Washington Metropolitan Area Transit Authority v. Ragonese, No. 79-1555

• Court: United States Courts of Appeals. United States Court of Appeals (District of Columbia)
• Writing for the Court: Before BAZELON, Senior Circuit Judge, TAMM; Opinion for the court filed by TAMM; TAMM
• Citation: 617 F.2d 828
• Parties: , 27 Cont.Cas.Fed. (CCH) 80,099 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, Appellant, v. Frank RAGONESE, d/b/a Square Construction Company and La Fera Contracting Company, et al.
• Docket Number: No. 79-1555
• Decision Date: 25 February 1980

Page 828

617 F.2d 828 199 U.S.App.D.C. 246, 27 Cont.Cas.Fed. (CCH) 80,099 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, Appellant,
v.
Frank RAGONESE, d/b/a Square Construction Company and La
Fera Contracting Company, et al. No. 79-1555. United States Court of Appeals,
District of Columbia Circuit. Argued Dec. 7, 1979.
Decided Jan. 25, 1980.
Rehearing Denied Feb. 25, 1980.

Page 829

Appeal from the United States District Court for the District of Columbia (Civil Action No. 78-2221).

Leonard Petkoff, Washington, D. C., with whom William A. Hicks, Washington, D.C., was on brief, for appellant.

Robert H. Hunt, Washington, D. C., with whom John B. Tacke, Washington, D. C., was on brief, for appellee Ragonese, et al.

Mark B. Goodwin, Washington, D. C., with whom James V. Dolan and Jeffrey P. Moran, Washington, D. C., were on brief, for appellee Maryland Cas. Co.

Before BAZELON, Senior Circuit Judge, TAMM, Circuit Judge, and HAROLD GREENE, ^* U.S. District Judge for the District of Columbia.

Opinion for the court filed by TAMM, Circuit Judge.

TAMM, Circuit Judge:

The Washington Metropolitan Area Transit Authority (WMATA) appeals from an order entered by Judge John Lewis Smith, Jr., of the United States District Court for the District of Columbia dismissing WMATA's action to enforce a contract between it and Square/La Fera, a joint venture consisting of Frank Ragonese, doing business as Square Construction Company, and La Fera Contracting Company. We agree with Judge Smith that WMATA could not obtain enforcement of its contract until it had been determined when WMATA's contractual rights, if any, would accrue, and that proceedings capable of making this determination were already pending before the United States District Court for the Eastern District of Virginia. Therefore, we affirm the order dismissing the case without prejudice.

I

This action arises from a construction contract concluded by WMATA and Square/La Fera in 1972. Maryland Casualty Company (Casualty), also a defendant in this case, acted as a surety under the contract, bonding Square/La Fera's performance. In 1974 WMATA's contracting officer terminated the agreement, citing an alleged default by Square/La Fera. The Army Corps of Engineers' Board of Contract Appeals, which WMATA had designated to review decisions made by its contracting officers, sustained the termination and fixed damages. WMATA's general manager adopted this decision.

Page 830

Pursuant to the dispute provisions of the contract, Square/La Fera filed a complaint in the District Court for the Eastern District of Virginia requesting judicial review of WMATA's determinations. ¹ Seven days later, WMATA filed this action in the District Court for the District of Columbia to enforce WMATA's internal decisions that termination was proper and that damages were due. WMATA believes that it is entitled to payment of the damages pending resolution of the issues on review. Square/La Fera believes that it owes nothing until the review proceedings have run their course through the judicial system, but before Judge Smith argued only that the matter was then before the court in Virginia. After surveying this situation, Judge Smith concluded that the timing of payment was an issue that properly could be raised before the district court in Virginia,...