John G. Vann and Birmingham Fire Insurance Company of Pennsylvania v. The United States

420 F.2d 968, 190 Ct. Cl. 546, 1970 U.S. Ct. Cl. LEXIS 188
CourtUnited States Court of Claims
DecidedJanuary 23, 1970
Docket171-64
StatusPublished
Cited by51 cases

This text of 420 F.2d 968 (John G. Vann and Birmingham Fire Insurance Company of Pennsylvania 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
John G. Vann and Birmingham Fire Insurance Company of Pennsylvania v. The United States, 420 F.2d 968, 190 Ct. Cl. 546, 1970 U.S. Ct. Cl. LEXIS 188 (cc 1970).

Opinion

ON PLAINTIFFS’ ASSIGNMENT OF ERRORS AND DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

PER CURIAM:

This case was referred to Trial Commissioner David Schwartz with directions to prepare and file his opinion on the issues raised by plaintiffs’ assignment of errors * and defendant’s motion for summary judgment. The commissioner has done so in an opinion and report filed on May 27, 1969, wherein such facts as are necessary to the opinion are set forth. Defendant filed a request for review by the court of the commissioner’s opinion, report and recommended conclusion to which plaintiffs responded stating that no exception was taken to the extent that the commissioner had denied plaintiffs’ claim and urging acceptance of his conclusion on the “Eastern Light Claim” and “Northwest Light Changed Condition Claim”. The case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court agrees with the commissioner’s opinion, report and recommended conclusion, with minor modifications, it hereby adopts the same, as modified, as the basis for its judgment in this ease as hereinafter set forth. Therefore:

1. The plaintiffs’ motion is allowed in part, defendant’s cross-motion correspondingly denied, and partial summary judgment entered

(a) adjudicating that the contract was breached by defendant’s termination for an alleged default by plaintiff Vann in performance at Eastern Light, and that the defendant is liable for damages, to be determined in proceedings in this court; and

(b) awarding damages to plaintiff Vann in the sum of $3,315, the net amount assessed against him as liquidated damages, the further damages, if any, to be determined in proceedings under Rule 47(c) [since September 1. 1969, Rule 131(c)], to begin after a period of 90 days.

2. The plaintiffs’ motion for summary judgment is further allowed in part, defendant’s cross-motion correspondingly denied, and partial summary judgment entered, awarding damages to plaintiff Vann in the sum of $2,289.42, on the Northwest Light changed conditions claim.

3. The defendant’s motion to amend its answer to plead an affirmative de *971 fense of release and additional counterclaims is granted. The plaintiff’s motion is further allowed in part, defendant’s cross-motion correspondingly denied, and partial summary judgment entered striking the defense of release and dismissing all the counterclaims.

4. The plaintiffs are not otherwise entitled to recover. The defendant’s cross-motion for summary judgment is allowed in all other respects, plaintiffs’ cross-motion correspondingly denied, and partial summary judgment entered dismissing all claims in the petition except as specified in the foregoing.

Commissioner Schwartz’ opinion, with minor modifications by the court, is as follows:

Plaintiff Vann made a contract in 1961 with the Coast Guard, to repair and rebuild two harbor lights in Key West Harbor, known as Eastern Triangle Light and Northwest Light, for $19,850. He completed the work at Northwest Light, and the contract was terminated by the Government for an alleged default in performance at Eastern Light. The plaintiff contested the default-termination and made claims, under the disputes clause in the contract, with respect to both lights, some of which were upheld and some denied by the Coast Guard Board of Contract Appeals. The Board’s decision was thereafter approved by an Assistant Secretary on behalf of the Secretary of the Treasury.

The contractor has now brought suit in this court to review the decisions against his claims. His surety, also a party plaintiff, makes no claim other or greater than does the contractor, and the plaintiffs will be referred to as if the contractor were the sole plaintiff. The Government makes various defenses, among them a release, and has pleaded counterclaims for the sums awarded by the Board.

The present proceeding was begun by the assignment by the plaintiff of errors allegedly committed by the Board. Defendant responded with a cross-motion for summary judgment, the court in the interim having by new rules replaced assignment of errors with provision for the review of board decisions by motion for summary judgment. The case thereby presented is in substance one of cross-motions for summary judgment on various claims and counterclaims, on the record before the Board, on the ground of erroneous decisions by the Board, not entitled to finality under the Wunderlich Act, 41 U.S.C. §§ 321, 322. Both parties contend that the Board made findings of fact unsupported by substantial evidence, omitted to make findings required by the substantial evidence, and made erroneous conclusions of law.

On the merits both motions are granted in part and denied in part. The release is held to be ineffective. The default-termination is held to be a breach of contract by the Government. All the counterclaims are dismissed.

The Defense of the Release

The release, not part of the administrative record, was uncovered by defense counsel in an additional investigation made after the answer had been filed. The Government, in its cross-motion for summary judgment, requests, and plaintiff consents, that the answer be deemed amended to plead the release.

The text of the release contains in conventional language a release and discharge of the Government “of and from all liabilities, obligations, claims and demands whatsoever under or arising from” the contract in question, in consideration of $2,289.48, 1 then paid, with, *972 however, an exception reading as follows:

Except claim asserted against the United States Government by JOHN G. VANN in the United States Court of Claims, No. 171-64 in the amount of $56,050.00.

A final proviso reads as follows: Provided, however, that this instrument will not be binding if the foregoing decision, as rendered by the Assistant Secretary of the Treasury, is subsequently found to be in violation of the standards set forth in the Wun-derlich Act (41 U.S.C. 321).

Both the exception and the proviso make the release ineffective to bar the claim made by plaintiff.

The Exception. The release was executed by the plaintiff in August of 1964, through his then counsel, after counsel had earlier, in June of that year, filed the suit in this court. Two years later, in August 1966, his successor, present counsel, filed an amended petition, with leave of court. While both original and amended petitions prayed for $56,050 in damages, the amended petition extensively rewrote and enlarged the allegations.

The government contends that the “claim asserted” in this ease, to which the exception applies, is the claim as it stood on the date of the release, in the unamended petition; that Rule 17(a) *

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Bluebook (online)
420 F.2d 968, 190 Ct. Cl. 546, 1970 U.S. Ct. Cl. LEXIS 188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-g-vann-and-birmingham-fire-insurance-company-of-pennsylvania-v-the-cc-1970.