Stone Forest Industries, Inc. v. United States

38 Cont. Cas. Fed. 76,341, 26 Cl. Ct. 410, 1992 U.S. Claims LEXIS 394, 1992 WL 135078
CourtUnited States Court of Claims
DecidedJune 17, 1992
DocketNos. 265-89C, 430-89C, 296-89C and 90-3833C
StatusPublished
Cited by6 cases

This text of 38 Cont. Cas. Fed. 76,341 (Stone Forest Industries, Inc. 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
Stone Forest Industries, Inc. v. United States, 38 Cont. Cas. Fed. 76,341, 26 Cl. Ct. 410, 1992 U.S. Claims LEXIS 394, 1992 WL 135078 (cc 1992).

Opinion

OPINION

LOREN A. SMITH, Chief Judge.

This dispute comes before the court on defendant’s motion to dismiss or, in the alternative, for summary judgment. Plaintiffs, relying on 41 U.S.C. § 601, et seq. and 28 U.S.C. § 1491, are seeking refunds from the Forest Service of the United States Department of Agriculture (Forest Service) for portions of the purchase price paid for various timber sales. At issue is whether plaintiffs’ failure to comply with the contractual time limitation provisions for the submission of claims bars those claims. For the following reasons, the court must grant defendant’s motion.1

[412]*412FACTS

Plaintiffs2 and the Forest Service entered into numerous contracts for the sale of timber from several national forests located in northern California. The Forest Service charged plaintiffs for timber harvested under the contracts at prices based in part on the use of a regional pricing index in accordance with contract provisions. Plaintiffs argue that the index became inadequate and that, under the contracts, plaintiffs are entitled to pay for the timber at flat rates. See Arcata Forest Products Co. v. United States, 18 Cl.Ct. 93 (1989), aff’d, 915 F.2d 1584 (Fed.Cir.1990). Plaintiffs fully paid the price charged by the Forest Service, and seek refunds of the difference between the index adjusted rates and the flat rates in the contract.

The twenty-six contracts at issue here all contained Special Provision C9.21, which provides:

Purchaser claims under this contract shall be submitted in writing to the Forest Supervisor of the National Forest on which the sale is located. He/she is designated the Contracting Officer for the purpose of receiving such claims. Date of receipt by Forest Supervisor shall be considered as the beginning date for determining any interest due on claims.
Purchaser shall file such claim within the following time limits. Failure by Purchaser to submit a claim within these time limits shall relinquish the United States from any and all obligations whatsoever arising under said contract or portions thereof when:3
(c) All other—Purchaser must file any claims not later than 60 days after receipt of Forest Service written notice that sale is closed.

In short, plaintiffs were required under all contracts to submit their claims to the contracting officer within 60 days of receiving written notification that the sale was closed. Defendant asserts that, in most instances, plaintiffs failed to satisfy this provision of the contract. Twenty of the claims were submitted from between 354 days to 2226 days after the 60-day period had expired.4 (Defendant does not argue [413]*413that the remaining six claims are time-barred.) Defendant contends that, because those twenty claims did not comply with the time limitation, they should be dismissed.5

In response, plaintiffs contend that the defendant’s motion should be denied because defendant was on notice that the claims would be filed, and because defendant has not alleged prejudice from plaintiffs’ delay in submitting the claims.

DISCUSSION

I. Contract Disputes Act

A. Contract provisions specifying time limitations

Defendant argues, relying on Do-Well Machine Shop, Inc. v. United States, 870 F.2d 637, 641 (Fed.Cir.1989), that contract provisions that limit the time for submitting claims to contracting officers are fully enforceable and do not violate the Contract Disputes Act, 41 U.S.C. § 601 et seq. (CDA). In Do-Well, the parties had agreed on a one-year limitation period to bring claims relating to terminations for convenience. Plaintiff submitted its claim approximately one and one-half years after the contract had been terminated. The court held that plaintiff’s claim was time-barred. The court stated that the government possessed the same power to contract as that of a private party, and that, if the parties agreed to limit the time to submit claims, the parties were bound by the provision. The fact that the government was the enforcing party should not be a factor in the court's analysis. 870 F.2d at 641.

The court in Do-Well also addressed plaintiff’s argument that the termination clause was inconsistent with the CDA, because it imposed a time limit while the CDA did not, and that therefore the time limit should not be enforced. The Federal Circuit in Do-Well stated:

In the absence of such language concerning the presentation of settlement claims, we are unconvinced that it was [Congress’] intent to preclude parties from agreeing to a limitations period. The congressional silence on the disputed point is more likely construed as a desire that the limitations period be governed by the parties’ intentions, not that it have an indefinite duration unalterable by the parties.

[414]*414Id. Defendant here argues that the time limitation period in this case is analogous. The parties freely agreed to limit the time for submission of claims. Because plaintiffs failed to submit their claims as required under the contract, contends defendant, the claims must be dismissed. For the reasons set forth more fully below, the court must agree that the time limitations provision is fully enforceable. Where plaintiffs failed to submit their claims within the 60-day period required under the contract, those claims are time-barred.6 The rule of law stated in Do-Well is binding on this court.

Plaintiffs argue that Do-Well is not applicable here, because that case did not deal with the issues of “clarity of expression, lack of mutuality, prior notice of claims, or prejudice.” Plaintiffs’ Response at 15. These issues, as well as other arguments made by plaintiffs, thus must be addressed.

1. Ambiguity of contract language

The consequences of failing to comply with the time limitation provision are explicit in the contract language:

Failure by Purchaser to submit a claim within these time limits shall relinquish the United States from any and all obligations whatsoever arising under said contract____

Provision C9.21. Plaintiffs assert that this language is ambiguous, and therefore cannot be enforced. However, in response to the court’s questions at oral argument, plaintiffs’ counsel was unable to provide any reasonable interpretation of the language other than that proposed by defendant’s counsel—if purchasers fail to submit their claims within the prescribed period, the government is released from all obligations to the purchasers. The court finds this interpretation persuasive. See Ludka v. United States, 24 Cl.Ct. 544 (1991).

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Cite This Page — Counsel Stack

Bluebook (online)
38 Cont. Cas. Fed. 76,341, 26 Cl. Ct. 410, 1992 U.S. Claims LEXIS 394, 1992 WL 135078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-forest-industries-inc-v-united-states-cc-1992.