Supreme Court of the United States

Department of the Army v. Blue Fox, Inc.

January 20, 1999525 U.S. 255

Summary

Chief Justice Rehnquist delivered the Court’s unanimous opinion holding that the Administrative Procedure Act’s waiver of sovereign immunity does not permit a subcontractor to enforce an equitable lien against government funds to recover losses caused by a prime contractor’s default. Section 702 distinguishes specific relief from substitute compensation, not equitable remedies from legal remedies. The lien sought here constituted money damages because it would secure compensation for the subcontractor’s loss. The Miller Act permits recovery on a contractor’s payment bond, not recovery directly from the Government, and decisions concerning sureties’ subrogation rights did not establish otherwise. The Court reversed the Ninth Circuit’s judgment and remanded. There were no separate opinions.

Holding

  • Whether the equitable lien sought by the subcontractor falls within § 702’s waiver of sovereign immunity for relief other than money damages.. The equitable lien sought here constitutes money damages and falls outside § 702’s waiver of sovereign immunity.
  • Whether the Miller Act and equitable-subrogation precedents authorize direct recovery against government property or funds.. The Miller Act gives subcontractors a right to sue on a prime contractor’s surety bond, not a right to recover their losses directly from the Government; the cited subrogation decisions do not displace sovereign immunity.

Docket 97-1642

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