Structural Finishing, Inc. v. United States

34 Cont. Cas. Fed. 75,456, 14 Cl. Ct. 447, 1988 U.S. Claims LEXIS 30, 1988 WL 20508
CourtUnited States Court of Claims
DecidedMarch 10, 1988
DocketNo. 333-87C
StatusPublished
Cited by12 cases

This text of 34 Cont. Cas. Fed. 75,456 (Structural Finishing, 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
Structural Finishing, Inc. v. United States, 34 Cont. Cas. Fed. 75,456, 14 Cl. Ct. 447, 1988 U.S. Claims LEXIS 30, 1988 WL 20508 (cc 1988).

Opinion

OPINION

YOCK, Judge.

This contract case comes before the Court on the defendant’s motion to dismiss the plaintiff’s complaint on the grounds that it is time-barred by the statute of limitations contained in the Contract Disputes Act of 1978, 41 U.S.C. § 609(a)(3) (1982).

For the reasons discussed herein, the motion is granted as the statute of limitations deprives the Court of jurisdiction.

Facts

On July 8, 1982, the Department of the Army awarded the plaintiff, Structural Finishing, Inc. (SFI), contract No. DAHC77-82-D-0120 for the interior painting of military family housing at Schofield Barracks, Waiawi and Helemano Military Reservation, Hawaii. The contract was a requirements type contract that was to run for the period of July 8, 1982 through March 31, 1983.

Shortly after work began on the project, numerous disputes arose between SFI and the Government concerning performance delays and changes. SFI alleges that the contracting officer failed to notify the occupants of the military housing that their units were to be painted which resulted in delays, that the Government accelerated the work schedules, and that SFI was required to varnish floors and cabinets which was beyond the scope of the contract. On March 28, 1983, the Government issued its last paint and work order to SFI.

On February 27, 1986, SFI filed its formal claim with the contracting officer requesting an equitable adjustment under the contract. In a final decision dated June 2, 1986, the contracting officer denied SFI’s request for an equitable adjustment. The decision recited that the plaintiff may appeal within 90 days of the receipt of the decision to the Armed Services Board of Contract Appeals, or that it may appeal to the United States Claims Court within twelve months of the date of receipt.

The contracting officer’s final decision was received by the plaintiff’s attorney on Friday, June 6, 1986, as evidenced by the U.S. Postal Service’s Certified Mail return receipt. The plaintiff’s attorney, however, did not deliver the decision, or a copy thereof, to SFI until Monday, June 9, 1986.

On February 5, 1987, plaintiff filed a notice of appeal to the Armed Services Board of Contract Appeals (ASBCA) from the contracting officer’s decision. On June 9, 1987, the ASBCA dismissed the appeal for lack of jurisdiction because the appeal was not filed within 90 days after the plaintiff received the contracting officer’s decision. On that same day (Tuesday, June 9, 1987) the plaintiff filed its complaint in this Court.

Discussion

The defendant has now moved to dismiss this action for lack of jurisdiction. The defendant asserts that the plaintiff’s claim in this Court is time-barred by the statute of limitations contained in the Contract Disputes Act of 1978, 41 U.S.C. § 609(a)(3) (1982), which states that the contractor has twelve months from the date of receipt by the contractor of the contracting officer’s decision to file in this Court. The defendant contends that the plaintiff missed the filing deadline by one day.

In further support of its motion to dismiss the plaintiff’s complaint, the defendant argues that the twelve-month period in which the plaintiff must file its direct access complaint in this Court began to run on June 6, 1986, when the plaintiff’s attorney received the contracting officer’s decision. Normally, this would mean that the plaintiff had to file its direct access action in this Court by June 6, 1987. However, since June 6, 1987, fell on a Saturday, the period of limitations was extended by law to Monday, June 8, 1987, and the June 8, 1987 date was the last day that the plaintiff could file its complaint in this Court. See [449]*449Rule 6(a) of the United States Claims Court.

The plaintiff has responded with two basic arguments in opposition to the Government’s motion to dismiss. First, the plaintiff contends that the Government has misinterpreted the receipt by SFI’s attorney as service on the plaintiff. Plaintiff argues that the statute of limitations does not begin to run until the plaintiff, and not its attorney, actually receives the contracting officer’s decision. Thus, the plaintiff argues that the twelve-month filing period expired on June 9, 1987, as opposed to June 8, 1987. Second, the plaintiff argues that since it did not receive notice of the ASBCA decision that denied jurisdiction until June 9, 1987, the plaintiff should be given at least another day to file its complaint on the grounds of equity. Not to do so would be to encourage duplicitous filings in competing forums and be prejudicial.

The Contract Disputes Act of 1978, 41 U.S.C. § 609(a) (1982), provides in pertinent part:

(1) * * * [I]n lieu of appealing the decision of the contracting officer under section 605 of this title to an agency board, a contractor may bring an action directly on the claim in the United States Claims Court, notwithstanding any contract provision, regulation, or rule of law to the contrary.
* * * * * *
(3) Any action under paragraph (1) * * * shall be filed within twelve months from the date of the receipt by the contractor of the decision of the contracting officer concerning the claim, and shall proceed de novo in accordance with the rules of the appropriate court.

The plaintiffs first argument in opposition to the defendant’s motion is that the statute of limitations of the CDA begins to run after the contractor, and not the contractor’s appointed attorney, receives the contracting officer’s decision. The language in the CDA is clear that the statute of limitations begins to run when the contractor receives the contracting officer’s decision. Thus, the Court must now decide whether receipt of the contracting officer’s decision by SFI’s attorney on June 6, 1986, constitutes receipt by SFI. The Court holds that it does.

The plaintiff offers little support for its argument that the statute of limitations commences when the contractor, and not the contractor’s duly authorized representative, receives the contracting officer’s decision. The only support it can muster is to point to the ASBCA’s jurisdictional decision of June 9, 1987, wherein the Board stated that the “[a]ppellant received the underlying contracting officer’s decision on 9 June 1986.” From this sentence, the plaintiff asserts that the Court is bound by this “established” fact and the Board’s legal conclusion that the twelve-month statute of limitations runs from the date that the plaintiff actually received the decision from its attorney.

The plaintiff’s argument, however, is unavailing for several reasons. To begin with, this Court is not bound in any way by the decisions of the ASBCA. The Board is an administrative forum for the resolution of claims and is an alternate forum to the United States Claims Court. Decisions of the ASBCA are appealed to the United States Court of Appeals for the Federal Circuit (CAFC) and not to the Claims Court. The CAFC may be bound by facts found by the ASBCA on cases that are appealed (assuming they are supported by substantial evidence), but this Court is not.

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Cite This Page — Counsel Stack

Bluebook (online)
34 Cont. Cas. Fed. 75,456, 14 Cl. Ct. 447, 1988 U.S. Claims LEXIS 30, 1988 WL 20508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/structural-finishing-inc-v-united-states-cc-1988.