Opinion ID: 222442
Heading Depth: 3
Heading Rank: 3

Heading: Takeover Agreement

Text: Lumbermens' final claim alleged that the United States breached the parties' takeover agreement by withholding an improper amount of Atherton's contract payments as liquidated damages for the contract's late completion. Lumbermens contended the government's liquidated damages assessment against Atherton (ultimately paid by Lumbermens) [1] was excessive because (1) the government was at fault for the 46 day delay caused by its faulty electrical wiring, and (2) the government had no right to assess liquidated damages against Lumbermens based on the late completion of the 21 housing units added to the contract which Lumbermens did not bond. The government moved to dismiss Lumbermens' takeover agreement claim on the grounds that Lumbermens failed to satisfy the jurisdictional prerequisites of the CDA, such as the requirement under 41 U.S.C. § 605(a) and (c)(1) that it first submit a certified claim to the contracting officer. The court found that the CDA's jurisdictional requirements were inapplicable to Lumbermens' claim because the CDA applies to contractor[s] that enter contract[s] for the procurement of materials or services, whereas Lumbermens signed the takeover agreement in its capacity as a surety. Lumbermens II, 90 Fed.Cl. at 561. With respect to the merits, the court accepted Lumbermens' first argument, rejected its second argument, and awarded Lumbermens $326,700 in remitted liquidated damages. Id. at 568-69. The United States appealed the Claims Court's judgment in favor of Lumbermens to this Court. Lumbermens cross-appealed seeking additional damages with respect to both its impairment of suretyship and takeover agreement claims. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(3).