Reliance Mills, Inc. v. United States

ELR Citation: ELR 20792
No(s). C-4614 (D. Colo. Sep 6, 1973)

The U.S. Forest Service did not abuse its discretion in awarding a timber sale contract to the high bidder, who had defaulted on similar contracts in the past and thereby caused the permanent loss by bug infestation of trees totaling 200 million board-feet of lumber. Proof that the agency exercised poor business judgment is not enough to enjoin governmental action; its decision must prevail unless proved to be arbitrary. Under 36 C.F.R. §221.10, the Forest Service could refuse toaward this person any new contracts, but because of the qualification of §2431.75 of the Timber Management regulations it is not required to do so. The agency's judgment on the award was reasoned and not arbitrary, and simple bad management by an administrative agency cannot be attacked.

Counsel for Plaintiff
Robert C. Duthie
P.O. Box 219
Durango, CO 81301

Counsel for Defendants
James L. Treece U.S. Attorney
U.S. Courthouse
Denver, CO 80202

L. Mark Wine
Department of Justice
Washington, DC 20530

Howard M. Kirshbaum
Zarlengo & Kirshbaum
595 Capitol Life Center
Denver, CO 80203

Traylor, Harshman, Palo & Cowan
443 N. 6th Street
P.O. Box 266
Grand Junction, CO 81501

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