Arundel Corp. v. United States

79 Ct. Cl. 343, 1934 U.S. Ct. Cl. LEXIS 296, 1934 WL 2154
CourtUnited States Court of Claims
DecidedMay 7, 1934
DocketNo. F-381
StatusPublished
Cited by2 cases

This text of 79 Ct. Cl. 343 (Arundel Corp. 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
Arundel Corp. v. United States, 79 Ct. Cl. 343, 1934 U.S. Ct. Cl. LEXIS 296, 1934 WL 2154 (cc 1934).

Opinion

Booth, Chief Justice,

delivered the opinion of the court:

The plaintiff is a Maryland corporation engaged in the contracting business. An act of Congress approved June 29, 1922 (42 Stat. 709), authorized the expenditure of a specified appropriation under the direction of the Secretary of War for the construction of a water supply conduit for the District of Columbia. The conduit for which plans and specifications were prepared was to extend from above Great Falls, Maryland, to a designated point near the influent chamber to Dalecarlia Beservoir, a distance of nine miles.

Public advertisement was made, soliciting proposals to construct the conduit in accord with the plans and specifications, and the plaintiff’s bid therefor was accepted. The contracts, three in number, identified as division contracts 1, 2, and 3, were entered into on July 26, 1922, formally approved on July 28, 1922, and plaintiff without delay proceeded with the contract work.

During the course of performance the plaintiff encountered difficulties and delays, as well as differences of opinion as to the scope of the work exacted under the contracts, and this suit is for the recovery of a judgment for $48,926.43, alleged damages suffered.

ITEM 1. DELATS IN THE COMPLETION OP THE WORK

The time limit for the completion of each of the three contracts was fixed for June 30, 1924. Article 5 of each contract provided that in the event of delays chargeable to the defendant the plaintiff should have a corresponding extension of time free from the additional cost of superintendence and inspection incurred by reason of such delays. If, however, the plaintiff without the intervention of excusable causes under the terms of the contracts delayed performance, the additional cost of superintendence and inspection was to be chargeable to it, and withheld from sums due under the contract.

[362]*362Performance of this contract was not completed until November 80, 1924, a conceded delay of 153 calendar days. The Chief of Engineers approved an extension of 90 days as chargeable to the defendant, and for this period of time remitted all costs of superintendence and inspection. For 68 days’ delay the plaintiff was held responsible and the additional costs assessed against it. The sum of $1,045.35 is admittedly due under this item. The plaintiff claims $1,367.08. The defendant tendered payment of $1,045.35 but the plaintiff declined the same for fear its right to sue for the full amount claimed might be jeopardized.

Article 5 in making extensive provisions with respect to the causes and responsibilities for delays contains this usual clause: “ The findings of the contracting officer, approved by the Chief of Engineers, shall be accepted by the parties hereto as final.” The plaintiff presented to the contracting officer, its claims for extensions of time and he in turn passed them on with a favorable recommendation to the Chief of Engineers, where they received consideration, as noted above.

It has been held repeatedly by this court and the Supreme Court that where the parties to a contract stipulate as to the finality of the findings of a named official, the same may not be challenged except for fraud or the establishment of such gross error as would warrant an implication of fraud or bad faith. United States v. Gleason, 175 U.S. 588; Penn Bridge Co. v. United States, 59 C.Cls. 897.

The plaintiff, recognizing the above rule, challenges the findings of the Chief of Engineers with respect to all his findings as to delays, both as to this and contracts 2 and 3, on the grounds of gross error and mistakes. It is first contended that the delay of 153 days in completing contract no. 1 is directly ascribable to the defendant’s mistake in estimating the quantity of material to be excavated, an alleged mistake which resulted in imposing upon plaintiff the excavation of 25% more material than the estimates disclosed. It is true that the quantity of material excavated greatly exceeded the estimates, and the contracting officer recom[363]*363mended to the Chief of Engineers that the plaintiff be allowed 140 days’ extension of time, but the court may not upon these facts set aside the final decision of the Chief of Engineers upon the grounds of gross error. ,

Paragraph 20 of the specifications is as follows:

20. Geological formation. — Borings have been taken along the' line of the work, and the formation, as indicated by these borings, has been shown on the drawings. '
“ Bidders will be permitted to examine such data as have been collected by the contracting officer regarding the formation along the line of the work. They are expected, however, to determine for themselvés the nature of the formation, to check the data collected by the contracting officer,- and to assure themselves regarding' the formation through which their work will be carried, and any discrepancies between the nature of the formation as it actually exists and as indicated by the data given by the contracting officer will not be recognized as valid grounds for any claim against the United States for compensation over and above the price named in their bids.”

This paragraph contains express reference to at least four specific contractual facts, viz, that borings had been taken. and the formation disclosed indicated on the drawings, and that bidders would be permitted to examine said data. The next two provisions, in language which may not be misunderstood, warn the contractor to check the accuracy of said data, “ assure themselves regarding the formation through which their work will be carried ”, and state that the United States would not be responsible for any discrepancies as to actual and disclosed formations. The plaintiff, in the face of the provisions of this paragraph, made no independent examination, and no charge is preferred that the borings made by the defendant did not disclose the formation as shown thereby. The charge is that both the character and quantity of the material to be excavated were in certain portions of the line of work at variance with what the borings showed at the points where they were made.

The reason the plaintiff assigns for failing to make its own investigation is that the time allotted for filing bids subsequent to issuance of the proposals was not sufficient to allow it to be done. The plaintiff had 30 days in which to investigate conditions. Aside from this, however, the [364]*364court may not disregard a plain provision of a contract which expressly excludes even a suggestion of a warranty that the defendant’s data as to earth formations are to be relied upon. The defendant ascertained the data and predicated its estimates by approved and recognized methods, and if in certain portions of the line of excavation, which had not been explored by either the defendant or plaintiff, the condition indicated by the borings at other points did not obtain, assuredly the defendant is not to be charged with gross error in predicating its estimates upon data actually obtained and which were made available to the plaintiff before it bid on the work.

The case of Sheridan-Kirk Contract Co. v. United States, 53 C.Cls. 82, is inapposite. This case followed the decisions of the Supreme Court in the cases of Hollerbach v. United

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Bluebook (online)
79 Ct. Cl. 343, 1934 U.S. Ct. Cl. LEXIS 296, 1934 WL 2154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arundel-corp-v-united-states-cc-1934.