Glenn-Colusa Irrigation District v. United States Army Corps of Engineers et al
Filing
20
MEMORANDUM and ORDER signed by Senior Judge William B. Shubb on 6/27/2017 DENYING 13 Defendants' Motion for Partial Dismissal. (Kirksey Smith, K)
1
2
3
4
5
6
7
8
UNITED STATES DISTRICT COURT
9
EASTERN DISTRICT OF CALIFORNIA
10
----oo0oo----
11
12
13
GLENN-COLUSA IRRIGATION
DISTRICT,
CIV. NO. 2:17-0120 WBS GGH
MEMORANDUM AND ORDER RE: MOTION
FOR PARTIAL DISMISSAL
Plaintiff,
14
15
16
17
18
19
20
21
v.
UNITED STATES ARMY CORPS OF
ENGINEERS; ASSISTANT
SECRETARY OF THE ARMY FOR
CIVIL WORKS JO-ELLEN DARCY,
in her official capacity;
LIEUTENANT GENERAL TODD
SEMONITE, in his official
capacity; and COLONEL DAVID
RAY, in his official
capacity;
Defendants.
22
23
24
----oo0oo---Plaintiff Glenn-Colusa Irrigation District brought this
25
action against defendants the United States Army Corps of
26
Engineers (“USACE”), Assistant Secretary of the Army for Civil
27
Works Jo-Ellen Darcy, Lieutenant General Todd Semonite, and
28
1
1
Colonel David Ray, alleging that the USACE1 breached a
2
construction contract it and the USACE had entered into by
3
failing to construct an irrigation facility according to the
4
contract’s specifications.
5
court is defendants’ Motion to dismiss three of the five claims
6
alleged in this action as untimely under the limitations period
7
set forth in 28 U.S.C. § 2401(a).
8
I.
(Compl. (Docket No. 1).)
Before the
(Defs.’ Mot. (Docket No. 13).)
Factual and Procedural Background
9
Plaintiff is a state government entity that oversees
10
farming irrigation in Glenn and Colusa counties in California.
11
(See Compl. ¶ 14.)
12
States Army that builds and maintains infrastructure in the
13
United States.
14
http://www.usace.army.mil/About (last visited June 19, 2017).)
15
The individual defendants are Army personnel who are involved in
16
overseeing USACE operations.
17
The USACE is a subdivision of the United
(See id. ¶ 17; US Army Corps of Engineers,
(See Compl. ¶¶ 18-20.)
In 1999, plaintiff and the USACE entered into a Project
18
Cooperation Agreement (“PCA”) whereby the two parties agreed to
19
co-fund the construction of an irrigation gradient facility
20
(“gradient facility”) designed to improve the performance of a
21
fish screen plaintiff had implemented at its irrigation pump
22
plant.
23
would be responsible for constructing the gradient facility and,
24
upon completion of the facility, issue a written notice of
25
construction completion to plaintiff, at which time plaintiff
26
27
28
1
(See id. ¶¶ 39, 50.)
The PCA provides that the USACE
Plaintiff alleges that the individual defendants in
this action are “responsib[le], in whole or in part, for the
[USACE’s] acts” with respect to this action. (Compl. ¶¶ 18-20
(Docket No. 1).)
2
1
would become responsible for “maintain[ing], repair[ing],
2
replac[ing], and rehabilitat[ing]” the facility.
3
Ex. A, Project Cooperation Agreement (“PCA”) at 5.)
4
(Id. ¶ 55; id.
Plaintiff alleges that the USACE “began construction of
5
the Gradient Facility in May 2000 and completed construction in
6
November 2000.”
7
(Compl. ¶ 68.)
“Almost immediately after construction was completed,”
8
plaintiff alleges, “significant defects associated with the
9
Gradient Facility were observed.”
(Id. ¶ 69.)
Such defects
10
allegedly resulted from the USACE’s failure to build certain
11
parts of the gradient facility according to the PCA’s
12
specifications.
13
the defects to the USACE in December 2000.
14
(See id. ¶¶ 127, 129, 133.)
Plaintiff reported
(Id. ¶ 71.)
From 2001 to 2003, the USACE took “limited action[s]”
15
to remedy the gradient facility’s defects.
16
From 2004 to 2007, no work was done on the defects.
17
78, 83, 89-90.)
18
(See id. ¶¶ 72-78.)
(See id. ¶¶
“[I]n August 2008, the USACE convened a team of experts
19
to review the Gradient Facility.”
20
allegedly “identified significant areas of concern[]” with the
21
facility stemming from the defects plaintiff had complained about
22
beginning in December 2000.
23
four and a half years, plaintiff and the USACE engaged in a
24
number of unsuccessful efforts to “develop solutions to the
25
Gradient Facility’s myriad of issues.”
26
(Id. ¶¶ 93-94.)
(See id. ¶¶ 71, 96.)
The experts
Over the next
(See id. ¶¶ 97-104.)
In March 2013, the USACE issued notice of construction
27
completion for the gradient facility to plaintiff, notifying
28
plaintiff that it considered the facility complete for purposes
3
1
of the PCA and plaintiff would be responsible for maintaining,
2
repairing, replacing, and rehabilitating the facility going
3
forward.
4
(See id. ¶ 105-106.)
Plaintiff thereafter brought an action against the
5
United States in the Court of Federal Claims, alleging that the
6
United States breached the PCA by failing to construct the
7
gradient facility according to the PCA’s specifications.
8
Glenn-Colusa Irrigation Dist. v. United States, 129 Fed. Cl. 593,
9
595 (2016).
10
See
The Court of Federal Claims dismissed that action
for lack of jurisdiction.
Id. at 599.
In January 2017, plaintiff filed this action.2
11
12
(Compl.)
Citing the same allegations it cited in its Court of
13
Federal Claims action, plaintiff brings causes of action against
14
defendants for: (1) breach of contract, (2) breach of the implied
15
covenant of good faith and fair dealing, (3) breach of implied
16
warranty, (4) declaratory judgment, and (5) violation of the
17
Administrative Procedure Act.
18
move, pursuant to Federal Rule of Civil Procedure 12(b)(6), to
19
dismiss plaintiff’s breach of contract, breach of the implied
20
covenant of good faith and fair dealing, and breach of implied
21
warranty claims as untimely under the limitations period set
22
forth in 28 U.S.C. § 2401(a).
23
///
(Id. at 20-26.)
Defendants now
(Defs.’ Mot.)
24
2
25
26
27
28
The PCA was entered into pursuant to the Flood Control
Act, 42 U.S.C. § 1962d-5b. (See Compl. ¶ 7; Defs.’ Mot., Mem. at
6 (Docket No. 13-1).) This court thus has jurisdiction over this
action under 42 U.S.C. § 1962d-5b(c). See 42 U.S.C. § 1962d5b(c) (“Every agreement entered into pursuant to this section
shall be enforceable in the appropriate district court of the
United States.”).
4
1
II.
Legal Standard
2
On a Rule 12(b)(6) motion, the inquiry before the court
3
is whether, accepting the allegations in the complaint as true
4
and drawing all reasonable inferences in the plaintiff’s favor,
5
the plaintiff has stated a claim to relief that is plausible on
6
its face.
7
Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001).
8
tenet that a court must accept as true all of the allegations
9
contained in a complaint is inapplicable to legal conclusions.”
See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009);
“[T]he
10
Iqbal, 556 U.S. at 67.
11
12(b)(6) on the ground that it is barred by the applicable
12
statute of limitations . . . .”
13
of Art at Pasadena, 592 F.3d 954, 969 (9th Cir. 2010).
14
III. Discussion
15
“A claim may be dismissed under Rule
Von Saher v. Norton Simon Museum
28 U.S.C. § 2401(a) sets forth a six-year limitations
16
period for “every civil action commenced against the United
17
States.”
18
the plaintiff is aware of the wrong and can successfully bring a
19
cause of action.”
20
F.2d 1362, 1364 (9th Cir. 1990) (quoting Acri v. International
21
Ass’n of Machinists, 781 F.2d 1393, 1396 (9th Cir. 1986)); see
22
also Padres Hacia Una Vida Mejor v. Jackson, No. 1:11-CV-1094 AWI
23
DLB, 2012 WL 1158753, at *5 (E.D. Cal. Apr. 6, 2012) (same).
24
federal law governs the three claims defendants are moving to
25
dismiss, see Boyle v. United Techs. Corp., 487 U.S. 500, 504
26
(1988) (“We have held that [the] obligations to and rights of the
27
United States under its contracts are governed exclusively by
28
federal law.”), and the parties appear to agree that plaintiff’s
“Under federal law[,] a cause of action accrues when
Shiny Rock Min. Corp. v. United States, 906
5
As
1
implied covenant of good faith and fair dealing and implied
2
warranty claims accrued at the same time plaintiff’s breach of
3
contract claim accrued,3 the dispositive question with respect to
4
the present Motion is whether plaintiff became aware of and could
5
have brought its breach of contract claim prior to January 2011.
6
Plaintiff contends that it could not have brought its
7
breach of contract claim prior to January 2011 because the USACE
8
did not breach the PCA’s construction specifications until it
9
issued notice of construction completion for the gradient
10
facility in March 2013.
11
Defendants contend that plaintiff could have brought its breach
12
of contract claim as early as November 2000, when, according to
13
plaintiff’s own allegation, “construction [on the gradient
14
facility] was completed [and] significant defects associated with
15
the . . . Facility were observed,” and no later than 2004, when
16
the USACE represented to plaintiff that “it did not have
17
sufficient funds” to “continue [remedial] work” on the facility
18
and plaintiff “would have to pay for a portion of the costs” of
19
such work.
20
77) (Docket No. 13-1).)
21
(See Pl.’s Opp’n at 9 (Docket No. 17).)
(Defs.’ Mot., Mem. at 7-8 (citing Compl. ¶¶ 68-69,
Relevant to the court’s analysis of when plaintiff
22
could have brought its breach of contract claim is what
23
constitutes a breach of contract under federal law.
24
contract law is determined by reference to traditional common law
25
principles.”
26
27
28
3
“Federal
Minidoka Irr. Dist. v. Dep’t of Interior of U.S.,
The parties discuss the three claims collectively and
argue only the accrual date of plaintiff’s breach of contract
claim in their briefs. (See Defs.’ Mot., Mem. at 7-9; Pl.’s
Opp’n at 8-12 (Docket No. 17).)
6
1
154 F.3d 924, 926 (9th Cir. 1998).
2
common law principles” is “the content of the forum state’s law.”
3
Seagate Tech. LLC v. Dalian China Express Int’l Corp., 169 F.
4
Supp. 2d 1146, 1154 (N.D. Cal. 2001) (citing 19 Charles A.
5
Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and
6
Procedure, § 4518).
7
may be breached by nonperformance, by repudiation, or a
8
combination of the two.”
9
Cal. App. 4th 501, 514 (5th Dist. 2008) (citing 1 Witkin, Summary
One source of “traditional
“California law recognizes that a contract
Cent. Valley Gen. Hosp. v. Smith, 162
10
10th Contracts § 849).
Nonperformance is “an unjustified failure
11
to perform a material contractual obligation when performance is
12
due.”
13
Repudiation is “a clear, positive, and unequivocal refusal to
14
perform” a contractual obligation or “conduct . . . so as to make
15
substantial performance [of the obligation] . . . impossible.”
16
Taylor v. Johnston, 15 Cal. 3d 130, 137 (1975).
Id. (citing Restatement (Second) of Contracts § 251).
17
The facts alleged in plaintiff’s Complaint do not
18
indicate that the USACE failed to perform or repudiated its
19
alleged obligation to construct the gradient facility according
20
to the PCA’s specifications prior to January 2011.
21
As to performance, the PCA does not provide a timetable
22
for completing the gradient facility, instead providing that when
23
the USACE “determines that the entire [facility] is complete . .
24
. [it] shall so notify [plaintiff] in writing.”
25
USACE did not issue notice of construction completion for the
26
gradient facility until March 2013, (Compl. ¶ 105), indicating
27
that the time for performing on the PCA’s construction
28
specifications did not expire until March 2013.
7
(PCA at 5.)
It cannot be
The
1
said that the USACE failed perform on the PCA’s construction
2
specifications prior to June 2011 when, under the terms of the
3
PCA, the time for such performance did not expire until March
4
2013.4
5
As to repudiation, the only allegation the court is
6
aware of that could conceivably be construed as “a clear,
7
positive, and unequivocal refusal” by the USACE to perform on the
8
PCA’s construction specifications prior to January 2011, is the
9
allegation that in 2004, the USACE represented to plaintiff that
10
“it did not have sufficient funds” to “continue [remedial] work”
11
on the gradient facility and plaintiff “would have to pay for a
12
portion of the costs” of such work.
13
Compl. ¶ 77) (Docket No. 18).)
14
(Defs.’ Reply at 5-6 (citing
It is not clear, from the face of this allegation, that
15
the USACE’s representations to plaintiff in 2004 constituted a
16
refusal on the USACE’s part to perform further remedial work on
17
the gradient facility absent unwarranted financial contributions
18
from plaintiff.
19
Complaint, however, indicate that the representations were not a
20
refusal to perform further work in the absence of financial
21
contributions.
22
the USACE allegedly “convened a team of experts to review the
23
Gradient Facility” and thereafter “accepted responsibility for
24
correcting the [facility’s] deficiencies” and “develop[ed] an
25
26
27
28
4
Other allegations stated in plaintiff’s
Four years after the representations were made,
The court acknowledges that it is somewhat confusing
that plaintiff states the gradient facility was “completed . . .
in November 2000.” (Compl. ¶ 68.) Plaintiff explained at oral
argument that that by “completed,” it merely meant that initial
construction efforts on the gradient facility were finished, not
that the USACE had completed performance on the PCA.
8
1
action plan to address the [facility’s] outstanding
2
issues/deficiencies.”
3
indications that the USACE’s rekindled willingness to perform
4
remedial work on the gradient facility was due to financial
5
contributions from plaintiff.
6
are thus inconsistent with, and undermine, the theory that the
7
USACE’s representations to plaintiff in 2004 were “a clear,
8
positive, and unequivocal refusal” to perform further remedial
9
work on the gradient facility in the absence of unwarranted
10
11
(Compl. ¶¶ 93, 98.)
There are no
The USACE’s post-2008 activities
financial contributions from plaintiff.
There are no allegations in plaintiff’s Complaint that
12
the USACE engaged in any “conduct . . . so as to make substantial
13
performance” of the PCA’s construction specifications
14
“impossible” prior to January 2011.
15
Thus, the facts alleged in plaintiff’s Complaint do not
16
indicate that the USACE repudiated its alleged obligation to
17
construct the gradient facility according to the PCA’s
18
specifications prior to January 2011.
19
Having found that the facts alleged in plaintiff’s
20
Complaint do not indicate that the USACE failed to perform or
21
repudiated its alleged obligation to construct the gradient
22
facility according to the PCA’s specifications prior to January
23
2011, the court finds that such facts do not indicate that
24
plaintiff could have brought its breach of contract, breach of
25
the implied covenant of good faith and fair dealing, and breach
26
of implied warranty claims prior to January 2011.
27
28
IT IS THEREFORE ORDERED that defendants’ motion for
partial dismissal of plaintiff’s Complaint be, and the same
9
1
hereby is, DENIED.
2
Dated:
June 27, 2017
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
10
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?