Chicago & North Western Railway Co. v. United States

68 Ct. Cl. 524, 1929 U.S. Ct. Cl. LEXIS 252, 1929 WL 2655
CourtUnited States Court of Claims
DecidedDecember 2, 1929
DocketNo. D-411
StatusPublished
Cited by2 cases

This text of 68 Ct. Cl. 524 (Chicago & North Western Railway 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
Chicago & North Western Railway Co. v. United States, 68 Ct. Cl. 524, 1929 U.S. Ct. Cl. LEXIS 252, 1929 WL 2655 (cc 1929).

Opinion

Booth, Ohief Justice,

delivered the opinion of the court:

The plaintiff, Chicago & North Western Eailway Company, alleges two causes of action in its petition. The first is for the recovery of freight charges, said to be due under the decision of this court in the case of Missouri Pacific Railroad Co. v. United States, 56 C.Cls. 341. The facts bring the contention within the Missouri Pacific case in so far as the service rendered is characterized therein, but the date of rendition of the service precludes a recovery because of the statute of limitations.

On March 12, 1917, the plaintiff, together with connecting lines, transported a shipment of Government property from Fort Bliss, Texas, to Fort Sheridan, Illinois. The shipment was made up of 5 carloads of miscellaneous property, 7 carloads of escort wagons, and 5 carloads of horses. It was accomplished and the property delivered to the defendant on March 15,1917. The Auditor for the War Department made certain deductions from the bill rendered, the matter finally reaching the Comptroller General, who refused to sustain the plaintiff’s contention. Following the decision of this court in the Missouri Pacific case (supra), the plaintiff renewed its effort to have the claim allowed in accord with this decision, and was again unsuccessful. The petition herein was not filed until June 30, 1924, more than six years after the claim accrued, and, as held in the case of the Southern Pacific Company v. United States, 67 C. Cls. 414, is clearly barred by limitation.

The second cause of action is more involved. The single issue, conceded by the parties, is the reformation of an ex[534]*534press contract. The jurisdiction of the court is not questioned. Cramp case, 239 U. S. 221, 231; Milliken Imprinting Co. case, 202 U. S. 168; South Boston Iron Worhs case, 34 C. Cls. 174; Western Cartridge Co. case, 61 C. Cls. 482. Two substantial and familiar rules of law prevail. The mistake, to warrant reformation, must be a mutual one, and the evidence must be clear and convincing that both parties did not intend what the contract expresses. Maxwell Land-Grant case, 121 U. S. 325, 381.

Admiral W. A. Moffett, then a captain in the United States Navy, was in July, 1917, commandant at the United States Naval Station, Great Lakes, Illinois. At this particular time war activities at the station were extremely extensive- and acute. The construction of buildings was pressing and important. Large numbers of workmen were employed thereon under various contractors. In the course of the adopted programme it became imperative to at once lay certain trackage and construct a viaduct in connection therewith to enter the station. Captain Moffett procured from R. H. Aishton, the president of the plaintiff company, an oral agreement to at once perform this service upon a cost-plus-ten-per-cent basis, it being fully understood that the agreement would be later reduced to writing. The Great Lakes Station afforded no facilities for housing laborers and no source of supply. Labor had to be imported from Chicago and environs, and obviously had to be transported to and from the station. The plaintiff proceeded at once without the slightest delay to do what it promised to do and completed the work expeditiously and to the entire satisfaction of all parties involved. The written contract signed by the president of the plaintiff company on August 31, 1917, was by its terms to be effective as and of the date August 1, 1917, and embodied the oral understanding previously existing between the parties, except as to the clause in controversy here. This clause reads as follows:

(c) Transportation to and from the site of -the necessary skilled men for the economical and efficient prosecution of the work. The necessity for such transportation shall be determined by the officer in charge; such transportation shall, not involve repeated travel.”

[535]*535This clause appears in an addendum, identified as #1, to the general provisions of the contract, forming a part of the specifications for public works. The addendum on its face indicates its preparation to cover generally cost-plus contracts, irrespective of the particular work in hand, and prepared as a general provision long in advance of the contract to be subsequently made. The contract was formally signed by the Acting Secretary of the Navy and upon the part of the plaintiff by the president of the railway company. It nowhere appears that the Assistant Secretary of the Navy knew or did not know what the contract contained, and the plaintiff’s president executed it as an office routine, after it had been presented to him by others to sign. It is important, however, to take into consideration the events which antedated the execution of the contract, and arrive at what was the mutual understanding and intended agreement as to this stipulation. The contract was not signed until after the original work was completed. Therefore, it is vital to ascertain what was agreed upon and understood by the parties to be later reduced to writing. On July 9, 1918, a representative of the plaintiff attended a conference in Washington made up of naval officers, among whom was the Chief of the Bureau of Yards and Docks, and Captain George A. McKay, the latter becoming in a few days the public-works officer at the Great Lakes Station. The subject-matter of the conference was construction work at the Great Lakes Station and representatives of other contractors besides the plaintiff were present. The question of an allowance as a cost item, of the transportation of labor to and from the station daily was discussed, and the plaintiff’s representative was under the impression that it had been agreed upon, and the item was to be allowed as cost of work. That his impression was well founded and correct is corroborated by the allowance to other contractors of the item as cost of work, and by the advice of Captain McKay, then public-works officer, that he was duly authorized to allow the item. Again, on July 28, 1917, while this plaintiff and other contractors were performing their contracts, the public-works officer at the station forwarded an express recommendation to the commandant [536]*536(Finding IX), specifically pointing out and directing attention to the provisions of the contract to be signed, wherein under paragraph 3 (c) repeated travel as a cost item would not be allowed. This letter we set out in Finding IX. It unmistakably discloses the labor situation at the Great Lakes Station, and brings to the attention of the officials concerned in expediting the work the impossibility of accomplishing what has to be done in other manner than treating as a cost item the daily transportation of labor to and from the station. Changes were made in the contract upon the recommendation of the public-wdrks officer that affected stipulations in addendum #1, but paragraph 3 (c), the one here involved, was not changed.

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Bluebook (online)
68 Ct. Cl. 524, 1929 U.S. Ct. Cl. LEXIS 252, 1929 WL 2655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-north-western-railway-co-v-united-states-cc-1929.