Deal v. United States

31 Cont. Cas. Fed. 71,387, 3 Cl. Ct. 151, 1983 U.S. Claims LEXIS 1659
CourtUnited States Court of Claims
DecidedAugust 3, 1983
DocketNo. 434-77
StatusPublished
Cited by3 cases

This text of 31 Cont. Cas. Fed. 71,387 (Deal 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
Deal v. United States, 31 Cont. Cas. Fed. 71,387, 3 Cl. Ct. 151, 1983 U.S. Claims LEXIS 1659 (cc 1983).

Opinion

OPINION

COLAIANNI, Judge:

In this action plaintiffs are seeking to recover damages for the alleged breach of a timber sale contract. Plaintiffs, in particular, complain that the contract called for a volume of 971 thousand board feet (MBF) of timber, but that in fact only 441,970 board feet were obtained. Based on the facts of this case as described below, plaintiffs have not established that the government breached its contract. Thus, plaintiffs’ complaint must be dismissed.

Facts

On or about August 27, 1974, plaintiffs Lester K. Deal and Arnold Van Zandt, partners engaged in the business of logging, entered into a timber sale contract with defendant, the United States, acting through the Department of Agriculture’s Forest Service. The sale was an advertised salvage sale2 for an estimated 971 MBF of timber in the Beckwourth District of the Plumas National Forest. The sale timber consisted of blowdown, or green trees which were the victims of winter storms, and standing trees affected by various kinds of corruption, such as disease or bug infestation.

Pursuant to the contract, the defendant agreed to sell and the plaintiffs agreed to purchase “all timber marked with YELLOW paint and designated for cutting by the Forest Service, merchantable as hereinafter defined, located on an area to be designated by the Forest Service before cutting begins in * * * [various sections].” The contract defined “merchantable” trees as those having one or more merchantable logs. Logs were considered merchantable for the purpose of the contract if they were not less than 10 ft. long, at least 10 in. in [153]*153diameter inside the bark at the small end, and containing a net of 33M>% of their gross scale. No log scaling less than 30 board feet was to be considered merchantable.

The contract further stated that the purchaser was to pay the Forest Service $22,-690.59 for the timber, which amount included plaintiffs’ lump-sum bid of $22,506.10, and a slash disposal deposit of $184.49. The contract set out the “Estimated Quantity and Unit” of the timber for sale, as well as the “Species and Product” under three categories, as follows:

Live and recently dead (sound sapwood) timber: 406 MBF WF & RF [white fir and red fir]
Older dead (unsound sapwood) timber: 555 MBF WF & RF
Recently dead and older dead timber: 10 MBF WWP (ALL) [Western white pine]

Prior to the date of the contract, the Forest Service made available to the prospective bidders several pieces of information relative to the “Haskell Salvage Sale,” as the sale at issue was known. These included the advertisement of the sale, a prospectus, a bid form, and a sample contract. Also available at that time was an appraisal summary done by the Forest Service on the Haskell Salvage timber. The advertisement provided, along with other information, the minimum lump-sum3 acceptable bid amount for the estimated 971 MBF.4 Both the prospectus and the bid form broke down the lump-sum minimum bid amount by category of timber being sold. The sound sapwood was advertised at $25.96 per unit, the unsound sapwood for $10.66 per unit, and the pine timber for $3.00 per unit.

The prospectus described the sale as “a salvage sale involving extensive blow-down, with dead, dying and down timber only, included.” Prospective purchasers were urged to evaluate the area for themselves before submitting a bid. The prospectus noted that the timber to be removed had been 100% premarked and the volumes listed were shown as estimates. The bid itself recommended that bidders “inspect the sale area, review the requirements of the sample timber sale contract, and take such other steps as may be reasonably necessary to ascertain the location, estimated volumes, quality, development, and operating costs of the offered timber.” The appraisal summary showed a timber estimate of 971 MBF and showed the unsound sapwood at a bid value of approximately 40% of the sound sapwood, i.e., $10.66 versus $25.96. Nowhere in any of the documents was a distinction made between net and gross volume.

Plaintiffs, at least one of whom, Mr. Deal, had been in the timber business since 1969, did not inspect the sale area before signing the contract. One of plaintiffs’ agents did “eyeball” the area prior to the signing, but made no report to plaintiffs as to the volume of timber which had been marked for harvest. Shortly after the contract was signed, another of plaintiffs’ agents went through the area where the timber was located and, as a result of his survey, advised plaintiffs, belatedly, not to sign the contract because he thought the timber volumes were not as great as the Forest Service had estimated.

The estimates which appeared in the Forest Service materials were the result of a timber cruise by teams of Forest Service employees. Two teams spent a total of 18 man-days carrying out the cruise. Each member of the team was a certified cruiser which meant, among other things, that he was able to estimate timber volume to within a margin of error of 10%. The cruisers received instructions from a supervisor who explained the manner in which the cruise was to be conducted. Essentially, the cruise was a sampling of all the trees which had been premarked with yellow paint for harvest. The sampling method employed resulted in the selection of some 87 trees [154]*154out of 1,032, or approximately 8.4%, to be measured.

Once a tree was selected for measuring, the cruiser recorded certain information, including the diameter of the tree at breast height (DBH) and the number of 16-ft. logs which could be obtained from the tree. They also looked for defects, and noted this information for that particular tree. The sound trees having the minimum dimensions mentioned in the contract were measured net of certain obvious defects, such as breakage. Unsound trees, by their very nature, do not lend themselves easily to net volume estimates because the extent of the internal deterioration is not evident until after they are cut down and bucked. However, just as in the case of sound trees, the unsound trees were measured net of all obvious defects. The raw data compiled by the cruisers was returned to the cruise supervisor who computed the actual estimated volume.

Following the execution of the timber contract, plaintiffs sent their crew into the sale area. Plaintiff Deal instructed the crew to remove all trees having a yellow “cut mark.” The process began with a cutter, whose job it was to actually fell the timber and cut it into logs for skidders to either stack in decks or load upon trucks. When logs are removed for shipment to a mill from a sale area, the Forest Service gives the trucker a ticket for each load which identifies the destination of the logs, the amount of logs, the sale name, and the buyer’s designated brand. When the timber arrives at the mill, the tickets are sent back to the forest ranger for the sale area. By this means, the ranger may keep track of the timber for export restriction purposes. Logs which are not to be immediately removed from the area are stacked into decks to preserve them from deterioration. Both decking and cold weather help prolong the life of rapidly deteriorating species, such as the fir in the Haskell Salvage Sale, for one more season.

The cutter in this particular contract was paid by the number of board feet that were actually netted from the downed trees.

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Related

Summit Contractors v. United States
36 Cont. Cas. Fed. 75,964 (Court of Claims, 1990)
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32 Cont. Cas. Fed. 72,561 (Court of Claims, 1984)

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Bluebook (online)
31 Cont. Cas. Fed. 71,387, 3 Cl. Ct. 151, 1983 U.S. Claims LEXIS 1659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deal-v-united-states-cc-1983.