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Air Terminal Services, Inc. v. United States

330 F.2d 974 (1964)

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Air Terminal Services, Inc. v. United States

United States Court of Claims

330 F.2d 974 (1964)

Facts

In 1957, the United States government (defendant) invited bids on the commercial operation of Washington National Airport parking lots, not including 32 metered parking spaces on airport roadways. After calculating its probable revenue based on the latest gross receipts reported by the agency in its bid invitation, Air Terminal Services, Inc. (Air Terminal) (plaintiff) submitted its bid and won the contract. About a year later, pursuant to its undisclosed 1956 plan for alleviating congestion on airport roadways, the government added 122 new metered parking spaces. In doing so, the government exercised its authority under a pre-1957 regulation, published in the Federal Register, giving it full authority over airport roadways. Because the new spaces were outside the Air Terminal lots, the government’s action cut deeply into Air Terminal’s revenue. Alleging that the government breached its warranty not to hinder Air Terminal’s contractual performance, the company sued the government in the Court of Claims.

Rule of Law

Issue

Holding and Reasoning (Durfee, J.)

Dissent (Whitaker, J.)

Dissent (Jones, C.J.)

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