Fidelity & Deposit Co. v. United States

30 Cont. Cas. Fed. 70,973, 2 Cl. Ct. 137, 1983 U.S. Claims LEXIS 1813
CourtUnited States Court of Claims
DecidedMarch 23, 1983
DocketNo. 462-82C
StatusPublished
Cited by31 cases

This text of 30 Cont. Cas. Fed. 70,973 (Fidelity & Deposit 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
Fidelity & Deposit Co. v. United States, 30 Cont. Cas. Fed. 70,973, 2 Cl. Ct. 137, 1983 U.S. Claims LEXIS 1813 (cc 1983).

Opinion

OPINION

GIBSON, Judge:

This is a suit arising under the Contract Disputes Act of 1978, 41 U.S.C. §§ 601-613 (Supp. V 1981) (CDA),1 which comes before the court on the defendant’s motion for summary judgment. Jurisdiction in this court is based on 41 U.S.C. § 609(a)(1) (Supp. V 1981), the “direct access”, provision of the CDA.2

For reasons appearing below, the court elects to treat defendant’s motion for summary judgment as a motion to dismiss. Because this court is without jurisdiction in this matter on account of plaintiff’s failure to certify its contract claim before the contracting officer, the motion to dismiss is granted.

FACTS

The submissions of the parties, consisting of plaintiff’s Petition, defendant’s Motion for Summary Judgment, plaintiff’s Memorandum in Opposition to Defendant’s Motion for Summary Judgment, and defendant’s Reply to Plaintiff’s Response to Defendant’s Motion for Summary Judgment, contain the essential undisputed evidence relied on by the court in ruling on defendant’s motion, redesignated herein as a motion to dismiss.

Plaintiff, Fidelity and Deposit Company of Maryland (Fidelity), is a corporation organized under the laws of the State of Maryland, with its principal place of business located in Baltimore, Maryland. It is primarily engaged in business as a corporate surety in which capacity it underwrites various types of bonds, including, but not limited to, performance and payment bonds, on behalf of its principals.

Fidelity became the plaintiff in this action as a result of entering into a “Completion Agreement” (among others) with defendant obligating it to finish a 1977 maintenance dredging contract which its principal under a performance bond, Fred J. Miller, Inc. (Miller), had defaulted on. Upon completion of said contract and receiving payment in a sum less than the amount allegedly due, because “a mistake in ... the measured quantities were substantially less than the actual quantities dredged,” plaintiff instituted this suit on September 16,1982, to recover $119,280.94 for additional maintenance dredging.

Fidelity’s contract with defendant was the outcrop of events which began on October 21,1977, when the Army Corps of Engineers awarded Contract # DACW31-78-C-0004,3 to Miller4 for the maintenance dredging of the Little Wicomico River in [139]*139Northumberland County, Virginia. In conjunction with said contract award, on October 28,1977, plaintiff provided the payment and performance bonds, as surety on this project for Miller, in the penal sum of $87,-383.60.

On November 17, 1977, and in furtherance of the foregoing, Miller received notice to commence work under said contract, which was to be completed as of December 17, 1977. However, as of December 28, 1977, defendant determined that Miller had defaulted on the contract in that the dike disposal area as constructed was inadequate to accommodate all of the anticipated dredged material and no dredging had been performed as required. By reason of these perceived defaults, the defendant, on January 5, 1978, exercised its rights under Contract # DACW31-78-C-0004 and formally terminated the right of Miller to continue thereunder.

Fidelity, in its capacity as surety under the performance bond, and by virtue of the default of Miller, became liable to the defendant for completion of Contract # DACW31-78-C-0004, subject, of course, to the monetary limitations of its performance bond. In view thereof, on March 1, 1978, plaintiff entered into a “Completion Agreement” with defendant pursuant to which plaintiff became the contractor under the original contract between Miller and the defendant. The “Completion Agreement” specifically obligated plaintiff “to cause the contract to be completed pursuant to its terms,” subject to the limitation of its bond, with consideration running to the plaintiff (the completing surety) from the defendant for reimbursement for its completion costs. Additionally, the “Completion Agreement” provided that plaintiff would be entitled “to all right, title and interest” of Miller (the original contractor) in and to said contract to the end that after March 1,1978, plaintiff would be deemed to be the contractor thereunder rather than Miller.

To perform the dredging as provided in the “Completion Agreement,”5 plaintiff retained Miller, the defaulting contractor; and after the dredging was completed, as agreed, defendant entered into a tripartite ’“Settlement Agreement” dated August 1, 1978, with plaintiff and Miller.

The “Settlement Agreement” delineated, inter alia, the extent and limitation of the rights and obligations of the signatory parties flowing from the execution of the “Completion Agreement,” including the funds due the respective parties. More importantly, the parties also provided therein for a general and inclusive mutual release from all claims which they then held or might in the future hold against each other arising out of the original contract, the “Completion Agreement,” the dredging work performed, and all matters incident thereto.

Following submission of a document (dated August 4, 1978) presented for final payment by plaintiff, as the contractor, plaintiff executed another document dated August 17, 1978, to the benefit of defendant, releasing it “from all claims and demands whatsoever arising under or by virtue of said contract, except as follows: (if none, so state.) None.”

Inasmuch as the amount ultimately paid plaintiff by defendant for effecting the “Completion Agreement” was less than the amount that plaintiff now contends it was owed, stemming from some additional unidentified dredging which was necessary to complete the contract according to its terms, plaintiff commenced the filing of a claim with the contracting officer. In that connection, on or about September 18, 1980, as contended by plaintiff, Miller, on behalf of plaintiff6 forwarded what purported to be five separate claims, arising out of the [140]*140work which it performed (between March and August 1978) on the aforesaid dredging project, to the contracting officer. In short, said claims were seeking appropriate compensation for the additional dredging occasioned by an alleged erroneous survey which caused Miller to dredge significantly larger quantities of silt then had been con- * templated under the original 1977 contract.

The contracting officer apparently did not accept these claims from Miller presumably because Miller was not then the contractor pursuant to the “Completion Agreement.”7 As a consequence, plaintiff forwarded to the contracting officer by transmittal letter dated January 8, 1981, the paperwork previously submitted by Miller requesting him to revise the amount of payment under the contract to reflect the actual quantities dredged.

Plaintiffs January 8, 1981 letter made the following pertinent statements:

“You will please find enclosed the claim of Fred J. Miller, Inc., for extra costs incurred in the performance of the work on the Contract DACW31-78-C-0004 also known as maintenance dredging, Little Wicomico River, North Thumberland [sic] County, Virginia.

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Cite This Page — Counsel Stack

Bluebook (online)
30 Cont. Cas. Fed. 70,973, 2 Cl. Ct. 137, 1983 U.S. Claims LEXIS 1813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-deposit-co-v-united-states-cc-1983.