Department of the Army v. Blue Fox, Inc.
142 L. Ed. 2d 718 | Supreme Court of the United States | 1999
What This Case Means for Subcontractors
Blue Fox, a subcontractor, was not paid by the prime contractor on an Army construction project and tried to collect directly from the government using an equitable lien. The Supreme Court ruled that sovereign immunity prevents subcontractors from enforcing liens against the federal government, even under the Administrative Procedure Act. This means subcontractors cannot bypass the Miller Act bonding requirements to recover unpaid amounts directly from government agencies.
Key Takeaways
- •Always require the prime contractor to post a Miller Act payment bond before starting work on federal projects—this is your primary protection if the prime contractor fails to pay you.
- •You cannot sue the federal government directly for an equitable lien if the prime contractor doesn't pay you. Your only remedy is the payment bond.
- •If no Miller Act bond exists, you have limited recourse. Verify bonding requirements are met before mobilizing on any federal construction project.
Sovereign immunity bars creditors from enforcing liens on Government property.
Frequently Asked Question
Can I sue the federal government directly if the prime contractor doesn't pay me on a government construction project?
No. The Supreme Court ruled that sovereign immunity prevents you from enforcing liens directly against the federal government. Your only remedy is to claim against the Miller Act payment bond that the prime contractor is required to post. Always verify the bond exists before starting work.
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