John McShain, Inc. v. United States

375 F.2d 829, 376 F.2d 829, 179 Ct. Cl. 632, 1967 U.S. Ct. Cl. LEXIS 212
United States Court of Claims·Decided April 14, 1967·No. 225-61·Published·Cited by 32 cases

Opinion

PeR Curiam:

This contract case was referred to Trial Commissioner William E. Day, pursuant to Rule 57(a), for findings of fact and a recommendation for a conclusion of law. The commissioner has filed his report containing an opinion, proposed findings of fact, and a recommended conclusion of law. He would hold that plaintiff is not entitled to recover and therefore its petition should be dismissed. The defendant accepts the commissioner’s opinion and proposed legal conclusion, but made objections to certain of his findings. The plaintiff accepts the commissioner’s findings but excepts to his recommended conclusion of law. Briefs have been filed and there has been oral argument.

The court agrees with the opinion, findings, and recommended conclusion of the trial commissioner and adopts them, with modifications, together with this opinion, as the basis for its judgment in this case. However, plaintiff has urged before the court a legal theory not dealt with by the commissioner in his opinion. In short, the plaintiff argues that the United States should be responsible for the cost of repairing damage caused by the District of Columbia because the District was the agent of the United States acting under the Federal Government’s direction when the District rerouted the water main. This contention must be rejected.

In the first place, the parties stipulated at the pretrial conference that “[t]he cave-in which occurred on the night of September 12-13, 1955, was not the result of any fault on the part of the plaintiff or the defendant.” Since what plaintiff is seeking to do before this court is to impute fault to the defendant through the actions of its alleged agent, *635 the District of Columbia, it would seem that plaintiff is precluded by the stipulation from even raising this question of agency. A stipulation is a judicial admission binding on the parties making it absent special considerations. Bruno New York Industries Corp. v. United States, 169 Ct. Cl. 999, 1007, 342 F. 2d 75, 79 (1965); Garner v. United States, 161 Ct. Cl. 73, 75 (1963); McNamara v. Miller, 269 F. 2d 511, 515 (D.C. Cir. 1959); 9 Wigmore, Evidence § 2590 (3rd Ed. 1940). Plaintiff has made no application to the commissioner or to the court to modify the stipulation.

Plaintiff, however, maintains that it was clearly understood by the parties that the stipulation would not affect the liability vel non of the defendant for the negligent acts of others under its control. Counsel for defendant disputes that this was in fact the parties’ understanding. Even were we to agree with plaintiff that the stipulation is not a bar to a finding of liability based on the alleged negligence of the District of Columbia acting as the agent of the United States, it is clear that no such agency existed. Article 1, Section 8 of the Constitution, granting Congress the exclusive power to enact legislation for the District, does not make the District the agent of the Federal Government. Nor does it make the Federal Government liable for the actions of the District. Sweeney v. United States, 152 Ct. Cl. 516, 522, 285 F. 2d 444, 447 (1961); Bundy v. United States, 21 Ct. Cl. 429, 434 (1886); O'Toole v. United States, 106 F. Supp. 804, 806-807 (D. Del. 1952), rev'd on other grounds 206 F. 2d 912 (3rd Cir. 1953).

Moreover, there is no proof that the water main was rerouted by the District of Columbia under the direction and supervision of the United States. Because the District had a water main which ran through the site of the new building, the District had to move the line so that plaintiff could excavate. Subsequently the new line burst and inundated plaintiff’s excavation site. These are the facts of this case. Plaintiff has failed to offer any evidence that the United States played any part in the rerouting other than the fact that it was the Government’s contract for the Senate Office Building which resulted in the rerouting. That evidence *636 is not enough to establish, an agency relationship; the District of Columbia was not the agent of the United States at the time it committed its allegedly negligent acts.

Accordingly, plaintiff’s petition is dismissed.

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

This is a contract case in which the issue is quite simply which contracting party must bear the loss resulting from damage to contract work, substantially (but not fully) completed at the time the damage was inflicted, without fault of either party. The controversy stems from a contract between the plaintiff and the defendant, acting through the Architect of the Capitol for excavation, concrete footings and mats for the new United States Senate Office Building, for a consideration of approximately $750,000. The plaintiff agreed by the contract to accomplish all of this work. The defendant agreed that it would make partial payments, monthly, as the work progressed, and upon completion and acceptance of all the work, that the contractor would be paid the amount due under the contract upon its submission of a release of claims. The work was prosecuted by the plaintiff’s forces until August 29, 1955, when its job superintendent advised the defendant’s project engineer that the work was completed and that the plaintiff desired acceptance of the work. There remained to be paid the balance of about $180,000 of the contract price at this time. The defendant’s inspection force made an inspection of the work and found 10 items of work remaining to be accomplished. One of these items was not a contract requirement at all. It related to the furnishing of inscribed silver shovels to be used in ground-breaking ceremonies. This list was given to the plaintiff on September 9, 1955 (a Friday) when its representatives were discussing with the defendant’s representatives the question of the proper amount which should be paid for an extra under a change order. It is to be noted particularly that the plaintiff’s general manager, who was present at this meeting, took no exception to the fact *637 that 9 of the 10 items listed were yet to be accomplished. It is clear from the evidence that none of the items involved substantial work and in the aggregate could fairly be regarded as minor. They were described during trial by both parties as punch-list items. No work of any kind was done at the site on September 9th. On Saturday, being a non-work day, no work of any kind was performed at the site. On Monday, the plaintiff had removed all of its equipment from the site with the exception of a few hand tools. On that day two of plaintiff’s laborers were working there, being engaged in sweeping and breaking off of protruding nails and tie wires. One of the laborers returned to the site at 5 a.m. on Tuesday, September 13, 1955, with the other arriving at 6 a.m. They were similarly engaged, when, at about 6:45 a.m. a cave-in occurred on the east side of the excavation, causing the sheet piling in the immediate area to be twisted, bent and covered with very large quantities of wet earth, and also inundating the entire excavation with water.

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John McShain, Inc. v. United States, 375 F.2d 829, 376 F.2d 829, 179 Ct. Cl. 632, 1967 U.S. Ct. Cl. LEXIS 212 (cc 1967).

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