McKee v. United States

500 F.2d 525, 20 Cont. Cas. Fed. 83,195, 205 Ct. Cl. 303, 1974 U.S. Ct. Cl. LEXIS 13
CourtUnited States Court of Claims
DecidedJuly 19, 1974
DocketNo. 558-71
StatusPublished
Cited by27 cases

This text of 500 F.2d 525 (McKee 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
McKee v. United States, 500 F.2d 525, 20 Cont. Cas. Fed. 83,195, 205 Ct. Cl. 303, 1974 U.S. Ct. Cl. LEXIS 13 (cc 1974).

Opinion

Per Curiam :

This case comes before the court on defendant’s request for review of the opinion filed by Trial Judge S. Eichard Gamer, on August 14, 1973, pursuant to Eule 54(b) (3), and plaintiff’s response thereto. It has been sub[308]*308mitted on the briefs and oral argument of counsel. It arises out of the denial by the Department of the Interior Board of Contract Appeals, 69-1 BOA § 7551, of a claim under the “Disputes” clause of a contract between plaintiff and defendant. The claim asserts a right to an equitable adjustment. The court agrees with the opinion of the trial judge and adopts the same as the basis of its judgment.

The opinion is self-sufficient, but we deem a few additional comments to be appropriate, as follows:

First: Since the trial judge’s decision, we have held in Stock & Grove, Inc. v. United States, 204 Ct. Cl. 103, 493 F. 2d 629 (1974), that in light of “indications” in a contract and in the associated bid documents, the plaintiff there was entitled to rely on the availability as “indicated”, of a quarry necessary for contract performance. Such quarry proving-unsuitable, the plaintiff was awarded an equitable adjustment for a changed condition. Similarly, in the case now before us, defendant “indicated” in Stock & Grove language, that plaintiff could have surface access to the work site by constructing a road along an existing pack trail, the so-called Kenney horse trail, represented to be on Government owned lands. In view of the legal effect of these factual “indications”, the exact extent of defendant’s contract commitments lose the controlling importance assigned them by the parties. Fact “indications” reasonably relied on are enough for a category 1 Changed Conditions claim. We also agree with the trial judge that there was a compensable Change Order. The claim was prosecuted under both heads.

Second: The gist of the trial judge’s decision is that, unknown to plaintiff and to defendant’s officers also, the Kenney horse trail in fact wandered off Government land and into tribal lands of the Crow Indians. Plaintiff, therefore, following the horse trail in constructing his access road, trespassed on tribal lands and was forced to stop the road by the Indians’ protests. He completed the work using helicopters for access, at increased cost, for which he seeks equitable adjustment here.

Defendant in face of this conclusion insists that a Board finding to the contrary binds us by Wunderlich Act standards, being supported by substantial evidence. It admits [309]*309there is no other evidentiary support except that recited in the finding itself, which reads as follows:

* * * ❖ *
The record is silent as to the precise location of the horse trail in reference to Government land and the contiguous Crow Tribal lands. In the absence of evidence to the contrary, the trail was presumably constructed entirely on Government land as depicted on the map, Exhibit A. This was the route licensed by the Government ;27 there is no evidence of a violation of the license. This presumption is further supported by photographs No. 459-640-1629 and 459-640-1662 attached to Finding No. 2, each of which shows a clearly defined trail well down the talus slope within the Bighorn Canyon extending both upstream and downstream from the point where appellant’s road cut through the canyon rim.28

Exhibit A is a small scale two dimensional map or plan, without contour lines although the trail was to lead down the side of a canyon. It affords no evidence that the exact route had been plotted or engineered. It is captioned “Proposed Trail.” It manifestly affords no evidence whether the trail was actually built wholly on Government lands or otherwise. The nature of the Board’s presumption is obscure. Plaintiff without contradiction testified his road followed the trail and it is undisputed that the road actually did encroach as the Indians complained it did. See Exhibit B.

The two photographs referred to were attached to, and were part of, the contracting officer’s findings. They were dated November 27,1963, and January 14,1964. Apparently they were taken from an aircraft over the canyon, looking towards the canyon wall at the point plaintiff’s access road passed over the rim at mile 4 and started down the wall. It has just reached the rim in the earlier picture and has progressed some way down in the second. Both photographs are accompanied by captions, apparently supplied by the contracting officer. Who wrote them does not appear, but their text suggests they were not written when the photographs were taken, but rather when the findings were prepared. The caption to the earlier picture states that lines observable in [310]*310the lower right and left corners are the Kenney horse trail. A line stretching clear across the later picture is apparently the same trail. If the caption is correct, it would follow that the road and the horse trail were quite a way separate at mile 4, despite plaintiff’s testimony. The Board, though not so stating, must have read the caption and based its finding upon it. One cannot tell just by examining the pictures whether the observable marking is a horse trail, a foot trail, or a natural fault in the rock. Though one of the photographs was used in the testimony for other purposes, no testimony was taken about the markings, crucial though the point would seem, and easy as it should have been then to establish it one way or the other. Plaintiff suggests to us the markings actually show a foot trail, but it is as impossible for us as it is needless to determine this point now. The Board finding must stand or fall entirely upon the authority of the caption.

The caption is “rank hearsay” in the trial lawyer’s phrase. Tn an administrative hearing “rank hearsay” not only is admissible, depending on the applicable regulations, if any, but can constitute substantial evidence if sufficiently convincing to a reasonable mind. Richardson v. Perales, 402 U.S. 389 (1971); Peters v. United States, 187 Ct. Cl. 63, 408 F. 2d 719 (1969). However, mere hearsay lacking sufficient assurance of its truthfulness is not substantial evidence to overcome the sworn testimony of a claimant. Reil v. United States, 197 Ct. Cl. 542, 456 F. 2d 777 (1972); Jacobowitz v. United States, 191 Ct. Cl. 444, 424 F. 2d 555 (1970).

The caption is not sworn and otherwise lacks the features deemed in the above cases to supply credibility. The declarant is unidentified. It is at best part of the contracting officer’s findings, and these are not normally considei’ed evidence in a de novo Contract Appeal Board disputes clause proceeding. Moreover, and most significant of all, the failure of Government counsel to rely on or else supplant the caption with competent evidence to the same effect raises a question whether he believed the caption was accurate. Had it been the best evidence available and had he asked the Board to accept it, the situation would have been entirely different.

The photographs, with or without captions, are not substantial evidence that the horse trail was in the location [311]*311asserted by the Board, and therefore the evidence that plaintiffs road followed the horse trail is uncontradicted and unrefuted.

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Bluebook (online)
500 F.2d 525, 20 Cont. Cas. Fed. 83,195, 205 Ct. Cl. 303, 1974 U.S. Ct. Cl. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckee-v-united-states-cc-1974.