Legal Definitions - Claims Court, U.S.

The U.S. Claims Court is the common name for what is officially known as the United States Court of Federal Claims. This is a specialized federal court in the United States that has the authority to hear most monetary claims against the U.S. government. Unlike other courts where the government might be a plaintiff or a defendant in various types of cases, this court's primary role is to resolve disputes where individuals, businesses, or other entities believe the federal government owes them money. It handles a wide range of claims, including disputes over government contracts, requests for tax refunds, and claims that the government has taken private property without just compensation.

• Example 1: Government Contract Dispute

  A construction company, "BuildRight Inc.," secures a contract with the Department of Veterans Affairs to renovate a hospital. After completing the project, BuildRight Inc. submits its final invoice, but the government agency refuses to pay a significant portion, claiming the work was not up to standard, despite BuildRight Inc. believing it met all contractual obligations. BuildRight Inc. cannot sue the Department of Veterans Affairs in a regular district court for breach of contract because the defendant is the U.S. government. Instead, they would file a lawsuit in the United States Court of Federal Claims to seek the payment they are owed under the contract.

• Example 2: Eminent Domain and Just Compensation

  The federal government decides to expand a military base and, using its power of eminent domain, acquires a large tract of private land owned by a farmer, Mr. Henderson. While the government offers compensation for the land, Mr. Henderson believes the offered amount is substantially less than the fair market value of his property, violating his Fifth Amendment right to "just compensation." Mr. Henderson would file a claim in the United States Court of Federal Claims to argue that the government owes him additional money for the "taking" of his land.

• Example 3: Federal Tax Refund Claim

  A technology company, "Innovate Solutions LLC," discovers an error in its federal tax filings from three years ago, which resulted in an overpayment of corporate income tax. After attempting to resolve the issue directly with the Internal Revenue Service (IRS) through administrative channels without success, Innovate Solutions LLC decides to sue the government to recover the alleged overpayment. This type of monetary claim against the U.S. government for a tax refund would be heard by the United States Court of Federal Claims.