Commerce International Company, Inc. v. The United States

338 F.2d 81, 167 Ct. Cl. 529, 1964 U.S. Ct. Cl. LEXIS 135
CourtUnited States Court of Claims
DecidedOctober 16, 1964
Docket287-55
StatusPublished
Cited by121 cases

This text of 338 F.2d 81 (Commerce International Company, Inc. 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
Commerce International Company, Inc. v. The United States, 338 F.2d 81, 167 Ct. Cl. 529, 1964 U.S. Ct. Cl. LEXIS 135 (cc 1964).

Opinion

DAVIS, Judge.

This is a breach-of-contract suit, charging defendant with unreasonable-delay in supplying parts and drawings,, and in failing to permit the prompt commercial purchase of parts when none were-available in Government stores. Plaintiff is said to have suffered over $1,650,-000 in damages because of defendant’s improper delay. 1

In 1950, the Army prepared to let a. contract for the rebuilding of some 500-M36 90mm. motor gun carriages (tanks) which were believed needed to meet the emergency of the Korean hostilities. The vehicles were in a poor state, having been left in the open since World War II. Plaintiff had had some previous experience in rebuilding tanks and was one of five companies asked to submit bids. As plaintiff’s representative, Mr. Ambrose Cates (who had been in charge of the earlier “rebuild” operations) spent two weeks at Rock Island Arsenal, in Illinois, inspecting some of the M36 tanks located there, meeting with Army representatives, and familiarizing himself with the work in order to prepare a bid; the contract specifications were not yet completed. Agents of the other companies did the same. Four concerns submitted bids on November 30, 1950, and plaintiff *84 was found to be the low bidder. A preaward survey was made, by Army officials accompanied by Cates, of the facilities at Cramp Shipyard (at Philadelphia) which plaintiff had an option to sublease and where it proposed to perform. The report made to the Government confirmed the suitability of the premises for conducting the “rebuild” operation and plaintiff received a notice of award dated December 28,1950. The contract was not formally executed until sometime in March 1951.

Although the specifications had still not been fully readied at the time of the award, the notice directed plaintiff to proceed with the work “in order that the delivery schedule outlined in your proposal may be strictly maintained.” The contract called for the rebuilding of 581 M36 tanks to be delivered by the contractor to the Government in accordance with the following schedule: 2

April 1951 ...................... 75

May 1951 .......................100

June 1951 .......................100

July 1951 .......................125

August 1951 .....................125

September 1951 .................. 56

Among other things, the Government was to supply reconditioned engines and 90mm. guns for all of the tanks. In addition, at the contractor’s written request, the Government was to furnish, “to the extent available from its existing stores,” parts and materials “which have been declared unserviceable by the Contracting Officer or which after inspection were found to be missing from the vehicles.” If such replacement items could not be furnished, the contractor, when directed by the Contracting Officer in writing, was to manufacture or purchase the parts and would be reimbursed its actual costs in an aggregate not exceeding $500,000. 3 There was also the normal clause permitting extensions of time if the Government’s failure to supply parts and materials caused delay in the work.

At the outset of performance, in early January 1951, plaintiff had basically to start from scratch in organizing an operational physical plant and production line. It had a nucleus of only three men (management or administrative personnel) in Philadelphia and had yet to hire a full complement of administrative and production employees. It also had to exercise its option on the Cramp Shipyard facilities and to prepare the premises for receiving and storing tanks, parts, and equipment. All of this plaintiff says was accomplished in time to complete the rebuilding on schedule were it not for government-caused delays. Completion, originally set for September 1951, did not come until September 1952. 4 From December 28, 1950 (notice of award) to December 15, 1951, 5 plaintiff finished the rebuilding of 261 tanks; then, because the Government could not for a time supply further engines and guns, the work was suspended until March 15, 1952; operations resumed thereafter and were continued in an orderly and prompt fashion. This history of performance is divided by the parties into three periods. The “first phase” was from January 1951 until suspension; then came the “suspension period” (from December 15, 1951, until March 15, 1952); finally, there was the “second phase” from March 15, 1952, until completion in September 1952. Plaintiff makes no claim for delay (or other damages) during the second phase (except that which may have been an after-effect of the three-month suspension from December 15, 1961, to *85 March 15, 1952). Defendant, on its part, does not contest liability for damages during the suspension period. The main battleground is the first phase, during which plaintiff claims, and defendant denies, that undue Government delay caused the considerable loss which the contractor incurred on this contract.

This claim has not been administratively considered on its merits. Although plaintiff did apply to the Contracting Officer for compensation, the , claim was denied without any consideration on the ground that it was outside; agency jurisdiction as a demand for unliquidated damages. Plaintiff’s petition was then filed in this court, the case tried, the Trial Commissioner’s findings reported, and the briefs and exceptions filed, without any objection by the defendant to the trial and determination of the case in this court and without any .suggestion of the need for administrative proceedings. After the filing of the Commissioner’s report and of all the exceptions and briefs, but before the oral argument, the defendant for the first time moved for a stay to permit the parties to have the issues determined administratively, citing United States v. Carlo Bianchi & Co., 373 U.S. 709, 83 S.Ct. 1409, 10 L.Ed.2d 652 (1963). Plaintiff opposed the motion and it was denied (before argument) without prejudice. The point was again raised at the argument. We reject it. Whatever might have been the defendant’s right to seek administrative determination of the facts if the issue had been timely raised, v/e hold, as we have before, that in this case defendant waived any such right by making its first move too late. WPC Enterprises Inc. v. United States, Ct.Cl., 323 F.2d 874, 878, decided Oct. 11, 1963; Stein Bros. Mfg. Co. v. United States, Ct.Cl., 337 F.2d 861, 862-863, decided July 12, 1963; Wingate Construction Co. v. United States, Ct.Cl., No. 394-60, decided Jan. 24, 1964, slip op., p. 7.

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Bluebook (online)
338 F.2d 81, 167 Ct. Cl. 529, 1964 U.S. Ct. Cl. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commerce-international-company-inc-v-the-united-states-cc-1964.