Yachts America, Inc. v. United States

31 Cont. Cas. Fed. 71,576, 3 Cl. Ct. 447, 1983 U.S. Claims LEXIS 1622
CourtUnited States Court of Claims
DecidedSeptember 22, 1983
DocketNo. 568-83C
StatusPublished
Cited by15 cases

This text of 31 Cont. Cas. Fed. 71,576 (Yachts America, 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
Yachts America, Inc. v. United States, 31 Cont. Cas. Fed. 71,576, 3 Cl. Ct. 447, 1983 U.S. Claims LEXIS 1622 (cc 1983).

Opinion

MEMORANDUM AND ORDER

MAYER, Judge.

Plaintiffs, Yachts America, Inc., and its president, Thomas Wilson, have moved to preliminarily enjoin defendant’s award of a National Park Service concession contract to operate Fort Washington Marina (Marina), of which they are now the operators, and their eviction. They contend the Park Service solicitation of bids was defective because it failed to grant a preference to plaintiffs as the existing concessioners of the Marina under an implied-in-fact contract, and their bid to operate the Marina did not receive full and fair consideration. Defendant opposes on the grounds that this court lacks equitable jurisdiction based on an implied contract other than one for fair consideration of a bid, and that plaintiffs have not demonstrated a basis for extraordinary relief.

Plaintiffs have already been denied in-junctive relief in the United States District Court for the District of Columbia on other grounds related to this transaction. Wilson v. United States, No. 83-286 (D.D.C. June 23, 1983), reh’g denied (D.D.C. Aug. 15, 1983), injunction pending appeal denied (D.D.C. Aug. 26, 1983), injunction pending appeal denied, No. 83-1916 (D.C.Cir. Sept. 13, 1983). This motion for a preliminary injunction was filed on September 9, 1983, [448]*448hearings were held on September 13 and 14, 1983, and expedited simultaneous briefing followed. Defendant intends to award the contract on September 22, 1983. Plaintiffs were notified to vacate by September 15, 1983, but are still in place pending the outcome of litigation.

BACKGROUND

Fort Washington Marina is in Piscataway Park, Maryland, which is managed by the National Park Service. The Marina is located on property legislatively taken by the United States on October 15, 1974, by Pub.L. No. 93-444 to preserve the setting of George Washington’s home, Mount Vernon, directly across the Potomac River. At the time of the taking, the Marina was the subject of litigation between Fort Washington, Inc., the former owner, and Yachts America, Inc., its tenant.

Public Law No. 93-444, 88 Stat. 1304 (1974), provided for the orderly termination of operations on the properties taken, but was amended in 1976 by Pub.L. No. 94-578, 90 Stat. 2732 (1976), to exempt the Marina from this requirement and to permit the Park Service to continue to operate it if it so chose. Yachts America filed suit against the United States in District Court challenging the constitutionality of Pub.L. No. 93-444, but did not prevail. In 1979, plaintiffs filed suit in the United States Court of Claims seeking compensation for an alleged taking of their property. This suit is now before the United States Claims Court.

In 1978, a development concept plan was begun for the Marina, and, in 1980, both Maryland and Prince George’s County expressed interest in assuming control of it. Discussions apparently continue with the state, but the Park Service decided it was in the public interest to authorize operation of the Marina on a year-to-year basis pending completion of the development plan or transfer to the state.

The Park Service prepared a prospectus inviting proposals from which it could negotiate a concessions contract for the Marina under the Concessions Policy Act of 1965, 16 U.S.C. § 20. See also 36 C.F.R. §§ 51.1-51.7 (1982). The prospectus was issued December 10, 1982, containing the following pertinent provisions:

Services to the public [at the Marina] are presently being provided by Yachts America, Inc. Yachts America, Inc., has been considered as a tenant at sufferance' and as such the Marina operations have not been formally authorized under a proper authorization. Accordingly, Yachts America, Inc., has no contractual obligations nor is it entitled to any preference in the negotiation of a concession contract .... Yachts America, Inc., if not selected as the result of this proposal, shall be allowed 90 days to vacate in an orderly fashion.
All applicants are required to submit their proposals as to the percentage of gross receipts they are willing to pay to the Government.
It is proposed that a concession contract will be negotiated with the applicant selected as the one submitting the best offer in the judgment of the National Park Service. In making this selection, .. . offers will be evaluated primarily on these bases:
1. Managerial competence and experience in the type of operation described herein.
2. Financial strength and ability.
3. Applicant’s overall plans for operation and maintenance of the business. The National Park Service reserves the right to disregard any proposal submitted or to make any counter-proposals which it may consider reasonable or desirable. ’
The attached format of the applicant’s transmittal letter and Exhibit A must be used in applying for the concession opportunity and any other comments may be included therein. The proposal should be submitted ... on February 8, 1983 .... All proposals received after this due date will not be considered, but will be returned to the sender.

The referenced Exhibit A required detailed and extensive information in a prescribed format. All proposers were required to submit information about persons [449]*449intended to be involved in the operation, including their employment history and experience, personal finances, and personal and credit references; proposed management and operation plans for the Marina; proposed financial arrangements; and proposed operating details. Plaintiffs’ submission in response to this prospectus and the Park Service’s disposition is discussed below. The Park Service chose the proposal of Piscataway. Company and negotiated a contract with it, the award of which is imminent.

DISCUSSION

Injunctive relief should be used sparingly and should be granted only in those circumstances where the exigencies of the situation demand. Wetzel v. Edwards, 635 F.2d 283, 286 (4th Cir.1980). The primary factors a court considers in determining whether to grant this extraordinary relief are well established. See Washington Metropolitan Area Transit Commission v. Holiday Tours, Inc., 559 F.2d 841, 842 (D.C. Cir.1977). Chief among them are: whether there is a strong showing that plaintiff is likely to prevail on the merits of the underlying dispute; whether plaintiff will suffer irreparable injury without this relief; whether other parties interested in the proceedings would be substantially harmed if the relief were granted; and considerations of the public interest. See Wetzel v. Edwards, 635 F.2d at 287; Washington Metropolitan Area Transit Commission v. Holiday Tours, Inc., 559 F.2d at 843; N.V. Philips Gloeilampenfabrieken v. United States, 1 Cl.Ct. 783, 784 (1983) (YOCK, J.).

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Bluebook (online)
31 Cont. Cas. Fed. 71,576, 3 Cl. Ct. 447, 1983 U.S. Claims LEXIS 1622, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yachts-america-inc-v-united-states-cc-1983.