Lee's Ford Dock, Inc.
Docket: ASBCA 59041
Decision date: 2016-03-07

ARMED SERVICES BOARD OF CONTRACT APPEALS 
Appeal of -- ) 
) 
Lee's Ford Dock, Inc. ) 
) 
Under Contract No. DACW62-1-00-0105 ) 
APPEARANCES FOR THE APPELLANT: 
APPEARANCES FOR THE GOVERNMENT: 
ASBCA No. 59041 
Alan I. Saltman, Esq. 
Evangelin L. Nichols, Esq. 
Kathleen Y. Hsu, Esq. 
Smith, Currie & Hancock LLP 
Washington, DC 
Karl F. Dix, Jr., Esq. 
Smith, Currie & Hancock LLP 
Atlanta, GA 
Thomas H. Gourlay, Jr., Esq. 
Engineer Chief Trial Attorney 
CPT Daniel K. Bilotti, JA 
Engineer Trial Attorney 
U.S. Army Engineer District, Nashville 
OPINION BY ADMINISTRATIVE JUDGE CLARKE 
ON THE GOVERNMENT'S MOTION FOR SUMMARY JUDGMENT 
Lee's Ford Dock, Inc. (LFD), claims damages resulting from the government's 
lowering the water level in Lake Cumberland for seven years while construction at the 
Wolf Creek Dam was completed causing financial damage to its marina concession. 
LFD seeks reformation of its contract and also alleges breach of contract. We have 
jurisdiction pursuant to the Disputes clause of the lease and the Contract Disputes Act 
of 1978 (CDA), 41 U.S.C. §§ 7101-7109. Lee's Ford Dock, Inc., ASBCA No. 59041, 
14-1 BCA ~ 35,679 at 174,638. The government has moved for summary judgment on 
the bases of the lease's exculpatory clause, the sovereign acts doctrine, estoppel and/or 
unavailability of the relief requested (gov't mot. at 1). We grant summary judgment in 
favor of the government. 
STATEMENT OF FACTS (SOF) FOR PURPOSES OF THE MOTION 
1. Pursuant to 16 U.S.C. § 460d, the government entered into Lease 
No. DACW62-1-72-16 with LFD for commercial concession purposes at the Wolf 
Creek Dam-Lake Cumberland project, Kentucky, on 23 July 1971 (mot., ex. 2). The 

lease had an effective date of 1 January 1972 and was for a ten-year period, ending 
31December1981 (id.). 
2. During the period from 197 5 to 1979, the government lowered the level of 
Lake Cumberland to construct a concrete diaphragm wall to combat the seepage 
problems that developed in the foundation of the embankment. Due to budget 
constraints, the seepage cutoff wall did not extend the entire length of the 
embankment, stopping approximately 1700 feet short of the right abutment. (R4, 
tab 15 at 2, 23) 
3. On 2 March 1981, pursuant to 16 U.S.C. § 460d, the government entered 
into Lease No. DACW62-l-81-86 with LFD for commercial concession purposes at 
Wolf Creek (mot., ex. G-7). The lease was for a term of20 years, beginning 1 April 
1981 and ending 31 March 2001. 
4. On 29 August 2000, pursuant to 16 U.S.C. § 460d, the government entered 
into the lease in dispute, Lease No. DACW62-l-00-0105, with LFD for commercial 
concession purposes at the Wolf Creek Dam-Lake Cumberland project, Kentucky (R4, 
tab 3).1 The Lease area, referred to as the "premises" throughout the lease, comprises 
approximately 166 acres (130 acres of water and 36 acres ofland) (id. at 1, 22). The 
Lease was granted for a term of 25 years, effective 1 September 2000 and ending 
31 August 2025 (id. at 1 ). 
5. Condition 6 of the Lease, "CONDITION OF PREMISES," states in 
subparagraph a.: "The Lessee acknowledges that it has inspected the premises, knows 
its condition, and understands that the same is leased without any representations or 
warranties whatsoever and without obligation on the part of the United [S]tates to 
make any alterations, repairs, or additions thereto" 
(R4, tab 3 at 5). 
6. Condition 9 of the Lease, "RIGHT TO ENTER AND FLOOD," states: 
The right is reserved to the United States, its 
officer[s], agents, and employees to enter upon the 
premises at any time and for any purpose necessary or 
convenient in connection with Government purposes; to 
make inspections; to remove timber or other material, 
except property of the Lessee; to flood the premises; to 
manipulate the level of the lake or pool in any manner 
whatsoever; and/or to make any other use of the lands as 
may be necessary in connection with project purposes, and 
the Lessee shall have no claim for damages on account 
1 Hereinafter references to the "Lease" shall be to the 29 August 2000 Lease. 
2 

thereof against the United States or any officer, agent, or 
employee thereof. 
(R4, tab 3 at 5-6) The government refers to this clause as the exculpatory clause. 
7. Condition 10 of the Lease, "INDEMNITY," states: 
The United States shall not be responsible for 
damages to property or injuries to persons which may arise 
from or be incident to the exercise of the privileges herein 
granted, or for damages to the property of the Lessee, or 
for damages to the property or injuries to the person of the 
Lessee's officers, agents or employees [sic] others who 
may be on the premises at their invitation or the invitation 
of any one of them, and the Lessee shall hold the United 
States harmless from any and all such claims not including 
damages due to the fault or negligence of the United States 
or its contractors. 
(R4, tab 3 at 6) 
8. Condition 32 of the Lease, "DISPUTES CLAUSE," states that except as 
otherwise provided in the Contract Disputes Act (CDA), all disputes are to be 
"resolved under this clause and the provisions of the Act." The primary difference 
between the Lease and the CDA is that the Lease states that the district engineer will 
render the decision on any claim made by the lessee. (R4, tab 3 at 14-15) 
9. On 7 October 2003, the government and LFD signed a Memorandum of 
Lease indicating that Hamilton Capital, LLC, had purchased all the shares of the 
issued and outstanding capital stock of LFD from Mr. Anthony G. Karambellas, the 
prior owner (R4, tab 4). LFD remained the lessee (id.). 
10. On the same day, the government and LFD entered into the First 
Supplemental Agreement to the Lease. This agreement provided an option to renew or 
extend the lease an additional 25 years at the end of the first 25-year term. The term 
extension was requested by LFD for "loan amortization, capital improvements and 
development purposes within the .. .leased area." (R4, tab 5) 
11. On 19 January 2007, Brigadier General (BG) Bruce Berwick, Commander 
of the U.S. Army Corps of Engineers' Great Lakes and Ohio River Division (COE), 
and Lieutenant Colonel (LTC) Steven Roemhildt, Commander of the Nashville 
District, signed a Memorandum for Record, Subject: Wolf Creek Dam Interim Risk 
Reduction Measures (the IRR Memo) (R4, tab 15). The IRR Memo documented the 
3 

decision by BG Berwick and L TC Roemhildt to "lower the pool to elevation 680 
immediately and hold that elevation for an indefinite period, unless and until the Corps 
determines that a different pool elevation level is more appropriate" (id. at 15). The 
IRR Executive Summary commenced, "I consider Wolf Creek Dam to be in a high 
risk of dam failure and therefore I am taking necessary emergency measures to reduce 
imminent risk of human life, health, property, and severe economic loss" (id. at 1). 
12. The decision to lower the lake was made in response to the following four 
major reviews, all of which "reviewed the project and provided information relating to 
risk" (R4, tab 15 at 4): 
• a July 2005 Seepage Control Major Rehabilitation Evaluation Report, which 
approved remedial construction of the Wolf Creek Dam, to include grouting 
and a cutoff wall (id.); 
• a Screening Portfolio Risk Assessment (SPRA), conducted in June 2005, 
which found Wolf Creek Dam to be at high risk and placed it in the Urgent and 
Compelling (Failure in Progress) category, one of six dams in the country in 
the category (id. at 5); 
• an outside, independent Expert Panel for Peer Review of Six Dams (to validate 
the SPRA), which found 
the risk of dam failure to be high and recommended 
immediate operating restrictions in October 2006, and whose draft report 
released on 21 December 2006, recommended lowering Lake Cumberland to 
an elevation between 610 and 650 feet or, if not practical, a higher elevation of 
680 feet (id. at 5-6), and; 
• the Risk-Based Evaluation of Potential Operating Restrictions for Lake 
Cumberland and Center Hill Lake, released in 2006, which classified the dam 
as high risk and determined that risk was reduced with lower operating pools 
(id. at 6-7). 
On 22 January 2007, the COE began to lower the lake water levels in accordance with 
the IRR Memo (R4, tab 8 at 2). 
13. On 12 July 2007, the government and LFD entered into the Third 
Supplemental Agreement to the Lease (R4, tab 7). This agreement was in response to 
the decision to lower the water levels while the Corps rehabilitated the dam (id.). The 
agreement provided that any rent payments due under the lease terms would be held in 
abeyance not to exceed one year beginning 1 July 2007 and ending 30 June 2008 and 
that rent for the period would be set at $1.00 (id. at 2). As part of the Third 
Supplemental Agreement, LFD and the government stated that they "agree that this 
4 

Supplemental Agreement in no way affects the Lessor's rights under Condition 9 of 
said lease, "RIGHT TO ENTER AND FLOOD" (id.). 
14. On 5 July 2012, LFD and its associated or affiliated entities filed for 
bankruptcy under Chapter 11 of the Bankruptcy Code in the Eastern District of 
Kentucky, London Division. These cases were administered jointly under Case 
No. 12-60818. (Mot., ex. 9) 
15. On 18 January 2013, the "Claim Submission by Lee's Ford Dock, Inc. 
under Lease for Commercial Concession Purposes No. DACW62-1-00-0105" dated 
18 January 2013 (the claim) was emailed to LTC DeLapp, the former district engineer 
(R4, tab 8). The introductory paragraph reads in part: 
As discussed below, Lee's Ford asserts that the very 
purpose of the Lease contract has been frustrated by the 
now six-year drawdown of Lake Cumberland caused by the 
Corps' decision to lower the Lake on January 19, 2007. As 
a 
result, Lee's Ford demands that the Lease contract be 
reformed in one or iriore of the following ways to 
compensate Lee's Ford for the damages it has incurred due 
to the drawdown: (a) rent owed by Lee's Ford to the Corps 
under the Lease should be fully abated until such time as the 
abated rent equals at least $4,000,000.00, which is the 
amount of Lee's Ford's disaster loan debt to the U.S. Small 
Business Administration ("SBA"); (b) the Corps will pay 
the SBA the sum of $4,000,000, plus all accrued interest 
and loan fees, in satisfaction of Lee's Ford's disaster loan 
debt to neutralize the detrimental effect that the frustrated 
contract continues to have on Lee's Ford; and/ or ( c) the 
Corps will commit to working with the SBA to develop a 
federal government policy that would allow the SBA to 
hold the disaster loan debt fully satisfied by offsetting Lee's 
Ford's damages arising out of its frustrated Lease against its 
disaster loan debt under the unitary creditor doctrine. 
(R4, tab 8 ·at 1) LFD's president, Mr. James D. Hamilton, certified the claim (id. at 8). 
16. On 30 July 2013, in its Bankruptcy proceedings, LFD filed a Motion for 
Authority to Assume Nonresidential 
Real Property Lease with the Secretary of the 
Army and to Establish Prompt Cure Procedures Regarding Same (the Motion to 
Assume) (mot., ex. 10, Internal exhibits to the Motion to Assume not attached). In that 
motion, LFD provided a cure for its pre-petition arrearage and stated that the Lease 
was a "fundamental requirement" for its business and that it had "determined in the 
5 

exercise of its sound business judgment that assuming the Lease is in the best interests 
of Lee's Ford Dock and its Estate, as well as the best interests of all of the affiliated 
Debtors and Estates, all creditors, and parties in interest" (id. at 1, 6). 
17. On 26 August 2013 the district engineer and the real estate contracting 
officer jointly issued a contracting officer's final decision denying LFD's claim (R4, 
tab 2). 
18. On 3 September 2013, the bankruptcy court entered its Order Granting 
Debtor Lee's Ford Dock, Inc.'s Motion for Authority to Assume Nonresidential Real 
Property Lease with the Secretary of the Army and to Establish Prompt Cure 
Procedures Regarding Same (mot., ex. 11). 
19. LFD filed a notice of appeal and complaint with the Board on 
27 November 2013 claiming a total of $5,755,212 (R4, tab 1). The complaint alleged 
recovery based on the theory of superior knowledge. 
20. The Board docketed the appeal as ASBCA No. 59041on2 December 
2013. The government moved to dismiss, stating, among other contentions, that the 
complaint raised a new claim for the first time or appeal. We struck the complaint as it 
related to that theory, but retained jurisdiction of the appeal to allow LFD to "amend 
its complaint to assert theories supported 
by the operative facts stated in the claim." 
14-1BCA~35,679 at 174,642. 
21. LFD filed its amended complaint on 26 January 2015, alleging reformation 
(Counts I and II) and 
breach of contract (Count III). The government filed its answer to 
the amended complaint on 22 June 2015. 
DECISION 
Jurisdiction 
We previously held that we had jurisdiction over this appeal. Lee's Ford Dock, 
14-1BCA~35,679 at 174,640. We address jurisdiction again to clarify that we 
assumed jurisdiction because the claim states a sum certain in the claim's introductory 
paragraph, subparagraph (b) "the Corps will pay the SBA the sum of $4,000,000, plus 
all accrued interest and loan fees, in satisfaction of Lee's Ford's disaster loan debt to 
neutralize the detrimental effect that the frustrated contract continues to have on Lee's 
Ford" (SOF ~ 15).2 
2 We have no jurisdiction over subparagraph (a) that qualifies the amount with "at 
least" (Sandoval Plumbing Repair, Inc., ASBCA No. 54640, 05-2 BCA 
6 

Bankruptcy 
In our previous decision we did not discuss LFD's bankruptcy and the issue of 
standing and raise it sua sponte. Under bankruptcy law, the debtor may assume or 
reject any executory contract. Rejection relieves the debtor from its obligation to 
perform. U.S. Coating Specialties & Supplies, LLC, ASBCA No. 58245, 15-1 BCA 
~ 35,957 at 175,707. In this appeal the bankruptcy court granted LFD's motion to 
assume the lease (SOF ~~ 16, 18). Therefore, as debtor in possession, LFD retained 
the power to pursue this claim and therefore has standing. SWR, Inc., ASBCA 
No. 56708, 12-1 BCA ~ 34,988 at 171,945 (citing 11 U.S.C. § 1107(a); In re United 
Operating, LLC, 540 F.3d 351, 355 (5th Cir. 2008)) ("As the debtor in possession, 
SWR retained the power to pursue this claim on behalf of the estate."). 
Legal Standard for Summary Judgment 
We evaluate the government's motion for summary judgment under the 
well-settled standard that: 
Summary judgment is properly granted only where there is 
no genuine issue of material fact and the movant is entitled 
to judgment as a matter of law. The moving party bears the 
burden of establishing the absence of any genuine issue of 
material fact and all significant doubt over factual issues 
must be resolved in favor of the party opposing summary 
judgment. 
Mingus Constructors, Inc. v. United States, 812 F.2d 1387, 1390 (Fed. Cir. 1987). In 
the course of the Board's evaluation of a motion for summary judgment, our role is not 
"to weigh the evidence and determine the truth of the matter, but rather to ascertain 
whether material facts are disputed and whether there exists any genuine issue for 
trial." Holmes & Narver Constructors, Inc., ASBCA Nos. 52429, 52551, 02-1 BCA 
~ 31,849 at 157 ,393. A material fact is one which may make a difference in the 
outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986). LFD 
must assert facts sufficient to show a dispute as to a material fact of an element of its 
argument for reformation or breach. New Iraq Ahd Co., ASBCA No. 59304, 15-1 
BCA ~ 35,849 at 175,292 (citing Mingus, 812 F.2d at 1390-91) ("To ward off 
summary judgment, the non-moving party must do more than make mere allegations; 
it must assert facts sufficient to show a dispute of material fact."). 
~ 33,072 at 163,933) or subparagraph (c) that requests injunctive relief (Lulus 
Ostrich Ranch, ASBCA Nos. 59252, 59450, 14-1 BCA ~ 35,769 at 175,001). 
7 

Counts I & II - Reformation 
In Counts I & II of the amended complaint LFD seeks reformation of Condition 
9, RIGHT TO ENTER AND FLOOD, of its lease (SOF ii 6). We refer to this 
provision as "clause 9." The Federal Circuit has provided guidance on the availability 
of reformation: 
Refonnation of a written agreement on the ground 
of mutual mistake is an extraordinary remedy, and is 
available only upon presentation of satisfactory proof of 
four elements: 
( 1) the parties to the contract were mistaken in their 
belief regarding a fact; 
(2) that mistaken belief constituted a basic 
assumption underlying the contract; 
(3) the mistake had a material effect on the bargain; and 
( 4) the contract did not put the risk of the mistake on 
the party seeking reformation. 
National Australia Bank v. United States, 452 F.3d 1321, 1329-30 (Fed. Cir. 2006). 
Proof of the elements required to support reformation must be proven by clear and 
convincing evidence. Id. We follow this guidance in our analysis herein. 
We first consider the government's position. The government argues that 
clause 9 of the lease is clear and unambiguous (mot. at 11-19; SOF ii 6). Clause 9 
provides that the government has the right "to manipulate the level of the lake or pool 
in any manner whatsoever" and LFD "shall have no claim for damages on account 
thereof against the United 
States or any officer, agent, or employee thereof' (SOF ii 6). 
The government cites a variety of cases including Elden v. United States, 617 F.2d 245 
(Ct. Cl. 1980), that involve analogous facts in support of the government's assertion. 
We agree with the government that clause 9, Right to Enter and Flood, is clear and 
unambiguous. LFD, however, states that the government's interpretation of the Right 
to Enter and Flood clause is irrelevant because LFD is seeking reformation of clause 9 
(app. br. at 20). We agree with LFD that we cannot grant summary judgment on the 
basis of clause 9 without examining the reformation issue. If we reform clause 9 to 
modify the language the government relies on, the original language is indeed 
irrelevant. 
8 

LFD asserts that there is a dispute over the state of its knowledge about "how 
the [Wolf Creek] Dam had been reconstructed in the '70's, i.e., that the seepage cutoff 
wall that was built did not extend across the width of the entire Dam, that prior to 2000 
seepage had re-occurred and that the Dam was in dire shape." LFD contends that "[a]t 
the time it entered into the 2000 Lease, Appellant was 
unaware of these facts." (App. 
br. at 13) LFD contends this is a material disputed fact that precludes granting 
summary judgment (id.). For the purpose of this motion, we accept LFD's contention 
that it was "unaware" of the "dire" condition of the dam when it entered into the 2000 
lease as true. Accordingly, this is not a material disputed fact. 
At the outset of its argument, LFD partially quotes from Rainbow Valley Corp., 
ASBCA No. 11691, 68-2 BCA 'ii 7195 at 33,413; a fuller quote is: 
Equity has jurisdiction to reform a written instrument 
where there has been a meeting of the minds and an 
agreement has actually been entered into, but the written 
instrument does not express what was actually intended by 
the parties, due to either (1) mutual mistake or (2) mistake 
by one of the parties accompanied by inequitable conduct 
by the other party, such as, for example, misrepresentation. 
[Citations omitted] 
The Board in Rainbow Valley goes on to explain, "In order for a misrepresentation to 
be a basis for equitable relief, it must be a misstatement concerning a material fact 
made for the purpose of inducing the other party to act and in fact relied on by the 
other party." Id. at 33,414 (citation omitted). In Rainbow Valley the government 
knew that Rainbow Valley was unwilling to renew its lease unless it was protected 
against lease cancellation without just cause. Id. at 33,412. Rainbow Valley was told 
cancellation could only occur in a national emergency. Id. There was mutual 
agreement on that point. It turned out that the lease was cancelled without cause and 
without a national emergency. The Board found that Rainbow Valley was induced to 
enter into the contract based on the misrepresentation and was entitled to reformation. 
Id. at 33,415. It is significant that the government knew of Rainbow Valley's 
reluctance to enter into the contract without protection from unilateral cancellation -
the "knowledge" element of reformation. Next, LFD cites to Defense Systems Co., 
ASBCA No. 50918, 01-1BCA'ii31,152 at 153,879, to support the proposition, "As 
both black letter law and this Board indicate, nondisclosure of a fact can be the 
equivalent of an assertion that is not in accord with the true facts and a basis upon 
which to reform a contract" 
(app. br. at 12). In Defense Systems the government failed 
to separately identify Foreign Military Sales missiles as required by regulation. The 
Board noted: 
9 

Where the Government has failed to follow or violated 
regulations prescribed for the benefit of the contractor, as 
in this case, the Federal Circuit and the Court of Claims 
have authorized reformation as a remedy in some 
circumstances. See, e.g., LaBarge Products, Inc. v. West, 
46 F.3d 1547 (Fed. Cir. 1995) (reformation may be 
appropriate where Government has engaged in auctioning 
in violation of FAR prohibition; contractor did not 
establish price was lower than it would have been because 
of violation); Applied Devices Corp. v. United States, 591 
F.2d 635, 640-41, 219 Ct. Cl. 109, 119-20 (1979) (holding 
contractor was entitled to reformation of contract's 
cancellation charge tenn because Government had violated 
regulation in calculating charge); Beta Systems, Inc. v. 
United States, 838 F.2d 1179, 1185-86 (Fed. Cir. 1988) 
(reformation appropriate where the Government violated 
regulations in setting economic index incorporated into 
contract, and there appeared to be an intent by both parties 
to enter into a different contract). Underlying these 
decisions is the basic assumption that the original 
agreement or intent of the parties can be established. 
Defense Systems, 01-1BCA~31,152 at 153,879. There is no such violation ofa 
regulation intended to benefit LFD in this case. Likewise, LFD cites to FARNSWORTH 
ON CONTRACTS § 7 .5 at 252 ("If one party is mistaken as to the contents or effect of a 
writing, and the other is aware of the mistake but does nothing to correct it, the 
prevailing view is that this nondisclosure amounts to a representation that the writing 
is as the mistaken party understands it to be.") (app. br. at 12). Again, knowledge on 
the part of the silent party of the other party's mistake is required for reformation. 
Throughout its argument LFD ignores the fact that it must establish that it somehow 
communicated to the government its mistaken belief and reluctance to enter into the 
lease if it had known of the condition of the dam in order for the government's silence 
to be a misrepresentation. 
LFD proceeds to argue that the government's silence when entering into the 
2000 lease on the condition of the Wolf Creek Dam is, "sufficient both independently 
and collectively to support reformation of the 2000 Lease" (app. br. at 13). On page 
16 of its brief LFD sums up its argument, "Appellant is entitled to reformation here 
due to a mistake by one of the parties (a mistake as to the condition of the Wolf Creek 
Dam) accompanied by inequitable conduct by the other party, such as for example, 
misrepresentation." LFD further explains that the inequitable conduct by the 
government was "misrepresentation by silence." (App. br. at 16) LFD argues we 
10 

should reform the contract because the government did not tell it that (in LFD's 
words) Wolf Creek Dam was in "dire" condition: 
Respondent stood silent about the indicia at 
the Wolf 
Creek Dam that a major rehabilitation, in all probability 
necessitating an extended drawdown of the Lake, was 
needed. Respondent's failure to apprise Appellant of the 
dire condition of the Dam - a key instrumentality on which 
the viability of the Lease and Appellant's marina business 
was based, constituted a misrepresentation by silence. 
(App. br. at 18) LFD fails to explain how the government's duty to disclose the 
dam's condition to LFD arose. There is no evidence that LFD, in year 2000, ever 
communicated to the government that it would not enter into the Lease if the dam was 
not in good condition. There is absolutely no evidence that LFD made the condition 
of the dam an issue during contract formation. Without government knowledge of 
LFD's alleged mistake, there can be no "inequitable conduct by the government, such 
as, for example, misrepresentation" that would merit reformation. LFD overlooks the 
basic premise of reformation: 
Reformation, however, cannot supply an agreement that 
the parties never struck or would have struck. The contract 
can only be reformed to conform to the parties' agreement 
or intention. The remedy of reformation is a narrow one, 
bringing a contract into conformity with "the true 
agreement of the parties on \vhich there was a meeting of 
the minds." [Citation omitted] 
Defense 
Systems, 01-1BCAii31,152 at 153,880. There is absolutely no evidence that 
the government ever "struck or would have struck" an agreement where it assumed 
the risk if the dam needed repair necessitating lowering of the water in the lake for a 
substantial period of time. There is no evidence, 3 and it is beyond belief, that the 
government would have agreed to negate clause 9. 
We likewise reject LFD's alternative argument "even assuming that the COE 
did not knowingly 
make misrepresentations by its silence in 2000 and 2003, its failure 
3 LFD does not allege that it communicated to the government that its decision to 
enter into the 2000 lease was based on its mistaken belief that the dam was in 
good condition. If LFD had alleged government knowledge of its mistake, 
there is no evidence in the record supporting such an allegation. A mere 
contention standing alone without evidentiary support is not enough to defeat a 
motion for summary judgment. New Iraq Ahd, 15-1BCAii35,849 at 175,292. 
11 

to take any meaningful corrective action once the information about the uncompleted 
cutoff wall, the return of seepage problems and the dire condition of the Dam became 
known, is sufficient to support Appellant's claim for reformation" (app. br. at 21). 
The events relating to the mitigation of the rent occurred in 2007 (SOF i1 13) and had 
nothing to do with the formation of the contract in 2000 or subsequent contract 
modifications. 4 In general reformation cases involve a contract formation process of 
some kind involving mistake. RESTATEMENT (SECOND) OF CONTRACTS§ 155 cmt. a 
( 1981) ("The province of reformation is to make a writing express the agreement that 
the parties intended it should."). LFD's alternative argument fails for two reasons: it 
involved no formation process and no knowledge on the part of the government. LFD 
fails to establish that the government had a duty to take the "meaningful corrective 
action" it desires. 
As to Counts I and II, we find no material disputed facts that would cause us to 
deny the government's motion. LFD failed 
to establish, or even allege, that during 
contract formation the government had knowledge of its alleged mistaken belief that 
the Dam would not need repair and that if it had known about the "dire" condition, it 
would not have entered into the Lease. Without this knowledge, there is no 
inequitable conduct and no entitlement to reformation. 
Count Ill - Breach of Contract 
In Count III, LFD asserts that the government's drawdown of Lake Cumberland 
was unreasonable in terms of duration and otherwise constituted a breach of contract 
(app. br. at 22). LFD would have us interpret clause 9, Right to Enter and Flood, to 
include a time limitation. LFD contends: 
Appellant interprets i1 9 as giving Respondent a 
right to lower the level of the Lake, but only allows 
Respondent the right to keep it at a level that would 
substantially affect Appellant's marina operations for a 
very limited period, i.e., the clause certainly does not give 
Respondent the right to substantially lower the Lake level 
and maintain it at that level continuously for a period of 
seven and a half years to accommodate another major 
reconstruction of the Wolf Creek Dam. 
(App. br. at 27) LFD included a declaration by Mr. James Hamilton, president of 
LFD, in support of this interpretation, "We thus interpreted paragraph 9 of the 2000 
Lease as giving the Corps of Engineers a right to lower the level of the Lake, but only 
4 The July 2007 Supplemental Agreement reducing the rent for one year specifically 
preserved the government's rights under clause 9 (SOF i113). 
12 

allowing it to keep the Lake at a level that would substantially affect our marina 
operations for a very limited period" (Hamilton dep. ~ 7).5 Clause 9 has no time 
limitation whatsoever on the government's right to lower the level of the lake. The 
language could not be clearer: 
The right is reserved to the United States, its 
officer[s], agents, and employees ... to manipulate the level 
of the lake or pool in any manner whatsoever. .. and the 
Lessee shall have no claim for damages on account thereof 
against the United States or any officer, agent, or employee 
thereof. 
(SOF ~ 6) There is nothing in this language that could reasonably be interpreted to 
limit the duration of the government's right to "manipulate the level of the lake." 
Given the clear and 
unambiguous language of clause 9, Mr. Hamilton's interpretation 
is simply not within the "zone of reasonableness." States Roofing Corp. v. Winter, 587 
F.3d 1364, 1369 (Fed. Cir. 2009). The clause 
clearly places the risk of the damage 
now complained of on LFD. 
As to Count III, clause 9 is clear and unambiguous and does not impose a time 
limitation on the government's right to manipulate the water level of the lake. 
Because LFD's interpretation is unreasonable, there is no breach. 
Miscellaneous Arguments 
LFD argues that clause 9 makes the contract illusory and therefore the 
government's interpretation is unreasonable (app. hr. at 28-29). An illusory promise 
is "[ w ]ords of promise which by their terms make performance entirely optional with 
the 'promisor.'" RESTATEMENT (SECOND) OF CONTRACTS§ 77 cmt. a (1981). None 
of the cases cited by LFD apply directly to the circumstances in this case and we do 
not agree that the government's interpretation of clause 9 is so broad as to "make 
performance entirely optional." The Lease is not illusory. 
LFD makes a contract interpretation argument, "Moreover, in order for 
Appellant's interpretation to prevail over the government's, it need not be [the] only 
possible interpretation, or even the best one" (app. hr. at 29). LFD skips a step. This 
statement is true only ifthere are two reasonable interpretations rendering the 
language ambiguous. As we have found, LFD's interpretation is not reasonable and 
clause 9 is not ambiguous. 
5 There is no contemporaneous evidence from the year 2000 corroborating 
Mr. Hamilton's testimony. 
13 

Sovereign Act 
Since we grant summary judgment in favor of the government based on the 
above, we need not consider the government's sovereign act argument. 
CONCLUSION 
Because LFD failed to establish a disputed material fact needed for its 
reformation and breach arguments to succeed and clause 9 is clear and unambiguous, 
and the government is entitled to judgement as a matter of law, we grant the 
government's motion for summary judgment and deny the appeal. 
Dated: 7 March 2016 
I concur 
/~~7 ~ ,/ ___ _ 
/~~~>~ 
/;/' ~ N. STEMPLR ~ 
Administrative Judge 
Acting Chairman 
Armed Services Board 
of Contract Appeals 
14 
CRAIG 
Adminis ative Judge 
Armed Services Board 
of Contract Appeals 
I concur 
RICHARD SHACKLEFORD 
Administrative Judge 
Vice Chairman 
Armed Services Board 
of Contract Appeals 

I certify that the foregoing is a true copy of the Opinion and Decision of the 
Armed Services Board of Contract Appeals in ASBCA No. 59041, Appeal of Lee's 
Ford Dock, Inc., rendered in conformance with the Board's Charter. 
Dated: 
15 
JEFFREY D. GARDIN 
Recorder, Armed Services 
Board of Contract Appeals