Don Cartage Company v. United States of America. United States of America v. Don Cartage Company

289 F.2d 623, 1961 U.S. App. LEXIS 4732
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 24, 1961
Docket14136_1
StatusPublished
Cited by2 cases

This text of 289 F.2d 623 (Don Cartage Company v. United States of America. United States of America v. Don Cartage Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Don Cartage Company v. United States of America. United States of America v. Don Cartage Company, 289 F.2d 623, 1961 U.S. App. LEXIS 4732 (6th Cir. 1961).

Opinion

McALLISTER, Circuit Judge.

The primary issue in this case is whether appellant cartage company contracted with the government to transport an X-ray machine in an interstate shipment from Illinois to Pennsylvania. Appellant sued the government for services in connection with such shipment and also for various other services. It denied that it had agreed to transport the X-ray unit from Chicago to Pennsylvania, asserting that it had contracted only to prepare the property for shipment and to deliver it to a common carrier engaged in interstate transportation. The district court found that appellant had contracted to transport the X-ray unit to Pennsylvania and that it was liable for damages resulting to the property arising from collisions en route. *624 To appellant, for the total of its services, the court granted judgment, with taxable costs, allowing, at the same time, an offset to the government for the damages to the X-ray unit. Defenses of laches, advanced by appellant, were resolved in favor of the government. From the judgment, the Don Cartage Company appealed; and from the allowance of the above-mentioned costs, the government filed a cross-appeal.

The pertinent facts are as follows : The government, in October, 1955, undertook to ship a mobile X-ray unit from the Standard Pullman Company plant in Chicago, to the Hunter Manufacturing Company in Bristol, Pennsylvania. As the first step in making such shipment, on October 5, a government official in the Chicago Ordnance District of the Department of the Army requested authorization therefor, stating that the unit was urgently needed by the Bulova Research and Development Laboratory in its work for the Army, at Bristol, and that the government had negotiated with the Don Cartage Com■pany for the removal of this equipment at a cost of $995. The requested authorization was granted by the contracting officer of the government, and pursuant thereto, a “Shipping Order” dated October 5, 1955, was issued by the government directing the shipment to the Bulova company. This Shipping Order, after detailing the method by which the unit was to be prepared for shipment, stated:

“ * * * the above preparation for shipment and the transporting to destination of above equipment will be accomplished by the Don Cartage Company for a total cost of $995. These services will be covered by a purchase order which will follow at an early date.”

On October 6, 1955, the Don Cartage Company received the government “Material Inspection and Receiving Report” dated October 5, 1955. This document, received by the Don Cartage Company, sets forth that:

“preparation for shipment and the transporting to destination of above equipment will be accomplished by the Don Cartage Company. Services will be covered by a Purchase Order which will follow at an early date.”

On the same day, the Don Cartage Company prepared the X-ray unit for shipment and conveyed it to, and loaded it upon, a Roadway Transit Company truck. The unit was then carried by the Roadway Transit Company on a bill of lading prepared by the Don Cartage Company in which it designated itself as “carrier,” and the Roadway company as the “delivering carrier.” The bill of lading made no reference to, or mention of, the government. It set forth that the shipment was consigned to the Bulova company. It incorporated the provisions of the uniform straight bill of lading, which provides that “claims [for ■damages] must be filed * * * within nine months after delivery of the property.” The freight bills, pertaining to the Roadway company’s services, referred to the Don Cartage Company as the shipper, with no reference therein to the government.

En route to Bristol, Pennsylvania, the X-ray unit was involved in two accidents and was finally delivered to the Bulova company in a damaged condition on October 20, 1955. Prompt investigation into the extent of the damage to the unit was made by the government, and the Don Cartage Company was informed of the accidents shortly after receipt of the machine by the Bulova company, and long before the expiration of the nine-month period for filing a claim against the Roadway company, which had been designated as the delivering carrier by the Don Cartage Company.

However, after the government advised the Don Cartage Company of the accidents, that -company took no action whatever at any time to investigate the nature of the accidents or damages, nor did it present any claim against the Roadway company until long after the nine-month period for the filing of such claims had elapsed.

*625 On February 4, 1958, however, the Don Cartage Company filed its claim for the damages with the Roadway Transit Company, which, in turn, declined to accept the claim on the ground that it had not been filed until twenty-eight months after the date of the shipment, whereas the bill of lading had provided that all claims must be filed within nine months of the date of shipment.

It appears that, after the completion of all of its services, the Don Cartage Company had, during November, 1955, requested the government to issue the “Purchase Order” mentioned in the Shipping Order and Material Inspection and Receiving Report. The purpose of this purchase order was to show what services were to be rendered by Don Cartage, and what payment was authorized by the government for such services.

On February 7, 1956, the purchase order was issued. It set forth that, for the amount of $995, the services to be rendered by the Don Cartage Company to the government were to consist of the following: “(1) Clean all exterior surfaces, (2) the large column on X-ray unit is to be dismantled, cleaned, sprayed with a light perservative oil and boxed, (3) dismantle, clean and box arm shaft, (4) dismantle small unit on side of machine and box, (5) disconnect switch boxes and electrical equipment, (6) brace and block transformer, (7) clean and paint track unit, (8) block complete X-ray unit under the springs, (9) load and block on highway carrier acceptable to carrier, (10) cover with Government-owned tarpaulin, and (11) transport to Bulova Research and Development Laboratory, Bristol, Pennsylvania, in accordance with shipping order. * * * ”

On April 20, 1956, the government requested Don Cartage’s acceptance of the Purchase Order, which, the government stated, “constitutes your contract with the United States of America.” In answer to this request, Don Cartage Company, by its Vice President, filed written acceptance of the Purchase Order, which, as above indicated, provided for payment of $995 for the services therein mentioned, including loading and transporting of the X-ray unit to Bristol, Pennsylvania.

The next development in the case was on November 15, 1957, when the government contracting officer sent the Don Cartage Company his final determination as to the loss suffered by the government, arising out of the damage to the mobile X-ray unit, in the amount of $8,039, and requested payment therefor from the Don Cartage Company. The company refused to pay. It was informed that it could appeal the contracting officer’s determination to the Armed Services Board of Contract Appeals. It did not appeal.

On April 16, 1958, the Don Cartage Company submitted the following invoice for its services:

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

Related

C & E SERVICES, INC. v. Ashland, Inc.
601 F. Supp. 2d 262 (District of Columbia, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
289 F.2d 623, 1961 U.S. App. LEXIS 4732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/don-cartage-company-v-united-states-of-america-united-states-of-america-ca6-1961.