Veterans Contracting Group v. United States ( 2018 )


Menu:
  •        NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    VETERANS CONTRACTING GROUP, INC.,
    Plaintiff-Appellant
    v.
    UNITED STATES, WILLIAMS BUILDING
    COMPANY, INC.,
    Defendants-Appellees
    ______________________
    2018-1410
    ______________________
    Appeal from the United States Court of Federal
    Claims in No. 1:17-cv-01188-CFL, Judge Charles F.
    Lettow.
    ______________________
    Decided: November 20, 2018
    ______________________
    JOSEPH ANTHONY WHITCOMB, Rocky Mountain Disa-
    bility Law Group, Denver, CO, argued for plaintiff-
    appellant. Also represented by TIMOTHY TURNER, Whit-
    comb, Selinsky, McAuliffe, PC, Denver, CO.
    ELIZABETH ANNE SPECK, Commercial Litigation
    Branch, Civil Division, United States Department of
    Justice, Washington, DC, argued for defendant-appellee
    United States. Also represented by ALISON VICKS, TARA
    2            VETERANS CONTRACTING GROUP v. UNITED STATES
    K. HOGAN, ROBERT EDWARD KIRSCHMAN, JR., JOSEPH H.
    HUNT.
    JOHN M. MANFREDONIA, Manfredonia Law Offices,
    LLC, Cresskill, NJ, for defendant-appellee Williams
    Building Company, Inc.
    ______________________
    Before LOURIE, DYK, and HUGHES, Circuit Judges.
    LOURIE, Circuit Judge.
    Veterans Contracting Group, Inc., (“VCG”) appeals
    from a decision of the United States Court of Federal
    Claims (“the Claims Court”) holding that the Small
    Business Administration (“SBA”) did not act arbitrarily,
    capriciously, or contrary to the SBA’s regulations by
    applying the SBA’s requirement for unconditional service-
    disabled veteran ownership of a small business in order to
    qualify for service-disabled veteran-owned small business
    (“SDVOSB”) set-aside contracts. Veterans Contracting
    Grp., Inc. v. United States, 
    135 Fed. Cl. 316
    , 330 (2017).
    The SBA applied the standard for unconditional
    ownership articulated in The Wexford Grp. Int’l, Inc., SBA
    No. SDV-105, 
    2006 WL 4726737
     (June 29, 2006)
    (“Wexford”) to VCG and determined that VCG was not at
    least 51% unconditionally owned by a service-disabled
    veteran as required by 
    13 C.F.R. § 125.12
    , removed VCG
    from SDVOSB eligibility, and disqualified VCG from
    receiving a contract award from the U.S. Army Corps of
    Engineers (“the Corps”) set aside for SDVOSBs. We have
    appellate jurisdiction under 
    28 U.S.C. § 1295
    (a)(3). We
    dismiss the appeal as moot.
    The appeal is moot because each of the remedies VCG
    originally requested is now beyond the power of this court
    to grant. See Calderon v. Moore, 
    518 U.S. 149
    , 150 (1996)
    (holding that an appeal should be dismissed as moot when
    “a court of appeals cannot grant any effectual relief
    VETERANS CONTRACTING GROUP v. UNITED STATES              3
    whatever”); North Carolina v. Rice, 
    404 U.S. 244
    , 246
    (1971) (“Mootness is a jurisdictional question because the
    Court is not empowered to decide moot questions or
    abstract propositions.”) (citations omitted).
    In its complaint, VCG sought: (1) an injunction
    ordering the Corps to award, or at least to consider
    awarding, the contract at issue to VCG; (2) a declaration
    restoring VCG’s SDVOSB eligibility; (3) a declaration that
    the SBA acted unreasonably and contrary to law and
    regulations when it applied Wexford and determined that
    VCG was ineligible for the SDVOSB program; and (4) fees
    and expenses of attorneys. We conclude that subsequent
    events have rendered the first two remedies moot, and the
    latter two are insufficient on their own to create an
    Article III case or controversy.
    VCG’s request for retroactive award of the contract at
    issue is moot because the government terminated the
    contract. See Durable Metal Prods., Inc. v. United States,
    No. 93-5090, 
    11 F.3d 1071
     (Table) (Fed. Cir. 1993) (hold-
    ing that a bid protestor’s request for an injunction was
    moot because the solicitation had been properly can-
    celled), and PRC Inc. v. Widnall, 
    64 F.3d 644
    , 645 (Fed.
    Cir. 1995); see also Coastal Envtl. Grp., Inc. v. United
    States, 
    114 Fed. Cl. 124
    , 131 (2013) (“[T]he Court of
    Federal Claims has consistently found that the cancella-
    tion of a procurement renders a protest of that procure-
    ment moot.”) (collecting cases).
    VCG also argues that the SBA’s reliance on Wexford
    to remove VCG from SDVOSB eligibility was erroneous,
    and thus VCG should have its SDVOSB eligibility
    restored. Since this appeal was taken, the SBA has
    promulgated new regulations that change the definition of
    the requisite unconditional ownership by a service-
    disabled veteran, effectively overturning Wexford. See
    Ownership and Control of Service-Disabled Veteran-
    Owned Small Business Concerns, 
    83 Fed. Reg. 48,908
    4            VETERANS CONTRACTING GROUP v. UNITED STATES
    (Oct. 1, 2018) (to be codified at 
    13 C.F.R. § 125
    ). These
    regulations now govern VCG’s eligibility as an SDVOSB.
    As a result, VCG’s request for restoration of its SDVOSB
    eligibility under previous SBA regulations is moot.
    Neither of VCG’s two remaining requests, for
    declaratory relief and for fees and expenses of attorneys,
    prevents dismissal for mootness.           A request for
    declaratory relief, in and of itself, is not sufficient to
    confer jurisdiction on an Article III court where there is
    no “substantial controversy, between parties having
    adverse legal interests, of sufficient immediacy and
    reality to warrant the issuance of a declaratory
    judgment.” Preiser v. Newkirk, 
    422 U.S. 395
    , 402 (1975).
    There is no Article III case or controversy where the case
    has become “an abstract dispute about the law, unlikely
    to affect [the party] any more than it affects other[s].”
    Alvarez v. Smith, 
    558 U.S. 87
    , 93 (2009). Whether the
    SBA acted arbitrarily, capriciously, or contrary to the
    SBA’s regulations by applying the now-defunct Wexford
    standard to define unconditional ownership does not
    affect VCG in any future procurement, and thus it is
    exactly the type of moot, abstract dispute excluded from
    our jurisdiction.
    VCG also asserted that its request for fees and
    expenses of attorneys —made at oral argument but not in
    either of its briefs—is sufficient to prevent dismissal for
    mootness, but a free-standing claim for fees and expenses
    of attorneys “is not a viable basis for avoiding mootness,”
    Totolo/King Joint Venture v. U.S., 431 F. App’x 895 (Fed.
    Cir. 2011). See Lewis v. Cont’l Bank Corp., 
    494 U.S. 472
    ,
    480 (1990) (explaining that an “interest in attorney’s fees
    is, of course, insufficient to create an Article III case or
    controversy where none exists on the merits of the
    underlying claim”). VCG’s occasional requests for fees
    and expenses of attorneys do not grant this court
    jurisdiction to decide an otherwise moot case.
    VETERANS CONTRACTING GROUP v. UNITED STATES                5
    Accordingly, there is no Article III case or controversy
    for this court to resolve, and we dismiss this appeal as
    moot.
    DISMISSED