Breen Stone & Marble Co. v. United States

21 F. Supp. 982, 1937 U.S. Dist. LEXIS 1302
CourtDistrict Court, D. Minnesota
DecidedJuly 3, 1937
DocketNo. 706
StatusPublished
Cited by1 cases

This text of 21 F. Supp. 982 (Breen Stone & Marble Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breen Stone & Marble Co. v. United States, 21 F. Supp. 982, 1937 U.S. Dist. LEXIS 1302 (mnd 1937).

Opinion

NORDBYE, District Judge.

The complaint includes four causes of action. The first sets forth that on or about November 30, 1932, the United States entered into a contract with the Lundoff-Bicknell Company, under which the latter agreed to furnish all labor and materials for the construction of a Post Office at Cleveland, Ohio; that subsequently the Lundoff-Bicknell Company entered into a contract with the Haworth Marble Company, whereby the latter agreed to furnish, deliver, and install certain stone, marble, etc., required in the construction of said building; that on July IS, 1933, plaintiff entered into a contract with the Haworth Marble Company whereby plaintiff agreed to procure, fabricate, and deliver to the said building certain interior marble which the Haworth Marble Company was obligated to furnish under its contract; and that plaintiff commenced the performance of its contract on or about January 30, 1934, and at various times thereafter shipped the materials to be furnished thereunder to Cleveland, Ohio, and caused the same to be delivered upon the site of said Post Office Building.

It is alleged that the stone, marble, and other materials so furnished by plaintiff were installed and used in the construction thereof with the knowledge and consent of defendant, and that the same were inspected, approved, and accepted by the agents of the defendant in charge of the construction work; that plaintiff has complied with all applicable codes and with the presidential reemployment agreement; and that, by reason thereof, and because labor costs in the production and fabrication of materials furnished for said building were increased on account of said compliance in the sum of $1,204.57, plaintiff seeks to recover said amount under the Act of June 16, 1934, 41 U.S.C.A. §§ 28-33.

The second cause of action seeks to recover $187.62 by reason of increased costs of production and fabrication of materials furnished to the Post Office at Springfield, Ohio. The contract between the United States and the general contractor is dated November 7, 1932. Subsequently, a contract was entered into between the general contractor and the Haworth Marble Company, under which the latter agreed to furnish and install- certain of the stone and marble. The Haworth Marble Company and the plaintiff entered into a contract on June 9, 1934, whereby the plaintiff agreed to procure, fabricate, and deliver certain of the interior marble. Plaintiff commenced work .on August 6, 1934.

The third cause of action seeks to recover the sum of $140.01 by reason of increased costs of production and fabrication of materials furnished to the Post Office at Milton, Pennsylvania. The main contract was entered into by the Fred C. Rowley Company and the United States on February 8, 1933. The Pittsburgh Cut Stone Company was the stone and marble subcontractor. On November 13, 1933, plaintiff entered into a contract with the Pittsburgh Company substantially the same as set forth above, and commenced work thereon on or about June 20, 1934.

The fourth cause of action seeks to recover the sum of $115.62. The general contract is between the United States and N. P. Severin Company for the construction of a Post Office at Newark, New Jersey. The latter entered into a contract for the procuring and installation of certain stone and marble for said Post Office with Domestic Marble & Supply Company, Inc., and on November 16, 1933, the Domestic Company entered into a contract with the plaintiff whereby the former sublet to the plaintiff the furnishing of some of the stone for said building.

Plaintiff makes the same allegation in all of the causes of action with reference to the delivery, installation, and approval of the materials furnished, and with reference to the compliance with the codes and the President’s reemployment agreement. Plaintiff further alleges with respect to the four causes of action that, while codes for various industries were being considered, formulated, and adopted, the President of the United States in a public statement promised that the Government would reasonably compensate all persons who sustained damages or increased costs by reason of their compliance with the Act of June 16, 1933, or with the varioxis codes adopted pursuant thereto, or [984]*984by reason of increased costs of materials furnished on government contracts. It is alleged that, in compliance with the Act of June 16, 1934, claims for the above amounts were filed and presented to the Comptroller General of the United States, but that the°same were disallowed for the reason that plaintiff did not perform work or furnish material direct to the contractor under the government contract. The pertinent portion of the Act of June 16, 1934, reads as follows: “The Comptroller General of the United States is authorized and directed to adjust and settle on a fair and equitable basis claims of persons who entered into a contract or contracts with the United States prior to August 10, 1933, including subcontractors and materialmen performing work or furnishing material or necessary fuel direct to the contractor under such contracts, for additional .costs incurred by reason of compliance, on and after August 10, 1933 with a code or codes of fair competition approved by the President under section 3 of the Act approved June 16, 1933, known as the ‘National Industrial Recovery Act,’ [section 703 of title 15], or by reason of compliance with an agreement with the President executed under section 4 (a) of said Act [section 704 of title 15] in the performance after August 10, 1933, of the contract or any part thereof.”

It is not necessary to consider individually the various grounds urged by the Government in support of its motion for dismissal. Suffice it to say that this court has no jurisdiction if the remedy provided in the Act of June 16, 1934, is exclusive. It is.evident that Congress intended to vest in the Comptroller General complete discretion and exclusive authority in the factual determination of the amount, if any, due the claimant. He is authorized and directed “to adjust and settle on a fair and equitable basis” such claims.

That Congress may create a right in individuals against itself, and is under no obligation to provide a remedy through the courts, is well settled. See United State v. Babcock, 250 U.S. 328, 331, 39 S.Ct. 464, 63 L.Ed. 1011, and cases cited. Further, where' a special right is given by a statute and in that statute a special remedy is provided, 'such remedy is generally considered exclusive. United States v. Babcock, supra, 250 U.S. 328, at page 331, 39 S.Ct. 464, 63 L.Ed. 1011, and cases cited.

It is true that the denial of plaintiff’s claim by the Comptroller General was based solely on the construction of the act, and it may be urged that Congress did not intend to give exclusive authority to the Comptroller General on questions of construction from which there would be no appeal.. There are cases which recognize the jurisdiction of the courts even where there is a special right and a special remedy created in the same act, if the decision involves no disputed question of fact and where the denial of compensation rests wholly upon the construction of the act. See Medbury v. United States, 173 U.S. 492

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Cite This Page — Counsel Stack

Bluebook (online)
21 F. Supp. 982, 1937 U.S. Dist. LEXIS 1302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breen-stone-marble-co-v-united-states-mnd-1937.