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Eagle-Picher Industries, Inc. v. United States of America John S. Herrington, Secretary of the Department of Energy Peter D. Dayton, Director, Procurement and Contracts Division, Department of Energy, Oak Ridge, Tennessee, Appeal of Ceradyne, Inc., Applicant-In-Intervention

Citations: 901 F.2d 1530; 36 Cont. Cas. Fed. 75,859; 1990 U.S. App. LEXIS 6714Docket: 89-5058

Court: Court of Appeals for the Tenth Circuit; April 30, 1990; Federal Appellate Court

Narrative Opinion Summary

This case involves an appeal concerning Ceradyne, Inc.'s denied motion to intervene in a lawsuit filed by Eagle-Picher Industries, Inc. against the United States regarding a contract administered by Martin Marietta Energy Systems, Inc. for a Department of Energy project. Ceradyne had protested the contract award, leading to a suspension and resolicitation of bids ordered by the DOE, which Eagle-Picher sought to enjoin in federal court. The district court found it lacked subject-matter jurisdiction under the Administrative Procedure Act and 28 U.S.C. § 1331 due to sovereign immunity, as the Claims Court holds exclusive jurisdiction under the Tucker Act for such contract disputes. The court emphasized that attempts to secure monetary relief cannot be disguised as claims for injunctive or declaratory relief to circumvent this jurisdictional requirement. Eagle-Picher's action was determined to primarily seek monetary recovery, akin to claims for payment or reimbursement from the federal government, necessitating filing in the Claims Court. The district court's judgment was reversed, and the case remanded for proceedings consistent with this determination. The court also noted potential inconsistencies with Bowen v. Massachusetts but affirmed its inapplicability to contract-related disputes. Furthermore, it critiqued the Vibra-Tech Engineers precedent for not adhering to the 'prime objective' test, marking it as non-authoritative.

Legal Issues Addressed

Critique of Vibra-Tech Engineers Precedent

Application: The court criticized a previous case for failing to apply the 'prime objective' test, suggesting that its findings are not authoritative in similar jurisdictional matters.

Reasoning: Lastly, a referenced case, Vibra-Tech Engineers, Inc. v. United States, is criticized for not applying the 'prime objective' test and is thus deemed not authoritative.

Jurisdiction under the Tucker Act

Application: The court determined that the Claims Court has exclusive jurisdiction over contract disputes with the United States, as the contract in question was essentially with the government due to Martin Marietta acting as an agent of the DOE.

Reasoning: The exclusive jurisdiction for such claims resides with the Claims Court under the Tucker Act, which governs suits based on contracts with the United States.

Prime Objective Test for Jurisdiction

Application: Eagle-Picher's claim was found to be primarily aimed at obtaining monetary relief, thus subject to the Claims Court's jurisdiction, unlike the situation in Adamson v. Radosevic.

Reasoning: The court emphasized that unlike Adamson, Eagle-Picher's action intends to force the government to adhere to a contract, which would indirectly yield monetary relief.

Recharacterizing Claims to Avoid Claims Court Jurisdiction

Application: The court ruled that plaintiffs cannot recharacterize claims in district court as seeking injunctive or declaratory relief if the primary goal is monetary recovery, which would require filing in the Claims Court.

Reasoning: A party cannot bypass the exclusive jurisdiction of the Claims Court by recharacterizing a complaint in district court as seeking injunctive, declaratory, or mandatory relief if the true aim is to obtain money from the United States.

Sovereign Immunity and Jurisdiction

Application: The court found that the general federal question statute does not waive the United States’ sovereign immunity in contract disputes, meaning the district court lacked subject-matter jurisdiction over Eagle-Picher's claim.

Reasoning: The court found that it lacked subject-matter jurisdiction over Eagle-Picher's claim, as the Administrative Procedure Act (APA) does not provide an independent jurisdictional basis, and the general federal question statute (28 U.S.C. § 1331) does not waive the United States’ sovereign immunity for contract disputes.