J. B. McCrary Co. v. United States

84 F. Supp. 368, 114 Ct. Cl. 12, 1949 U.S. Ct. Cl. LEXIS 63
CourtUnited States Court of Claims
DecidedJune 6, 1949
Docket17849
StatusPublished
Cited by12 cases

This text of 84 F. Supp. 368 (J. B. McCrary 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
J. B. McCrary Co. v. United States, 84 F. Supp. 368, 114 Ct. Cl. 12, 1949 U.S. Ct. Cl. LEXIS 63 (cc 1949).

Opinion

WHITAKER, Judge.

On January 26, 1943, plaintiff entered into a contract with defendant for the construction of 65 buildings at a place called Warner-Robins, Georgia, which was about 15 miles from Macon, Georgia. The contract required plaintiff to pay its brick-masons $1.25 an hour, its carpenters $1.00 an hour, and common labor 40 cents an hour. Plaintiff was unable to get sufficient labor at these wages and as a result thereof was delayed in the performance of its contract for 186 days. Defendant was also late in furnishing roughing-in drawings for the plumbing, and in failing to deliver promptly plumbing and heating equipment, which it was required to furnish under the contract. As a result of these delays plaintiff incurred excess costs in the performance of its contract. On a careful review of all the evidence, we have determined that these excess costs amounted to $72,289.-66.

A bill was introduced and passed by the 79th Congress providing for the payment to plaintiff of a sum to compensate it for its excess costs as a result of these delays, but this bill was vetoed by the President on the ground that plaintiff had a right of action in the Court of Claims and that it had failed to pursue its remedy therein. Afterwards, another bill was introduced to provide for the payment of the same amount to plaintiff; this bill was referred to this court by Senate Resolution No. 122. This resolution read:

Resolved, that the bill (S. 708) entitled “A Bill for the relief of the J. B. McCrary Company, Incorporated,” now pending in the Senate, together with all accompanying papers, is hereby referred to the Court of Claims pursuant to Section 151 of the Judicial Code, as amended; and the said court shall proceed expeditiously with the same in accordance with the provisions of such section and report to the Senate, at the earliest practicable date, giving such findings of fact and conclusions thereon as shall be sufficient to inform Congress of the nature and character of the demand, as a claim, legal or equitable, against the United States, and the amount, if any, legally or equitably due from the United States to the Claimant.

The resolution refers the bill to this court “pursuant to section 151 of the Judicial Code” sections 1492 and 2509 of Title 28 United States Code Annotated, as revised on June 25, 1948. Section 1492 provides:

“The Court of Claims shall have jurisdiction to report to either House of Congress on any bill referred to the court by such House, except a bill for a pension, and to render judgment if the claim against the United States represented by the referred bill is one over which the court has jurisdiction under other Acts of Congress.”

This section authorizes us to render judgment if we have general jurisdiction to do so, and it is clear that we do have jurisdiction of plaintiff’s claim because it is one “founded upon [a] contract with the United States,” and it is not barred by the statute of limitations. Section 1491 of Title 28 U.S.C.A. gives this court jurisdiction to render judgment upon a claim against the United States “founded upon any express or implied contract with the United States.” We consider the case, therefore, as if it had been originally brought in this court.

Plaintiff’s right to recover depends upon whether or not defendant is responsible for plaintiff’s inability to secure sufficient labor, and upon whether defendant is liable for its delay in furnishing roughing-in drawings and plumbing and heating material.

First, as to the delay in securing sufficient labor. The commissioner of this court, to whom this case was referred for the taking of testimony and a report, has *370 reported that plaintiff was delayed 186 days on account of its inability to secure the necessary labor, particularly brickmasons. No exception was taken to this report by either party and we have adopted the commissioner’s finding as one of our findings of fact.

Defendant’s liability therefor depends on the following facts :

Pursuant to the provisions of the Davis-Bacon Act,.Act of August 30, 1935, 49 Stat. 1011, 40 U.S.C.A. § 276a et seq., the Secretary of Labor, prior to the execution of the contract in suit, had determined that the prevailing wage for brickmasons “in the city, town, village, or other civil subdivision of the state” in which this work was to be performed was $1.25 an hour. Accordingly, the contract between plaintiff and defendant required that plaintiff pay its brickmasons $1.25 an hour, and it also provided that it should pay its carpenters $1.00 an hour, and common labor 40 cents an hour, as the Secretary of Labor had found. The. .contract fixed these as both the minimum and maximum wages to be paid.

There is no dispute that these were the prevailing wages in the vicinity at the time the contract was signed. Furthermore, plaintiff signed the contract with full knowledge of the situation and in the belief it could secure the necessary labor at these wages. Plaintiff had another Government contract at Camp Gordon, Georgia, and before signing the instant contract it interviewed the labor on this job and got their consent to work on the job at Warner-Robins for the specified wages. Believing it could secure the necessary labor at the rates fixed, it signed the contract. However, labor refused to work for these wages because they discovered they could get higher wages elsewhere.

When this developed plaintiff appealed to the Wage Adjustment Board in Washington asking for an increase in the rate for brickmasons, who were especially needed, from $1.25 to $1.37% an hour. Plaintiff’s appeal was granted on April 2, 1943. But at about the same time that it was granted the President issued Executive Order No. 9328, dated April 8, 1934, 50 U.S. C.A.Appendix, § 901 note, which “froze” labor on the jobs on which they were then employed, so long as they were needed. There was a shortage of labor on all public housing projects and this “freeze” order made it impossible for plaintiff to obtain the necessary labor even at the rate of $1.37% an hour.

The proof shows that when it developed that plaintiff was unable to secure the necessary labor at the wages fixed defendant cooperated with it in every way it could in order to relieve its situation, except in the one respect of issuing this Executive Order No. 9328 * freezing labor on the job on which they were then employed. Defendant is liable, therefore, if at all, only because of the issuance of this “freeze” order.

This “freeze” order, however, was not an order directed at this particular job; nor does it appear that this job was in mind when it was issued. It was an order of general application affecting all contractors and businesses and laborers everywhere. It was issued in the exercise of the sovereign power of the United States, and it is clear under all the decisions that it was thus an act for which the Government is not liable. The leading case so holding is Jones v. United States, 1 C.Cl. 383, 384. Our opinion in that case was quoted with approval by the Supreme Court of the United States in Horowitz v. UniteStates, 267 U.S. 458, 461, 45 S.Ct. 344, 69 L.Ed. 736. The quotation is as follows:

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Bluebook (online)
84 F. Supp. 368, 114 Ct. Cl. 12, 1949 U.S. Ct. Cl. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-b-mccrary-co-v-united-states-cc-1949.