Alfred Hofmann and Company v. The United States

329 F.2d 657, 165 Ct. Cl. 113, 1964 U.S. Ct. Cl. LEXIS 71
CourtUnited States Court of Claims
DecidedMarch 13, 1964
Docket86-62
StatusPublished
Cited by1 cases

This text of 329 F.2d 657 (Alfred Hofmann and Company v. The United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alfred Hofmann and Company v. The United States, 329 F.2d 657, 165 Ct. Cl. 113, 1964 U.S. Ct. Cl. LEXIS 71 (cc 1964).

Opinion

JONES, Chief Judge.

This is a suit to recover the drayage or truck charges, in the amount of $27,-834.42, incurred by plaintiff in delivering certain practice bombs sold by it to the Navy Department of the United States. The case is before us on defendant’s motion for summary judgment.

Plaintiff operated one plant in West New York, New Jersey, and another near Murfreesboro, Tennessee. On April 22, 1957, pursuant to competitive bidding, plaintiff was awarded a fixed price supply contract, which called for the manufacture of 600,000 twenty-five-pound practice bombs as a total price of $2,724,000. Plaintiff’s Bid for the contract, dated February 8, 1957, contained the following provisions:

“DELIVERY
“Supplies shall be delivered f. o. b. carrier’s equipment, wharf, or freight station (at the Government’s option) at or near contractor’s work at MURFREESBORO TENN. as follows:
******
“Bidder shall insert in the above blank space the f. o. b. point.”

In the original Invitation for Bid received by plaintiff, there was a blank space in the Delivery paragraph where the words “MURFREESBORO tenn.” now appear. These words were inserted in the space under the direction of plaintiff’s president. The Invitation for Bid and the Bid were incorporated into the contract by the terms of the award.

The Delivery clause in the award differed in language from that contained in the Bid:

“Deliveries: Supplies shall be delivered f. o. b. carrier’s equipment, wharf, or freight station (at the Government’s option) at or near *659 Contractor’s plant, Murfreesboro, Tenn. * * * ”

The bombs were manufactured, assembled and delivered from plaintiff’s Tennessee plant. Physically, the plant was located about 5 miles outside of Mur-freesboro. No railroad serviced this plant at the plant premises. However, there was a railroad siding or team track about 1.5 miles from the plant, at Florence, Tennessee. In addition, there was a freight station in Murfreesboro, at about 7.5 miles from the plant.

The Government’s bill of lading required rail shipment. Plaintiff disputed the right of the Government to this requirement and contended that it understood the contract to call for delivery of the bombs at its plant. Under protest, plaintiff trucked the bombs from its plant to the railroad siding or team track at Florence and loaded them aboard freight cars, where the Government accepted them. This team track at Florence was the nearest rail facility to plaintiff’s plant. In trucking these bombs from its plant to the railroad siding at Florence, plaintiff incurred drayage charges in the sum of $27,834.42 which is the subject of the present controversy.

Thereafter, plaintiff made claim for reimbursement, to the contracting officer, for the drayage charges incurred by plaintiff at the Government’s request, which plaintiff contended was not a requirement under the contract. It was the plaintiff’s contention that delivery under the contract need only be made by plaintiff at its plant, and not anywhere outside of the plant premises. The contracting officer denied plaintiff’s claim. Plaintiff then made a timely appeal to the Navy Panel of the Armed Services Board of Contract Appeals (hereinafter referred to as the ASBCA) and was accorded a hearing. In an opinion dated March 31, 1961, the ASBCA denied plaintiff’s appeal. Subsequently, on March 21, 1962, plaintiff filed its petition in this court.

As support for its motion for summary judgment, the Government points to the Delivery paragraph in plaintiff’s Bid which provided that delivery shall be f. o. b. at Murfreesboro, Tennessee. It is the Government’s contention that the words “MURFREESBORO TENN.”, which were inserted into the Bid by plaintiff, indicated the f. o. b. point. Since plaintiff was required by the contract to deliver the bombs f. o. b. at the freight station in Murfreesboro, located at about 7.5 miles from plaintiff’s plant, according to the Government, plaintiff cannot complain when the Government allowed plaintiff to realize a substantial saving by taking delivery at Florence, which was only about 1.5 miles from the plant. Alternatively, the Government contends that even if the words “Murfreesboro tenn.” were only descriptive of the location of plaintiff’s plant and not intended to be the f. o. b. point, the contract itself provided that delivery shall be “f. o. b. carrier’s equipment, wharf, or freight station (at the Government’s option) at or near Contractor’s plant,” and that the ASBCA correctly found that the rail facilities both at Florence and Mur-freesboro were “near” plaintiff’s plant.

Plaintiff has pleaded that it understood the contract to mean, and to provide for, delivery of the bombs at plaintiff’s plant. Plaintiff’s contention is that the phrase “at MURFREESBORO TENN.” in the Bid was simply descriptive of the general area where the “contractor’s work” was located. The Delivery clause in the contract itself, plaintiff suggests, shows this contention to be correct. There, designation of the delivery point is “at or near Contractor’s plant, Murfreesboro, Tenn.” Furthermore, plaintiff says the term “at or near” should be construed by this court to mean “at,” and not “near.”

Looking at the contract as a whole, we believe that defendant’s position is correct. There is no dispute between the parties as to the meaning of f. o. b., which are the initial letters of “free on board,” indicating that the freight is to be loaded by the seller for shipment by the carrier without any expense or act on the part of the buyer. Stalik v. United States, 247 F.2d 136 *660 (10th Cir. 1957). In its Bid, plaintiff was required to show the f. o. b. point; which requirement plaintiff complied by inserting the words “MURFREESBORO tenn.” in the appropriate place. After it has contracted to make delivery in Murfreesboro, plaintiff cannot now complain when the Government allowed it to do less by taking delivery at a point only one-fifth as far away. There is no substantial merit in plaintiff’s contention that the words “murfreesboro tenn.” were merely descriptive of the general location of plaintiff’s plant. If plaintiff intended to make the f. o. b. point at its plant near Murfreesboro, it could have filled in the blank space accordingly. Instead, in the space reserved for the f. o. b. point, plaintiff inserted the words “MURFREESBORO tenn.” We think that the the instruction contained in the Invitation-for Bid was clear and unambiguous. It is too late in the day for anyone to claim that his subjective intent in making the contract was different from the provisions of the written contract.

Furthermore, in the contract the delivery point was designated as “at or near” contractor’s plant. We see no basis for construing this phrase to mean “at.” 1 Certainly the Delivery clause does not lend support to plaintiff’s contention. The Delivery clause provided that “Supplies shall be delivered f. o. b. carrier’s equipment, * * Normally, under a contract for the sale of personalty providing for delivery “f. o.

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Bluebook (online)
329 F.2d 657, 165 Ct. Cl. 113, 1964 U.S. Ct. Cl. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alfred-hofmann-and-company-v-the-united-states-cc-1964.