Speco Corp. v. United States

31 Cont. Cas. Fed. 71,137, 2 Cl. Ct. 335, 1983 U.S. Claims LEXIS 1761
CourtUnited States Court of Claims
DecidedApril 29, 1983
DocketNo. 236-83C
StatusPublished
Cited by17 cases

This text of 31 Cont. Cas. Fed. 71,137 (Speco Corp. 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
Speco Corp. v. United States, 31 Cont. Cas. Fed. 71,137, 2 Cl. Ct. 335, 1983 U.S. Claims LEXIS 1761 (cc 1983).

Opinion

MEMORANDUM AND ORDER

MAYER, Judge.

Plaintiff Speco Corporation filed its motions for a temporary restraining order and [336]*336preliminary injunction, and petitioned for declaratory judgment and permanent injunction on April 13, 1983. A hearing was held that day during which the parties suggested the matter may be susceptible to disposition on motions for summary judgment. They requested and the court ordered an expedited briefing schedule. Plaintiff having filed a protest with the General Accounting Office on April 5,1983, the parties also requested and the court issued a call on the Comptroller General for an expedited decision on the bid protest in accordance with 28 U.S.C. § 2507 and RUSCC 34(d). The parties asserted that a Comptroller General’s ruling might, if they agreed, resolve the matter, or at least assist the court in resolution of the case.

Defendant represented that no award of the contract involved here would be made until May 4, 1983, or until the court acts, whichever first occurs. Plaintiff expressed concern that an award might nevertheless be made before May 4 and while the case is pending before the court, thereby perhaps divesting the court of jurisdiction. The court observed that it is inconceivable that when counsel for the United States represents to the court that it will forebear, that it would nevertheless award the contract. Accordingly, the court granted the parties’ request for expedited briefing.

Defendant filed a motion to dismiss for lack of jurisdiction or, alternatively, motion for summary judgment on April 19, 1983. Plaintiff filed its cross-motion on April 27, 1983, and the court received the Comptroller General’s decision in response to its call the same day. Speco Corporation, 83-1 C.P.D.-(Apr. 26, 1983).

A hearing on defendant’s motion to dismiss and motion for summary judgment and plaintiff’s cross-motion was held by telephone conference on April 28, 1983. Although the court had received the Comptroller General’s decision, neither of the parties had as yet seen it. Accordingly, the court read the digest of the decision to them. Both said failure to receive the ruling did not require delay of the hearing. Before the hearing closed, the court announced that it would deny the motions for a temporary restraining order and preliminary injunction and stated its reasons, which are more fully developed here.

Plaintiff is a small corporation of which J.R. Outlaw is the plant manager. It was low bidder on a Defense Department solicitation which was part of a small business set aside. A pre-award survey, see DAR l-905.4(a), determined that plaintiff had the technical ability to perform the contract because of the expertise of its plant manager, Outlaw. After making a responsibility determination, see DAR 1-902, 1-903, 1— 905, however, the contracting officer declined to award the contract to plaintiff because Outlaw lacked integrity. Ascribing Outlaw’s alleged deficiencies to plaintiff, he determined it was nonresponsible. See Mayfair Construction Co., 78-2 C.P.D. ¶ 187 (Sept. 11, 1978).

The contracting officer sent his determination of nonresponsibility to the Small Business Administration (SBA) for review. See 15 U.S.C. § 637(b)(7)(A); DAR 1-705.4. Upon review of the information supplied by the contracting officer and plaintiff, as supplemented by additional data gathered by its own officials, an SBA regional committee affirmed the contracting officer’s decision and declined to issue a Certificate of Competency to plaintiff. See id. This suit to restrain and enjoin the contracting officer from determining it nonresponsible by ascribing alleged wrongs of Outlaw to the corporation followed.

The court need not now further describe the facts or address the merits of plaintiff’s contentions because it lacks authority to enjoin an SBA determination of nonresponsibility manifested by refusal to issue a Certificate of Competency.

A waiver of sovereign immunity by the Congress is strictly construed and not to be expanded by implication. United States v. Testan, 424 U.S. 392, 399, 96 S.Ct. 948, 953, 47 L.Ed.2d 114 (1975); United States v. King, 395 U.S. 1, 4, 89 S.Ct. 1501, 1502, 23 L.Ed.2d 52 (1969); Soriano v. United States, [337]*337352 U.S. 270, 276, 77 S.Ct. 269, 273, 1 L.Ed.2d 306 (1957). This is equally true of the equitable authority of this court under 28 U.S.C. § 1491(a)(3). See United States v. Grimberg, 702 F.2d 1362 at 1373. (Fed.Cir.1983).

With this in mind, the court turns to 15 U.S.C. § 634(b) which states in pertinent part:

“In the performance of, and with respect to, the functions, powers, and duties vested in him by this chapter the Administrator [of the Small Business Administration] may—
(1) sue and be sued in any court of record of a State having general jurisdiction, or in any United States district court, and jurisdiction is conferred upon such district court to determine such controversies without regard to the amount in controversy; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Administrator or his property .... ” (Emphasis added.)

This provision is a congressional waiver of immunity from suit; but it is a limited one, and does not permit the issuance of a temporary restraining order or injunction against the Administrator. Little v. United States, 489 F.Supp. 1012, 1016 (C.D.Ill.1980), aff’d, 645 F.2d 77 (7th Cir.1981); Lloyd Wood Construction Co. v. Sandoval, 318 F.Supp. 1167, 1171 (N.D.Ala.1970), rev’d on other grounds sub nom. Campbell Co. v. Lloyd Wood Construction Co., 446 F.2d 261 (5th Cir.1971). Whatever other relief this court, and perhaps any court, might grant a plaintiff against the Administrator, which at this stage of the proceedings is not at issue, it cannot give injunctive relief.

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Bluebook (online)
31 Cont. Cas. Fed. 71,137, 2 Cl. Ct. 335, 1983 U.S. Claims LEXIS 1761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/speco-corp-v-united-states-cc-1983.