Maryland Dredging Co. v. United States

47 Ct. Cl. 557, 1912 U.S. Ct. Cl. LEXIS 47, 1911 WL 1381
CourtUnited States Court of Claims
DecidedMay 27, 1912
DocketNo. 31188
StatusPublished
Cited by1 cases

This text of 47 Ct. Cl. 557 (Maryland Dredging 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
Maryland Dredging Co. v. United States, 47 Ct. Cl. 557, 1912 U.S. Ct. Cl. LEXIS 47, 1911 WL 1381 (cc 1912).

Opinion

Peelle, Ch. J.,

delivered the opinion of the court:

The question for decision arises on the Government’s demurrer to the petition on the ground that the facts averred are insufficient in law to constitute a cause of action.

The material averments are that the claimant, a corporation of the State of Delaware, with its principal office for the transaction of business in the city of Baltimore, Md., entered into a contract with the Government August 15, 1908, agreeing “ to excavate or otherwise construct a channel 10 feet deep at mean low water from Beaufort Inlet to Pamlico Sound, N. C., through Adams and Core Creeks, N. C., and through the intervening dry land (between the heads of these creeks) along lines to be laid out by said party of the first part ” of approximately 3,600,000 cubic yards, more or less, at the price of lOf- cents per cubic yard “ place measurement for all material excavated in conformity with the attached specifications,” the work to be divided into two divisions (A and B).

The work was to be commenced within 45 days from the date of the notification of the approval of the contract by the Chief of Engineers (which was September 14, 1908) [559]*559and was to be completed within 18 months thereafter, or on or before March 14, 1910.

Pursuant to the terms of the contract, the claimant entered upon the performance thereof and completed the work assigned, to division A on June 25, 1910, and to division B November 15, 1910. The work so completed was accepted by the Government, and the claimant was paid therefor March 2,1911. But in making payment the Government deducted for the aforesaid delay the sum of $7,530.50 (including $210.50 as the cost of superintendence and inspection during the period of delay) as liquidated damages under paragraph 5 of the contract, which reads:

“ It is further expressly understood and agreed that time shall be considered as an essential feature of this contract, and that in case of the failure upon the part of the party of the second part to complete this contract within the time as specified and agreed upon that the party of the first part will be damaged thereby, and the amount of said damages being difficult, if not impossible, of definite ascertainment and proof, it is hereby agreed that the amount of said damages shall be estimated, agreed upon, liquidated, and fixed in advance, and they are hereby agreed upon, liquidated, and fixed at the sum of twenty dollars ($20) for each division for each and every day the party of the second part shall delay in the completion of this contract, and the party of the second part hereby agrees to pay to the United States as liquidated damages, and not by way of penalty, the sum of twenty dollars ($20) for each division for each and every day the party of the second part shall delay in the completion of this contract, said delay not being the fault of the party of the first part.
“ It is further understood and agreed that the United States shall also have the right to recover from the party of the second part all costs of inspection and superintendence incurred by the United States during the period of delay, and also a reasonable value of any labor and materials which may be furnished by the party of the first part to the party of the second part during the time the latter is proceeding under this contract. And the party of the first part may deduct or retain all of the above-mentioned sums out of or from any money or reserved percentage that may be due or become due the party of the second part under this agreement.
Provided, however, That if the party of the second part shall by strikes, epidemics, local or State quarantine restric[560]*560tions, or by abnormal force or violence of tbe elements, be actually prevented from completing the work or delivering the materials at the time agreed upon in this contract, and such delay is without contributory negligence on his or their part, such additional time may, with the prior sanction of the Chief of Engineers, be allowed him or them, in writing, for such completion as, in the judgment of the party of the first part, or his successor, shall be just and reasonable; but such allowance or extension shall in no manner affect the rights or obligations of the parties under this contract, but the same shall subsist, take effect, and be enforceable precisely as if the new date for such commencement or completion had been the date originally herein agreed upon.”

The claimant’s contention is, and it so avers, that the deduction as liquidated damages was illegal and unreasonable, because the delay was caused by “ extraordinary and unforeseeable conditions,” against which, it contends, provision was made by paragraph 16 of the specifications, which reads:

“ 16. The time allowed in these specifications for the completion of the contract to be entered into is considered sufficient for such completion by a contractor having the necessary plant, capital, and experience, unless extraordinary and unforeseeable conditions supervene.”

In the prosecution of the work the claimant encountered submerged stumps, roots, branches, and timbers, which it avers and contends were “ extraordinary and unforeseeable conditions,” thereby causing the delay for which the deduction was made.

Paragraph 22 of the specifications provides:

“ 22. Character oe Material. — The material is believed to be soft mud, sand, clay, shell, and silt. Each bidder, however, is expected to examine and decide for himself, as no allowance will be made should any of it prove to be otherwise than as stated, except that solid rock, large bowlders, and compact gravel will not have to be removed at the prices bid for ordinary excavation. If such materials should be encountered their removal, if required by the engineer, will be done under special agreement and paid for as extra work, as provided for in the form of contract to be entered into.”

Under this provision the claimant was bound to examine and determine for itself the character of the materials to [561]*561be excavated, and the presumption is that its bid was based on the conditions found. That it did not find the stumps, roots, branches, and timbers characterized as “ a sunken or submerged forest” was no fault of the Government; and assuming that the claimant, as it was required to do, made diligent examination to ascertain the character of materials to be excavated, still its failure to find such submerged forest was in no way the fault of the Government.

Furthermore, by the last clause or sentence of paragraph 7 of the specifications it is provided that “ no allowance will «be made for the failure of a bidder or of the contractor to estimate correctly the difficulties attending the execution of the work.” Here in express terms the claimant was informed before making its bid that no allowance would be made for difficulties attending the execution of the work which it failed to correctly estimate.

The question, therefore, is whether under the contract the difficulties encountered can be held to excuse the claimant for the delay.

Paragraph 24 of the specifications provides :•

“24. Clearing. — All trees growing in the area to be excavated and within 25 feet of the banks of the excavation will be removed by the contractor. The contractor shall have the right to use timber so cut in such accessory works as he may deem desirable.

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

Related

Rice v. United States
95 Ct. Cl. 84 (Court of Claims, 1941)

Cite This Page — Counsel Stack

Bluebook (online)
47 Ct. Cl. 557, 1912 U.S. Ct. Cl. LEXIS 47, 1911 WL 1381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-dredging-co-v-united-states-cc-1912.