Gilbane Building Co. v. United States

166 Ct. Cl. 347
CourtUnited States Court of Claims
DecidedJune 12, 1964
DocketNo. 414-58
StatusPublished
Cited by4 cases

This text of 166 Ct. Cl. 347 (Gilbane Building 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
Gilbane Building Co. v. United States, 166 Ct. Cl. 347 (cc 1964).

Opinion

WhitaKee, Judge,

delivered the opinion of the court:

Plaintiff sues for damages alleged to have been incurred by a delay in the delivery of the site upon which it had contracted to erect a transit shed. The question presented is whether the Government guaranteed the availability of the site by any particular time.

In its contract, plaintiff agreed to build a warehouse, a transit shed1 and related utilities systems at the Naval Sup[349]*349ply Depot in Newport, Rhode Island. The warehouse was to be built on existing land, but, at the time the contract was signed, the site where the transit shed was to be erected was an arm of Narrangansett Bay. As plaintiff’s contract specified, the site was to be filled in by another contractor, the Raymond Concrete Pile Company (hereinafter referred to as “Raymond”). Plaintiff’s contract stated that Raymond would complete the fill and that the site would be ready for plaintiff on November 22,1954.

However, Raymond was delayed in preparing the site, principally on account of two major hurricanes that swept through the area in October and November of 1954 and by the necessity for complying with change orders necessitated in part by the hurricanes’ havoc. As a consequence, the site was not ready for plaintiff to begin building the transit shed until late in the spring of the following year,2 and plaintiff did not actually commence operations on it until June 1,1955.

The damages that plaintiff claims stem entirely from this delay in delivery of the transit shed site. In its petition and its opening statement at the trial, plaintiff asserted a cause of action based upon a stop order that defendant issued, an order which prevented plaintiff from doing any work on the transit shed from June 28, 1955 to July 20, 1955. The purpose of issuing the stop order was to permit the Government to alter the specifications to meet an unexpected soil condition, which, it would seem, it had a right to do under its reserved power to make changes. In its brief, plaintiff did not further press this claim, and we have assumed that it has been abandoned. Plaintiff did not make an oral argument, having elected to submit the case upon its brief.

[350]*350The trial commissioner has found that none of the delay in filling in the site can be attributed to any fault or negligence on defendant’s part, which is fully supported by the evidence.3

The issue then is, whether defendant is liable for Raymond’s delay even though it did not wrongfully cause it. Such liability, if it exists at all, must be found in the express language of the contract; it cannot arise solely by implication. As the Supreme Court said in H. E. Crook Co. v. United States, 270 U.S. 4 (1926), the seminal case in this area, it is not within the realm of normal expectation that the Government would voluntarily stand as a guarantor of the performance of his contract by another contractor within the specified time. To the same effect are United States v. Rice, 317 U.S. 61 (1942), and United States v. Foley, 329 U.S. 64 (1946).

These cases involved the standard form of government construction contract, quite similar to the one involved here. In the Rice case, the Supreme Court concluded its discussion of this feature of the case with these words, at page 65:

Decisions of this Court prior to the Crook case also make it clear that contracts such as this do not bind the Government to have the property ready for work by a contractor at a particular time. Wells Bros. Co. v. United States, 254 U.S. 83, 86; Chouteau v. United States, supra [95 U.S. 61 (1877)]; cf. United States v. Smith, 94 U.S. 214, 217.

In Foley, an electrical contractor was delayed because the dredging contractor was delayed in filling in the site for the Washington National Airport, and did not have it ready [351]*351on time, which delayed the electrical contractor in installing lights along the runways. The Supreme Court said, at page 67:

* * * the Government cannot be held liable unless the contract can be interpreted to imply an unqualified warranty to make runways promptly available.
We can find no such warranty if we are to be consistent with our Oroole and Bice decisions, supra. * * *

Plaintiff relies on paragraph 1-26 of the specifications to show the defendent did warrant that the site would be available at the specified time. It reads:

Preparation, of Transit Shed Site. The installation of steel sheet bulkhead and the fill in the Transit Shed Area is being accomplished under another contract and will be completed and the site available to commence the work specified under this contract on November 22, 1954. The work to be performed under this contract in the Transit Shed Area shall be scheduled, with due consideration given to the date of availability of the site and completion within the time stipulated in subsection 1-06 “Time for Completion.”

These are not words of warranty. The defendant represented that the site would be available at a specified time, but it did not guarantee that it would be. Other provisions of the contract and specifications show that it was expected that it might not be. Paragraph 1-07 of the specifications, entitled Damages for Delay, provides in part:

* * * if the site preparation work at the Transit Shed area under contract NOy 73788 is delayed to such an extent that the contractor is unable to complete the work within the time specified, the delay will be considered an act caused by the Government, and as such will be excusable within the meaning of clause 5.

Clause 5 (c) of the General Provisions of the contract reads as follows:

The right of the Contractor .to proceed shall not be terminated, as provided in paragraph (a) hereof, nor the Contractor charged with liquidated or actual damages, as provided in paragraph (b) hereof because of any delays in the completion of the work due to unforeseeable [352]*352causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God, or of the public enemy, acts of the Government, either in its sovereign or contractual capacity, acts of another contractor in the performance of a contract with the

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Cite This Page — Counsel Stack

Bluebook (online)
166 Ct. Cl. 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbane-building-co-v-united-states-cc-1964.