Wolf Creek Railroad challenged the government's dismissal of its breach-of-contract claim. It argued that a contractual relationship existed between itself and the Army through an authorization given to another contractor. The government denied this authorization. The Federal Circuit ruled that Wolf Creek lacked privity with the Army and thus affirmed the COFC's dismissal on jurisdictional grounds.
Wolf Creek Railroad LLC v. United States, Fed. Cir., No. 2024-1873
- Background - In 2008, the Army entered into contracts with American Ordnance for maintenance services at the Milan Army Ammunition Plant. In 2018, the Army authorized American Ordnance to enter into a tenant use agreement with Wolf Creek Railroad, allowing it to operate a railway system at the Plant. Following an order requiring all tenants to vacate the facility, Wolf Creek filed suit against the government, alleging breach of the 2018 Tenant Use Agreement (TUA).
- Jurisdiction Over Claim - Wolf Creek asserted that it had a contractual claim against the Army. However, the court found that Wolf Creek did not submit a claim to the correct contracting officer, as required under the Contract Disputes Act (CDA). This was deemed necessary for the Claims Court to have jurisdiction, meaning the dismissal was upheld.
- Lack of Contractual Privity - Wolf Creek argued that it was in privity of contract with the Army, but the court disagreed. The ruling established that American Ordnance, even when considered an "Owner's Representative," did not have the authority to represent the Army in the 2018 TUA. The court reasoned that without a clear contractual relationship between Wolf Creek and the Army, it could not establish the required grounds for a claim.
- Agency Relationship - Wolf Creek contended that American Ordnance acted as the Army’s agent in its dealings with the plaintiff. The court ruled that the evidence did not support this assertion. The Army’s guidelines clearly indicated that American Ordnance was not authorized to act on its behalf regarding the contracts, leading to a rejection of Wolf Creek's claims.
The plaintiff is represented by Lewis P. Rhodes and Thomas David of Reston Law Group LLP. The government is represented by Sean Kelly Griffin, Brian M. Boynton, Eric P. Bruskin, and Patricia M. McCarthy of the United States Department of Justice.