Justia Government & Administrative Law Opinion Summaries
Articles Posted in Government Contracts
Gonzalez v. Planned Parenthood
Plaintiff filed suit against Planned Parenthood under the False Claims Act, 31 U.S.C. 3729-3733, alleging that Planned Parenthood knowingly and falsely overbilled state and federal governments for contraceptives supplied to low-income individuals. The court affirmed the district court's dismissal of the complaint on the alternative ground that the complaint did not state plausible claims for relief. Even assuming that the third amended complaint sufficiently alleged falsity, it did not satisfy Rule 8(a), which requires a plausible claim that Planned Parenthood knowingly made false claims, with the statutory scienter. Because plaintiff's own complaint attachments defeated the plausibility of his allegations, and because he had already amended his complaint several times, the district court did not abuse its discretion in denying him further leave to amend. The district court also correctly concluded that plaintiff's claims under state law were time-barred. Accordingly, the court affirmed the judgment of the district court. View "Gonzalez v. Planned Parenthood" on Justia Law
Dept. of Corrs. & Rehab. v. State Pers. Bd.
Martin began working for California’s Department of Corrections and Rehabilitation (CDCR) in 2000, and Sphar began working for CDCR in 2002. They were dismissed in 2004 and challenged their dismissals. In October 2008, an administrative law judge found that the dismissals had been unjustified and revoked them. The ALJ’s decision provided that a hearing would be set if the parties were “unable to agree as to salary, benefits and interest due under Government Code section 19584.The two were reinstated to employment. CDCR sought a writ of mandate to overturn the decision to include merit salary adjustments and physical fitness incentive pay (PFIP), and claimed that the offset to backpay for money earned from other employers should have included overtime pay. The CDCR also challenged the Board’s decision that Sphar would be compensated at salary range “K,” for which he had not qualified at the time of his dismissal. The superior court ordered that the offset include overtime pay, but denied the remainder of the petition. The court of appeal affirmed, concluding that section 19584 authorized the inclusion of merit salary adjustments and PFIP in the award, authorized Sphar to be compensated at salary range “K,” and required the inclusion of overtime pay in the offset. View "Dept. of Corrs. & Rehab. v. State Pers. Bd." on Justia Law
Serv. Emps. Int’l Union v. Cnty. of Sonoma
Service Employees International Union, Local 1021, AFL-CIO (SEIU) alleged that the Sonoma County Community Development Commission lacked legal authority to contract with a private corporation to conduct housing inspection services that had formerly been performed by public employees. The Commission argued that Health and Safety Code sections 34144 and 341452 expressly authorized it to enter into a contract with a private entity for necessary services, such as housing inspection. Section 34145 authorizes it to “hire, employ, or contract for staff, contractors, and consultants.” The trial court dismissed SEIU’s lawsuit. The appeals court affirmed, noting that the Commission’s powers, duties and scope of authority are not delegated but are fixed and circumscribed by statute. The statute does not include the limitations argued by SEIU. View "Serv. Emps. Int'l Union v. Cnty. of Sonoma" on Justia Law
Frank v. Dep’t of Children & Families
After a hearing, the Department of Children and Families substantiated allegations that Plaintiff, an elementary school teacher, emotionally abused one of his students and recommended that Plaintiff’s name be placed on the Department’s central registry of child abuse and neglect. The trial court affirmed, ruling that the ultimate finding of the administrative hearing officer was supported by substantial evidence. The Appellate Court reversed and ordered the Department to remove Plaintiff’s name from the central registry. The Supreme Court reversed, holding that the Appellate Court (1) failed properly to credit the factual findings and legal conclusions of the administrative hearing officer; and (2) improperly concluded that the definition of “abused” found in Conn. Gen. Stat. 46b-120(3) was void for vagueness as applied to the facts of this case.
View "Frank v. Dep't of Children & Families" on Justia Law
Luck Brothers v. Agency of Transportation
In 2011, the Agency of Transportation advertised for bids to reconstruct a half-mile section of North Main Street in downtown Barre. Luck Brothers submitted the low bid and was awarded the contract for the project, which it started in the summer of 2011. In June 2012, Luck Brothers submitted a claim to the Agency seeking approximately $855,000 in additional compensation beyond the bid amount based on alleged differing site conditions from those assumed in the contract. One year later, Luck Brothers submitted a supplemental claim, making the total claim approximately $1.1 million. Less than three months after submitting its $855,000 claim, Luck Brothers filed a complaint against the Agency in superior court seeking, among other things, declaratory relief and compensatory damages. Specifically, the complaint alleged breach of contract, negligent misrepresentation, and breach of an implied warranty on the part of the Agency, and sought penalties under the Prompt Pay Act. Luck Brothers appealed the superior court’s decision to grant the Agency’s motion to dismiss Luck Brothers’ lawsuit on grounds that the company failed to exhaust its administrative remedies before pursuing a remedy in the superior court. Upon review, the Supreme Court affirmed the superior court’s decision, but clarified the standard of review in appeals to the Vermont Transportation Board from Agency determinations under the claims process for construction contracts.
View "Luck Brothers v. Agency of Transportation" on Justia Law
Davis Wright Tremaine LLP v. Alaska, Dept. of Administration
A state agency issued a request for proposals for legal services. A law firm delivered its proposal after the submission deadline, but the procurement officer accepted the proposal and forwarded it to the evaluation committee. After the agency issued a notice of intent to award that law firm the contract, a second law firm protested, alleging that the evaluation committee made scoring errors and that consideration of the late-filed proposal was barred by a relevant regulation and the request for proposals. The procurement officer sustained the protest, rescinded the original award, and awarded the second law firm the contract. The first law firm then protested, claiming: (1) the second law firm’s protest should not have been considered because it was filed after the protest deadline; (2) the first law firm’s proposal was properly accepted because the delay in submission was immaterial; and (3) the second law firm’s proposal was nonresponsive because that firm lacked a certificate of authority to transact business in Alaska. The procurement officer rejected that protest and the first law firm filed an administrative appeal. The administrative agency denied the appeal, and the first law firm appealed the agency decision to the superior court, which affirmed the administrative agency ruling. Upon review, the Supreme Court concluded that the administrative agency acted reasonably in accepting the second law firm’s late-filed protest and deeming that firm’s proposal responsive notwithstanding its lack of a certificate of authority. Furthermore, the Court concluded the agency’s interpretation that its regulation barred acceptance of the first firm’s late-filed proposal is reasonable and consistent with statute. Therefore, the Court affirmed the superior court’s decision upholding the final agency decision.
View "Davis Wright Tremaine LLP v. Alaska, Dept. of Administration" on Justia Law
Shell Oil Co. v. United States
Following the 1941 attack on Pearl Harbor, each of the Oil Companies entered into contracts with the government to provide high-octane aviation gas (avgas) to fuel military aircraft. The production of avgas resulted in waste products such as spent alkylation acid and “acid sludge.” The Oil Companies contracted to have McColl, a former Shell engineer, dump the waste at property in Fullerton, California. More than 50 years later, California and the federal government obtained compensation from the Oil Companies under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9601, for the cost of cleaning up the McColl site. The Oil Companies sued, arguing the avgas contracts require the government to indemnify them for the CERCLA costs. The Court of Federal Claims granted summary judgment in favor of the government. The Federal Circuit reversed with respect to breach of contract liability and remanded. As a concession to the Oil Companies, the avgas contracts required the government to reimburse the Oil Companies for their “charges.” The court particularly noted the immense regulatory power the government had over natural resources during the war and the low profit margin on the avgas contracts. View "Shell Oil Co. v. United States" on Justia Law
Cunningham v. United States
Cunningham worked for the U.S. Office of Personnel Management in 2004-2005. He appealed his termination to the Merit Systems Protection Board, alleging discrimination based on marital status. Cunningham agreed to withdraw his appeal; OPM agreed to pay him $50,000. The agreement designated the OPM’s director of human resources as the contact for reference inquiries and permitted disclosure of dates of service only. The termination letter was to be removed from the personnel file and both parties were prohibited from disclosing the agreement or the grievance. In 2006, Cunningham accepted a position with USIS, a private company that contracts with federal agencies to perform background investigations. A week after Cunningham began training USIS suspended him without pay at the direction of OPM's security office. OPM employees (not the Director of Human Resources) had discussed Cunningham’s termination. An administrative judge found that OPM had breached the agreement, but that MSPB could not award damages. Cunningham was only entitled to rescind the agreement, reinstate his appeal, and return the $50,000 payment. MSPB adopted the findings. Cunningham did not want his appeal reinstated and sought breach-of-contract damages. The Claims Court found that it had subject matter jurisdiction under the Tucker Act, but dismissed based on res judicata. The Federal Circuit vacated, agreeing that the court had jurisdiction, but holding that res judicata did not apply because jurisdictional limits on the MSPB did not permit him to seek damages in the prior matter.View "Cunningham v. United States" on Justia Law
Fisher-Cal Indus., Inc. v. United States, et al.
Fisher-Cal filed suit alleging that the Air Force violated the Administrative Procedure Act (APA), 5 U.S.C. 500 et seq., when the Air Force opted not to renew a contract for multimedia services with Fisher-Cal and decided to in-source the services. On appeal, Fisher-Cal challenged the district court's appeal of its suit for lack of subject matter jurisdiction. The court accepted the reasoning of the Federal Circuit in Distributed Solutions, Inc. v. United States, which held that lawsuits involving decisions whether to in-source or contract fell within the jurisdiction of the Tucker Act, 28 U.S.C. 1491. Accordingly, Fisher-Cal's challenge to the Air Force's decision to in-source was governed by the Tucker Act and therefore the U.S. Court of Federal Claims had jurisdiction over the challenge. Accordingly, the court affirmed the judgment of the district court. View "Fisher-Cal Indus., Inc. v. United States, et al." on Justia Law
Raytheon Co. v. United States
In the early 2000s, Raytheon underwent a major reorganization, including the sale of several business segments, including AIS, Optical, and Aerospace (segments at issue). As part of each sale, Raytheon retained the assets and liabilities of defined-benefit pension plans associated with the segments. Raytheon also calculated segment closing adjustments as required by CFR Cost Accounting Standards (CAS). Raytheon determined that some of its segments had pension surpluses, but the segments at issue had deficits. Although Raytheon paid the government its share of the surpluses, the government refused to pay its share of the deficits. Raytheon submitted certified claims for recovery of the deficits under the Contract Disputes Act, 41 U.S.C. 7103 (2011). The contracting officer issued final decisions denying these claims, reasoning that the adjustments were subject to the Federal Acquisition Regulation’s timely funding requirement, 48 CFR 31.205-6(j)(2)(i), and the deficits were therefore unallowable because Raytheon failed to fund the full amount of the pension deficits in the same year as the closings and that Raytheon’s segment closing calculations “do[] not comply with CAS 413[.]” The Claims Court awarded Raytheon $59.209,967 and rejected a claim for recovery with respect to one segment, finding that Raytheon applied the wrong asset allocation method in its adjustment calculation. The Federal Circuit affirmed.View "Raytheon Co. v. United States" on Justia Law