Dubois Const. Corp. v. United States

98 F. Supp. 590, 120 Ct. Cl. 139, 1951 U.S. Ct. Cl. LEXIS 65
CourtUnited States Court of Claims
DecidedJuly 9, 1951
Docket47561
StatusPublished
Cited by12 cases

This text of 98 F. Supp. 590 (Dubois Const. Corp. 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
Dubois Const. Corp. v. United States, 98 F. Supp. 590, 120 Ct. Cl. 139, 1951 U.S. Ct. Cl. LEXIS 65 (cc 1951).

Opinion

HOWELL, Judge.

This is a claim which arises out of a contract entered into on September 27, 1943, by the defendant, through the Civil Aeronautics Administration, with the plaintiff for paving work at a new airport at Washington, North Carolina, where the defendant’s contractor, The Tyler Construction Company, was doing the preliminary grading which was required before paving. The claim is to recover damages of $121,-269.16, allegedly suffered by the plaintiff due to the defendant’s breach of the contract at its inception and to recover $6,000 liquidated damages assessed against the plaintiff upon completion and acceptance of its contract, an aggregate of $127,269.16 being claimed.

The defendant has interposed a counterclaim to recover its costs of $8,043.47 in re-jointing the concrete where the plaintiff had not done the work in accordance with the specifications. This sum was spent by the defendant after the job had been accepted and paid for.

The essential facts can be briefly stated. The Civil Aeronautics Administration in June, 1943, had advertised for bids for construction of the airport. Under terms of the proposal, grading was to be performed under Schedule I and paving under Schedule II. The Tyler Construction Company was the low bidder on both schedules and got the awards. However, the defendant changed the type of pavement and readver-tised the paving scheduled. In August 1943, prior to the execution of either the final grading or the paving contract, Tyler was permitted to do some preliminary grading. The Tyler contract was executed on September 1, 1943, and Tyler received its notice to proceed effective as of September 3, 1943. The plaintiff’s bid on the readver-tised paving contract was submitted on September 1, 1943. The plaintiff was the low bidder and was sent a contract for execution on September 13, 1943. The defendant’s letter of transmittal contained a statement that notice to proceed would be issued upon acceptance of the contract. The contract, however, executed by both parties on September 27, 1943, provided that, “It is intended that notice to proceed to plaintiff will be issued not more than 60 calendar days after notice to proceed on Schedule I.”

After receiving notice to proceed, Tyler speeded up its operations, and by the first week of November 1943, had one runway ready for paving. Notice to proceed was *593 thereupon issued to plaintiff effective November 8, 1943, and both contractors proceeded with their respective work until December 15, 1943, at which time the defendant stopped all operations due to the severe winter weather. Notice to resume operations was not issued until March 21, 1944. However, the plaintiff, in January, was permitted to do considerable paving in order to enable it to dispose of several cars of cement which it had on hand at the time the stop order was issued.

In the fall of 1943, the Government invited Tyler to bid upon a supplemental contract to extend two of the runways an additional 1,000 feet. On January 3, 1944, Tyler executed a contract to do the grading work on such extensions, it being stipulated that Tyler would receive a time extension of 60 days. In February, 1944, the plaintiff was requested to bid on the paving work for the extensions and submitted a bid requesting additional compensation and an extension of 60 calendar days. Following negotiations the plaintiff agreed to a time extension of 50 days, and on April 18, 1944, a supplemental contract was executed, whereby the plaintiff agreed to pave the extensions, the plaintiff to receive “a fifty-day extension in time.”

The plaintiff proceeded with the paving operations until June 9, 1944, at which time an inspection was made to determine whether or not the contract work was ready for acceptance. The inspection party discovered that the joints were not correctly constructed and directed the plaintiff to comply with contract specifications. The plaintiff continued working until June 14, 1944, at which time the defendant’s project engineer, notified the Civil Aeronautics Administration regional office that the plaintiff had satisfactorily completed the work, and thereafter the plaintiff was paid the full contract price. In reality the corrective work had not been done. Further inspections revealed the extensive non-compli-ances, and in the spring of 1945, the defendant did the corrective work necessary to make the joint construction comply with contract specifications.

We address ourselves first to the plaintiff’s ■ contention that the defendant by false and fraudulent representations breached the contract at its inception. These alleged fraudulent misrepresentations consist of (a) the defendant’s permission to the grading contractor, Tyler, to start operations in August, 1943, prior to execution of the Tyler contract or notice to proceed, and (b) the defendant’s letter of September 13, 1943, stating that a notice to the plaintiff to proceed would be issued upon acceptance of the contract by the plaintiff. The plaintiff relies upon the principle laid down in United States v. Gibbons, 109 U.S. 200, 3 S.Ct. 117, 27 L.Ed. 906, wherein on a dissimilar state of facts, the Supreme Court said, in effect, that the conditions at the site of work which bidders are required or invited to inspect before bidding may, under certain circumstances, constitute a representation by the Government of an essential fact inducing the bid and fixing rights under the contract. The plaintiff says that this principle has application in this case to the physical representation afforded bidders who observed Tyler at work commencing August 1, that his time for delivery of one runway had thereby become fixed and that the plaintiff could start work not later than October 1 and finish before cold weather. With the principle we have no quarrel. But, it does not fit the facts of this case as the plaintiff alleges.

Defendant was under no legal obligation to notify all bidders that a notice to proceed had not been issued to Tyler. Further, by permitting Tyler to proceed on this job classified as essential to the war effort in which speed was thus of the essence, the defendant thereby made no implied promise to others that a notice to proceed had been issued to Tyler. There is an unfortunate void in the evidence as to whether or not the plaintiff was aware that a formal proceed order had not been issued to the grading contractor. The plaintiff’s estimator who visited the site and contacted Tyler’s superintendent was deceased at the time of the trial and there was no evidence as to what information the plaintiff did or did not have on this issue at the time it submitted its bid. We do know, however, that the contract provided that bidders should inspect the site of the work to acquaint *594 themselves thoroughly with the local conditions. It is hard to believe that no inquiry would have been made by the plaintiff’s representative who did visit the site. In any event, we have found that had such an inquiry been made, or if it was made, it is reasonable to conclude that the plaintiff was or would have been advised of the true and technical facts of the situation. In the case of Southern Surety Co. v. United States, 75 Ct.Cl. 47, 68, the Court’s language is pertinent to the instant problem: “ * * * There is no showing that the Government refused to furnish information nor that incorrect information was furnished.

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Bluebook (online)
98 F. Supp. 590, 120 Ct. Cl. 139, 1951 U.S. Ct. Cl. LEXIS 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dubois-const-corp-v-united-states-cc-1951.