John McShain, Inc. v. United States

412 F.2d 1281, 188 Ct. Cl. 830
CourtUnited States Court of Claims
DecidedJuly 16, 1969
DocketNo. 173-63
StatusPublished

This text of 412 F.2d 1281 (John McShain, Inc. 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
John McShain, Inc. v. United States, 412 F.2d 1281, 188 Ct. Cl. 830 (cc 1969).

Opinion

PER Curiam :

This case was referred to Trial Commissioner Lloyd Fletcher with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Buie 57 (a). The commissioner has done so in an opinion and report filed on September 4, 1968. Exceptions to the commissioner’s opinion, findings and recommended conclusion of law were taken by both parties and 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, findings, and recommended conclusion of law, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Therefore, judgment is entered for plaintiff in the sum of $117,600.06.

[832]*832OPINION OP COMMISSIONER

Fletcher, Commissioner: Tbe plaintiff, John McShain, Inc., seeks to recover damages in its own behalf and in behalf of several of its subcontractors for an alleged breach of warranty by defendant in connection with a construction contract for an extension of the State Department Building entered into between the plaintiff and defendant, acting through the General Services Administration (GSA). The damages claimed by plaintiff arise solely out of alleged Government-caused delays.1 The dispute was the subject of administrative proceedings before the GSA Board of Contract Appeals for an equitable adjustment under the contract. However, the Board properly denied plaintiff’s appeal for relief on the ground that it lacked jurisdiction over the subject matter. See, United States v. Utah Construction & Mining Co., 384 U.S. 394, at 412 (1966). In view of the Board’s action, and by mutual consent of the parties, a trial was held here to determine fully all questions of liability and damages. See, Stein Bros. Mfg. Co. v. United States, 162 Ct. Cl. 802, 337 F. 2d 861 (1963), partially overruled on other grounds in United States v. Anthony Grace & Sons, Inc., 384 U.S. 424, ftn. 5 (1966); George Bennett v. United States, 178 Ct. Cl. 61, 371 F. 2d 859 (1967). In light of the detailed findings of fact below, it has been concluded that plaintiff is entitled to recover for a breach of warranty by defendant and, further, that plaintiff’s damages should be computed on the basis of three months’ delay for a total amount of $69,195.28.2 In addition, since defendant has not shown that plaintiff bears no liability to its subcontractors for an equivalent delay suffered by them, plaintiff is [833]*833entitled to recover the further sum of $48,404.78.3 Blount Bros. Constr. Co. v. United States, 171 Ct. Cl. 478, 483, 346, F. 2d 962, 965 (1965) and Morrison-Knudsen Company, Inc. v. United States, 184 Ct. Cl. 661, 703, 397 F. 2d 826, 852 (1968). Cf. Severin v. United States, 99 Ct. Cl. 435 (1943), cert. denied, 322 U.S. 733 (1944).

It is a well established rule of law that when the Government issues detailed drawings and specifications for a contractor to follow, there is an implied warranty that .conformance with such drawings and specifications will result in satisfactory completion of the work. See, for example, United States v. Spearin, 248 U.S. 132 (1918), and Hol-Gar Mfg. Co. v. United States, 175 Ct. Cl. 518, 360 F. 2d 634 (1966). Although Government-furnished plans need not be perfect, they must ibe adequate for the task or “reasonably accurate.” Standard Steel Car Co. v. United States, 67 Ct. Cl. 445, 472 (1929). Here, the defendant, in its haste to meet ia fiscal year deadline, failed to have the drawings prepared with ordinary care, and they were issued before necessary checking was accomplished. Such “failure to be reasonably careful in the preparation of the plans” is basis for a breach claim. Jefferson Construction Company v. United States 183 a. Cl. 720, 729-30, 392 F. 2d 1006, 1012 (1968). The evidence clearly demonstrates that the drawings and addenda originally provided by the defendant were not sufficiently legible or coordinated to permit satisfactory construction ¡of the desired building. Thus, defendant is liable for breach of warranty in the furnishing to plaintiff of defective drawings. Laburnum Construction Corp. v. United States, 163 Ct. Cl. 339, 325 F. 2d 451 (1963).

The .defendant has taken a two-pronged and somewhat inconsistent position. First, it says that the drawings were so obviously deficient that plaintiff should have recognized the defects and anticipated resulting delay. Almost in the same breath, however, it contends that the drawings were in fact adequate and sufficient for plaintiff as ¡an experienced contractor ,to have constructed the building as planned.

[834]*834Defendant’s first position, of course, is intended to charge plaintiff with actual or constructive knowledge of defeats in the original ¡plans so as ,to ¡preclude plaintiff from relying upon defendant’s implied warranty that the drawings were adequate. See, for example, Wunderlich Contracting Co. v. United States, 173 Ct. Cl. 180, 351 F. 2d 956 (1965), and cases cited therein.

However, the true condition of the drawings was unknown to the plaintiff at the time it bid the project. Seemingly, even the defendant was unaware of the full extent of the inadequacies and lack of coordination in the drawings, particularly after the addenda were issued. There was no reason for the plaintiff to suspect that legible drawings could not be easily secured to replace those which were unreadable, or that the addenda drawings did not correct most, if not all, of the coordination errors apparent in the original drawings. Further, plaintiff was under no contractual or legal obligation to inspect the drawings to determine their adequacy for construction purposes prior to the contract award. Father, its study of the contract documents was merely for purposes of estimating its bid, and it has not been shown that plaintiff knew or should have known how defective the drawings actually were. Therefore, plaintiff’s pre-bid examination of the drawings did not render the implied warranty inoperative through waiver or estoppel, and plaintiff may invoke such warranty as a basis for recovery. Thompson Ramo Wooldridge, Inc. v. United States, 175 Ct. Cl. 527, 541, 361 F. 2d 222, 231 (1966).

The effect of defendant’s second position is to deny that any breach of warranty occurred. On the facts of this case, however, this contention must be rejected because there is substantial evidence to support the contrary finding that the original drawings and addenda were in fact defective and inadequate.

The inadequacy of the drawings resulted in OS A’s decision to issue a new set of corrective and clarification drawings, known as “A-drawings,” and to change the design of reinforcing steel for the building’s columns. This involved substantial delay during the early part of the contract period, i.e., August 1, 1957, when plaintiff had planned to proceed, [835]

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Related

United States v. Spearin
248 U.S. 132 (Supreme Court, 1918)
United States v. Rice
317 U.S. 61 (Supreme Court, 1942)
United States v. Utah Construction & Mining Co.
384 U.S. 394 (Supreme Court, 1966)
United States v. Anthony Grace & Sons, Inc.
384 U.S. 424 (Supreme Court, 1966)
Laburnum Construction Corporation v. The United States
325 F.2d 451 (Court of Claims, 1963)
Hol-Gar Manufacturing Corporation v. The United States
360 F.2d 634 (Court of Claims, 1966)
Thompson Ramo Wooldridge Inc. v. The United States
361 F.2d 222 (Court of Claims, 1966)
Jefferson Construction Company v. The United States
392 F.2d 1006 (Court of Claims, 1968)
Morrison-Knudsen Company, Inc. v. The United States
397 F.2d 826 (Court of Claims, 1968)
Standard Steel Car Co. v. United States
67 Ct. Cl. 445 (Court of Claims, 1929)
Severin v. United States
99 Ct. Cl. 435 (Court of Claims, 1943)
F. H. McGraw & Co. v. United States
130 F. Supp. 394 (Court of Claims, 1955)
Vogt Bros. Mfg. Co. v. United States
160 Ct. Cl. 687 (Court of Claims, 1963)
Stein Bros. Mfg. Co. v. United States
337 F.2d 861 (Court of Claims, 1963)
Wunderlich Contracting Co. v. United States
351 F.2d 956 (Court of Claims, 1965)

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412 F.2d 1281, 188 Ct. Cl. 830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-mcshain-inc-v-united-states-cc-1969.