Suing the Sovereign[1]
| Publication year | 1990 |
| Pages | 8 |
| Citation | Vol. 3 No. 10 Pg. 8 |
James E. Ellsworth, J.
INTRODUCTION [2]
In 1982, Congress dissolved the then existing United States Court of Claims and the Court of Customs and Patent Appeals and, from those courts, created the United States Claims Court and the United States Court of Appeals for the Federal Circuit.[3]
The Claims Court was created as an Article I court.[4] Its charter provides for 16 judges to be appointed by the President and confirmed by the Senate to serve 15-year terms.[5] The Court is unique from other federal district courts in that its jurisdiction extends nationwide and trial may be conducted anywhere in the United States.[6] Most often, trial is held in the city of plaintiff's choice.
The principal jurisdictional statute of the United States Claims Court is known as the Tucker Act, 28 U.S.C. §1491 (1982). This statute enables the Claims Court to hear any suit for liquidated or unliquidated damages against the United States, which does not sound in tort, and which is founded upon "the Constitution, or any Act of Congress, or any regulation of an executive department, or upon any express or implied contract with the United States."[7] For claimants to establish that their suit is founded upon the Constitution, statute, Executive Order, or regulation for a sum-certain money judgment, the claimant must show that it either seeks a refund of money actually paid to the government or that a provision of the Constitution, statute, Executive Order, or other regulation expressly or implicitly mandates the payment of money.[8] Within these parameters, United States district courts possess concurrent jurisdiction with the Claims Court in cases against the government for claims not exceeding $10, 000.[9] However, the Claims Court's jurisdiction differs from that of other federal district courts in that it generally may not issue injunctions or declaratory judgments unless specifically authorized by statute.[10] For example, the Claims Court's jurisdiction to award injunctive relief is limited to bid protest actions instituted by bidders or offerers on government contracts who contend that the government is about to award a contract to another bidder unlawfully.[11]
Procedurally, all appeals from the United State Claims Court go to the United States Court of Appeals for the Federal Circuit. The Federal Circuit likewise possesses exclusive jurisdiction for appeals from the United States district courts for claims against the government not exceeding $10, 000. Also of interest is the fact that in the Claims Court, in most instances, the costs of litigation and attorney's fees are awarded to the prevailing party.[12]
In application, the Claims Court hears essentially seven different types of claims: (1) express or implied contract claims; (2) tax refund claims; (3) fifth amendment takings claims; (4) civilian and military pay claims; (5) patent and copyright claims; (6) Indian claims; and (7) congressional reference claims.[13]
I. EXPRESS OR IMPLIED CONTRACT CLAIMS
The majority of claims based upon an express contract with the government arise from construction contracts with a branch of the United States military or some other governmental agency. For these types of claims, the Contract Disputes Act of 1978, 41 U.S.C. §§601-613 (1982), sets forth basic jurisdictional prerequisites. First, the contractor must submit its claim to the contracting officer and either actually receive a final decision from the contracting officer on that claim or be deemed to have received a final decision upon the passing of 60 days with no response from the contracting officer. Second, the contractor must certify any claim it may have against the government for more than $50, 000.[14] Further, contract claims based on the Contract Disputes Act must be brought within one year of the denial of the claim by the contracting officer.[15] There are also express contracts with the government which are not governed by the Contract Disputes Act.[16] Those express contracts are brought in the Claims Court under the general parameters of the Tucker Act.[17]
The general jurisdictional parameters of the Tucker Act also encompass claims based upon implied contracts with the United States. This type of Tucker Act jurisdiction has been limited only to contracts implied-in-fact, and not contracts implied-in-law.[18] The requirements of a contract implied-in-fact are identical to those of an express contract. There must be mutuality of intent and lack of ambiguity in the offer and acceptance.[19] Likewise, the contract must be supported by consideration.[20] In addition, the officer contracting on behalf of the government must have authority to so contract for the government.[21] And finally, the parties must actually enter into an agreement; "Extensive negotiations in which the parties demonstrate hope and intent to reach an agreement are not sufficient in themselves to establish a contract implied in fact."[22]
The general statute of limitations for contract claims, whether express or implied, against the government under the Tucker Act is six years.[23]
II. TAX RETURN CLAIMS
The broad declaration under the Tucker Act "to render judgment upon any claims against the United States founded. . . upon. . . any Act of Congress. . . "[24] has been interpreted to encompass suits for the refund of taxes. This jurisdiction is concurrent with the jurisdiction of the United States district courts over tax refund suits.[25]
The jurisdictional prerequisites for tax refund suits in the Claims Court are identical to those required by the district courts: First, the taxpayer must file a claim for refund with the Internal Revenue Service within three years from the filing of its return or two years from paying the tax, whichever is later.[26] Second, the complaint must be filed with the clerk of the court no sooner than six months after filing a claim with the Internal Revenue Service (unless, of course, the claim is denied by the Internal Revenue Service within that six-month period of time) and no later than two years after either the date the Internal Revenue Service mailed notice of disallowance or the date the waiver of the notice of disallowance was filed.[27] The one exception to the period of time within which a complaint must be filed is when no notice of disallowance is ever given.[28] Under that circumstance, the time period is tolled.[29] Thirdly, the tax assessment must be fully paid, whether it is an assessment for income, estate, or gift taxes.[30]
III. FIFTH AMENDMENT TAKING CLAIMS
The fifth amendment states in relevant part: "No person shall... be deprived of property, without due process of law; nor shall private property be taken for public use without just compensation." Thus, an individual may sue the United States when the government has taken an individual's property and failed to pay compensation for that property taken. Any real and substantial governmental interference with use and enjoyment of...
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