H. B. Nelson Construction Co. v. United States

87 Ct. Cl. 375, 1938 U.S. Ct. Cl. LEXIS 167
CourtUnited States Court of Claims
DecidedMay 31, 1938
DocketNo. 43457
StatusPublished
Cited by3 cases

This text of 87 Ct. Cl. 375 (H. B. Nelson Construction 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
H. B. Nelson Construction Co. v. United States, 87 Ct. Cl. 375, 1938 U.S. Ct. Cl. LEXIS 167 (cc 1938).

Opinion

Booth, Chief Justice,

delivered the opinion of the court:

The record in this case establishes the fact that the defendant in preparing the blue prints, drawings and specifications for the work to be done under the contract involved, mistakenly included in the area to be paved 1,690 square yards of pavement which had been completed by the defendant prior to the awarding of the contract.

The controversy with respect to this item in suit may be solved only upon the following facts and contentions of counsel: The plaintiff responded on October 22, 1933, to an invitation to submit bids for the construction of a seaplane hangar at the Naval Fleet Air Base, Coco Solo, Canal Zone. Plaintiff’s bid was accepted and a contract between the parties was entered into January 27, 1934.

The contract provided that the plaintiff was to receive $200,000 for performing the contract work. The usual details incident to governmental transactions of this nature were observed. The plaintiff was furnished a blue print, drawings, and lengthy specifications which set forth, among other things, the precise area which was to be paved by the use of concrete. At least seven-eighths (⅞ths) of the concrete to be laid was to be used in paving.

The contract, blue print, drawings, and specifications were prepared by the Bureau of Yards and Docks located in Washington, and the officials of the Bureau engaged in their preparation were not aware that 1,690 square yards of concrete paving within the precise area covered by the contract had previously been laid, nor that this fact should have been disclosed upon the blue print and drawings. This paved area was inadvertently omitted from the papers mentioned.

Neither the plaintiff nor the defendant had knowledge of the mistake when the contract was executed. The plaintiff’s [384]*384bid was based upon the performance of the work in accord with the blue print, drawings and specifications, and it was not discovered until its personal representative reached the site of the work that the area to be paved should have been diminished to the extent of 1,690 square yards.

When the mistake was discovered by the defendant’s officials in charge of the work and made known to plaintiff’s personal representative, the defendant proposed that the plaintiff pave an area adjoining the contract work sufficient in extent to make up for the paved area omitted from the drawings, and thereby receive for the completed work the full contract price.

Defendant’s proposed adjustment of the error involved was accepted by the plaintiff’s then personal representative on the work, and the successor to plaintiff’s first representative on the work was likewise advised as to defendant’s proposal. This situation continued until October 3,1934, when the defendant by letter questioned the plaintiff as to whether it wanted to accept the benefits of the proposed adjustment due to the mistake in the drawings.

The plaintiff finally declined to lay the additional 1,690 square yards of pavement, in the face of a positive warning from the defendant that refusal to do so would necessitate the issuance of a change order as provided in the contract, eliminating the 1,690 square yards of pavement from the area to be paved under the contract, and resulting in a diminution of the consideration stipulated in the contract.

The defendant did on December 24, 1934, issue change order B, and by the provisions of this order the 1,690 square yards of pavement in place prior to the letting of the contract were eliminated from the contract, and $3,914.87, the reasonable cost of the paved area, was deducted and withheld from sums due the plaintiff. The plaintiff’s first cause of action is for the recovery of this sum.

An argument is advanced in support of a contention that the plaintiff performed all the work exacted under-the contract, and to sustain it refers to the schedule of prices which the plaintiff was required to prepare and submit to the Bureau of Yards and Docks. It is true the [385]*385schedule of prices was required under paragraph 30 of the general provisions of the specifications, and while they reflected to some extent the quantity of work to be done they were in no sense conclusive and were employed by the defendant in the preparation of monthly estimates upon which to make monthly payments to the plaintiff as the work advanced. This contention is devoid of merit. The schedule was simply a method of ascertaining work performed and payments for it.

Many cases are cited in plaintiff’s brief. They have been carefully analyzed, both as to facts and law, by plaintiff’s counsel, and it is obvious that they relate to the jurisdiction of courts and the circumstances under which they will not relieve from liability for a mistake of fact. It is not essential to mention them in this opinion. The facts of the instant case negative their application with respect to liability as contended for by plaintiff.

Restricting the contract provisions to the one item of paving, this record indisputably discloses that the plaintiff contracted to pave 3,392 cubic yards of concrete pavement for the agreed price of $200,000 including the construction of the hangar. The contractor did not lay 3,392 cubic yards of pavement; it not only did not do so, but was not required to do so, and hence was saved the expense of paving 1,690 square yards of the 3,392 cubic yards.

The contractor was paid in accord with the contract for every item of work actually performed, and the only deduction from its pay, so far as paving is concerned, was the reasonable cost to the defendant of laying the 1,690 square yards of pavement which was obviously an expense incurred by the defendant. The contractor may not recover for work not performed. No injury followed from the innocent error of the defendant to either party to the contract, and no case is cited where either at law or in equity a judgment of the character sought as to this item has been awarded.

Aside from what has just been said, the contractor was as much to blame as the defendant for the mistake relied upon. The degree of negligence, if any is established, is equal. Paragraph 7 of the specifications expressly warned [386]*386the contractor that conditions at the site of the work were only believed to be reasonably correct and that the “Government does not warrant either its completeness or accuracy.” The contractor was told to visit the site and ascertain actual conditions prior to submitting its bid. This it did not do.

An additional defense is available to the defendant. Article 3 of the contract authorized the contracting officer to make changes in the drawings and specifications which formed part of the contract. The provisions of this article are set forth in the findings, and acting under the authority contained in this article the defendant did make the change which by proper change order culminated in the deduction herein sued for.

It is true the above change order was issued December 24, 1934, after the contract work had been completed and settlement for its performance was in progress. Nevertheless it is a matter about which the plaintiff may not complain. The findings show and the record establishes that when the mistake was discovered the parties agreed to rectify it by the contractor laying 1,690 square yards of pavement in area adjacent to the contract area, and it was not until October 5, 1934, that final refusal to do so was received by the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
87 Ct. Cl. 375, 1938 U.S. Ct. Cl. LEXIS 167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-b-nelson-construction-co-v-united-states-cc-1938.