Legal Definitions - Court of Claims

The Court of Claims was a specialized federal court in the United States, established in 1855, with the unique responsibility of hearing financial disputes brought by individuals or entities against the U.S. government. Its primary function was to resolve claims for money owed by the government, typically arising from contracts—whether explicitly written or implied by the government's actions—or from specific cases that Congress directed the court to investigate. This court served as the main avenue for citizens to seek monetary compensation from the federal government until it was abolished in 1982.

Following its abolition, the Court of Claims' trial-level functions were transferred to the United States Court of Federal Claims, and its appellate functions to the United States Court of Appeals for the Federal Circuit. Both of these successor courts are located in Washington, D.C. It is also worth noting that some individual states maintain their own "courts of claims" to handle similar financial disputes against their respective state governments.

Here are some examples illustrating the types of cases the federal Court of Claims would have handled:

• Contractual Dispute: Imagine a private construction company that completed a project for a federal agency, such as building a new federal courthouse, but a disagreement arose over the final payment amount specified in their contract. Before 1982, if the company believed the government owed them more money under the terms of their agreement, they would have filed a lawsuit in the Court of Claims to seek that compensation. This illustrates the court's role in adjudicating claims based on express contracts with the federal government.

• Implied Agreement for Services: Consider a scenario during a national emergency where the federal government temporarily commandeered a private trucking fleet to transport essential supplies across state lines. While there might not have been a formal, written contract, the government's actions implied an agreement to provide fair compensation for the use of the trucks and services. If the government later failed to provide adequate payment, the trucking company could have pursued a claim in the Court of Claims, arguing for payment based on an implied contract for their services.

• Congressional Referral for Unique Damages: Suppose a group of landowners suffered significant property damage due to an unforeseen side effect of a federal infrastructure project, a situation not clearly covered by existing compensation laws or standard contracts. Recognizing the unique hardship, Congress might have passed a special act referring their specific claims for damages directly to the Court of Claims for evaluation and potential award. This demonstrates the court's function in handling claims specifically referred by Congress, allowing for a judicial determination in circumstances that fell outside typical legal avenues.