Ferguson & Edmondson Co. v. United States

89 F. Supp. 135, 116 Ct. Cl. 246, 1950 U.S. Ct. Cl. LEXIS 84
CourtUnited States Court of Claims
DecidedMarch 6, 1950
DocketNo. 45668
StatusPublished
Cited by2 cases

This text of 89 F. Supp. 135 (Ferguson & Edmondson Co. 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
Ferguson & Edmondson Co. v. United States, 89 F. Supp. 135, 116 Ct. Cl. 246, 1950 U.S. Ct. Cl. LEXIS 84 (cc 1950).

Opinion

Jones, Chief Judge,

delivered the opinion of the court:

This is a suit to recover damages for alleged misrepresentation and arbitrary and capricious action on the part of the contracting officer. Plaintiff also sues to recover for two items of extra expense which it claims to have incurred in fulfilling the contract.

By contract dated September 16,1936, plaintiff corporation agreed to furnish the materials and perform the work necessary for the relocation of a portion — 5.92 miles — of the Baltimore and Ohio Railroad located in Tuscarawas and Sparta Counties, Ohio. The plaintiff, with the consent of the defendant, subcontracted to Ceylon E. Love joy a portion of the work constituting about seven-eighths of a mile. The subcontract work involved excavating Nimishillen Creek channel, and placing the materials excavated in two embankments to be used as a roadbed for the railroad and to act as levees. Plaintiff was to receive 33 cents a cubic yard for unclassified excavation, and 35 cents a cubic yard for borrow. The subcontractor, the real party in interest in this action, was to receive payment from the contractor at the rate of 27 cents per cubic yard-

The contract drawings, which were available to bidders and which were examined by plaintiff and by plaintiff’s subcontractor, contained data, taken from core borings made at the site, indicating that the materials to be removed were largely sands and silts with some rock and coal fragments, sandstone, and dark shale.

The Invitation to Bid stated that bidders were expected to visit the site and acquaint themselves with all available information concerning the nature of the materials to be excavated. The contract specifications further provided that the character of the materials, as indicated on the drawings, was not guaranteed.

[265]*265Prior to submitting Ms bid, the plaintiff’s subcontractor visited the site, investigated the kind of equipment deemed best suited for the job, and studied the report of the test borings. In making his bid, he relied upon what the plans showed as to the character, location, quantity, and condition of the materials to be excavated.

The subcontractor began operations in late April 1937 using LeTourneaus, which are scrapers with large wheels, these scrapers being drawn by tractors. He had anticipated that with the exclusive use of this type of equipment he could finish the subcontract work within about four months. The south part of the subcontract work was low-lying and visibly wet. The equipment which the subcontractor first brought to the site was incapable of handling this wet material. He later brought in draglines and completed the operations about 60 days later than he had anticipated. This delay was due almost entirely to the unusual rainfall which occurred during the summer of 1937.

The contract stipulated that the excavated materials from the channel change were to be used in the levee-embankment unless otherwise directed by the contracting officer. Materials which in the judgment of the contracting officer were unsuitable for use in the levee-embankment were to be wasted.

At the beginning the subcontractor was excavating mostly sand and gravel. During that period there was no need for borrow and none was authorized. In July 1937 the contracting officer authorized the use of a limited amount of borrow. At about that time the plaintiff made the claim that the materials then being excavated were not as represented by the contract drawings, and were not suitable and therefore should be wasted. The contracting officer thereupon investigated the conditions of wMch plaintiff complained and made a finding that the materials were as represented and were suitable. The plaintiff did not appeal from this finding.

As the work progressed a larger proportion of unsuitable materials was encountered and the contracting officer began to allo.w the use of borrow in increasing amounts. In late October he began to fear that the work would not be completed before winter weather stopped all operations. He therefore on October 27, 1937, authorized the unlimited use [266]*266of borrow. This authorization continued until the work was completed in November.

Plaintiff contends the defendant breached the contract in that it misrepresented a material fact since the materials to be excavated were of a different character than shown by the defendant’s test borings on which plaintiff relied. Plaintiff further alleges that the defendant’s requirement that these different materials be used amounted to an unreasonable and arbitrary abuse of discretion resulting in loss to the plaintiff. When protest was made to the contracting officer early in July 1937, an investigation was made and the contracting officer made findings that the materials encountered up to that time were as represented and were suitable for use in the embankment. The plaintiff did not appeal.

The evidence on the question of misrepresentation is voluminous as well as conflicting. Plaintiff testified that it was deceived and misled to its damage by the defendant’s characterization of certain areas to be excavated as fine sand rather than silt, and silt rather than clay.

The data supplied to plaintiff by defendant showed that at three specific locations the materials found by the defendant consisted largely of silts and sands, but that there were also some rock and coal fragments and a small area of sandstone and dark shale. Defendant contends that the materials actually excavated were approximately as indicated on the plans.

Plaintiff contends that the materials actually excavated were not of the character shown on the plans and specifications. In support of this contention plaintiff introduced in. evidence laboratory analyses of soil samples made after the completion of the contract in 1938 and in 1943, which samples were composed entirely of silt and clay. If the materials used by plaintiff’s experts in their tests had been representative generally of soil in the channel change, the job would have mired down and would have been practically impossible of completion. As we have found, the materials so tested by plaintiff were representative only of the finest soils encountered, whereas the materials actually excavated in the performance of the contract were substantially as represented on the contract plans. The presence of some clay in a. [267]*267silt deposit does not support plaintiff’s charge of misrepresentation and there is no evidence that defendant withheld any information or was negligent in taking its test borings. If plaintiff had desired more detailed information concerning the character of the soil in the channel change it could have made its tests at the time it investigated the project site.

It appears to us that the above circumstances afford little basis for a charge of misrepresentation. What was said by this court in Walter D. Lovell v. United States, 61 C. Cls. 756, 761, with respect to quantity can be applied to this case with respect to quality. The court there said:

It is idle to contend that the representations of the blueprints admit of no variation as to quantity, and the defendant be held to a degree of exactness which common experience has long since established as impossible of attainment in this class of work.

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Related

Pacific Far East Line, Inc. v. The United States
394 F.2d 990 (Court of Claims, 1968)

Cite This Page — Counsel Stack

Bluebook (online)
89 F. Supp. 135, 116 Ct. Cl. 246, 1950 U.S. Ct. Cl. LEXIS 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-edmondson-co-v-united-states-cc-1950.