Fordice Construction Company v. Central States Dredging Company

631 F.Supp. 1536 (1986)

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Nature of the Case

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Facts

The Army Corps of Engineers solicited bids from small business concerns and/or 'entering manufacturers' for the manufacture of 200,000 squares of articulated concrete mattresses for Contract No. DACW38-84-B-001 at Delta, Louisiana. Both P and D submitted bids on the basis that they were small businesses. D was the low bidder and was awarded the contract. P, the second low bidder, filed protests with the SBA and the Department of Labor, challenging D's self-certification as a small business and its status as an 'entering manufacturer' under the Walsh-Healey Act. P claimed that D was ineligible for the procurement because of its alleged joint venture relationship with APAC, a large business ineligible for the contract. The SBA's Atlanta Regional Office found D to be a small business for purposes of the procurement. P appealed the determination to the SBA Office of Hearing and Appeals, previously the SBA Size Appeals Board. On appeal, the administrative judges dismissed P's appeal as moot since the contract had already been awarded to D. P instituted this diversity action, claiming unjust enrichment and fraud as a result of D's 'improper and unlawful representation' that it was a small business and an 'entering manufacturer.' D moved for summary judgment on the basis that: (1) P has no remedies under state law; (2) there was no joint venture between them and, therefore, P has no claim against them for unjust enrichment and fraud; and (3) P is estopped to pursue its claims against them.