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Insurance Co. of North America v. District of Columbia

The D.C. Court of Appeals affirmed a summary judgment motion granted by the D.C. Superior Court on behalf of the defendant in a case involving an ongoing dispute over the defendant's termination of a construction contract for the redevelopment of Union Station. In one provision of a 1987 partial settlement of the dispute, the defendant agreed that if it were later found to have been at fault, it would reimburse the plaintiff for various costs, fees, and expenses. When it later was asked to fulfill that pledge, the defendant argued that it could not lawfully comply because the Anti-Deficiency Act forbid government officials to spend or obligate funds that had not been appropriated. Litigation ensued and the Superior Court granted summary judgment to the defendant.

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Argued June 28, 2006

Before REID and FISHER, Associate Judges, and BELSON, Senior Judge.

In 1987 the parties reached a partial settlement of an ongoing dispute over the District of Columbia’s termination of a construction contract for the redevelopment of the historic Union Station. In one of the provisions, the District agreed that, if it were later found to have been at fault, it would reimburse the Insurance Company of North America (“INA”) for various costs, fees, and expenses. When it later was asked to fulfill that pledge, the District refused, eventually arguing that it could not lawfully comply because the Anti-Deficiency Act forbids government officials to spend or obligate funds that have not been appropriated. Litigation ensued, and the Superior Court granted summary judgment to the District of Columbia. We affirm.

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