John N. Knauff Co. v. United States

78 Ct. Cl. 423, 1933 U.S. Ct. Cl. LEXIS 215, 1933 WL 1786
CourtUnited States Court of Claims
DecidedNovember 6, 1933
DocketNo. 17630 Congressional
StatusPublished
Cited by2 cases

This text of 78 Ct. Cl. 423 (John N. Knauff Co. 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 N. Knauff Co. v. United States, 78 Ct. Cl. 423, 1933 U.S. Ct. Cl. LEXIS 215, 1933 WL 1786 (cc 1933).

Opinion

[441]*441MEMOSANDUM BT THE COURT

Littleton, Judge.

When applied to the facts in this case :the written contract between the plaintiff and the Govern:ment precludes the entry of judgment by the court in plaintiff’s favor on any of the items making up its claim, and the • question whether plaintiff should be compensated for all or .any portion of the extra expense arising from the conditions disclosed by the findings, by reason of the delay in progress of the work caused by the Government and the extra work ■ which plaintiff was required by the Government’s authorized representative to perform, is for the Congress to decide. The facts hereinbefore set forth, with this memorandum, will therefore be certified to Congress in accordance with section 151 of the Judicial Code, which provides with refer- - ence to a case of this character that the court “ * * * shall proceed with the same in accordance with such rules as it may adopt and report to such House the facts in the ■case and the amount, where the same can be liquidated, * * * together with such conclusions as shall be suffi- • cient to inform Congress of the nature and character of the demand, either as a claim, legal or equitable, or as a gratuity .against the United States * *

The facts established by the evidence, and set forth herein, 'together with this memorandum and our conclusions with respect to the various items, will be certified to the Senate in accordance with Senate Besolution 326 referring to this court Senate bill 2588 for the refief of plaintiff in the premises.

Before discussing the merits of the various items making up the claim from the standpoint whether the plaintiff, in '..the circumstances, ought to be compensated ■ therefor in [442]*442whole or in part, notwithstanding the fact that under the written contract it had no cause of action against the Government and is not entitled, as a matter of law, to a judgment of the court, we will point out wherein the contract, precludes such recovery in this court. The contract between the plaintiff and the Government under which the-work of remodeling the Public Health Service Hospital was ■■ performed, and out of which the items involved in this pro- • ceeding arose, gives the plaintiff no claim, legal or equitable,. upon which this court can render judgment, because, first, the contract precluded suit to recover damages arising out of any delays caused by the United States, and, second, it: precluded suit to recover compensation for extra material or extra work unless the same was directed in writing; and,, third, the court is without jurisdiction to enter judgment in respect of any of the items in question because the contract made the decision of the Surgeon General final. Carroll et al. v. United States, 76 C.Cls. 103. The matter of reimbursement to the plaintiff with respect to any of the items involved, therefore, is in the discretion of the Congress.

Plaintiff performed a-11 the work required by it under the-contract strictly in accordance with the terms .thereof except that the work was not completed within ninety days after-notice of acceptance of the bond furnished by plaintiff under-the contract, and to the satisfaction of the Government, but: the delay in completing the work within the time specified as ■ a matter of fact was caused almost entirely by the Government in slowing down the progress of the work by occupancy of the building before it was completed, in ordering-changes and extra work and requiring and compelling plaintiff to execute the same without a written order and without. compensation, in failing to furnish articles of equipment and supplies called for by the contract when they were needed,, and in requiring plaintiff in some cases to furnish equipment and material at its own expense which the contract required the Government to supply, all of which resulted in additional expense for materials, labor, and overhead, and caused the work to extend beyond the date when there was-ah increase in cost of labor and when it could and would, have otherwise been completed.

[443]*443Upon completion of the work plaintiff made its claim herein presented to the Surgeon General, who was the official designated by the contract to pass upon such matters, and it was wholly denied on the ground that plaintiff had not obtained written orders for the extra work in connection with which the claim was made and on the further ground that the Government was not required to compensate the plaintiff for any delays caused by the Government. The specifications made a part of the contract provided, in specification 20, that “ no claim shall be made or allowed to the contractor for any damages which may arise out of any delay caused by the United States”; and, further, in specification 35, that “no claim for compensation for extra materials or work is to be made or allowed unless the same be specifically agreed upon in writing, or directed in writing.” The Surgeon General also refused to approve any allowance on the further ground that specification 31 provided that “ the Department reserves the right to make any additions to, or omissions from, or changes in, or substitutions for, the work or material called for by the drawings and specifications, * * *. If * * * no agreement can be reached by the Surgeon General and the contractor as to the reasonable value of the work then the Surgeon General is to have the right to fix the value of such additions, omissions, or changes, and no claim for damages on account of such change or for anticipated profits shall be allowed.” Specification 14 provided that “ the decision of the Surgeon General as to the proper interpretation of the drawings and specifications shall be final.”

Had the Government given plaintiff written directions to perform the various items of work involved in plaintiff’s claim it would have been entitled under the contract and specifications to compensation for the additional cost and expenses with respect to a number of the items involved, and the Department under the contract would have been authorized to make payment therefor. And it seems to us under the facts disclosed that at least a number of the items involved constituted extra work under the contract and that, as a matter of justice to plaintiff, written directions should have been given as requested by plaintiff at the time. In some instances not involved in this claim written direc[444]*444tions were given with respect to certain items of work and extra payments, in addition to the contract price, were made to plaintiff in the total amount of $10,011.94. Those items do not enter into plaintiff’s claim and do not affect the merits thereof. While plaintiff did not perform the work and incur the expense involved in the items of its claim under duress from a legal standpoint, it was required and compelled to do so at the direction of the Government’s authorized representative under threat that if the work demanded was not performed in the manner specified payments due plaintiff and those to be made under the contract for other work would be withheld until such extra work was performed as directed.

The conditions affecting plaintiff’s capital were such that if the payments provided in the contract to be made as the work progressed were not received it would be unable to proceed with completion of the work called for by the contract.

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Bluebook (online)
78 Ct. Cl. 423, 1933 U.S. Ct. Cl. LEXIS 215, 1933 WL 1786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-n-knauff-co-v-united-states-cc-1933.