Hyde Park Clothes, Inc. v. United States

84 F. Supp. 589, 114 Ct. Cl. 424, 1949 U.S. Ct. Cl. LEXIS 80
CourtUnited States Court of Claims
DecidedJuly 11, 1949
DocketNo. 48526
StatusPublished
Cited by10 cases

This text of 84 F. Supp. 589 (Hyde Park Clothes, Inc. 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
Hyde Park Clothes, Inc. v. United States, 84 F. Supp. 589, 114 Ct. Cl. 424, 1949 U.S. Ct. Cl. LEXIS 80 (cc 1949).

Opinion

Howell, Judge,

delivered the opinion of the court:

This claim involves the sum of $12,354.03, which amount represents a charge made against plaintiff for 2,112% yards of cloth, an excess of allowance provided in plaintiff’s contract for the manufacture of uniforms for defendant.

On July 23, 1942, the Philadelphia Quartermaster Depot issued requests for informal bids. The bid form (Sheet No. 2) which was furnished plaintiff contained these capitalized, underlined words:

CLOTH FURNISHED BY THE GOVERNMENT TO BE USED IN THE MANUFACTURE OF THESE GARMENTS WILL BE UNSHRUNK. CONTRACTORS MUST HAVE CLOTH SHRUNK AND REFINISHED BEFORE MANUFACTURING THE GARMENTS’! “ '

[433]*433Sheet No. 10, after setting out unit prices per yard for excess materials used by the contractor, provided space for the insertion of allowances required by the bidder under these capitalized, underlined words:

ALLOWANCES TO BE INSERTED BELOW BY THE BIDDER ARE TO BE BASED ON UN-SHRUNK ELASTIQUEi

It was also made plain that the “Contractor will shrink and refinish the cloth before cutting.”

Plaintiff inserted in its bid form estimates of how much cloth it would require for the various sizes of uniforms.

The form also included (Sheet No. A-5) a paragraph on “Excess Materials,” which authorized the defendant to charge the contractor the value of cloth required in excess of the quantities provided by the stated allowances at prevailing Government prices plus 10% to cover the cost of packing, handling, etc.

On August 11, 1942, plaintiff was awarded a contract for 12,000 two-piece uniforms at a unit price of $18.00 and a total contract price of $216,000.00. The Schedule of Supplies (Sheet No. 3) included this provision, again capitalized and underlined:

ALLOWANCES BASED ON UNSHRUNK ELAS-TIQUE. ALLOWANCES FOR UNSHRUNK BAR-ATHEA WILL REQUIRE 4% OF REDUCTION IN ALLOWANCES STATED FOR UNSHRUNK ELASTIQUE,

Sheet No. 1 included these words similarly set out:

CLOTH FURNISHED BY THE GOVERNMENT TO BE USED IN THE MANUFACTURE OF THESE GARMENTS WILL BE UNSHRUNK. CONTRACTORS MUST HAVE CLOTH SHRUNK AND REFINISHED BEFORE MANUFACTURING THE GARMENTS.

The bid form provisions relating to “Excess Materials” was then incorporated by reference and made a part of the contract.

[434]*434The terms and conditions of the contract remained unmodified except for Change Order “A” dated October 23, 1942, changing thread specifications resulting in a decrease in the unit price per uniform from $18.00 to $17.95, and a net decrease in the contract of $600.00.

Plaintiff’s bid was made by its superintendent who, prior to making the bid, had read the specifications and according to the evidence disregarded their plain requirements by basing his calculations upon quantities of shrunk cloth. Plaintiff now contends that the superintendent made a mistake by making up its bids on the basis of a custom of the trade which had previously required calculations for cloth for clothing to be made on the basis of shrunk goods.

On October 30, 1942, plaintiff wrote defendant that it would require additional yardage but said nothing with reference to a mistake having been made. Defendant replied that it would furnish the material and charge it to the plaintiff. On November 7, 1942, plaintiff wrote in response to the Government’s letter that no charge should be made because the extra yardage was required on account of changes ordered by the Quartermaster. Again nothing was said about a mistake.

On November 12, 1942, plaintiff’s superintendent was advised by a representative of the Quartermaster Depot over the telephone that the additional yards of cloth would be shipped to plaintiff and charged to its account. Again, plaintiff said nothing about a mistake, nor did it at any time later so advise the War Department.

After the contract was completed, plaintiff wrote the Comptroller General for relief. After an investigation of the claim the General Accounting Office sent plaintiff a settlement certificate holding plaintiff liable for the charges. Upon receipt of this, plaintiff asked the Comptroller General to review the case and under date of July 16, 1945, this officer sent plaintiff a decision affirming his prior decision.

Plaintiff consumed an additional 2,112% yards of cloth for which defendant charged the plaintiff and deducted from moneys otherwise due plaintiff under the contract $12,354.03. This is the amount for which plaintiff now sues.

[435]*435Plaintiff admits that it made a mistake in calculating the allowances of cloth on a shrunk instead of an unshrunk basis, but contends that it is entitled to recover because it says that defendant, by reason of the facts before it at the time the contract was awarded, was charged with knowledge that a mistake had been made and was thereby precluded from taking advantage of such mistake to plaintiff’s detriment, citing Edmund J. Rappoli Company, Inc. v. United States, 98 C. Cls. 499; Kemp v. United States, 38 F. Supp. 568; Saligman v. United States, 56 F. Supp. 505, 507; Lange v. United States, 120 F. (2d) 886, and Struck Construction Company v. United States, 96 C. Cls. 186, 221.

Plaintiff apparently is relying on the legal principle that “the offeree will not be permitted to snap up an offer that is too good to be true” particularly where the offeree should know that the terms of the offer are unintended or misunderstood by the offeror. I Williston on Contracts, 1936, § 94.

We do not believe that the facts of this case bring it within the scope of this principle. Both the invitation for bids and the contract itself set out in capitalized underlined wording that allowances were based upon unshrunk instead of shrunk quantities of cloth. To the superintendent of a well known clothing firm who had served in his capacity for thirty years must be attributed the ability to read and understand ordinary everyday language, especially as used in connection with bids and contracts with the United States Government involving almost a quarter of a million dollars.

What plaintiff says in effect is that because it had never had a contract with the Government before, its superintendent could disregard, either intentionally or carelessly, the express language of the invitation for bids and the contract, substitute therefor a custom of the trade and hold the Government responsible.

Seven other clothing manufacturing firms submitted bids along with plaintiff. It is admitted that all of them, including plaintiff, were reputable, high-class firms of experience and standing in the industry. They were, in a sense, collaborating to fill the vital war-time need for army uniforms. It appears that a comparison of the bids submitted was not [436]*436made by the Army contract authorities. While the evidence is not as satisfactory as it might be, we must conclude, as the commissioner did, that it was not the custom at the time plaintiff entered into the contract to compare the bids for allowances of material. Therefore, defendant could not have discovered any evidence of a mistake on plaintiff’s part by such method.

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Bluebook (online)
84 F. Supp. 589, 114 Ct. Cl. 424, 1949 U.S. Ct. Cl. LEXIS 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hyde-park-clothes-inc-v-united-states-cc-1949.