Clark Mechanical Contractors, Inc. v. United States

32 Cont. Cas. Fed. 72,427, 5 Cl. Ct. 84, 1984 U.S. Claims LEXIS 1425
CourtUnited States Court of Claims
DecidedApril 25, 1984
DocketNo. 629-83C
StatusPublished
Cited by21 cases

This text of 32 Cont. Cas. Fed. 72,427 (Clark Mechanical Contractors, Inc. 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
Clark Mechanical Contractors, Inc. v. United States, 32 Cont. Cas. Fed. 72,427, 5 Cl. Ct. 84, 1984 U.S. Claims LEXIS 1425 (cc 1984).

Opinion

OPINION

LYDON, Judge:

This case comes before the court on defendant’s motion for summary judgment and plaintiff’s opposition thereto. Defendant’s motion is based on the contention that the claim asserted by plaintiff in its complaint is barred by a release executed by plaintiff under which plaintiff discharged the government from all claims and demands under or arising from the performance of an Air Force contract. While the release in question excepted two claims from coverage, it did not except from coverage the claim asserted in this case. Plaintiff does not dispute the execution of the release, nor does it dispute the fact that the claim in question was not set forth as an exception in the release. Rather, plaintiff asserts that defendant’s motion for summary judgment should be denied because of the existence of a disputed issue of material fact. In substance, plaintiff contends that its president was misled by the government into believing that plaintiff could assert the claim in issue even though the president executed the release without listing the claim as an exception in the release. Resolution of this allegation, plaintiff maintains, is a disputed issue of fact that precludes disposition of this case by summary judgment. Based on the submissions of the parties, and without oral argument, it is concluded that defendant’s motion for summary judgment should be granted.

On May 7, 1982, plaintiff contracted (No. FO 3602-82-C-0030) with the United States Department of the Air Force (Air Force) to replace one cooling tower with two new cooling towers at Building 314 on the Little Rock Air Force Base in Arkansas. During the course of contract performance, a number of disputes arose between the parties relative thereto. One of these disputes involved a matter of contract interpretation as a result of which plaintiff submitted a claim to the contracting officer for $5,863. The amount of this claim reflected, according to plaintiff, the increased costs plaintiff incurred in purchasing the type of cooling tower requested by the Air Force (Marley Cooling tower), instead of allowing plaintiff to purchase the type plaintiff felt was permitted by the contract.

The contracting officer denied plaintiff’s claim on October 13, 1982.1 In her decisional letter, the contracting officer set forth standard language advising that denial of the claim was a final decision of the contracting officer; that plaintiff had 90 days from receipt of said decision within which to appeal to the Armed Services Board of Contract Appeals (ASBCA); or that in lieu of appealing to the ASBCA, plaintiff could bring an action directly in the “United States Court of Claims” within 12 months of the date of receipt of said decision. Said letter also advised plaintiff of the accelerated procedure of the ASBCA if the amount in dispute was under $50,000 (180-day limit in processing claim), and the optional small claims expedited procedures of the ASBCA if the amount in dispute was $10,000 or less (120-day limit in processing claim).

By letter dated October 19, 1982, the contracting officer wrote plaintiff as follows:

1. In that a final decision has been rendered rejecting that an ambiguity exists [86]*86in the contract, your invoice for the services in question is returned without further action.
2. Be advised that before final payment can be made, you must submit a “Release of Claims” and an invoice, original and four copies, marked “Final Invoice”.
3. Your attention to this matter is greatly appreciated.

On November 29,1982, plaintiff, through its president, executed a document entitled, “Contractor’s Release Of Claims.” This release read in pertinent part as follows:

Pursuant to the terms of Contract No. F03602-82-C-0030 and in consideration of the sum of Thirty-Nine Thousand Eight Hundred Eighty-Eight Dollars ($39,888.00) * * * the Contractor, * * * does remise, release, and discharge the Government * * * from all liabilities, obligations, claims, and demands whatsoever under or arising from the said contract, except:
1. Specified claims in stated amount or in estimated amounts where the amounts are not susceptible of exact statement by the Contractor, as follows: * * * [Two specified types of claims were thereafter set forth in the release. The claim presented in this case was not set forth as an exception in this release.]

On October 18, 1983, plaintiff filed its complaint in this court as a direct access case under section 10(a)(1), (3) of the Contract Disputes Act of 1978, codified at 41 U.S.C. § 609 (1982). In its complaint, plaintiff sought to recover $5,863 in damages on the theory of contract reformation.

As a general rule, the execution by a contractor of a release which is complete on its face reflects the contractor’s unqualified acceptance and agreement with its terms and is binding on both parties. Inland Empire Builders, Inc. v. United States, 191 Ct.Cl. 742, 752, 424 F.2d 1370, 1376 (1970); Metric Constr. Co. v. United States, 1 Cl.Ct. 383, 396 (1983). It is further well established that where a contractor has the right to reserve claims from the operation of a release, but fails to exercise that right, which is the situation in the case at bar, it is neither improper nor unfair, absent some vitiating or aggravated circumstance,2 to preclude the contractor from maintaining a suit based on events which occurred prior to the execution of the release. H.L.C. & Associates Constr. Co. v. United States, 176 Ct.Cl. 285, 293, 367 F.2d 586, 590 (1966). Without more, plaintiff is precluded from prosecuting its claim in this court because of its execution of a general release.

Plaintiff seeks to avoid the bar of its prosecution of its claim because of its execution of the release by claiming that its president, who executed the release on behalf of plaintiff, was “misled” by the October 18, 1982, decisional letter of the contracting officer and the October 19, 1982, letter from the contracting officer advising plaintiff that a “Release of Claims” must be submitted before a final payment could be made.

In his affidavit, attached to plaintiff’s brief in opposition to defendant’s motion for summary judgment, plaintiff’s president stated that, since the contracting officer in his October 18, 1982, decisional letter set forth the appeal provisions plaintiff could follow and on the following day, October 19, 1982, informed plaintiff by letter of “the way to go ahead and collect the rest of the money that was due,” he felt the release he executed was only to release claims “unknown to the Government or that were not in some stage of litigation at the time.” Plaintiff’s president claims these two letters misled him into believing that a suit could be maintained on the claim now before the court even though he signed the release. He further asserts in his affidavit that he was also misled by the fact that the government sent the release form to him without being requested to do [87]

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

Related

Ingham Regional Medical Center v. United States
126 Fed. Cl. 1 (Federal Claims, 2016)
United States v. Travelers Casualty & Surety Co. of America
55 F. Supp. 3d 852 (N.D. West Virginia, 2014)
K-Con Building Systems, Inc. v. United States
107 Fed. Cl. 571 (Federal Claims, 2012)
Imprimis Investors LLC v. United States
83 Fed. Cl. 46 (Federal Claims, 2008)
Axion Corp. v. United States
68 Fed. Cl. 468 (Federal Claims, 2005)
Information Systems & Networks Corp. v. United States
68 Fed. Cl. 336 (Federal Claims, 2005)
Abatement Contracting Corp. v. United States
58 Fed. Cl. 594 (Federal Claims, 2003)
C & H Commercial Contractors, Inc. v. United States
35 Fed. Cl. 246 (Federal Claims, 1996)
Kenbridge Construction Co. v. United States
39 Cont. Cas. Fed. 76,549 (Federal Claims, 1993)
Dairyland Power Cooperative v. United States
38 Cont. Cas. Fed. 76,492 (Federal Claims, 1993)
A & A Insulation Contractors, Inc. v. United States
38 Cont. Cas. Fed. 76,350 (Court of Claims, 1992)
Gresham, Smith & Partners v. United States
37 Cont. Cas. Fed. 76,247 (Court of Claims, 1991)
Progressive Bros. Construction Co. v. United States
35 Cont. Cas. Fed. 75,643 (Court of Claims, 1989)
Alliance Oil and Refining Company v. The United States
856 F.2d 201 (Federal Circuit, 1988)
Alliance Oil & Refining Co. v. United States
34 Cont. Cas. Fed. 75,388 (Court of Claims, 1987)
Miya Bros. Construction Co. v. United States
34 Cont. Cas. Fed. 75,237 (Court of Claims, 1987)
Johnson Controls, Inc. v. United States
32 Cont. Cas. Fed. 73,659 (Court of Claims, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
32 Cont. Cas. Fed. 72,427, 5 Cl. Ct. 84, 1984 U.S. Claims LEXIS 1425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-mechanical-contractors-inc-v-united-states-cc-1984.