Humphreys & Harding, Inc. v. Pittsburgh-Des Moines Steel Company

397 F.2d 227, 1968 U.S. App. LEXIS 6501
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 17, 1968
Docket12130_1
StatusPublished
Cited by1 cases

This text of 397 F.2d 227 (Humphreys & Harding, Inc. v. Pittsburgh-Des Moines Steel Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Humphreys & Harding, Inc. v. Pittsburgh-Des Moines Steel Company, 397 F.2d 227, 1968 U.S. App. LEXIS 6501 (4th Cir. 1968).

Opinion

ALBERT V. BRYAN, Circuit Judge:

Engaged on a Government construction project, the general contractor, Humphreys & Harding, Inc., and its subcontractor, Pittsburgh-Des Moines Steel Company, 1 conceded that their contract embodied two provisions, pertaining to arbitration, for adjustment of disputes but disagreed on which was applicable to effectuate a settlement of their difference in the present circumstances. The project was the terminal building at the Dulles International Airport in Virginia and the instant rift arose upon a question of additional and extra work. On the petition of Humphreys under the Federal Arbitration Act, 9 U.S.C. § 1 et seq., to force arbitration of the controversy, the District Court directed Pittsburgh to abide by the administrative remedies contained in the prime contract and noted in the subcontract. Pittsburgh appeals, convinced that the subcontract arbitration procedure controls. We take the view of the trial court.

The prime contract, dated June 8, 1961, between Humphreys and the United States, as the owner, called for the completion of the terminal building under the supervision chiefly of the Federal Aviation Agency and the named architect. The subcontract, made on July 14, 1961, was between Humphreys and Pittsburgh. Among other things, it covered the furnishing and erection of steel mullions and related work required for curtain walls on the north and south sides of the building, all to be done under the direction and to the satisfaction of the general contractor, the architect and the owner.

The mullions had to be fitted into openings in the walls. It was clearly contemplated that they could be fabricated by duplication, inasmuch as they would be of uniform dimensions. This meant that the openings would have to be identical in size, so that a typical mullion frame would fill each of them. These spaces, with appropriate supporting members, *229 were prepared by a preceding independent contractor; the completion of that work established Pittburgh’s starting point. But when Pittsburgh came to do its job, the openings were found not to conform to the contract drawings, in that all of them varied in dimension. Thus Pittsburgh was confronted with the problem of placing the frames into apertures of diverse measurement, and duplicate fabrication was not feasible. Nevertheless the subcontractor undertook to meet these conditions.

Pittsburgh asked for $82,791.09 as added costs incurred by reason of the extra work. Its claim — that all of it was in excess of the work stipulated in the contract — was submitted to the architect through the general contractor via the Contracting Office who was the Government’s representative. After consultation with the architect, the Contracting Officer allowed the subcontractor only $21,274.22 and ordered the Government to pay it. Accounting for the difference between the demand and the allowance was the architect’s determination that the remainder of the claim represented work which was originally demandable of the subcontractor and was not occasioned by the variation in size of the wall openings. In computing the allowances the Contracting Officer did not question the accuracy of the subcontractor’s figures. In his report, he advised the general contractor of its right to appeal to the Federal Aviation Agency Contract Appeals Panel, pursuant to the rules set forth in the disputes procedure section of the Federal Aviation Agency Procurement Regulations issued in 28 Fed.Reg. 6268, June 19, 1963, now found in 41 C.F.R. § 2-60.000 et seq.

For recovery of the deficiency Pittsburgh sued Humphreys in the Circuit Court of Fairfax County, Virginia, pleading a breach of the subcontract. Thereupon Humphreys filed the present petition under the Federal Arbitration Act and prayed the District Court to enjoin prosecution of the State court action pending “an arbitration decision”. This was the designation Humphreys gave the administrative remedy mentioned in the Contracting Officer’s report. It appears in the prime contract as a disputes clause and is referred to in the subcontract as “arbitration under the General Contract”. It amounts simply to an appeal before the FAA Contract Appeals Panel. However, if not content with the outcome there, the general contractor may sue the United States in the Court of Claims for the recovery asserted. Wunderlich Act, 41 U.S.C. §§ 321, 322. The District Court granted the injunction, from which this appeal by Pittsburgh is taken.

When advised of the subcontractor’s dissatisfaction with the Contracting Officer’s judgment, Humphreys, the general contractor, sought a review by the FAA Contract Appeals Panel. While the general contractor suggests that this step was not required on its part, its course rested on paragraph 2, the first of the two subcontract provisions for the composition of controversies. It should be examined before discussion of the other settlement procedure, paragraph 18, upon which Pittsburgh relies. Paragraph 2 states:

“Should it appear that the work hereby intended to be done is not sufficiently detailed or explained on the said drawings, or in the said specifications, the Subcontractor shall apply to the Architect through the General Contractor, for such further drawings, details or explanations as may be necessary and shall conform to the same as part of this contract. In the event of any doubt or question arising respecting the true meaning of the drawings or specifications reference shall be made, through the General Contractor, to the Architect, whose decision thereon shall be binding and conclusive on both parties hereto; provided, however, that in case the same matter is in dispute between the General Contractor and the Architect or Owner, and is by them referred to arbitration under the General Contract, the determination of any matter relating to the Subcontractor by said arbitration be *230 tween the General Contractor and the Architect or Owner, shall be conclusive and binding upon the Subcontractor. * * * ”

To be underscored here is Pittsburgh’s consent to be conclusively bound by the architect’s translation of the drawings and specifications. The architect made such a determination and, to repeat, in so doing excluded certain of Pittsburgh’s claims on the finding that the work embraced therein was an integral part of the work initially required of the subcontractor. This ruling was the foundation of the Contracting Officer’s award to Pittsburgh and charge against the United States of the additional amounts in the form of allowances.

Pittsburgh’s response is that the architect’s sole province was interpretation, and that the dollar amounts to be assigned claims were not for his judgment. The replication of the general contractor, however, is that the architect did not make the award, that the Contracting Officer did so on the architect’s readings. As noted, of those claims satisfied, each allowance was exactly the amount sought, so that no disagreement exists as to the reasonableness of the charges to the Government.

According to our grasp of the contract, the architect’s decision ended Pittsburgh’s case.

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Bluebook (online)
397 F.2d 227, 1968 U.S. App. LEXIS 6501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humphreys-harding-inc-v-pittsburgh-des-moines-steel-company-ca4-1968.