DocketNumber: No. 502-78
Citation Numbers: 221 Ct. Cl. 906
Judges: Friedman, Kashiwa, Kunzig
Filed Date: 10/19/1979
Status: Precedential
Modified Date: 11/23/2022
This case is before the court on defendant’s motion for summary judgment and plaintiffs cross-motion for an order striking affirmative defenses. On the basis of the submissions, but without oral argument, we deny defendant’s motion and grant plaintiffs motion.
Defendant entered into a contract with the Independent Church of God in Christ under which defendant agreed to
Defendant has raised three affirmative defenses in its answer to the petition: that plaintiff lacks standing to sue; that the assignment to plaintiff is barred by 31 U.S.C. § 203
In support of its motion for summary judgment, defendant relies primarily on 41 U.S.C. § 15 rather than 31 U.S.C. § 203. Assuming that the Church’s obligations under the contract were completed, its rights were in the nature of a claim for money. Insofar as 41 U.S.C. § 15 prohibits an assignment of a completed contract, it should be construed in harmony with 31 U.S.C. § 203 which prohibits (with certain exceptions) the assignment of claims against the government.
Section 203 applies only to voluntary transfers, and not to assignments by operation of law. United States v. Aetna Casualty & Surety Co., 338 U.S. 366 (1949); Quarles Petroleum Co. v. United States, 213 Ct. Cl. 15, 551 F. 2d 1201 (1977). A sale of property by a receiver appointed by a
Defendant’s other ground for summary judgment is that there is no contract between the government and plaintiff, and that plaintiff has no standing to sue on a contract to which it was not a party. As the above cases implicitly recognize, however, a party owning a claim, the assignment of which is not barred by statute, has standing to sue on the claim in this court.
Accordingly, defendant’s motion for summary judgment is denied, plaintiffs motion to strike the three affirmative defenses raised by defendant is granted, and the case is remanded to the trial division for further proceedings.
31 U.S.C. § 203 provides, in part: "All transfers and assignments made of any claim upon the United States, or of any part or share thereof, or interest therein, * * * shall be absolutely null and void, * *
41 U.S.C. § 15 provides, in part: "No contract or order, or any interest therein, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall cause the annulment of the contract or order transferred, so far as the United States are concerned. All rights of action, however, for any breach of such contract by the contracting-parties, are reserved to the United States.”