John A. Johnson & Sons, Inc. v. United States

180 Ct. Cl. 969, 1967 U.S. Ct. Cl. LEXIS 252, 1967 WL 8810
United States Court of Claims·Decided July 20, 1967·No. No. 383-59·Published·Cited by 23 cases

Opinion

Per Curiam;:

This case was referred to the late Trial Commissioner Bobert K. McConnaughey with directions to make findings of fact and recommendation for conclusions of law. The commissioner did so in a report and opinion filed on August 18, 1965. Exceptions to the commissioner’s findings and recommended conclusions of law were filed by plaintiff, exceptions to the commissioner’s findings were filed by defendant, and the case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court is in agreement with the opinion and recommendation of the commissioner, with modifications, it hereby adopts the same, as modified, as the basis for its judgment in this case, as hereinafter set forth. Plaintiff is, therefore, not entitled to recover increased costs that resulted from delay in delivery of its worksites that occurred before July 21, 1953, but is entitled to recover increased costs that resulted from such delays that occurred after July 21, 1953. Judgment is entered accordingly with further proceedings suspended to allow the parties to return to the Armed Services Board of Contract Appeals for determination of the equitable adjustment to which plaintiff is entitled.

Commissioner McConnaughey’s opinion,* as modified by the court, is as follows:

The plaintiff, a New York corporation, has sued to recover increased costs allegedly incurred as a result of unreasonable delay by the defendant in making available two sites for performance of work required of the plaintiff under a contract for construction of 22 dormitories and 6 combination messhall and administration buildings at McGuire Air Force Base, New Jersey.1

The case is presented to the court on the record of the plaintiff’s appeal to the Armed Services Board of Contract Ap[973] peals2 under a disputes clause in the contract.3 No additional evidence has been taken by the court. The nature and amount of the damages claimed was not fully litigated before the board, and the parties have stipulated that this phase of the proceedings shall be limited to issues relating to the plaintiff’s right to recover.

The board made findings of fact and denied the plaintiff’s appeal in a decision dated February 11, 1959, which concludes with the statement-

We do not hold that appellant is not entitled to relief, but that it has failed to demonstrate that the relief which it seeks falls within the scope of the “Suspension of Work” provision of its contract.

The underlying facts are not substantially in dispute. As the controversy is presented by the plaintiff’s assignment of errors, it relates primarily to the correctness of the board’s conclusion that the defendant was not legally responsible for delays of as much as a year that admittedly occurred in making the plaintiff’s worksites fully available to it after the defendant had formally advised it of the urgency of the work and had given it notice to proceed within 15 days.

The plaintiff does, however, contest the correctness of various inferences drawn by the board and has requested that the court make numerous findings on the basis of its own review of the administrative record. Some of the requested findings amount, in effect, to requests for conclusions of law. Others would modify at least the emphasis, if not the substance, of some of the board’s findings of fact.

Although the evidence affords some basis for a reasonable difference of opinion about some of the facts (especially concerning the extent to which wet weather, early in 1953, prevented another contractor from grading the plaintiff’s main site, or merely made it inconvenient and more expensive), there is substantial evidence to support the board’s findings. They are summarized in this opinion and are regarded as establishing the facts on which the decision is based.

[974] The plaintiff’s contract was one of about 30 contracts awarded, late in 1952 and in 1953, to carry out a comprehensive plan for expansion of McGuire Air Force Base. The plan provided for building additional runways, taxiways, warehouses, combination messhall and administration buildings and dormitories, installing additional utility systems, and making other improvements, on approximately 1,200 acres of previously undeveloped land.

The plaintiff’s contract was dated December 29, 1952. It was the first of the building construction contracts awarded. In addition to the standard disputes clause for construction contracts, it contained the following articles pertinent to this dispute:

1. STATEMENT OF WORK. — * * * The work shall be commenced within fifteen (15) calendar days after the date of receipt by the contractor of written notice to proceed, and shall be completed not later than four hundred fifty (450) calendar days after the date of receipt by the contractor of said notice to proceed.
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5. Termination for Default-Damages for Delay-Time Extensions. — * * *
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(c) The right of the contractor to proceed shall not be terminated, * * * nor the contractor charged with liquidated or actual damages, * * * because of any delays in the completion of the work due to causes beyond his control without his fault or negligence, including, but not restricted to, * * *, acts of the Government, either in its sovereign or contractual capacity, acts of another contractor in the performance of a contract with the Government, * * * and unusually severe weather or delays of subcontractors due to such causes; Provided, That the contractor shall, within 10 days from the beginning of any such delay, unless the contracting officer shall grant a further period of time prior to the date of final settlement of the contract, notify the contracting officer in writing of the causes of delay. The contracting officer shall ascertain the facts and the extent of the delay and extend the time for completing the work when in his judgment the findings of fact justify such an extension, and his findings of fact thereon shall be final and conclusive on the parties hereto, subject only to appeal as provided in Clause 6 hereof. (Emphasis supplied.)
[975]*97512. Other Contracts. — The Government may undertake, or award other contracts for, additional work, and the contractor shall fully cooperate with such other contractors and Government employees and carefully fit his own work to such additional work as may be directed by the contracting officer. * * *
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John A. Johnson & Sons, Inc. v. United States, 180 Ct. Cl. 969, 1967 U.S. Ct. Cl. LEXIS 252, 1967 WL 8810 (cc 1967).

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