Turner Construction Co. v. United States

94 Fed. Cl. 586, 2010 WL 3705263
CourtUnited States Court of Federal Claims
DecidedSeptember 23, 2010
DocketNo. 10-195C
StatusPublished
Cited by5 cases

This text of 94 Fed. Cl. 586 (Turner Construction Co. 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
Turner Construction Co. v. United States, 94 Fed. Cl. 586, 2010 WL 3705263 (uscfc 2010).

Opinion

OPINION AND ORDER

FUTEY, Judge.

The Court issued a final judgment and injunction in this matter on July 8, 2010. On August 4, 2010, intervenor B.L. Harbert-Brasfield & Gorrie, JV (“Harbert-Gorrie”) filed an appeal with the United States Court of Appeals for the Federal Circuit and then, in this Court, a motion for stay of the injunction pending that appeal. Harbert-Gorrie argues that this Court’s decision was erroneous and that it is entitled to a stay under Rule 62(c) of the Rules of the United States Court of Federal Claims (“RCFC”). Plaintiff, Turner Construction Company (“Turner”), and defendant, the United States, respond that no such injunction is warranted.

Harbert-Gorrie’s “Motion For Stay Pending Appeal And Request For Temporary Stay And Expedited Consideration” (“Mot. for Stay”) was filed on August 9, 2010. The Court held an expedited hearing on August 19, 2010 to discuss that motion. On August 26, 2010, Turner filed a “Brief In Opposition To B.L. Harbert-Brasfield & Gome’s Motion For Stay Pending Appeal And Request For Temporary Stay And Expedited Consideration” (“Pla.’s Resp.”) and defendant filed an “Opposition To B.L. HarberWBrasfield & Gorrie’s Motion For Stay Pending Appeal” (“Def.’s Resp.”). On September 3, 2010, [589]*589Harbert-Gorrie filed a “Reply To Plaintiffs And Defendant’s Oppositions To Harbert-Gorrie’s Motion For Stay Pending Appeal”1 (“Harbert-Gorrie’s Reply”), and Turner filed on September 8, 2010 a “Surreply In Opposition To B.L. Harbert-Brasfield & Gome’s Motion For Stay Pending Appeal” (“Pla.’s Surreply”). Despite opposing the injunction, on August 9, 2010 defendant also filed an appeal with the Federal Circuit.

I. Background

The facts of this ease have already been extensively reviewed in the Court’s opinion. See Turner Constr. Co. v. United States, No. 10-195C, slip op. at 2-13 (Fed.Cl. July 8, 2010). Turner, Harbert-Gorrie, and another intervenor, McCarthy/Hunt, JV (“McCarthy/Hunt”) all submitted proposals to replace Fort Benning’s Martin Army Community Hospital (“the Hospital”). The United States Army Corps of Engineers (“the Army”) awarded Turner the contract on September 28, 2009. Harbert-Gorrie and McCarthy/Hunt, however, filed bid protests with the Government Accountability Office (“GAO”) in November 2009.

Before the GAO, the intervenors alleged that improper organizational conflicts of interest (“OCIs”) existed and should have barred the award of the contract to Turner. These alleged OCIs stemmed from a design contract that the Army had with the Joint Venture of Hayes, Seay, Mattern & Mattern (“HSMM”) and Hellmuth, Obata & Kassb-aum (“HOK”). Under this contract, HSMM/ HOK provided “all services necessary” in the preparation of the design documents for the Hospital procurement. Turner Constr., slip op. at 3-4.

HSMM/HOK is a subsidiary of AECOM. After the award of the Hospital contract, AECOM purchased Ellerbe Beckett (“EB”), Turner’s subcontractor in charge of design. As outlined in this Court’s opinion, id,, at 5-6, and in the Contracting Officer’s (“CO”) extensive report, Administrative Record (“Admin.Rec.”) Tab 8, AECOM and EB engaged in some negotiations while the Hospital procurement was ongoing. The CO, however, evaluated the OCI allegations and ultimately concluded that no OCIs had tainted the procurement process.

Despite the CO’s findings, the GAO recommended that the Army reprocure the contract with Turner eliminated from the competition. B.L. Harbert-Brasfield & Gorrie, JV, B-402229 (Comp.Gen. Feb. 16, 2010), at 11; McCarthy/Hunt, JV, B-402229.2 (Comp. Gen. Feb. 16, 2010), at 13. After considering its options, the Army decided to follow this recommendation and stripped Turner of the contract and began re-procurement. On March 31, 2010, Turner filed suit in this Court to contest the Army’s decision. Following extensive briefing from the parties and oral argument, the Court held that the Army acted arbitrarily and capriciously in following GAO’s recommendation. Turner Constr., slip op. at 36. The Court issued an injunction on July 8, 2010 and ordered “the Army to restore the Hospital contract to Turner and not re-procure the contract to another firm.” Id.

II. Analysis

A. Standard of Revieiu

After a notice of appeal has been filed from a final judgment, a trial court generally loses jurisdiction over a case. See JWK Int'l Corp. v. United States, 49 Fed.Cl. 364, 366 (2001) (citing Yachts Am. v. United States, 8 Cl.Ct. 278, 280 (1985)). Under RCFC 62(c), however, a court does retain jurisdiction to modify or stay its own injunction entered as part of that judgment. A stay of an injunction pending appeal is an “extraordinary” remedy. Axiom Res. Mgmt., Inc. v. United States, 82 Fed.Cl. 522, 524 (2008) (quoting Golden Eagle Ref. Co. v. United States, 4 Cl.Ct. 622, 624 (1984)). Such a stay “is not a matter of right, even if irreparable injury might otherwise result.” Virginian Ry. Co. v. United States, 272 U.S. 658, 672, 47 S.Ct. 222, 71 L.Ed. 463 (1926).

[590]*590The decision to stay an injunction pending appeal is a matter of judicial discretion, and the Supreme Court has identified four factors a court should weigh in considering such a stay: “ ‘(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.’” Nken v. Holder, — U.S.-,-, 129 S.Ct. 1749, 1761, 173 L.Ed.2d 550 (2009) (quoting Hilton v. Braunskill, 481 U.S. 770, 776, 107 S.Ct. 2113, 95 L.Ed.2d 724 (1987)). These factors do not need to be weighed equally. Standard Havens Prods. v. Gencor Indus., 897 F.2d 511, 512 (Fed.Cir.1990).

B. Likelihood of Success on the Merits

The first factor to consider is whether or not the movant has made a “strong showing” that it is likely to succeed on the merits of its appeal. A court does have discretion to require less than a “strong showing” if the harm to the movant is especially great. Standard Havens Prods., 897 F.2d at 513 (citing Hilton, 481 U.S. at 776, 107 S.Ct. 2113). Even with a showing of great harm, a movant must still “demonstrate a substantial case on the merits.” Id. According to the Supreme Court, “[i]t is not enough that the chance of success on the merits be ‘better than negligible.’ ” Nken, 129 S.Ct. at 1761 (quoting Sofinet v. INS, 188 F.3d 703, 707 (7th Cir.1999)). Harberfc-Gor-rie argues that the Court made numerous errors in its opinion that establish a strong likelihood of success on appeal. These errors, however, are based primarily on incorrect readings of the Court’s opinion and the law, and Harberfc-Gorrie is unlikely to succeed on appeal.

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94 Fed. Cl. 586, 2010 WL 3705263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-construction-co-v-united-states-uscfc-2010.