Structural Concepts, Inc. v. United States

103 Fed. Cl. 84, 2012 U.S. Claims LEXIS 29, 2012 WL 184034
CourtUnited States Court of Federal Claims
DecidedJanuary 24, 2012
DocketNo. 04-1141 C
StatusPublished

This text of 103 Fed. Cl. 84 (Structural Concepts, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Structural Concepts, Inc. v. United States, 103 Fed. Cl. 84, 2012 U.S. Claims LEXIS 29, 2012 WL 184034 (uscfc 2012).

Opinion

OPINION

BUSH, Judge.

Before the court are the parties’ cross-motions for partial summary judgment, filed pursuant to Rule 56 of the Rules of the United States Court of Federal Claims (RCFC). The motions have been fully briefed, and oral argument was neither requested by the parties nor deemed necessary by the court. For the reasons set forth below, plaintiffs and defendant’s motions are denied.

BACKGROUND1

Plaintiff Structural Concepts, Inc. (SCI) and the United States Air Force entered into [85]*85a contract in 1999 to alter and repair a building on McGuire Air Force Base (McGuire AFB). Compl. ¶¶ 3, 7; Def.’s Resp. to Pl.’s Facts ¶ 3. In 2004, plaintiff filed a claim with the contracting officer for approximately $1.2 million, asserting that it was owed additional compensation due to government-caused delay and other actions by the government. Compl. ¶¶ 11-12, 17. According to plaintiff, the Air Force assessed liquidated damages in the amount of $776,448 against SCI “as a result of SCI’s claim [for $1.2 million].” Id. ¶ 13. The contracting officer denied SCI’s claim and assessed liquidated damages against SCI in the amount of $776,448. Id. ¶¶ 15-16, Exs. A-B.

In July of 2004 plaintiff filed its complaint in this court, asserting a claim against the United States for approximately $1.2 million, and requesting remission of the liquidated damages assessed against SCI by the Air Force. Compl. at 4. The government counterclaimed for $776,448 in liquidated damages. Def.’s Answer ¶¶ 22, 27. Once discovery and unsuccessful settlement negotiations were concluded, the parties moved for partial summary judgment as to the assessment of liquidated damages.

Performance of Contract No. F28609-99-0005, for alterations to Building 2704 on McGuire AFB, did not go smoothly. Although the contract appears to have been awarded in November 1998, the notice to proceed did not issue until June 30, 1999. Pl.’s Facts ¶¶ 3, 8. The project was scheduled to be performed in 360 calendar days, so that it would be completed by June 24, 2000. Id. ¶¶ 8, 11. In fact, project completion did not occur until late 2003 or early 2004.

In the complaint, plaintiff asserts that the government delayed acceptance of SCI’s bid, delayed the start of performance, provided defective specifications, plans and drawings, delayed and suspended SCI’s work on the project, and failed to process payments to SCI in a timely fashion. Compl. ¶ 9. Defendant concedes that the government suspended work on the contract, Def.’s Facts ¶ 2, and that the contract was modified several times to extend the completion date, id. ¶¶ 3, 5, 7; Def.’s Resp. to Pl.’s Facts ¶ 11. The court reserves further examination of the factual background of this case for the analysis section of this opinion.

DISCUSSION

I. Standard of Review for RCFC 56 Cross-Motions

“[S]ummary judgment is a salutary method of disposition designed to secure the just, speedy and inexpensive determination of every action.” Sweats Fashions, Inc. v. Pannill Knitting Co., 833 F.2d 1560, 1562 (Fed.\Cir.1987) (internal quotations and citations omitted). The moving party is entitled to summary judgment “if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law.” RCFC 56(a). A genuine issue of material fact is one that could change the outcome of the litigation. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A summary judgment “motion may, and should, be granted so long as whatever is before the ... court demonstrates that the standard for the entry of summary judgment, as set forth in Rule 56[ ], is satisfied.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).

“[A] party seeking summary judgment always bears the initial responsibility of informing the ... court of the basis for its motion, and identifying those portions of ‘the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,’ which it believes demonstrate the absence of a genuine issue of material fact.” Id. (quoting former version of Fed.R.Civ.P. 56(c)). However, the non-moving party has the burden of producing sufficient evidence that there is a genuine issue of material fact in dispute which would allow a reasonable finder of fact to rule in its favor. Anderson, 477 U.S. at 256, 106 S.Ct. 2505. Such evidence need not be admissible at trial; nevertheless, mere denials, coneluso-ry statements or evidence that is merely colorable or not significantly probative is not sufficient to preclude summary judgment. Celotex, 477 U.S. at 324, 106 S.Ct. 2548; Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505; Barmag Barmer Maschinenfabrik AG v. [86]*86Murata Mach., Ltd., 731 F.2d 831, 835-36 (Fed.Cir.1984). “The party opposing the motion must point to an evidentiary conflict created on the record at least by a counter statement of a fact or facts set forth in detail in an affidavit by a knowledgeable affiant.” Barmag, 731 F.2d at 836. Any evidence presented by the non-movant is to be believed and all justifiable inferences are to be drawn in its favor. Anderson, 477 U.S. at 255, 106 S.Ct. 2505 (citing Adickes v. S.H. Kress & Co., 398 U.S. 144, 158-59, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970)).

Cross-motions for summary judgment “are not an admission that no material facts remain at issue.” Massey v. Del Labs., Inc:, 118 F.3d 1568, 1573 (Fed.Cir.1997) (citing United States v. Fred A. Arnold, Inc., 573 F.2d 605, 606 (9th Cir.1978)). The parties may focus on different legal principles and allege as undisputed a different set of facts. Id. “Each party carries the burden on its own motion to show entitlement to judgment as a matter of law after demonstrating the absence of any genuine disputes over material facts.” Id.

II. Analysis

The parties’ cross-motions for partial summary judgment address the government’s counterclaim for liquidated damages for the delayed completion of the project. In the contracting officer’s decision, liquidated damages were calculated at $2022 per day of delay. Compl. Ex. A. The government assessed liquidated damages for 384 days of delay, from December 20, 2002 through January 7, 2004, for a total of $776,448. Id. Plaintiffs cross-motion seeks remission of these liquidated damages, whereas the government’s cross-motion asks the court to uphold the liquidated damages assessment by the contracting officer.

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833 F.2d 1560 (Federal Circuit, 1987)
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Bluebook (online)
103 Fed. Cl. 84, 2012 U.S. Claims LEXIS 29, 2012 WL 184034, Counsel Stack Legal Research, https://law.counselstack.com/opinion/structural-concepts-inc-v-united-states-uscfc-2012.