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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 [...]

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