{"ID":54788,"name":"Mobil Oil Exploration \u0026 Producing Southeast, Inc. v. United States","href":"https:\/\/api.oyez.org\/cases\/1999\/99-244","view_count":0,"docket_number":"99-244","additional_docket_numbers":null,"manner_of_jurisdiction":"Writ of \u003Ci\u003Ecertiorari\u003C\/i\u003E","first_party":"Mobil Oil Exploration \u0026 Producing Southeast, Inc.","second_party":"United States","timeline":[{"event":"Argued","dates":[953704800],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38326"},{"event":"Decided","dates":[961995600],"href":"https:\/\/api.oyez.org\/case_timeline\/case_timeline\/38327"}],"lower_court":{"ID":17,"name":"United States Court of Appeals for the Federal Circuit","href":"https:\/\/api.oyez.org\/taxonomy\/term\/17"},"facts_of_the_case":"\u003Cp\u003EIn 1981, Mobil Oil Exploration \u0026amp; Producing Southeast, Inc. and Marathon Oil Co. both paid the Federal Government over $150 million in return for the rights to explore for and develop oil off the coast of North Carolina, provided that the companies received exploration and development permissions in accordance with the Outer Continental Shelf Lands Act (OCSLA), the Coastal Zone Management Act of 1972 (CZMA), and the regulations promulgated pursuant to OCSLA and CZMA. In 1990, the companies submitted an exploration plan, as required by OCSLA and CZMA, to the Department of the Interior for approval. Thereafter, the Outer Banks Protection Act (OBPA) became effective. The OBPA prevented the Secretary of the Interior from approving the exploration plan for at least 13 months. The state of North Carolina then objected to certification of the companies\u0027 plans under the CZMA. Before the Secretary of Commerce rejected Mobil\u0027s request to override North Carolina\u0027s objection, the companies filed a breach-of-contract lawsuit. In granting summary judgement for the companies, the Court of Federal Claims found that the Federal Government had broken its contractual promise to follow OCSLA\u0027s requirement to approve an exploration plan that satisfied OCSLA\u0027s requirements within 30 days of the plan\u0027s submission, which constituted the repudiation of the contract and entitled the companies to restitution of the payments. In reversing, the Court of Appeals concluded that the Federal Government\u0027s refusal to consider the companies\u0027 final exploration plan was not the operative cause of any failure to carry out the contracts\u0027 terms, because North Carolina\u0027s objection would have prevented the companies from exploring.\u003C\/p\u003E\n","question":"\u003Cp\u003EDoes the enactment of a new statute, which prevents the Federal Government from following a contractual promise to follow the terms of pre-existing statutes and regulations, constitute the repudiation of a contract?\u003C\/p\u003E\n","conclusion":"\u003Cp\u003EYes. In an 8-1 opinion delivered by Justice Stephen G. Breyer, the Court held that the Federal Government broke its promise, repudiated the contracts, and must give the companies their money back. \u0022We find that the oil companies gave the United States $158 million in return for a contractual promise to follow the terms of pre-existing statutes and regulations. The new statute prevented the Government from keeping that promise,\u0022 wrote Justice Breyer for the Court, \u0022therefore the Government must give the companies their money back.\u0022\u003C\/p\u003E\n","advocates":[{"advocate":{"ID":19760,"name":"Carter G. Phillips","href":"https:\/\/api.oyez.org\/people\/carter_g_phillips","view_count":0,"last_name":"Phillips","roles":null,"thumbnail":null,"length_of_service":0,"identifier":"carter_g_phillips"},"advocate_description":"Argued the cause for petitioners","href":"https:\/\/api.oyez.org\/case_advocate\/case_advocate\/17466"},{"advocate":{"ID":33864,"name":"Kent L. 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