February 21, 2001, after full briefing and oral argument, this Court granted the defendant’s motion to the extent that it dismissed the plaintiffs Fifth Amendment takings claim. Sodexho Marriott Mgmt., Inc., f/k/a Marriott Mgmt. Servs., No. 99-765C (Fed.Cl. Feb.21, 2001). This Court found that the takings claim was “merely a recharacterization of the breach of contract claim” and determined that the plaintiffs remedy lies, if at all, in contract and not the Fifth Amendment. Id. at 20-22.

On September 23, 2002, the United States Court of Appeals for the Federal Circuit decided Pacrim Pizza Co. v. Pirie, 304 F.3d 1291 (Fed.Cir.2002), which addressed the issue of whether or not the CDA applies to contracts entered into with an MWR program or activity.

On October 2, 2003, the defendant filed Defendant’s Motion to Dismiss Plaintiffs Surviving Claim. The plaintiff responded on December 17, 2003, with Plaintiffs Brief in Opposition to Defendant’s Motion to Dismiss and accompanying Motion to Transfer. On January 14, 2004, Defendant’s Reply to Plaintiffs Opposition to Defendant’s Motion to Dismiss was filed.

On February 25, 2004, the plaintiff filed Plaintiffs Motion to Reinstate Claim. In that motion, the plaintiff requests, on equitable grounds, that its previously dismissed Fifth Amendment takings claim be reinstated if this Court finds it lacks jurisdiction over the plaintiffs remaining breach of contract claim. On March 24, 2004, the defendant filed Defendant’s Response to Plaintiffs Motion to Reinstate Claim in opposition arguing that there is no basis for reinstating the plaintiffs takings claim.

On May 5, 2004, the plaintiff filed, by leave of this Court, its Supplemental Brief in Response to Government’s Motion to Dismiss. The plaintiff asserts that the Federal Circuit erred in Pacrim Pizza in finding that an MWR holds immunity from suit under the [231] nonappropriated funds doctrine and in holding that the CDA is inapplicable to contract disputes against MWR activities and programs like the Parris Island MWR. On June 3, 2004, the defendant filed Defendant’s Sur-Reply to Plaintiffs Supplemental Brief and Supplemental Appendix in reply to the plaintiffs arguments and in further support of its pending motion to dismiss.

All of these motions have been fully briefed, and the Court finds oral argument is unnecessary.

For the reasons set forth herein, this Court grants Defendant’s Motion to Dismiss Plaintiffs Surviving Claim and denies both Plaintiffs Motion to Transfer and Plaintiffs Motion to Reinstate Claim. Specifically, the Court holds that dismissal is required because the nonappropriated funds doctrine bars it from having jurisdiction over the plaintiffs claim whether asserted as a breach of contract or a taking. This is, in part, based upon this Court’s findings that the Pacrim Pizza decision is controlling and must be applied retroactively. Further, this Court declines to transfer the action to the District Court of South Carolina because it finds that a transfer would not be in the interest of justice.

Factual Background1

The facts are uncontested and are drawn from the Complaint, Defendant’s Motion to Dismiss Plaintiffs Surviving Claim, Plaintiffs Brief in Opposition, Defendant’s Reply, the plaintiffs Supplemental Brief in Response to Government’s Motion to Dismiss, Defendant’s Sur-Reply to Plaintiffs Supplemental Brief and Supplemental Appendix, and the appendices attached thereto.

On December 1, 1991, the Parris Island MWR entered into a food service contract (the “Contract”) with Marriott. The Contract was for the provision of a food service operation at the Marine Corps Recruit Depot at Parris Island, South Carolina. The Contract informed Marriott that the Parris Island MWR was a nonappropriated fund instrumentality (“NAFI”).

The Contract was terminated in 1996 through a bilateral modification, Modification No. 2. On July 22, 1998, Marriott submitted a certified claim for $127,576.15 to the contracting officer and requested a final decision. On September 18, 1998, the contracting officer issued a final decision denying Marriott’s claim. On September 14, 1999, the plaintiff filed its Complaint in the United States Court of Federal Claims. Marriott complains that the Parris Island MWR breached the Contract or committed an unconstitutional taking by refusing to reimburse Marriott for $127,576.15 expended for the installation of fixtures in the building where the food court was located.

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Sodexho Marriott Management, Inc. v. United States, 61 Fed. Cl. 229, 2004 U.S. Claims LEXIS 172, 2004 WL 1570150 (uscfc 2004).

61 Fed. Cl. 229 (Sodexho Marriott Management, Inc. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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