J. A. Terteling & Sons, Inc. v. The United States

390 F.2d 926, 182 Ct. Cl. 691, 1968 U.S. Ct. Cl. LEXIS 60
CourtUnited States Court of Claims
DecidedFebruary 16, 1968
Docket114-59
StatusPublished
Cited by13 cases

This text of 390 F.2d 926 (J. A. Terteling & Sons, Inc. v. The 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
J. A. Terteling & Sons, Inc. v. The United States, 390 F.2d 926, 182 Ct. Cl. 691, 1968 U.S. Ct. Cl. LEXIS 60 (cc 1968).

Opinion

OPINION

PER CURIAM:

This case was referred to Trial Commissioner Richard Arens with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Rule 57(a). The commissioner has done so in an opinion and report filed on November 22, 1966, in which the facts necessary to the opinion are stated therein. Exceptions to the commissioner’s opinion and recommended conclusion of law were taken by plaintiff by way of appeal from the adverse report and opinion of the commissioner. The case has been submitted to the court on oral argument of counsel and the briefs of the parties. The court agrees with the opinion and recommendation of the commissioner.

Two points not covered by the commissioner’s opinion need mention. The first is the contractor’s contention that there should be further proceedings “to determine whether the contracting officer actually devoted his personal and independent consideration to the decisions bearing his signature.” All that plaintiff has shown is that these decisions were prepared by a subordinate of the contracting officer and were adopted by the latter without change. We do not think that this is enough of a showing to call for further inquiry into the question whether the contracting officer “put his own mind to the problems and render[ed] his own decisions.” New York Shipbuilding Corp. v. United States, 385 F.2d 427, 180 Ct.Cl. 446 (1967). In the absence of further significant proof (or proffer of proof) we must assume that the contracting officer did his duty.

The second point is the defendant’s insistence that disposition in its favor of the “changed conditions” claim necessarily disposes also of the alternate “breach” claim for misrepresentation (which the Board of Contract Appeals did not decide) and requires dismissal of that claim as well. The court rejects this argument because it is possible for a misrepresentation claim to differ from and survive a “changed conditions” claim relating to the same problems. See Potashnick v. United States, 105 F.Supp. 837, 123 Ct.Cl. 197, 218-219 (1952). We do not know whether that is so in the present instance, but the outcome should await the further proceedings on the misrepresentation count.

Since the court is in agreement with the opinion and recommendation of the commissioner, as supplemented by the preceding paragraphs, it hereby adopts the same as the basis for its judgment in this case. Therefore, on the administrative record and briefs of the parties and for the reasons stated, the court concludes that plaintiff is not entitled to recover on its claim of changed conditions, and as to that portion of its claim relating to changed conditions, its petition is dismissed.

OPINION OF COMMISSIONER

ARENS, Commissioner:

This case arises out of a contract, for a bid price of $1,242,700, entered into by plaintiff on December 7, 1951, with defendant, acting through the Bureau of Reclamation of the Department of the In *928 terior, for excavations for the power and outlet tunnels which form part of the Palisades Dam Project in Idaho. 1

Plaintiff asserts by way of an assignment of errors that certain decisions of the Board of Contract Appeals of the Department of the Interior, 2 adverse to plaintiff’s claims of changed conditions allegedly encountered in the performance of the contract, are arbitrary, capricious, not supported by substantial evidence, and are erroneous as a matter of law. 3 The sole evidence before the court is the administrative record which includes the contract documents, correspondence between the parties, numerous charts and drawings, voluminous geological reports, the extensive transcript of the Board hearings, and a sixty-six page Board opinion which is cross-referenced into other documents in the administrative record. Only those facts are herein recited which are essential for a resolution of the issues presented by plaintiff's challenge to the Board decision. Correspondingly, some facets of the recited facts are capsuled rather than detailed. The task of ferreting out and capsuling the facts of the case, in its present posture, is complicated because both the testimony before the Board and the opinion of the Board frequently refer to material in the record which is embraced within plaintiff’s alternate claim for breach of contract which the Board declined to decide because of lack of jurisdiction and which is not presently before the court.

The power and outlet tunnels which plaintiff excavated under the contract run parallel, approximately 110 feet (from center lines) apart, through the left abutment of the Palisades Dam which is on the south fork of the Snake River in southeast Idaho. Both tunnels are roughly 30 feet in diameter, with the inverts or bottoms, below the grade of the river. The power tunnel, nearer the river, is some 1,200 feet in length and the outlet tunnel is some 1,500 feet in length. These tunnels were constructed simultaneously prior to the construction of the Palisades Dam which was built under another contract, and during the construction of the dam, these tunnels were used to divert the river. The Palisades Dam contractor lined the tunnels with concrete and also constructed, in addition to the dam, a spillway tunnel which plaintiff excavated as a subcontractor.

The contract provided for an assessment against plaintiff of liquidated damages of $300 per calendar day for unexcused delay beyond the completion period of 230 days and contained articles regarding disputes and changed conditions. 4 Paragraph 37 of the speeifica- *929 tions, relating to “Local Conditions,” provided :

37. Records of subsurface investigations. The drawings included in these specifications show the available records of subsurface investigations for the work covered by these specifications. The Government does not represent that the available records show completely the existing conditions and does not guarantee any interpretation of these records or the correctness of any information shown on the drawings relative to geological conditions. Bidders and the contractor must assume all responsibility for deductions and conclusions which may be made as to the nature of the materials to be excavated, the difficulties of making and maintaining the required excavations, and of doing other work affected by the geology at the site of the work.

The contract documents stated that it was expected that steel supports would be required in portions of the tunnels, as determined by the contracting officer, that the amount of such supports that would be required was uncertain, but that the contractor would be entitled to no additional allowance above the unit price bid in the schedule by reason of any amount of such support being required. The contract documents also called for “Furnishing and placing permanent structural-steel tunnel supports, steel tunnel liner plates, and steel lagging” in the amount of 2,000,000 pounds.

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Cite This Page — Counsel Stack

Bluebook (online)
390 F.2d 926, 182 Ct. Cl. 691, 1968 U.S. Ct. Cl. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-a-terteling-sons-inc-v-the-united-states-cc-1968.