Legal Definitions - United States Court of Federal Claims

The United States Court of Federal Claims is a specialized federal court that primarily handles monetary claims against the U.S. government. Unlike general federal courts, its authority is limited to specific types of cases, mainly those where individuals or businesses are seeking money from the federal government.

This court has exclusive authority over most claims exceeding $10,000, meaning such cases must be filed there. For claims of $10,000 or less, claimants can choose to file either in this court or in a U.S. District Court. Located in Washington, D.C., the court is staffed by 16 judges who serve 15-year terms after being appointed by the President and confirmed by the Senate.

Here are some examples of situations where the United States Court of Federal Claims would apply:

• Government Contract Dispute: A construction company completes a multi-million dollar contract for the Department of Defense but believes the government unfairly withheld a final payment of $500,000 due to a dispute over project specifications.

  Explanation: This is a monetary claim against the U.S. government for a sum significantly exceeding $10,000. The construction company would need to file its lawsuit in the United States Court of Federal Claims because this court has exclusive jurisdiction over such large financial disputes with the federal government.

• Large Tax Refund Claim: A large corporation files its annual tax return and later discovers an accounting error that resulted in an overpayment of $250,000 to the Internal Revenue Service (IRS). After the IRS denies their administrative claim for a refund, the corporation decides to sue to recover the money.

  Explanation: This situation involves a claim for a substantial monetary refund from a federal agency (the IRS). Since the amount in dispute is well over $10,000, the corporation's lawsuit against the U.S. government for the tax refund would fall under the exclusive jurisdiction of the United States Court of Federal Claims.

• "Takings" Claim (Eminent Domain): A private landowner discovers that a new federal highway project has inadvertently encroached upon a significant portion of their property, effectively making it unusable, without the government initiating formal eminent domain proceedings or offering compensation. The landowner believes this constitutes an unconstitutional "taking" of their property and seeks $150,000 in damages.

  Explanation: This is a claim for monetary compensation against the U.S. government, asserting that the government's action has deprived the landowner of their property rights without just compensation, as required by the Fifth Amendment. Because the claim is for a monetary amount exceeding $10,000, the landowner would bring their case in the United States Court of Federal Claims to seek damages from the federal government.