Hellander v. United States

178 F. Supp. 932, 147 Ct. Cl. 550, 1959 U.S. Ct. Cl. LEXIS 133
CourtUnited States Court of Claims
DecidedDecember 2, 1959
DocketCong. 7-56
StatusPublished
Cited by16 cases

This text of 178 F. Supp. 932 (Hellander 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
Hellander v. United States, 178 F. Supp. 932, 147 Ct. Cl. 550, 1959 U.S. Ct. Cl. LEXIS 133 (cc 1959).

Opinion

LARAMORE, Judge.

In this action plaintiff seeks to recover damages in the amount of $66,349.30 allegedly incurred by him in the performance of a contract with the Bureau of Reclamation for the construction of certain earthwork and structures for an irrigation project. His claim is in five counts: (1) as the result of faulty contract specifications, he incurred repair costs in order to build siphons that would not leak. Said repair costs were occasioned by reason of defendant’s use of the irrigation system before it was formally accepted; (2) that upon oral assurance of defendant’s agents that the work of plaintiff’s subcontractor was completed, he paid the subcontractor and released him of further obligation under the subcontract. Subsequently plaintiff alleges he was required to “reconstruct and re-complete” said work thereby causing plaintiff additional cost and expense; (3) because of unusually heavy rainfall he was delayed, thereby causing damage; (4) that the methods used in calculating payment for certain excavation was contrary to the terms of the contract; and (5) that he is entitled to a reasonable profit on the items alleged in the first three paragraphs of the petition.

The case comes before this court as a result of Senate Resolution 247, agreed to on April 30, 1956. The resolution referred a Senate bill and directs this court to report findings of fact and conclusions as shall be sufficient to inform the Congress of the nature and character of the demand of the plaintiff’s company as a legal or equitable claim, and the amount, if any, legally or equitably due from the United States to the claimant.

The. facts are somewhat voluminous and are set forth in detail in the findings of fact which are attached hereto. A summary of said facts is as follows:

Plaintiff on March 5, 1951 entered into a contract with the Bureau of Reclamation to construct earthwork and structures for laterals, sublaterals, drains and channel changes on the Superior-Court-land Unit, Bostwick Division, Nebraska-Kansas Missouri River Basin Project. The contract was based upon unit prices for a total estimated consideration of $234,547. The United States Guarantee Company, a New York Corporation, executed the usual performance bonds as plaintiff’s surety.

The work covered by the contract included the following principal components:

“1. Excavation and earthwork of approximately 27 miles of earth section for laterals.
“2. Excavation and earthwork for approximately 2 miles of drains and channel changes.
“3. Earthwork and construction for structures, including flumes, cul- *934 yerts, division boxes, turnouts, checks, drops, chutes, and concrete pipe siphons, road crossings, and railroad crossings.
“4. Excavation and earthwork for approximately 0.1 mile of county road relocation.
“5. Application of fertilizer on approximately 25 acres of lateral banks, spoil banks and banks of drain ditches.
“6. Seeding of approximately 80 acres of lateral banks, spoil banks, and banks of drain ditches.”

Notice to proceed was given by letter of March 20, 1951 and the contract was to be completed within 300 calendar days from the receipt of such notice.

The contract work included much earthwork and grading, which the plaintiff subcontracted to Harley O. Peterson. The laying of precast concrete pipe was also a major part of the work, as 52 siphons of varying size and length were involved. The pipe size varied from 18 'inches in diameter to 30 inches in diameter. The system of laterals when finished was to irrigate farm lands in the vicinity of Superior, Nebraska, and extended over a lineal distance of 24 miles.

' Before undertaking the contract in suit, plaintiff had had no experience in laying or joining precast concrete pipe designed to support hydrostatic pressure. Prior to bidding the contract plaintiff made no study, nor did he otherwise inquire as to the experience of other contractors on similar construction.

The initial operations of plaintiff were severely impeded by above-normal rainfall each month during 1951, except for the months of November and December.

Due to inclement weather plaintiff on three occasions requested extensions of time and on June 10,1952 the contracting officer issued formal findings of fact pursuant to Article 9 of the contract, in which he concluded that plaintiff was delayed 90 days in the completion of the work due to weather conditions. The time for performance was thereby extended to August 1, 1952. The findings of fact were transmitted to plaintiff by letter of June 13, 1952 and the plaintiff was advised of the right of appeal if such findings were unsatisfactory. On June 21, 1952 plaintiff wrote the acting construction engineer stating that the findings of fact were satisfactory. No liquidated damages were finally assessed against, or paid by, the plaintiff.

The defendant caused the plaintiff no damage whatsoever on account of the period of inclement weather in 1951. As noted earlier, plaintiff was given such extensions of time for completion as required to excuse the payment of any liquidated damages.

Apparently the work of plaintiff’s subcontractor, Harley O. Peterson, proceeded satisfactorily to the plaintiff and generally satisfactory to the defendant’s field inspectors. On July 19, 1952 plaintiff paid Mr. Peterson the sum of $5,000 by check. Plaintiff contends that prior to this he had been given oral assurance by either Mr. Church, defendant’s resident engineer, or by Mr. Wallace, defendant’s field engineer, that all work required under plaintiff’s subcontract with Peterson had been accomplished to the satisfaction of defendant’s inspection force. However, the evidence does not disclose that either Church or Wallace told plaintiff that all of the work called for in the subcontract was performed satisfactorily.

Upon receipt of the $5,000 check, Peterson removed his equipment and his employees from the job. Thereafter some further excavating was required of plaintiff which he performed with his own employees.

The plaintiff ultimately received the sum of $63,881.92 on account of excavation for canal at the bid price of 32 cents per cubic yard on a quantity of 199,631 cubic yards. By the end of July the best record of excavation then performed showed that Peterson had excavated 196,-610 cubic yards of earth. This would indicate that between August 1,1952 and the end of the work the plaintiff excavated about 3,000 yards of earth.

The evidence further shows that the plaintiff was negligent, not only in fail *935 ing to employ some system of quality control on the work of his workmen, particularly those engaged in laying and joining pipe, but he was also negligent in failing to test each siphon promptly as required by the specifications. The evidence further shows that during the performance of the contract, the plaintiff made no attempt to maintain any record of the cost of siphon repair.

It is also clear from the evidence that due to poor workmanship the plaintiff was put to considerable expense in repairing at least 40 siphons, but the evidence is not satisfactory as to amount.

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Bluebook (online)
178 F. Supp. 932, 147 Ct. Cl. 550, 1959 U.S. Ct. Cl. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hellander-v-united-states-cc-1959.