Koppers Company, Inc. v. The United States

405 F.2d 554, 186 Ct. Cl. 142, 1968 U.S. Ct. Cl. LEXIS 186
CourtUnited States Court of Claims
DecidedDecember 13, 1968
Docket254-65
StatusPublished
Cited by114 cases

This text of 405 F.2d 554 (Koppers Company, Inc. 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
Koppers Company, Inc. v. The United States, 405 F.2d 554, 186 Ct. Cl. 142, 1968 U.S. Ct. Cl. LEXIS 186 (cc 1968).

Opinion

ON PLAINTIFF’S AND DEFENDANT'S MOTIONS FOR SUMMARY JUDGMENT

LARAMORE, Judge.

This is a suit to recover $48,280 as damages based either on a breach of contract or, alternatively, on the termination-for-convenience article of the contract.

Briefly, plaintiff’s 1 claims stem from the Army’s rejection of landing mats it had delivered as its best efforts to perform the contract. Subsequently, the contracting officer terminated the con *556 tract for default. 2 Plaintiff appealed to the Armed Services Board of Contract Appeals, pursuant to the Disputes Clause, and claimed that fulfillment of the design required by the contract specifications was impossible. Therefore, argued plaintiff, the termination was for the convenience of the government and not for its default because the'causes of its failure to perform were beyond its control and were not the result of its fault or negligence. The Armed Services Board upheld the contracting officer and plaintiff appealed to this court.

Pursuant to our Order under Rule 54(b), Commissioner Lloyd Fletcher 3 filed his recommended opinion and conclusions of law on January 12, 1967. He found that the evidence overwhelmingly established that compliance with the specifications was impossible but he concluded that plaintiff had assumed the risk of impossibility. Therefore, it could not recover. After oral argument to the court, on November 17, 1967, we suspended these proceedings and returned the case to the ASBCA for more detailed findings of fact on the issue of whether performance was impossible and for clarification of the Board’s first decision wherein it had held that plaintiff did not prove that performance was a “legal impossibility.” 4

On February 21, 1968, the ASBCA issued a supplementary opinion in which it concluded, as it had in its first opinion, that “the evidence adduced by appellant falls far short of establishing that it was impossible or commercially impracticable for a qualified manufacturer to meet the contract requirements.” The parties agreed that the Board used the proper legal standard of impossibility. Additional briefs have been submitted and the case has again been heard on oral argument. It is now before us for review of the commissioner’s report and the Board’s decision. That report, we note, was made solely on the basis of the evidence and testimony presented to the ASBCA.

I.

Our initial task, in this as in all other cases which come before us for Wunderlich Act review, is to determine whether substantial evidence exists to support the Board’s findings of fact. *557 The standards for this evaluation are not easily articulated. We have, however, postulated guidelines for, and limitations on, the scope of such review by defining the content of the substantial evidence rule (often by stating what it is not, rather than what it is).

Our starting point is the Wunderlich Act of 1954, 68 Stat. 81, 41 U.S.C. §§ 321, 322 (1964 Ed.). It states that administrative determinations of disputes of fact are conclusive and binding on the court unless the finding of fact is fraudulent, capricious or arbitrary, or so grossly erroneous as to imply bad faith, or it is not supported by substantial evidence.

In United States v. Carlo Bianchi & Co., Inc., 373 U.S. 709, 83 S.Ct. 1409, 10 L.Ed.2d 652 (1963), the Supreme Court considered the judicial review appropriate in cases governed by the Wunderlich Act and said:

The term “substantial evidence” in particular has become a term of art to describe the basis on which an administrative record is to be judged by a reviewing court. This standard goes to the reasonableness of what the agency did on the basis of the evidence before it, * * *.
[Emphasis added; 373 U.S. at 715, 83 S.Ct. at 1414] 5

On remand (Carlo Bianchi & Co., Inc. v. United States, 167 Ct.Cl. 364 (1964), cert. denied, 382 U.S. 841, 86 S.Ct. 32, 15 L.Ed.2d 82 (1965)) we considered the record before the Board in the light of the Supreme Court’s statement and concluded:

* * * However, even though we might have decided as an original matter with plaintiff on the balance, the decision of the Supreme Court requires us to go further and uphold the Board’s decision if there was substantial evidence to support the Board’s decision on the record as a whole. [167 Ct.Cl. at 368]

In other decisions, we have discussed our review of a board’s findings of fact. “[T]he scope of our review is narrow and limited.” (Sundstrand Turbo v. United States, 389 F.2d 406, 410, 182 Ct.Cl. 31, 38 (1968)). “It is [limited to] whether there was substantial evidence, i. e., such evidence as might convince a reasonable man, to support the conclusion reached by the agency officials.” (T. C. Bateson Construction Co. v. United States, 149 Ct.Cl. 514, 518 (1960)). “Where two versions of the facts are equally probable, this court would normally be constrained to favor the version accepted by the ASBCA.” (Williamsburg Drapery Co. v. United States, 369 F.2d 729, 733, 177 Ct.Cl. 776, 783 (1966); see also, Dittmore-Freimuth Corp. v. United States, 390 F. 2d 664, 182 Ct.Cl. 507 (1968)). In River *558 Construction Corp. v. United States, 159 Ct.Cl. 254 (1962) we considered this question in detail and said:

This issue is very different from the question of whether the Appeals Board was correct. The court may well disagree with the Appeals Board decision but unless the plaintiff has shown the defects described by the Wunderlich Act, there can be no recovery here. [Citation omitted.]
Even though there may have been evidence before the Appeals Board upon which it could have based a decision in favor of the plaintiff, the decision which the board made [in favor of defendant] may still be found to have been supported by substantial evidence, when the whole record is considered. [Citations omitted.]
This does not mean, of course, that the mere fact that there is some evidence to support the administrative decision is sufficient. * * *. Further, the requirement that there be substantial evidence means such evidence as might convince a reasonable man to support the conclusion reached administratively. [Citations omitted; 159 Ct.Cl. at 261.] 6

Substantial evidence is evidence which could convince an unprejudiced mind of the truth of the facts to which the evidence is directed. Evidence may be substantial even if it is the sole evidence in a case, e.

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405 F.2d 554, 186 Ct. Cl. 142, 1968 U.S. Ct. Cl. LEXIS 186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/koppers-company-inc-v-the-united-states-cc-1968.