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Williams Building Company Inc V Secretary Of State

Case: 23-2337    Document: 40     Page: 1   Filed: 07/23/2025




        NOTE: This disposition is nonprecedential.


   United States Court of Appeals
       for the Federal Circuit
                  ______________________

       WILLIAMS BUILDING COMPANY, INC.,
                   Appellant

                             v.

                SECRETARY OF STATE,
                        Appellee
                 ______________________

                        2023-2337
                  ______________________

     Appeal from the Civilian Board of Contract Appeals in
 Nos. 6650, 7147, Administrative Judge Harold D. Lester,
 Jr, Administrative Judge Joseph A. Vergilio, Administra-
 tive Judge Kathleen J. O’Rourke.
                  ______________________

                  Decided: July 23, 2025
                  ______________________

    KEVIN MICHAEL COX, Camardo Law Firm, P.C., Au-
 burn, NY, argued for appellant.

     GEOFFREY M. LONG, Commercial Litigation Branch,
 Civil Division, United States Department of Justice, Wash-
 ington, DC, argued for appellee. Also represented by BRIAN
 M. BOYNTON, PATRICIA M. MCCARTHY, CORINNE ANNE
 NIOSI; RANDAL WAX, Office of Legal Adviser for Buildings
Case: 23-2337    Document: 40      Page: 2    Filed: 07/23/2025




 2    WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE




 and Acquisitions, United States Department of State,
 Washington, DC.
                 ______________________

      Before LOURIE, DYK, and CHEN, Circuit Judges.
 LOURIE, Circuit Judge.
     Williams Building Company, Inc. (“Williams”) appeals
 from the decision of the Civilian Board of Contract Appeals
 (“the Board”) that granted summary judgment in favor of
 the Department of State’s Bureau of Overseas Building Op-
 erations (“OBO”) on all three counts of its appeal to the
 Board. Williams Bldg. Co. v. Dep’t of State, CBCA 23-1
 B.C.A. ¶ 38328, 2023 WL 3144494 (Apr. 26, 2023) (“Deci-
 sion”), J.A. 1–33. For Count I and most of Count II, the
 Board determined that prior bilateral contract modifica-
 tions and releases barred recovery. For the remainder of
 Count II and Count III, the Board determined that Wil-
 liams could not prove damages. For the following reasons,
 we affirm.
                        BACKGROUND
     As the Board noted, this case has “had a somewhat tor-
 turous history.” Decision, at J.A. 2. With that in mind,
 only the details most salient to the issues on appeal are
 summarized below. See id. at J.A. 2–14 (providing a more
 detailed history).
     On June 15, 2016, Williams entered into a firm-fixed-
 price contract with the OBO for renovations of an office
 space in Wuhan, China. J.A. 1657–60. Following delays
 and disputes over the original “issued for construction” doc-
 uments, the parties agreed to contract modifications
 P00007 (“modification-7”), J.A. 1793–99, and P00008
 (“modification-8”), J.A. 1800–06, on March 16 and June 15,
 2018, respectively. The modifications replaced the original
 “issued for construction” documents with new documents,
 provided for an extension of time, and each included an
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 WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE       3



 agreement by Williams to release the government from fur-
 ther liability “attributable to such facts or circumstances
 giving rise to the proposals for adjustment.” J.A. 1799; J.A.
 1806 (same).
      Beginning in November 2018, Williams submitted a se-
 ries of requests seeking additional money under the con-
 tract. See Decision, at J.A. 5. Among those requests were
 proposed change order (“PCO”) 075 requesting an exten-
 sion of time and a request for equitable adjustment (“REA”)
 for alleged breaches of contract for a cardinal change due
 to the deficient original “issued for construction” docu-
 ments and interference with Williams’ subcontractor,
 Huashi. Id. at J.A. 5–6. Those requests eventually evolved
 into two certified claims submitted to OBO on May 9, 2019:
 (1) seeking a time extension—beyond what was granted in
 modification-8—for alleged government-caused delays af-
 ter January 31, 2018, and (2) seeking compensation for a
 cardinal change claim and a breach of contract claim for
 alleged interference with Huashi. Id. at J.A. 7–8. On Au-
 gust 13, 2019, the OBO contracting officer issued a final
 decision denying both claims. Id. at J.A. 8; J.A. 2676–701.
     Subsequently, on September 28, 2019, OBO and Wil-
 liams settled the first claim seeking a time extension and
 a separate claim for customs storage fees with contract
 modification P00020 (“modification-20”). See J.A. 1839–50.
 Modification-20 provides that “[t]he contractor has three
 open certified legal claims related to customs storage fees,
 time delays, and cardinal changes to the contract. This [re-
 quest for contract action (“RFCA”)] represents a partial set-
 tlement of the first two of these claims . . . . Additional
 funding to settle the Breach of Contract claims [e.g., the
 cardinal change claim] will be requested when additional
 funds are available.” J.A. 1847–48. The modification’s de-
 scription of the scope of work provides additional details
 including PCO 067 for “Additional Storage Costs,” the
 aforementioned PCO 075 for “Time Extension,” and an-
 other contractor release for claims “attributable to the facts
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 4   WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE




 or circumstances set forth in [Williams’] above-referenced
 PCOs.” J.A. 1850.
     Then, on November 8, 2019, Williams appealed to the
 Board the contracting officer’s August 13, 2019 decision
 with respect to the second May 9, 2019 claim for breach.
 Williams’ complaint to the Board included three counts al-
 leging breach of contract: (I) for a cardinal change to the
 contract, (II) for breach of the implied duty of good faith
 and fair dealing due to OBO’s untimely responses to Wil-
 liams’ requests for information (“RFIs”) and submittals,
 and (III) for breach of the implied duty of good faith and
 fair dealing due to OBO’s alleged interferences with Wil-
 liams’ relationship with its subcontractor, Huashi. J.A.
 93–114. The complaint did not request a specific quantity
 of damages, but rather damages “in an amount to be deter-
 mined at a hearing before the Board.” J.A. 115. OBO
 moved for a more definite statement on damages, which the
 Board granted. J.A. 40–44. The Board subsequently is-
 sued a scheduling order that required Williams to provide
 a detailed schedule of all costs it was seeking, along with
 identification of documentary support for said costs no
 later than October 16, 2020, and ordered that no other doc-
 umentary support would be admitted at the hearing of the
 appeal. J.A. 47–48.
     Following conclusion of discovery on June 30, 2021, the
 parties moved for summary judgment, and the Board
 granted judgment in favor of OBO on all three counts. For
 Count I, the Board determined that the broad releases in
 modification-7 and -8 barred the cardinal change claim and
 that modification-20 did not waive those releases. Deci-
 sion, at J.A. 16–21. For Count II, the Board determined
 that the majority of the identified responses were associ-
 ated with the circumstances of modification-7 and -8 and
 were thus barred by the releases contained therein and
 that Williams failed to identify any damages associated
 with the remainder. Id. at J.A. 21–24. For Count III, the
 Board determined that a genuine issue of fact existed
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 WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE        5



 precluding summary judgment as to the breach, but that
 Williams failed to properly identify any costs associated
 with the alleged interference with Huashi because the evi-
 dence was first submitted by Williams in response to OBO’s
 summary judgment motion. Id. at J.A. 24–29.
     Williams timely appealed, and we have jurisdiction un-
 der 28 U.S.C. § 1295(a)(10).
                         DISCUSSION
     We review the Board’s determinations on questions of
 law, including contract interpretation, de novo. Rockies Ex-
 press Pipeline LLC v. Salazar, 730 F.3d 1330, 1335–36
 (Fed. Cir. 2013). The Board’s factual determinations may
 not be set aside unless they are “(A) fraudulent, arbitrary,
 or capricious; (B) so grossly erroneous as to necessarily im-
 ply bad faith; or (C) not supported by substantial evidence.”
 41 U.S.C. § 7107(b); see also Rockies Express Pipeline, 730
 F.3d at 1335. The Board’s decisions regarding procedure
 relating to discovery and evidentiary issues shall not be
 overturned unless an abuse of discretion is clear and is
 harmful. Johnson Mgmt. Grp. CFC, Inc. v. Martinez, 308
 F.3d 1245, 1252 (Fed. Cir. 2002).
     On appeal, Williams argues that the Board erred in its
 interpretation of modification-20. Williams’ argument fo-
 cuses on three sentences of the description of modifica-
 tion-20 included in the line-item summary table for the
 contract. The description is reproduced in its entirety
 herein below:
     This RFCA is for time delays experienced on the
     project related to design changes and a project
     shutdown caused by security concerns when the
     general contractor changed their major local sub-
     contractor. The contractor has three open certified
     legal claims related to storage fees, time delays, and
     cardinal changes to the contract. This RFCA repre-
     sents a partial settlement of the first two of these
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 6    WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE




     claims. Time delays compensated by this RFCA are
     related to the following changes during construc-
     tion. (This RFCA addresses PCO 067 Storage costs
     related to customs warehousing of critical materi-
     als - $185,663.90. PCO 075 Additional Time related
     Costs - $4,578,004.66. [Total: $4,763,668.56]. Bond
     Cost for the preceding of $235,657.17 to cover con-
     tract extension to new end date of 29 February
     2020. [Grand total: $4,999,325.73]. Additional
     funding to settle the Breach of Contract claims will
     be requested when additional funds are available.
 J.A. 1847–48 (emphases added). It is not clear whether the
 reference to the “Breach of Contract claims” in the last sen-
 tence includes more than the cardinal change claim, but
 both parties agree that the reference includes the cardinal
 change claim. Specifically, Williams argues that the final
 sentence, “[a]dditional funding to settle the Breach of Con-
 tract claims will be requested when additional funds are
 available,” represents an agreement to its entitlement to
 its cardinal change claim. Williams Br. at 24. According
 to Williams, the above language unambiguously provides
 that modification-20 was intended to be a global resolution
 of all Williams’ outstanding claims, “a partial settlement of
 the first two” claims relating to storage fees and time de-
 lays, and an agreement to Williams’ entitlement to the car-
 dinal change claim by acknowledgement that those funds
 “will be requested when additional funds are available.”
 Id. at 25–26. We disagree.
      The plain language of modification-20 does not concede
 liability for Williams’ cardinal change claim. Contrary to
 Williams’ assertions, the above paragraph makes clear
 that modification-20 is meant to address the first two
 claims only. It specifically notes that there are “three open
 certified legal claims” and the agreement “represents a par-
 tial settlement of the first two.” J.A. 1847. The next two
 sentences go on to describe the settlement of the first two
 claims in greater detail without mentioning the cardinal
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 WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE      7



 change claim. The final sentence then addresses the
 “Breach of Contract claims” which includes the cardinal
 change claim. At most, the final sentence can be read as
 an agreement to keep the cardinal change claim open for
 future settlement negotiations after additional funds have
 been requested. That understanding is bolstered by the
 scope of work description on the last page of the agreement,
 which provides additional details of the agreement with re-
 spect to the storage costs and the time extension, including
 a release of further liability from those claims for the gov-
 ernment. See J.A. 1850. What the scope of work does not
 contain is of particular note; there is no agreement to lia-
 bility for the cardinal change claim or any mention of the
 claim at all. See id. When viewed as a whole, it is clear
 that modification-20 was not intended to concede liability
 for the cardinal change claim.
     Williams makes two arguments in the alternative re-
 garding interpretation of the modifications. First, it argues
 that modification-20 vitiated the releases in the earlier
 modification-7 and -8 and thus allows for its Count I cardi-
 nal change claim. Williams Br. at 27–30. And second, it
 argues that modification-7 and -8 did not release all costs
 associated with its breach claims allowing for additional
 costs associated with its cardinal change claim. Id. at 30–
 33. For similar reasons, those arguments also fail.
     The basis for Williams’ cardinal change and first
 breach of implied duty for delayed responses claims is the
 substitution of the original “issued for construction” docu-
 ments with new “issued for construction” documents. The
 substitution of those documents is expressly addressed by
 modification-7, J.A. 1793–99, and time delays associated
 with the unsuitable original documents is expressly cov-
 ered by modification-8, J.A. 1800–06. The language of the
 contractor releases is clear. Williams agreed to release the
 government from “any and all liability . . . attributable to
 such facts or circumstances giving rise to the proposals for
 adjustment” for both modifications. J.A. 1799 (emphasis
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 8    WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE




 added); see also J.A. 1806. At bottom, modification-7 and -
 8 released the government from “any and all” liability for
 additional claims associated with the document substitu-
 tion, and nothing in the subsequent modification-20
 demonstrates an intent to alter those original release
 agreements. We therefore agree with the Board’s conclu-
 sion that the prior bilateral contract modifications and re-
 leases barred Count I and the relevant portions of Count
 II.
      Notwithstanding the contract interpretation argu-
 ments, Williams argues that the Board erred in granting
 summary judgment in favor of OBO on Count III because
 it erred in granting OBO’s earlier motion for a more defi-
 nite statement on costs. According to Williams, the Board
 violated its Rule 6(d) because it provides that “[t]he Board
 may allow a party . . . to move for a more definite statement
 in lieu of filing an answer.” Williams Br. at 33–36 (quoting
 48 C.F.R. § 6101.6). That is because OBO both failed to
 seek leave to file its motion and filed its answer while the
 motion was still pending. Id. However, the Board specifi-
 cally addressed that precise issue in its order. See J.A. 42.
 It interpreted OBO’s motion as seeking to enforce Rule 6(a)
 that requires a complaint to “stat[e] in simple, concise, and
 direct terms the factual basis for each claim and the
 amount in controversy,” and determined that Williams’
 complaint failed to satisfy that requirement. J.A. 42 (quot-
 ing 48 C.F.R. § 6101.6). The Board has discretion regard-
 ing issues of case management, and we see no abuse of
 discretion in its enforcement of its rules in that manner.
 See Johnson Mgmt. Grp., 308 F.3d at 1252 (finding no
 abuse of discretion in denial of discovery motions).
     Williams further argues that the Board abused its dis-
 cretion by issuing a scheduling order that required it to
 provide a detailed breakdown of its costs and supporting
 documentation because “requiring [Williams] to provide
 proof of all damages prior to discovery” was prejudicial.
 Williams Br. at 35–36. We disagree. As an initial matter,
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 WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE       9



 Williams was not required to provide proof of all damages
 prior to discovery. There was a nearly five-month window
 after the opening of discovery until the final breakdown of
 costs and supporting documentation were due.               See
 J.A. 47–49 (opening discovery on May 27, 2020, and order-
 ing a complete schedule of cost with supporting documen-
 tation due on October 16, 2020). Furthermore, Williams
 has offered no explanation as to why that time was insuffi-
 cient for it to understand and identify its own costs that it
 was seeking as part of its breach claim and provide its own
 documentation supporting those costs. Williams has there-
 fore failed to establish an abuse of discretion in the Board’s
 order or demonstrate prejudice. See Curtin v. Off. of Pers.
 Mgmt., 846 F.2d 1373, 1379 (Fed. Cir. 1988) (“If an abuse
 of discretion did occur with respect to the discovery and ev-
 identiary rulings, in order for petitioner to prevail on these
 issues he must prove that the error caused substantial
 harm or prejudice to his rights which could have affected
 the outcome of the case.”).
      Williams’ argument continues that the Board erred by
 refusing to consider its evidence of costs first submitted in
 its opposition to summary judgment because it “did not
 have a full understanding of th[o]se costs until it reviewed
 documents provided by OBO.” Williams Br. at 36. Again,
 we disagree. Williams’ brief goes on to identify a wide va-
 riety of evidence from discovery that speaks to the merits
 of its breach claim, but none that demonstrates that Wil-
 liams was unaware of the costs of the alleged breach or that
 it could not have identified those costs and the supporting
 documents in accordance with the Board’s scheduling or-
 der. See id. at 38–52. Because the Board did not abuse its
 discretion in issuing the scheduling order, we see no abuse
 of discretion in enforcing it later in the proceeding to grant
 summary judgment in favor of OBO on Count III.
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 10   WILLIAMS BUILDING COMPANY, INC. v. SECRETARY OF STATE




                       CONCLUSION
      We have considered Williams’ remaining arguments
 and find them unpersuasive. For the foregoing reasons, we
 affirm the decision of the Board.
                       AFFIRMED