American Transformer Co. v. United States

63 F. Supp. 194, 105 Ct. Cl. 204, 1945 U.S. Ct. Cl. LEXIS 123
CourtUnited States Court of Claims
DecidedDecember 3, 1945
DocketNo. 45882
StatusPublished
Cited by1 cases

This text of 63 F. Supp. 194 (American Transformer Co. v. 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
American Transformer Co. v. United States, 63 F. Supp. 194, 105 Ct. Cl. 204, 1945 U.S. Ct. Cl. LEXIS 123 (cc 1945).

Opinion

Jones, Judge,

delivered the opinion of the court:

The plaintiff, a New Jersey corporation, having its principal office and plant in Newark, New Jersey, has for several years been engaged in the manufacture of electrical power transformers and rectifiers and other electrical equipment.

On March 3, 1940, it entered into a written contract with the defendant to furnish certain electrical equipment to the Bonneville Power Administration, an office of the Department of the Interior, located at Portland, Oregon, which serves users of electrical power in the Pacific Northwest by selling electrical energy generated at Bonneville and Grand Coulee Dams, such energy being conveyed through its own transmission lines and substations.

Plaintiff agreed to furnish and deliver three 10,000-KVA electrical transformers and bushings f. o. b. Newark, New Jersey, certain transformer oil, f. o. b. Whiting, Indiana, and spare parts, f. o. b. Barberton, Ohio. It also agreed to furnish the services of an engineer to install the transformers [219]*219at the defendant’s Salem, Oregon, substation, where they would be used in a bank to replace three 2,500-KVA transformers. Transportation cost was to be borne by the defendant.

Notice of award was received by plaintiff on April 29,1940, and the date of delivery was to be not later than September 26,1940. Liquidated damages for delay in delivery were to be assessed at the rate of $100 per day.

Final delivery was not made until April 12,1941, 198 calendar days after the delivery date specified. Plaintiff was granted an extension of 77 calendar days by the contracting officer, but was assessed a penalty for 121 calendar days, or a total of $12,100. The head of the department on appeal granted an additional 30 calendar days extension, but retained the assessment for 91 days, a total of $9,100, and withheld payment of this amount in the settlement of the contract. For this $9,100 plaintiff sues.

Plaintiff claims the remission of an additional 13 days’ liquidated damages on account of the alleged failure of defendant to promptly reply to a letter which plaintiff wrote to the Bonneville Power Administration on May 8, 1940, and which is set out in finding 6. This letter undertakes to reduce to writing, after a conversation with some of the engineers of Bonneville Power Administration, plaintiff’s understanding of what would be required. It also undertakes to set out some of the details of the manufacture of the transformers. This letter was not promptly answered, and on May 22,1940, plaintiff wrote another note asking for an acknowledgment of its previous letter. Upon receipt of the second letter the Bonneville Power Administration acknowledged receipt of the letter of May 8, agreeing in substance with the statements made in plaintiff’s original letter.

The final sentence in plaintiff’s original letter of May 8, 1940, is as follows:

Should there be any of the points that are not in agreement with your understanding, we wish that you would let us know within the next ten days in order that we do not proceed too far if a change is necessary.

In view of this sentence, and also in view of the fact that on May 2,1940, plaintiff had submitted an outline draw[220]*220ing as required by the contract, and on May 7,1940, the Bonneville Power Administration had approved the drawing “except as noted” and had returned it to plaintiff, we do not find that the failure to answer this letter caused plaintiff any appreciable delay.

Plaintiff also claimed a remission of 34 days’ liquidated damages because of the alleged failure of its subcontractor, the General Electric Company, to deliver on time certain laminated tubes for the transformer windings. These tubes were ordered June 19, 1940, and plaintiff had expected to receive them within three or four weeks, and all of them not later than July 18,1940. The first tubes were received July 11, and delivery continued one or two at a time until August 31, 1940, when the last ones were received. These tubes played an essential part in the construction of the transformers. The General Electric Company at the same time was filling some orders from the Army and the Navy, and while there was some delay to the plaintiff in the belated receipt of this material, there is no satisfactory evidence to support plaintiff’s claim that it should be relieved of liquidated damages on this account. Roxford Knitting Co. v. Moore & Tierney, 265 Fed. 177, 180.

The teamsters’ and truck drivers’ union at Newark, New Jersey, went on strike on October 1,1940. The strike which lasted until October 20,1940, affected plaintiff’s own trucks, produced a stoppage of transportation of materials to and from plaintiff’s plant, and caused such congestion in the freight yards that freight carload deliveries could not be made to plaintiff’s plant railroad siding during the period of the strike.

While plaintiff did some work during this period, its whole-schedule of tests and operations was interrupted and this,, together with the confusion and congestion which resulted during the period of the strike and immediately following-had the effect of delaying the over-all completion of the-contract for a period of 20 days, as set out in fin ding 9. But for the plain provisions of the contract we would be-inclined to allow plaintiff a recovery of liquidated damages for the full 20 days of this delay rather than the 10 days which was allowed it by the contracting officer and the head. [221]*221.of the department. However, in view of the fact that the evidence is conflicting as to just how much plaintiff was able to do during this period, and how much actual delay was occasioned thereby, we are unable to find that the determination of the head of the department was arbitrary or unreasonable. In reference to the extension of time on account of strikes and other unforeseeable causes, the contract contains the following stipulation:

The contracting officer shall then ascertain the facts and extent of the delay and extend the time for making delivery when in his judgment the findings of fact justify such an extension, and his findings of fact thereon shall be final and conclusive on the parties hereto, subject only to appeal, within BO days, by the contractor to the head of the department concerned or his duly authorized representative, whose decision on such appeal as to the facts of delay and the extension of time for making delivery shall be final and conclusive on the parties hereto.

The above provision in the peculiar facts of this case precludes recovery on this item. B-W Construction Co. v. United States, 97 C. Cls. 92, 122.

Between June and October, 1940, there was considerable correspondence in reference to the delay in manufacture of the transformers and their failure to meet the tests. On September 19, 1940, the chief of Bonneville’s Material and Inspection section visited plaintiff’s plant for the express purpose of urging the necessity for prompt delivery of the transformers. He complained of the evidence of rough handling of transformer coils, scarring insulation, “poor housekeeping” and the lack of facilities generally, and of plaintiff’s lack of drying equipment, and plant congestion.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. Marietta Manufacturing Co.
53 F.R.D. 390 (S.D. West Virginia, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
63 F. Supp. 194, 105 Ct. Cl. 204, 1945 U.S. Ct. Cl. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-transformer-co-v-united-states-cc-1945.