The United States v. Compusearch Software Systems

936 F.2d 564, 37 Cont. Cas. Fed. 76,118, 1991 U.S. App. LEXIS 12623, 1991 WL 105216
CourtCourt of Appeals for the Federal Circuit
DecidedJune 19, 1991
Docket90-1484
StatusPublished
Cited by3 cases

This text of 936 F.2d 564 (The United States v. Compusearch Software Systems) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The United States v. Compusearch Software Systems, 936 F.2d 564, 37 Cont. Cas. Fed. 76,118, 1991 U.S. App. LEXIS 12623, 1991 WL 105216 (Fed. Cir. 1991).

Opinion

LOURIE, Circuit Judge.

The issue in this case is whether section 759(f)(5)(C) of the Brooks Act entitles a prevailing “interested party” to recover costs from the government for pursuing a protest, when the costs include attorney’s fees attributable to discovery against an opposing intervenor. The General Services Administration Board of Contract Appeals held that a protestor can recover such costs. Compusearch Software Systems, GSBCA No. 10483-C (10329-P), 90-2 B.C.A. (CCH) 1122,912, 1990 WL 52269 (April 23, 1990). We affirm.

BACKGROUND

Contract No. DACW55-88-D-001 was awarded by the government to CACI, Inc.Federal, whereby CACI would provide maintenance and software services to the government. On October 11, 1989, Compu-search Software Systems filed a protest against the United States Corps of Engineers concerning the award of a modification to the contract. Compusearch claimed that the modification greatly increased the number of offices to be serviced and that such a modification exceeded the scope of the contract, unlawfully restricting competition.

CACI intervened in the protest as of right. Thereafter Compusearch and CACI engaged in contested discovery in which both parties filed extensive interrogatories and requests for production of documents. On November 20, 1989, during a hearing before the Board, the parties agreed to settle the protest.

The parties moved to dismiss the protest with prejudice on the basis of a joint stipulation of settlement, which was approved by the Board. Compusearch Software *565 Systems, GSBCA No. 10329-P, 1989 BPD ¶ 389 (Dec. 18, 1989). The stipulation deemed Compusearch to be the prevailing party entitled to the costs of pursuing its protest. The Corps agreed to pay all of Compusearch’s reasonable costs and to limit any challenge to the reasonableness of Compusearch’s costs, not its entitlement to them. The stipulation stated, in pertinent part, that:

Solely for purposes of the recovery of attorneys’ fees and protest costs ... Compusearch shall be deemed to have prevailed on all issues in this proceeding under 40 U.S.C. § 759(f)(5)(C). Thus, Compusearch shall move the Board to determine the amount of the fees and expenses to be paid pursuant to Board Rule 35, as well as any additional fees and expenses incurred by Compusearch in filing and pursuing a motion with the Board as provided for in this paragraph. The Corps reserves its right pursuant to Board Rule 35 to oppose only the reasonableness of attorneys’ fees and protest costs; the Corps shall not challenge Com-pusearch’s entitlement.

GSBCA No. 10329-P at 3.

On January 12, 1990, Compusearch filed a motion with the Board for protest costs including attorney’s fees. The Corps responded by objecting to attorney’s fees generated as a result of litigation between Compusearch and the intervenor. It argued that it should not be accountable for protestor’s attorney’s fees incurred in litigation with another private party.

Compusearch was then directed by the Board to submit documentation of costs in support of its motion, which it did in a second supplemental brief. Out of a total of $78,046.64, $4,423.75 (40.5 hours) of attorney’s fees was determined to be due to discovery disputes between it and CACI.

Further proceedings before the Board resulted in Compusearch requesting an additional $9,522.50 for attorney’s fees incurred after January 12, 1990, in supporting its motion. Out of that amount, the Corps challenged $3,628.75 (23.5 hours) as excessive and unreasonable, because they were attributed to activities of CACI. The parties then stipulated to all costs incurred up to and including the second supplemental brief. Left in dispute were costs totalling $4,423.75, incurred before January 12, 1990, and $3,628.75, incurred after January 12, 1990. The government objected to these costs on the basis that they were incurred by Compusearch in litigation against the intervenor.

The Board concluded that Compusearch was entitled, under 40 U.S.C. § 759(f)(5)(C) (1988), to recover all costs for successfully pursuing a protest, including costs incurred as a result of the actions and efforts of an intervenor. While the government had no control over the actions of the intervenor, the Board found that the intervenor was squarely on the side of the government as to all issues raised by the protestor. It further found that Compusearch, having entered the protest, had no choice but to contend with both the government and the intervenor. Thus, the Board held that Compusearch, as the prevailing party, was entitled to all costs incurred in pursuing its protest, viz., $80,817.77, including the portion of the costs attributable to litigation with the intervenor in the amount of $6,452.50 ($4,423.75 + $2,028.75 1 ).

DISCUSSION

Our standard of review in this case is governed by 41 U.S.C. § 609(b) (1988) which states that:

the decision of the agency board on any question of law shall not be final or conclusive, but the decision on any question of fact shall be final and conclusive and shall not be set aside unless the decision is fraudulent, or arbitrary, or capricious, or so grossly erroneous as to necessarily imply bad faith, or if such decision is not supported by substantial evidence.

The government contends that the Board erred as a matter of law, arguing that no *566 explicit language in either the statute or the legislative history permits “the government to pay costs incurred by a protestor in litigation against an intervenor.” Since there is no express consent, the government argues that it is immune from these costs.

The government’s argument fails to consider the inclusive language of section 759(f)(5)(C). The first step in interpreting a statute is to look to its language. MCI Telecommunications Corp. v. United States, 878 F.2d 362, 365 (Fed.Cir.1989). “Unless exceptional circumstances dictate otherwise, when we find the terms of a statute unambiguous, judicial inquiry is complete.” Burlington N. R.R. Co. v. Oklahoma Tax Comm’n, 481 U.S. 454, 461, 107 S.Ct. 1855, 1860, 95 L.Ed.2d 404 (1987) (citations omitted).

The language of section 759(f)(5)(C) is straightforward. This section states that:

Whenever the board makes [a protest] determination, it may, in accordance with section 1304 of Title 31, further declare an appropriate interested party to be entitled to the costs of—

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936 F.2d 564, 37 Cont. Cas. Fed. 76,118, 1991 U.S. App. LEXIS 12623, 1991 WL 105216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-united-states-v-compusearch-software-systems-cafc-1991.