The contractor settled its claim and voluntarily dismissed the pending appeal before the ASBCA. Thereafter, the contractor's state-court appointed received filed a motion to vacate the settlement and reopen the appeal. The receiver argued the contractor had lacked authority to settle. The ASBCA determined it lacked jurisdiction to entertain the receiver’s motion. The board does not engage in third-party practice. What's more, the terms of the receiver's state court appointment stated that the state court would maintain jurisdiction over any alleged fraudulent transfer claims involving the contractor.
Penna Group, LLC v. United States Army Corps of Engineers, ASBCA Nos. 61708-ADR, 61641-ADR, 61642-ADR**
- Background - The contractor, Penna Group LLC, entered into a settlement agreement with the agency on February 1, 2024. The agency subsequently made a payment to the contractor's attorney on March 8, 2024. The Board dismissed the appeals with prejudice on April 16, 2024, acknowledging the settlement. However, on July 17, 2024, the receiver appointed in a Texas state case moved to vacate the settlement, asserting that the contractor's owner lacked authority to sign the agreement.
- Jurisdiction Dismissed - The Board ruled that it lacked jurisdiction to grant the receiver's request. It clarified that when an appeal is voluntarily dismissed with prejudice, the Board effectively loses jurisdiction over the case as if the appeal never existed. This principle prevents the Board from addressing disputes arising under the settlement agreement, as it did not retain jurisdiction during the dismissal process.
- Third-Party Pleading - The ASBCA stated that it does not engage in third-party practice and therefore cannot consider challenges from non-parties. The receiver, although claiming an interest in the matter, was not a contractor nor a party to the appeal when the settlement was reached. .
- Exclusive Jurisdiction of Texas Court - The Board acknowledged that the receivership order specified that the Texas court maintains exclusive jurisdiction over any fraudulent transfer matters. As a result, the Board concluded that it could not intervene, as the issues raised by the receiver would need to be resolved by the Texas court.
The contractor is represented by Bryant S. Banes, Sean D. Forbes, and Robert A. Magnuson of Neel, Hooper & Banes, P.C. The government is represented by Michael P. Goodman, Jennifer M. Dorsey, and Blake M. Hedgecock of the U.S. Army Engineer District, Fort Worth.