The US Department of Agriculture (USDA) has been ordered to pay Michael Johnson Logging $10,632 in lawyers’ fees and costs over its faulty opposition to the company’s contract breach appeal, according to a recent ruling. Judge Kathleen J. O’Rourke of the Civilian Board of Contract Appeals stated that the timber company is entitled to these fees under the Equal Access to Justice Act as the USDA’s challenge to the company’s claims of express contract breach lacked substantial justification.
In 2021, the board ruled in favor of Michael Johnson Logging, determining that the USDA had expressly breached the timber sale contract by excessively charging the company for contract deposits. Michael Johnson Logging had agreed to these deposits under a contract extension that the company “had to pay for” due to “financial and staffing challenges,” as stated in the board’s decision.
In an opinion released on Nov. 15, 2023, the board found that the USDA’s litigation against Michael Johnson Logging’s breach claim was improper. According to the board, the department had charged a fee “more than 6000% above what the contract required,” which resulted in a “gross miscalculation”. This significant error caused the company to incur additional litigation costs in appealing the breach claim.
The ruling was also supported by Board Judges Patricia J. Sheridan and Jonathan D. Zischkau. Michael Johnson Logging was represented by Scuderi Law Offices PS in this case. Additional information on this decision is available in the case of Michael Johnson Logging v. Dep’t of Agric., CBCA, No. 7187-C(5089, 5619), where the decision was released on Nov. 15, 2023.