Baldwin-Lima-Hamilton Corporation, a Wholly-Owned Subsidiary of Armour and Company, and Armour and Company v. The United States

434 F.2d 1371, 193 Ct. Cl. 556, 1970 U.S. Ct. Cl. LEXIS 73
CourtUnited States Court of Claims
DecidedDecember 11, 1970
Docket339-66
StatusPublished
Cited by2 cases

This text of 434 F.2d 1371 (Baldwin-Lima-Hamilton Corporation, a Wholly-Owned Subsidiary of Armour and Company, and Armour 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
Baldwin-Lima-Hamilton Corporation, a Wholly-Owned Subsidiary of Armour and Company, and Armour and Company v. The United States, 434 F.2d 1371, 193 Ct. Cl. 556, 1970 U.S. Ct. Cl. LEXIS 73 (cc 1970).

Opinion

ON PLAINTIFF’S MOTION AND DEFENDANT’S CROSS-MOTION FOR SUMMARY JUDGMENT

PER CURIAM:

This case was referred to Trial Commissioner Louis Speetor with directions to prepare and file his opinion on the issues of plaintiff’s motion and defendant’s cross-motion for summary judgment under the order of reference and Rule 166(c). The commissioner has done so in an opinion and report filed on June 25, 1970, wherein such facts as are necessary to the opinion are set forth. Defendant filed a request for review by the court and the case has been submitted to the court on oral argument of counsel and the briefs of the parties.

In this case the burden was on the defendant to prove that the plaintiff was responsible for the misfunctioning of the turbines. The court agrees with the trial commissioner, for the reasons he gives, that the Corps of Engineers Board of Contract Appeals could not properly find that the defendant has sustained that burden. On several grounds, taken together, the Board’s contrary determination is not entitled to acceptance. First, the Board’s reasoning is summary, conclusionary and inadequate, and lumps conclusions of law with purported factual findings in such a way that it is impos *1372 sible to tell how much the Board relied on legal conclusions which were erroneous and how much on true findings of fact unaffected by legal error. See Loral Electronics Corp. v. United States, 387 F.2d 975, 980, 181 Ct.Cl. 822, 831-833 (1967); Sundstrand Turbo v. United States, 389 F.2d 406, 418, 182 Ct.Cl. 31, 52-53 (1968). In this connection, it is important that the Board appears to rely very heavily on its erroneous legal conclusion that the “Cooperation” clause of the contract required plaintiff to investigate the consequences of, and then make the necessary adjustments for, the switch to single bearing generators. As Commissioner Spector points out, plaintiff had no such responsibility under that clause or under any other part of its contract, but the error nevertheless seems central to, and necessarily infects, the Board’s determination. * As for the few factual findings which are untainted by legal error, they are insufficient in themselves to sustain the administrative result. The court is satisfied that on the whole record the Board could not reasonably and correctly come to the conclusion that the Government adequately proved that the problems with the turbines came about because of any failure by plaintiff in its responsibilities.

Since the court agrees with the opinion and recommended conclusion of the trial commissioner, as hereinafter set forth, it hereby adopts the same, together with the foregoing discussion in the paragraph above, as the basis for its judgment in this case. Therefore, plaintiff’s motion for summary judgment is granted, defendant’s cross-motion is denied and judgment is entered for plaintiff in the sum of $112,053.86.

OPINION OF COMMISSIONER

SPECTOR,

Commissioner: Plaintiff’s claim, in the amount of $112,053.86, grows out of a contract dated October 19, 1956, for the design, manufacture, testing and supervision of erection of two 90,000 horsepower hydraulic turbines for the fourth and fifth power plant units at the Garrison Dam Project, Riverdale, North Dakota. The total estimated contract price was $2,569,200. It was one of four independent contracts with defendant contributing to the completion of these power units, there being separate contracts for the manufacture of the generator, the manufacture of the governor, and for the erection and installation of the power units. Hydraulic turbines such as these are equipped with upper and lower sets of stationary and rotating “seal rings” which increase the efficiency of the turbine by preventing water from by-passing it. 1 The claim has heretofore been the subject of decisions adverse to plaintiff by defendant’s contracting officer, and, on appeal, by the Army Corps of Engineers Board of Contract Appeals. Describing the claim, the board opinion states:

As will appear in greater detail hereinafter, soon after the installation and early operation of the Unit 4 and 5 turbines damage to seal rings was discovered. [In testimony and briefs the parties have usually referred to the rings in question as “seal” rings. In the specifications they are called “wearing” rings.] The dispute focuses principally on this damage and contentions of the parties as to the cause of such damage. * * *

The claim consists generally of costs incurred thereafter by plaintiff at de *1373 fendant’s direction, plus costs incurred by defendant and withheld from sums otherwise due plaintiff. Under the “Disputes” provision contained in the contract, which is worded in accordance with the so-called Wunderlich Act, 2 such decisions by the contracting agency, to the extent that they concern a dispute on a question of fact, are final “unless determined by a court of competent jurisdiction to have been fraudulent or capricious or arbitrary or so grossly erroneous as necessarily to imply bad faith, or not be [sic] supported by substantial evidence.” Decisions concerning a question of law are not mentioned in this provision. 3

General Statement of Facts

The facts hereinafter related generally parallel those recited in the board’s opinion, occasionally supplemented by uncontested facts, and facts not mentioned in the agency opinion although mandated by the record. 4

Baldwin Locomotive Works, plaintiff’s predecessor, had previously furnished the turbines for the first, second, and third power plant units at the Garrison Dam. The bidding documents leading to the present contract for the fourth and fifth turbines, provided that a number of the bid items could be omitted upon award if “ * * * a bid is based on furnishing turbines sufficiently similar to the installed turbines * * 5 Be *1374 cause plaintiff’s bid proposed to furnish turbines identical to those successfully employed ' in units 1, 2 and 3, it was awarded a contract omitting items 7 through 9, and 12 through 20 of the 20 bid items, thereby saving defendant approximately $108,000. Eliminated were first model and additional model tests; tools, wrenches and lifting devices; and spare parts. Also, the original shop drawings for units 1, 2 and 3 were permitted to be reused.

Plaintiff commenced performance and by letter dated January 10, 1957, submitted shop drawings for units 4 and 5 to defendant for approval. All but five of these drawings were identical to those previously submitted and approved for units 1, 2 and 3.

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Related

National Eastern Corp. v. United States
477 F.2d 1347 (Court of Claims, 1973)
Law v. United States
195 Ct. Cl. 370 (Court of Claims, 1971)

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Bluebook (online)
434 F.2d 1371, 193 Ct. Cl. 556, 1970 U.S. Ct. Cl. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldwin-lima-hamilton-corporation-a-wholly-owned-subsidiary-of-armour-and-cc-1970.