The CBCA dismissed a government counterclaim. It turned out the government asserted what should’ve been an affirmative defense of payment as a counterclaim for unjust enrichment.
F.H. Cann & Associates, Inc. v. Department of Education, CBCA 7670
- The Contractor’s Claim – The contract was for collection of student loans. During the COVID pandemic, Congress imposed a moratorium on student loan collections. The contractor filed a claim to recover costs incurred from the moratorium. The government denied the claim. The contractor appealed to the CBCA.
- The Government’s Counterclaim – On appeal the government filed a counterclaim against the contractor for unjust enrichment. The government alleged the contractor had been compensated by the CARES Act. Thus, any additional payment to the contractor would be an unjust enrichment.
- Government Failed to State a Claim – The board dismissed the government’s counterclaim. The government had not alleged a past unjust enrichment. Instead, it claimed the contractor would be unjustly enriched if it prevailed. That might be an affirmative defense, but it wasn’t a counterclaim.
The contractor is represented by James C. Fontana and L. James D’Agostino of Fontana Law Group, PLLC as well as by David R. Warner and Heather R. Mims of Warner PLLC. The government is represented by Paula Hughes and Marta M Rajchel of the Department of Education.
--Case summary by Craig LaChance, Senior Editor