Minneapolis-Moline Co. v. United States

149 F. Supp. 146, 137 Ct. Cl. 790, 1957 U.S. Ct. Cl. LEXIS 177
CourtUnited States Court of Claims
DecidedMarch 6, 1957
DocketNo. 117-55
StatusPublished
Cited by3 cases

This text of 149 F. Supp. 146 (Minneapolis-Moline 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
Minneapolis-Moline Co. v. United States, 149 F. Supp. 146, 137 Ct. Cl. 790, 1957 U.S. Ct. Cl. LEXIS 177 (cc 1957).

Opinion

Laramore, Judge,

delivered the opinion of the court:

Plaintiff seeks payment for ballistic test projectiles furnished the Navy under a contract to manufacture and deliver 270,000 5"/S8 HC Projectiles, Mark 49, Model O.

[791]*791The case is submitted on stipulated facts in three stipulations, two of which are accepted by both parties. Plaintiff has objected to the admission of the second stipulation on the grounds of immateriality, although admitting the accuracy of the facts therein set forth. The stipulated facts are as follows:

Plaintiff, Minneapolis-Moline Company, is now and was at all times mentioned in the petition, a corporation organized and existing under the laws of the State of Minnesota, having its principal office in Hopkins, Minnesota, and owning and operating plants or factories in Hopkins and Minneapolis, Minnesota; Moline, Illinois; and Louisville, Kentucky.

On May 2, 1951, plaintiff entered into a certain contract in writing with the United States of America, known and described and hereinafter referred to as Contract NOrd-11,721. Said contract provided for the manufacture at plaintiff’s plant at Louisville, Kentucky, of two hundred seventy thousand (270,000) 5"/38 HC Projectiles, Mark 49, Model O, at a unit price of $12.66. By Supplement 7 to said contract, said unit price was reduced to $12,654. Amendment 8 to said contract redetermined the unit price at this amount of $12,654. Provision was made in said contract that plaintiff would supply projectiles for ballistic tests by the Navy Department.

In accordance with the terms and conditions of said contract, plaintiff has supplied to the Navy Department 2,655 projectiles for ballistic tests at designated points as requested by the Navy Department between February 18, 1953, and February 18, 1955, and has paid the charges for shipping said projectiles to the points designated without cost to the Government, but the defendant refused and still refuses to pay plaintiff for said test projectiles.

Under date of October 20, 1954, the contracting officer of said contract made his determination and decision that plaintiff was not entitled to be paid or reimbursed for said ballistic test projectiles. Thereafter plaintiff appealed from said decision to the Secretary of the Navy. On June 11, 1954, the Armed Services Board of Contract Appeals, as representative of the Secretary of the Navy, ordered that [792]*792said appeal be dismissed on tbe ground that the dispute between the parties concerned only a question of law (ASBCA No. 1961).

If plaintiff is entitled to be paid for said 2,655 test projectiles so supplied, it is entitled to recover the sum of $33,596.37 in this action, together with interest and costs as allowed by law.

Plaintiff entered into the following ordnance contracts with the defendant, acting through the Department of the Navy, Bureau of Ordnance:

NOrd-4761, dated Nov. 9,1943 NOrd-5924, dated Apr. 13,1944 NOrd-7770, dated Dec. 15,1944 NOrd-8450, dated Feb. 24,1945 NOrd-11,721, dated May 2,1951

Contracts NOrd-4761 and NOrd-5924 were governed by the provisions of Ordnance Pamphlet No. 382-B (March 1937) where applicable.

Contracts NOrd-7770, NOrd-8450, and NOrd-11,721 were governed by the provisions of Ordnance Specifications No. 1388 (November 30,1944) where applicable.

All of the above contracts were completed by plaintiff and paid for by defendant.

In all of the above contracts, plaintiff furnished ballistic test projectiles to the defendant.

In none of the above contracts was plaintiff paid for the ballistic test projectiles furnished to the defendant.

In contracts NOrd-4761, NOrd-5924, NOrd-7770 and NOrd-8450, plaintiff made no demands upon defendant for payment for the ballistic test projectiles.

Contract NOrd-11,721 has been completed, and plaintiff made total shipments of 267,704 projectiles on said contract, of which 2,655 were projectiles for ballistic tests.

The issue in this case is whether plaintiff, under its contract with defendant, was required to manufacture, free of charge to the Government, 2,655 projectiles for ballistic tests, or whether the obligation was solely that of paying the costs of delivery.

The Government takes the position that it was under no obligation to pay anything for these shells, that they were [793]*793both to be manufactured and delivered free of any charge. Plaintiff’s contention is that it is entitled to be paid the agreed purchase price for all shells delivered, whether for ballistic tests or for general use. Plaintiff admittedly has paid delivery costs.

The essential part of the clause in controversy is paragraph 2 (d) under heading “Notes” of the Contract Schedule and reads as follows:

The Contractor shall supply projectiles for ballistic test at the point designated without cost to the Government * * *.

Plaintiff points to this and says it means that the contractor will absorb the cost of delivery of test shells to the designated points for testing. The Government takes the view that paragraph 2 (d) means the contractor is required to manufacture free the shells for ballistic tests as well as deliver them to the designated point.

We believe that given its plain and literal meaning and read in context with other pertinent parts of the contract, the defendant’s contention is correct for the following reasons:

The plain and literal meaning of the clause in dispute is just what it says; i. e., “the contractor shall supply projectiles for ballistic test * * * without cost to the Government.” Supply means “to furnish or provide.” Webster’s New International Dictionary of the English Language, unabridged, 1956. Had the contract meant only that the contractor absorb the cost of delivery, as plaintiff contends, certainly the verb “deliver” would have been substituted for that of “supply.” There is no evidence that the parties intended the word “supply” to mean “deliver” or to have any meaning other than its ordinary meaning. In Hotpoint Co. v. United States, 127 C. Cls. 402, 406, it was stated:

It is an elementary canon in interpreting a contract that the court should, where the language of the contract is unambiguous, ascertain and effectuate the intention of the parties as expressed by the language in the contract. In so doing the court should give the terms their usual and ordinary meaning even though the intention of one of the parties may have been different from that expressed.

[794]*794Or, as the rule was expressed in Breese Burners, Inc. v. United States, 128 C. Cls. 649, 659-660:

* * * But when we come to construe a contract we give to words their ordinary and commonly accepted meaning, unless it is shown that both parties understood that they were used in a different sense.

Plaintiff, as contractor, agreed in item 1 of the contract to manufacture and deliver to the Navy 270,000 projectiles at a unit price of $12.66 per projectile. Item 2 of the contract provided that plaintiff should be paid $57,250 for special tooling.

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Bluebook (online)
149 F. Supp. 146, 137 Ct. Cl. 790, 1957 U.S. Ct. Cl. LEXIS 177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minneapolis-moline-co-v-united-states-cc-1957.