Kaminer Construction Corp. v. United States

488 F.2d 980, 203 Ct. Cl. 182, 1973 U.S. Ct. Cl. LEXIS 155
CourtUnited States Court of Claims
DecidedDecember 19, 1973
DocketNo. 289-72
StatusPublished
Cited by33 cases

This text of 488 F.2d 980 (Kaminer Construction Corp. 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
Kaminer Construction Corp. v. United States, 488 F.2d 980, 203 Ct. Cl. 182, 1973 U.S. Ct. Cl. LEXIS 155 (cc 1973).

Opinion

Bennett, Judge,

delivered the opinion of the court:

The case before the court arises from a decision adverse to plaintiff by the Corps of Engineers Board of Contract Appeals.1 Plaintiff, Kaminer Construction Corporation, a corporation organized under the laws of the State of Georgia, seeks relief under sections 1 and 2 of the Wunderlich Act.2 For the reasons hereinafter set out, we conclude that the decision of the board in this case was correct, that plaintiff’s motion for summary judgment must be denied and that defendant’s cross-motion for summary judgment must be granted.

[186]*186On September 26, 1968, plaintiff entered into a contract3 with, the United States Government for construction work at the Marshall Space Flight Center, Huntsville, Alabama. The contract called for, among other things, the erection of a structural steel tower, 'approximately 154 feet high, and two attached derricks with capacities of 50 and 75 tons. The instant action concerns the collapse of the 50-ton derrick during tests conducted by the Government 9 months after the derrick was accepted by the Government.

Plaintiff subcontracted the erection of the structural steel tower and the two stiff-leg derricks to Industrial Steel Erection Company (now Mississippi Valley Erection Company, Inc). The steel tower and two derricks were completed and inspected by 'December 1964. Tests of the derricks were conducted by the Government from December 22, 1964 until January 5,1965. These tests proved successful and the tower and derricks were accepted by the Government on January 5, 1965. General provision 10 (f) of the contract mandated that:

* * * acceptance by the Government shall be made as promptly as practicable after completion and inspection of all work required by this contract. Acceptance shall be final and conclusive except as regards latent defects, fraud, or such gross mistakes as may amount to fraud, or as regards the Government’s rights under any warranty or guarantee.

The tower and derricks operated satisfactorily for the next 9 months. On October 6, 1965, however, as a result of the collapse of a similar derrick, the Government conducted new load tests on the two derricks. These tests were conducted without plaintiff or its subcontractor being notified. Only representatives of American Hoist & Derrick Company, the supplier of the materials and equipment for the stiff-leg derricks, were notified and were present at the October 6 tests.

The 75-ton derrick successfully completed its load test. When the 50-ton derrick raised a load of 50 tons to a height of 20 feet, however, the stress on the derrick became so great that the eight 1%-inch high-strength stud bolts, which had [187]*187been inserted into 1%-inch holes 4 in the sill plate and which connected the east-west stiff leg of the derrick to the sill plate of the structural steel tower, pulled loose from their threaded holes in the sill plate. The east-west stiff leg supporting the 50-ton derrick quickly ripped loose from its moorings, went up and out and hit the sway bracing on the tower. The derrick then toppled from its perch and fell to the bottom of the tower structure crushing the north side of the hoist house. In addition to the damage to the derrick, the collapse caused injuries to individuals and extensive damage to the steel tower and adjacent structures.

At a meeting held with plaintiff and its subcontractor on October 8, 1965, all parties agreed that the derrick collapse occurred as a result of the placing of the undersized bolts in the sill plate.

On October 13, 1965, plaintiff was directed by the contracting officer to make the necessary repairs to the tower, derrick and adjacent structures at no additional cost to the Government. The contracting officer concluded that the derrick collapse was covered by section 11, Derricks, paragraph 11-28, Warranty, of the original contract.5 Plaintiff performed the repair work under protest, reserving its rights under the contract to an equitable adjustment for performing extra work. Plaintiff’s total costs for the extra work amounted to $93,977.82.

Once the repair work was completed, plaintiff submitted a claim for the repair work to the contracting officer contending that the tower and derrick had been finally accepted by the Government and that the Government had received the complete performance which it was entitled to under the contract prior to the time of the derrick collapse. It followed from these assertions that the repair work constituted a change entitling plaintiff to an equitable adjustment.

[188]*188The contracting officer issued iris decision denying plaintiff’s claim on December 80, 1966. In tbe decision, tbe contracting officer indicated (1) that plaintiff bad no right to be notified of tbe subsequent testing; (2) that tbe sill plate connection would have been adequate if 1%-inch bolts bad been placed into tbe 1%-inch threaded holes in tbe sill plate; (3) that tbe Government bad no responsibility to inspect the integrity of every bolt on tbe tower and tbe dei'rick and that, even if it did, a reasonable Government inspection would not have revealed tbe bolting deficiency; (4) that tbe bolts which failed were covered under section 11, Derricks, of tbe contract; (5) that tbe bolts were “equipment” within the meaning of contract paragraph 11-28, Warranty; (6) that tbe failure was not due to any procedure or manner of installation workmanship; and (7) that even if tbe section 11-28 warranty provision was not applicable, the existence of tbe improperly sized bolts was a latent defect which could not have been discovered by a reasonable Government inspection. Plaintiff filed its timely appeal to tbe contracting officer’s decision on January 13,1967.

At tbe first trial before the Corps of Engineers BCA, plaintiff and the Government stipulated as follows:

1. Tbe use of 1%-inch bolts in 1%-inch boles caused tbe failure.
2. Tbe contract required installation of high strength bolts per AilSC requirements; and these high strength bolts were, under tbe contract terms and construction customs, subject to inspection by only a calibrated torque wrench; or during 'installation they may also be inspected by observing the “tum-of-nut” method.
3. If either method of inspection had been used on the failure joint, use of incorrect bolts would have been discovered as bolts would have stripped out.
4. No inspection by torquing or turn-of-the-nut method of these bolts on the failure joint (s) was conducted by the Government.
5. Final acceptance occurred prior to the failure.
6. Any monetary adjustment, if found due, will be the subject of negotiation by the parties upon remand; this hearing being limited to liability.

The board in its first decision found that the bolts were not part of the “equipment” furnished under section 11, [189]*189Derricks, of the contract and consequently were not covered by the section 11-28 warranty. Construing the stipulation, the board determined that “the undersized bolts were not a latent defect within the meaning of General Provision 10(f).” (Emphasis supplied.) Kammer Constr. Corp.,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Certified Construction Company of Kentucky, LLC
Armed Services Board of Contract Appeals, 2015
Carro & Carro Enterprises, Inc.
Armed Services Board of Contract Appeals, 2015
Tektel, Inc. v. United States
116 Fed. Cl. 612 (Federal Claims, 2013)
Illig v. United States
67 Fed. Cl. 47 (Federal Claims, 2005)
Exxon Corp. v. United States
45 Fed. Cl. 581 (Federal Claims, 1999)
Stelco Holding Co. v. United States
44 Fed. Cl. 703 (Federal Claims, 1999)
Doyon, Ltd. v. United States
42 Fed. Cl. 175 (Federal Claims, 1998)
International Paper Co. v. United States
39 Fed. Cl. 478 (Federal Claims, 1997)
Smith v. United States
40 Cont. Cas. Fed. 76,854 (Federal Claims, 1995)
Spandome Corp. v. United States
40 Cont. Cas. Fed. 76,738 (Federal Claims, 1995)
United Technologies Corp. v. United States
39 Cont. Cas. Fed. 76,696 (Federal Claims, 1994)
M.A. Mortenson Co. v. United States
39 Cont. Cas. Fed. 76,555 (Federal Claims, 1993)
Granite Construction Company v. The United States
962 F.2d 998 (Federal Circuit, 1992)
Granite Construction Co. v. United States
37 Cont. Cas. Fed. 76,080 (Court of Claims, 1991)
Design & Production, Inc. v. United States
36 Cont. Cas. Fed. 75,907 (Court of Claims, 1990)
Dillon, Read & Co. v. United States
875 F.2d 293 (Federal Circuit, 1989)
Dillon, Read & Co., Inc. v. United States
875 F.2d 293 (Federal Circuit, 1989)
Bromley Contracting Co. v. United States
34 Cont. Cas. Fed. 75,415 (Court of Claims, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
488 F.2d 980, 203 Ct. Cl. 182, 1973 U.S. Ct. Cl. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaminer-construction-corp-v-united-states-cc-1973.