Virgin Islands Housing Finance Authority v. FEMA

CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 15, 2025
Docket24-5122
StatusPublished

This text of Virgin Islands Housing Finance Authority v. FEMA (Virgin Islands Housing Finance Authority v. FEMA) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virgin Islands Housing Finance Authority v. FEMA, (D.C. Cir. 2025).

Opinion

United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT

Argued April 15, 2025 Decided August 15, 2025

No. 24-5122

VIRGIN ISLANDS HOUSING FINANCE AUTHORITY, APPELLANT

v.

FEDERAL EMERGENCY MANAGEMENT AGENCY, APPELLEE

Appeal from the United States District Court for the District of Columbia (No. 1:23-cv-02845)

Michael Bhargava argued the cause for appellant. On the briefs was Robert Nichols.

Sarah Smith, Attorney, U.S. Department of Justice, argued the cause for appellee. On the brief were Brian M. Boynton, Principal Deputy Assistant Attorney General, at the time the brief was filed, Mark B. Stern, Attorney, at the time the brief was filed, and Kelsey Fraser, Attorney. Gerard J. Sinzdak, Attorney, entered an appearance. 2 Before: WALKER, PAN, and GARCIA, Circuit Judges.

Opinion for the Court filed by Circuit Judge GARCIA.

GARCIA, Circuit Judge: This case arises out of a reimbursement dispute between the Virgin Islands Housing Finance Authority and the Federal Emergency Management Agency. The Authority chose to arbitrate the dispute before the Civilian Board of Contract Appeals. Dissatisfied with the award it received, the Authority moved to vacate the Board’s decision under the Federal Arbitration Act and the Administrative Procedure Act. The district court held that the Authority had missed the deadline for serving the FAA motion and that the APA claim was precluded. We agree on both fronts and affirm. I In 2017, two Category 5 hurricanes struck the U.S. Virgin Islands. President Trump declared them “major disaster[s]” and authorized the allocation of emergency funding to the territory. Presidential Declaration of a Major Disaster for the U.S. Virgin Islands, 82 Fed. Reg. 43066, 43066 (Sep. 13, 2017); Virgin Islands; Major Disaster and Related Determinations, 82 Fed. Reg. 46813, 46813 (Oct. 6, 2017); see 42 U.S.C. §§ 5121–5207. FEMA spearheaded the disaster-relief effort. Among other programs, FEMA provided funding to repair damaged homes across the islands. The territory could request reimbursement for eligible work. See 44 C.F.R. §§ 206.200, 206.202, 206.223. The Virgin Islands Housing Finance Authority contracted for thousands of restoration projects, incurring several hundred million dollars in expenses. After those projects were completed, the Authority submitted a reimbursement request to 3 FEMA, claiming more than $594 million in costs. FEMA initially denied around $85 million of the claimed costs. The Authority appealed to a FEMA administrator and recouped another $8.5 million. The Authority then sought to recover the remainder, and had two procedural options. It could take another appeal within FEMA, see id. § 206.206(b)(2), or it could request arbitration before the Civilian Board of Contract Appeals, an administrative tribunal within the General Services Administration, see id. § 206.206(b)(3); 42 U.S.C. § 5189a(d)(1). The Authority chose arbitration, and the Board assigned the case to a three-judge arbitration panel, which held a hearing in early 2023. After the hearing concluded and the record closed, however, one judge took “extended leave” and was “unable to participate in the arbitration decision.” J.A. 4 n.1. The two remaining panel members then issued a decision on June 28, 2023, determining that the Authority was not entitled to full reimbursement. A month later, the Authority asked the Board to vacate the panel’s decision. The award was invalid, the Authority claimed, because the arbitrators had no authority to issue a decision without all three panel members present. The Board declined the Authority’s request. The Authority then moved to vacate the award in federal district court under the Federal Arbitration Act, raising the same quorum issue. The motion also included a claim under the Administrative Procedure Act. The Authority filed its motion on September 26, 2023 and served notice on FEMA on September 29. The district court denied the motion. It held that relief under the FAA was unavailable because the Authority had failed to timely serve FEMA. V.I. Hous. & Fin. Auth. v. FEMA, 728 F. Supp. 3d 17, 21 (D.D.C. 2024). It also held that relief 4 under the APA was unavailable because the FAA precludes APA review in this setting. Id. at 30. The Authority appeals, challenging both points. II A We first consider whether the Authority timely served notice of its FAA motion. We agree with the district court that it did not. Under the FAA, once an arbitration award has issued, a party to the arbitration can move to vacate the award in federal district court. 9 U.S.C. § 10(a). But the time to bring such a motion is limited. The party challenging the award must serve notice of its motion on the other side “within three months after the award is filed or delivered.” Id. § 12. The Authority did not meet this deadline. The award here was issued, “filed,” and “delivered” on June 28, 2023. And the Authority failed to serve notice of its motion “within three months” of that date: It mailed a copy of the motion to FEMA on September 29, 2023—one day outside the three-month window. Even so, the Authority insists that its notice was timely. It claims that the arbitration panel had no authority to issue an award without all three members present. That flaw, the Authority argues, renders the award “void ab initio” (or invalid from the beginning). Appellant’s Brief 34. And, the Authority submits, a void award is no “award” at all and so cannot start the FAA’s three-month notice deadline. Instead, an award issued without authority can be challenged at any time, without limit. 5 We disagree. Whether or not the panel had the authority to make the award, the FAA’s three-month deadline would apply all the same. To start, the FAA’s text offers no support for the Authority’s proposed carveout. By its terms, the notice deadline applies to any motion to vacate “an award,” and is triggered when the award is “filed or delivered.” 9 U.S.C. § 12. It does not distinguish between different kinds of arbitration awards. Nor does it mention any exceptions. Instead, the notice provision creates what has been “consistently interpreted” as “a strict deadline.” Argentine Republic v. Nat’l Grid Plc, 637 F.3d 365, 368 (D.C. Cir. 2011). If Congress intended to exempt awards that arbitrators lacked authority to issue from the three-month deadline, it presumably would have said so. Congress plainly had such awards in mind when it enacted the FAA. After all, that the “arbitrators exceeded their powers” is one of the few grounds the FAA specifies for vacating an award, and that provision encompasses the type of challenge made here. 9 U.S.C. § 10(a)(4). We are skeptical that Congress expressly permitted such “exceeded their powers” challenges on the one hand and silently exempted them from the notice deadline on the other. The potential breadth of the Authority’s proposed exemption adds to our skepticism. By some accounts, the “exceeded their powers” ground is the “most frequent” basis for motions to vacate. Andrew M. Campbell, Annotation, Construction and Application of § 10(a)(4) of Federal Arbitration Act (9 U.S.C.A.

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Virgin Islands Housing Finance Authority v. FEMA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virgin-islands-housing-finance-authority-v-fema-cadc-2025.