Merrill Ditch-Liners, Inc. v. Nat Pablo

Appellant Merrill Ditch-Liners (Merrill) appeals the dismissal from this action of all the federal defendants for lack of subject matter jurisdiction. We affirm.

The Gila River Farms (Gila), an agency of the Gila River Indian Community, obtained a loan from the United States under the Small Reclamation Projects Act of 1956, 43 U.S.C. § 422a et seq. The statute provides that the Secretary of the Interior may negotiate contract terms with loan recipients which shall set out “such provisions as the Secretary shall deem necessary or proper to provide assurance of and security for prompt repayment of the loan and interest as aforesaid.” 43 U.S.C. § 422e.

The loan repayment contract involved here requires Gila to accept competitive bids on contracts over $10,000. The contract also provides for review by the Secretary of the Interior or his representative (Secretary) should Gila award a contract to one other than the “lowest responsible bidder.”

Merrill had previously received the contract for “Reach II” of the South Side Canal. When a dispute arose under that contract, Gila and Merrill submitted their claims to an arbitrator. That proceeding was pending when Gila requested bids on…