J.L. Simmons Co. v. United States

60 Fed. Cl. 388, 2004 U.S. Claims LEXIS 82, 2004 WL 816351
CourtUnited States Court of Federal Claims
DecidedApril 15, 2004
DocketNo. 02-173 X
StatusPublished
Cited by4 cases

This text of 60 Fed. Cl. 388 (J.L. Simmons Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.L. Simmons Co. v. United States, 60 Fed. Cl. 388, 2004 U.S. Claims LEXIS 82, 2004 WL 816351 (uscfc 2004).

Opinion

[390]*390REPORT

ALLEGRA, Hearing Officer.

The seeds for this congressional reference case were sown in 1949, when the Veterans’ Administration (VA) supplied its contractor, J.L. Simmons (plaintiff), with defective specifications for the foundational piles underlying a VA hospital to be built in Chicago. From this root error a series of contract claims eventually blossomed. It took the better part of twenty years for J.L. Simmons finally to harvest these claims, but when the Court of Claims ultimately ruled in plaintiffs favor, it, nonetheless, was compelled to dismiss plaintiffs request for interest. See J.L. Simmons Co., Inc. v. United States, 188 Ct.Cl. 684, 412 F.2d 1360, 1361 (1969) (J.L. Simmons). No interest was provided because the Contract Disputes Act of 1978, 41 U.S.C. §§ 601, et seq., had not yet been enacted and no statutory provision then allowed for the accrual of interest on a government contract claim. Three more decades passed.

Then, on December 20, 2001, this matter revivified, when the United States Senate passed Senate Resolution 83, referring S. 846 to the Chief Judge of this court with instructions that he report back to the Senate “such findings of fact and conclusions as are sufficient to inform Congress of the nature, extent, and .character of the claim for compensation referred to in such bill as a legal or equitable claim against the United States, or a gratuity; and ... the amount, if any, legally or equitably due from the United States to J.L. Simmons.” By way of further information, Section 1 of S. 846 provides:

The Secretary of the Treasury shall pay J.L. Simmons Company, Inc., of Champaign, Illinois, out of any money in the Treasury not otherwise appropriated, a sum of money, in an amount to be determined by the United States Court of Federal Claims, representing the amount to which J.L. Simmons Company, Inc., may be entitled in order to make J.L. Simmons Company, Inc., and any of its subcontractors, whole for any litigation expenses, and any interest, due and owing to J.L. Simmons Company, Inc., and any of its subcontractors, and not otherwise recoverable at law, on account of the construction of the Veterans Administration (West Side) Hospital in Chicago, Illinois, during the period of 1949 through 1954, and the litigation of claims resulting therefrom.

Pending before this judge, acting as a hearing officer, is plaintiffs motion for a favorable report and defendant’s cross-motion (opposition) thereto — together akin to cross-motions for summary judgment.1 For the reasons that follow, the undersigned concludes that any payment to plaintiff would be a gratuity.

1. FACTS2

As noted, this ease has an extensive history that spans a half of century. A detailed summary of much of that history may be found in the Court of Claims opinion in J.L. Simmons, the factual findings of which largely track those that follow.

On or about October 5,1949, J.L. Simmons Company, Inc. received a contract to construct a hospital and related facilities for the VA in Chicago, Illinois. The contract price was $6,985,905. The completion date listed was September 18, 1951; work actually was completed on April 30, 1953. The contract specifications were “design” specifications that set forth, in detail, the materials to be used and the manner in which the work was to be performed; plaintiff was not permitted to deviate from these specifications. The specifications for the pile foundation required cast-in-place, concrete-type piles cased with a steel shell, and were to be one of three designated types (e.g., pedestal). The specifications indicated the load bearing capacity for the various piles and provided that one pile of each type was to be tested prior to the commencement of the pile driving operations. [391]*391Certain limitations upon the settlement of the piles had to be met in order to pass the test. The contract further set forth, with specificity, the pile driving equipment to be employed and the procedures for their use.3 Plaintiff hired MacArthur Concrete Pile Corporation (MacArthur) to perform this work as its subcontractor.

Problems with the pilings ensued and persisted. Because various events here overlap in time, the problems with the pilings are perhaps best described not sequentially, but in conjunction with the five claims that plaintiff eventually pursued:

— Claim 1. In late 1949, MacArthur drove and then tested various types of piles specified in the contract. None of them met the settlement limitations prescribed by the specifications. Seeking a substitute, the VA ordered plaintiff to install six additional test piles of varying types. Believing these test piles exceeded those required by the contract, plaintiff filed a claim for additional compensation (Claim 1), which, on February 23, 1951, was denied by the contracting officer.
— Claim 2. Meanwhile, after conducting tests, the VA determined that a composite-type pile would work. It drafted specifications for such a pile — as detailed as those in the original contract — and then sought to substitute those specifications into the contract. The VA rejected plaintiffs cost proposal for accomplishing this and, on March 7,1950, instead unilaterally directed plaintiff to proceed with the revised foundation work, with an adjustment of price and time to be determined at a later date. But, it was not until March 13, 1953, long after the foundation of the building was completed, that the VA finally issued a change order allowing $151,633 and a 56-day time extension for the switch in pile type. Plaintiff deemed this allowance inadequate, giving rise to a second claim (Claim 2).
— Claim 3. Now, the composite-type piles did not entirely work either. On June 28, 1950, plaintiff detected movement in some of the thousands of piles MacArthur had already driven. Plaintiff repeatedly requested instructions from the VA on how to proceed, but was told to finish driving the remaining 366 piles for the hospital building without changing the required driving method. Yet, during this period, the VA began to reject previously installed piles and suggested that plaintiff perform exploratory work to determine the extent of the problems with the foundation. Plaintiff apparently conducted this survey, despite disclaiming responsibility for the foundation problems. As a result of these problems, work on the project was slowed, periodically grinding to a halt, until September 26, 1950, when the VA issued instructions to correct 42 of the piles. The VA directed plaintiff to proceed with the extensive corrective work, disclaiming responsibility and threatening termination for default if plaintiff did not proceed immediately. Plaintiff proceeded, albeit under protest. Delays for restoration continued until April 30, 1951. Plaintiff and its subcontractors filed a third claim (Claim 3) for the additional costs of restoring the damaged foundations and for the delays that resulted from the foundation problems. On February 23,1951, the contracting officer denied that claim.
— Claim 4. On December 17,1953, plaintiff requested time extensions totaling 535 calendar days, consisting of 366 days for the foundation difficulties and 169 days for unrelated changes.

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Bluebook (online)
60 Fed. Cl. 388, 2004 U.S. Claims LEXIS 82, 2004 WL 816351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jl-simmons-co-v-united-states-uscfc-2004.