On May 17, 2016, Attorney Eric S. Montalvo and Attorney Lauren R. Brier
received a favorable decision from an appeal filed before the Armed Services
Board of Contract Appeals (“ASBCA”).
Back in June 2014, Attorney Montalvo filed an appeal with the ASBCA on
behalf of Zuhmat Group Construction, a company hired by the Department
of the Army to supply generators to various government owned locations
in Afghanistan. Under Zuhmat’s contractual agreement with the Army,
it received thirteen different delivery orders from the Army for various
types of generators. Zuhmat performed under the contract from December
2010 through the contract’s time of completion, December 2011. At
the close of the contract, Zuhmat had received payment from the Army for
nine of the thirteen performed orders. The Army denied Zuhmat’s
request for payment on the remaining four orders as a result of alleged
failed deliveries and cancellations.
In response, Attorney Montalvo filed a certified claim with the contracting
officer requesting payment on the four outstanding orders. Attorney Montalvo
supported Zuhmat’ s claim with email records demonstrating Zuhmat
began and/or tendered performance under the four outstanding orders pursuant
to Army directives. Despite this evidence, the contracting officer denied
Zuhmat’s certified claim on January 15, 2015.
As a result of the Army’s refusal to pay, Attorney Montalvo filed
an appeal with the ASBCA claiming Zuhmat was entitled compensation for
delivery fees and invoices left outstanding on Zuhmat’s four orders.
Zuhmat again claimed it had sufficient evidence to show that it properly
began and/or tendered performance under the four outstanding orders.
To resolve the appeal, a summary proceeding was held before an Administrative
Judge of the ASBCA in Dubai, UAE on May 9, 2016. Prior to the proceeding,
both parties agreed that all decisions by the Administrative Judge were
to be final, conclusive, and not appealable. Leading up to the proceeding,
Attorney Brier filed a pre-hearing brief claiming there was sufficient
documentary evidence in the record to support Zuhmat’s full recovery
on appeal. At the proceeding, Attorney Montalvo claimed that on two of
the unpaid orders, the Army wrongfully denied acceptance of the generators
after Zuhmat reached its delivery locations. On the final two unpaid orders,
Attorney Montalvo presented an extensive email record demonstrating that
the government accepted the delivered generators, but failed to pay Zuhmat
after completed delivery.
On May 17, 2016, the Administrative Judge issued a binding decision sustaining
Zuhmat’s appeal on all four orders. The Administrative Judge determined
Zuhmat’s appeal was completely supported by indisputable evidence
on the record and credible testimony presented by Zuhmat’s witness
at the proceeding. As a result of this decision, Attorney Montalvo and
Attorney Brier were able to recover full payment on all four of Zuhmat’s
unpaid invoices, plus interest.