Legal Definitions - United States Claims Court

The United States Claims Court was the former name for a specialized federal court that handles monetary claims against the United States government. In 1992, its name was changed to the United States Court of Federal Claims. This court has nationwide jurisdiction to hear a wide variety of cases where individuals, businesses, or other entities believe the federal government owes them money.

Here are some examples of situations where a case might have been heard by the United States Claims Court (now the United States Court of Federal Claims):

• Example 1: Government Contract Dispute

  A construction company, "BuildRight Inc.," had a contract with the Department of Defense to build new barracks. BuildRight Inc. completed the project, but the Department of Defense withheld a significant portion of the final payment, claiming the work was not up to standard, which BuildRight Inc. disputes. BuildRight Inc. would file a lawsuit in the United States Court of Federal Claims, arguing that the government breached its contract and owes them the outstanding payment. This illustrates the court's role in resolving disputes where the government is alleged to have failed its contractual obligations, leading to a monetary claim.

• Example 2: Eminent Domain Compensation

  The federal government decided to expand a national park and, through its power of eminent domain, acquired a private ranch owned by the Miller family. The Millers believe the compensation offered by the government for their property was unfairly low and did not reflect its true market value. They would file a claim in the United States Court of Federal Claims to seek fair and just compensation for their land. This demonstrates the court's function in ensuring citizens receive proper payment when the government takes private property for public use.

• Example 3: Tax Refund Claim

  A large technology corporation, "InnovateTech," believes it overpaid its corporate income taxes for a specific fiscal year due to a misinterpretation of a complex tax code section by the Internal Revenue Service (IRS). After exhausting administrative remedies with the IRS, InnovateTech would file a lawsuit in the United States Court of Federal Claims to recover the alleged overpayment. This highlights the court's jurisdiction over certain tax refund claims against the federal government, where a taxpayer seeks to recover money they believe was wrongly collected.