Case of the Day: Acetris Health LLC v. United States, 2018 U.S. Claims LEXIS 474 (Ct. Fed. Claims May 8, 2018)

Summary:

Plaintiff is a medicine supplier for VA Hospitals, subject to "Buy American" statute that requires the U.S. government facilities to procure U.S.-made products. Because the medicine that the plaintiff supplied is allegedly sourced from India, the U.S. Customs and Border Protection determined the medicine did not comply with the Buy American regulations, effectively terminating the plaintiff's contract with the Department of Veterans' Affairs. Plaintiff then sued the United States.

The court denied the motion to dismiss by the United States. The court found that although the CBP made the initial determination as to the country's origin (which would put the action under the Court of International Trade,) the fact that DVA also exercised judgment gave jurisdiction to the Court of Federal Claims. The court also found 28 U.S.C. s. 1500, which divests the Court of Federal Claims of jurisdiction when a related action is pending in another court, did not bar the plaintiff's claims although there is a separate action pending before the CIT challenging the CBP determination.

Takeaway:

Whoa. I am not familiar with the operation of 28 U.S.C. s. 1500, but that appears to be an aggressive ruling by the court.