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Govt. Failed To Pay, Couldn't Dismiss Contract Breach Claim As Baseless

Thursday, July 27, 2017 05:13 am


Contract Breach---Termination

Claude Mayo Constr. Co., Inc. v. U.S., 2017 U.S. Ct. Fed. Cl. No.15-1263C (June 23, 2017)

Nonpayment for work performed---and accepted---was more than a speculative basis for a claim.

Claude Mayo Construction Company, Inc. (Claude Mayo) performed construction work at the James M. Hanley Federal Building in Syracuse, New York under a contract with the General Services Administration (GSA). After GSA terminated the contract for default, Claude Mayo filed a claim challenging that decision as well as alleging breach of contract. The contractor contended that GSA refused to pay $207,102 for completed work. The government moved to dismiss Claude Mayo's complaint, in part, for failure to state a claim pursuant to Rule 12(b)(6) of the Rules of the Court of Federal Claims (RCFC).

GSA argued that Claude Mayo "failed to identify 'an obligation or duty arising from [its] contract' or 'a breach of that duty.'" On the other hand, Claude Mayo alleged that the government's obligation, by agreement, was to pay the contractor for its performance of "certain construction work, namely the furnishing of all materials, equipment, labor and supervision for renovation of the United States Attorney's Office." The contractor also alleged that it "submitted applications for payment for work that was completed and accepted by GSA."

Under RCFC, "[a] claim has facial plausibility when the plaintiff p[...]

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