Excavating Equipment Dealers, Inc. v. United States

93 Ct. Cl. 82, 1941 U.S. Ct. Cl. LEXIS 140, 1941 WL 4574
CourtUnited States Court of Claims
DecidedMarch 3, 1941
DocketNo. 43365
StatusPublished
Cited by1 cases

This text of 93 Ct. Cl. 82 (Excavating Equipment Dealers, 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
Excavating Equipment Dealers, Inc. v. United States, 93 Ct. Cl. 82, 1941 U.S. Ct. Cl. LEXIS 140, 1941 WL 4574 (cc 1941).

Opinion

Jones, Judge,

delivered1 the opinion of the court:

This action was brought by the Excavating Equipment Dealers, Inc., to recover from the United States the reasonable value of the alleged retention and use by the defendant of one used P. & H. Model 206-B Dragline, which, with certain attachments, plaintiff claims was retained and used during the period from September 27, 1932 to May 12, 1933. Plaintiff also claims damages for repair, reconditioning, loading, and freight.

The plaintiff was incorporated under the laws of the State of Delaware. It was one of the two subsidiaries of the Harnischfeger Corporation, a Wisconsin corporation.

On August 10, 1931, the plaintiff made a conditional sale of the above machinery to Jacobson & Mortenson, contractors. Under the terms of the contract there was a cash payment, the balance being payable monthly. The title was retained in the plaintiff until all the installments should be paid.

The conditional sales contract was duly registered in the office of Judge of Probate, Tuscaloosa County, Alabama, on August 14, 1931.

On March 16, 1932, Jacobson & Mortenson entered into a contract with the United States by the terms of which the partnership agreed to install sewer and storm drainage systems at Corry Field (Naval Air Station), Pensacola, Florida.

[91]*91Jacobson & Mortenson transported the dragline equipment from Tuscaloosa County, Alabama, to Corry Field, Florida, and used it in the construction work at that place.

The surety on the Government contract was the National Surety Company.

The contractor abandoned the work on August 4, 1932, before its completion. The Surety Company elected not to complete the work and it was completed by the Government by the use of station labor.

Jacobson & Mortenson left on the site certain equipment among which was the dragline. Article 9 of the contract of the Government with Jacobson & Mortenson provided that in the event of termination by the Government, the latter might take over the work and prosecute the same to completion, and might utilize in completing the work such materials, appliances, and plant as might be on the site of the work and necessary therefor.

The dragline was used by the Government on October 4 and 5, 1932, in the digging of a trench for storm sewer pipes, it being a part of the work called for by the Jacobson & Mortenson contract.

On October 17, 1932, the plaintiff advised the defendant for the first time of its claim of the right to title and possession of the dragline equipment.

It was not used by the defendant after notice of such claim had been received.

The dragline was finally released to the plaintiff on May 12, 1933.

The primary question is whether there was an implied contract on the part of duly authorized United States officials to pay the reasonable rental value for the use of the dragline from the time the Government took possession of the property until the time the property was released, or any portion of such time.

We think that the peculiar facts and circumstances of this case are insufficient to justify the conclusion that there was such an implied contract.

It is true that the Government officials actually used this dragline on October 4 and 5, 1932, but at that time they had neither notice nor knowledge of any claim of ownership on the part of the plaintiff.

[92]*92There was also placed on the dragline the following legend “The United States has taken possession of this article which was furnished by Jacobson & Mortenson for use on the work under contract No. 1406, in accordance with Article IX of that contract.”

This had been placed on the dragline prior to notice or knowledge on the part of the defendant of any claim of interest by the plaintiff.

On October 17, 1932, a representative of the plaintiff visited Corry Field and for the first time notified the Public Works Officer of his claim that the dragline belonged to the plaintiff; that it had been sold on a conditional contract by the terms of which title was reserved in the plaintiff until all the installments had been paid; that the contractors, Jacobson & Mortenson, had defaulted in the payment due February 1, 1932, and on each succeeding monthly installment thereafter.

Plaintiff’s representative on October 17 or 18, 1932, interviewed the Public Works Officer in charge of the yard where-the machine was located. The officer informed plaintiff’s representative that he could not release the machine without authority from the Bureau of Yards and Docks. The Public Works Officer suggested that the Government might be interested in buying the dragline.

On October 20 the Sales Corporation offered the Public Works Officer a selling price of $5,000. Again he was informed that the Bureau of Yards and Docks would have to pass on all these matters.

The following day, October 21, 1932, the plaintiff wrote the Bureau of Yards and Docks a letter in which it suggested that as the title to the property remained in it, it was desirous of securing delivery thereof, but in the same letter stated it was entirely agreeable to having the Government use this machine to complete the job, if the Government would agree to pay a reasonable rental from September 27, 1932, until the work should be completed. It suggested $550 per month as a reasonable rental. Nothing was said in this letter about the offer of sale which the plaintiff had made to the Public Works Officer.

[93]*93On October 27 the Public Works Officer acknowledged receipt of the offer of sale made to him October 20,1932, and informed the plaintiff that a purchase could only be made through competitive bids.

We will first consider the period after October 17, 1932.

Neither the defendant nor any of its representatives ever used the dragline for any purpose after the notice that was given by plaintiff’s representative on October 17, 1932.

A great deal of correspondence was carried on by the officials of the plaintiff, the parent company and the sales company and their attorneys and representatives with the Surety Company and the Bureau of Yards and Docks of the Navy Department.

While some of this correspondence and apparent conversations seem surplusage, it was all done in an effort to clear the situation so that the property could be released.

The Bureau of Yards and Docks alone had the legal right to enter into a, contract for the use of the property. The action taken must be by a duly authorized officer. United States v. North American Transportation and Trading Co., 253 U. S. 330, 333. In order for the Government to be bound by such a contract it would be necessary for the duly authorized public authority, the Bureau of Yards and Docks, either to have made an express contract for the use, or to have conducted itself in such a way that there would be an implied contract to retain for use and to pay the reasonable rental value for such use or retention for use. United States v. Minnesota Mutual Investment Co., 271 U. S. 212, 217; Merritt v. United

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Cite This Page — Counsel Stack

Bluebook (online)
93 Ct. Cl. 82, 1941 U.S. Ct. Cl. LEXIS 140, 1941 WL 4574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/excavating-equipment-dealers-inc-v-united-states-cc-1941.