Nello L. Teer Company v. The United States

348 F.2d 533, 172 Ct. Cl. 255, 1965 U.S. Ct. Cl. LEXIS 143
CourtUnited States Court of Claims
DecidedJuly 16, 1965
Docket274-59
StatusPublished
Cited by13 cases

This text of 348 F.2d 533 (Nello L. Teer Company 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
Nello L. Teer Company v. The United States, 348 F.2d 533, 172 Ct. Cl. 255, 1965 U.S. Ct. Cl. LEXIS 143 (cc 1965).

Opinions

DURFEE, Judge.

This action is maintained by a successful contractor of a reservoir project. The dispute involves the determination of the question of whether or not plaintiff was rightfully required to pay rates of wages to power equipment operators under a wage determination by the Department of Labor, that were higher than the wage rates plaintiff believed should be paid.

The contract out of which this suit arose was made with the United States Army Corps of Engineers and was awarded to plaintiff as lowest bidder on April 26, 1957. It called for the construction of an embankment and spillway, and for the completion of outlet works for the Bear Creek Reservoir, Lehigh River, Carbon and Luzerne Counties, Pennsylvania.

The following brief history of union and bargaining activity and construction work in this geographical area, prior to the date of the contract, blends in with this controversy.

Prior to the award of the contract, two labor unions representing power equipment operators were active in that portion of Pennsylvania which includes Carbon and Luzerne Counties. One of these was an industrial union affiliated with the United Mine Workers, and will be referred to as District 50. The other was a craft union affiliated with the American Federation of Labor, and will be referred to as the AFL Operating Engineers.

Historically, there were three types of construction in the area represented by these unions, “Building Construction,” “Highway Construction” and “Heavy Construction.” “Building Construction” concerned the erection of shelters and included virtually every kind of a structure having a roof over it. “Highway Construction” concerned the building of roads and highways, including grading and more extensive earth moving, and the installation of drains, culverts and bridges. “Heavy Construction” concerned large earthmoving and concrete or concrete and steel installations, such as dams (including embankments and spillways), airports and other large undertakings not related to the other two categories.

By 1956-1957 the AFL Operating Engineers Union had made some headway in an effort to equate wage rates for Heavy Construction with wage rates for the traditionally higher Building Construction. However, the union had not blanketed the Carbon and Luzerne Counties area with the higher rate. District 50, the United Mine Workers affiliate union, confined itself to the fields of Heavy Construction and Highway Construction. For these two categories, District 50’s rates for power equipment operators were identical and were comparable to the AFL Operating Engineers’ rates for Highway Construction.1

It was the predominant practice in the two county area to pay workmen, including power equipment operators employed in Heavy Construction, and those engaged in Highway Construction, wages according to the wage scale established by the AFL for Highway Construction, and the scale established by District 50 for Heavy and Highway Construction. There was, however, a dam project in the area where power equipment operators were paid the higher AFL rates for Building and Heavy Construction. This project was the first Bear Creek contract for the outlet works which was awarded in 1956 to the Gasparini Construction Company, an AFL contractor.

[535]*535With this background in mind we turn to the facts of this controversy. On January 11,1957, the Corps of Engineers requested the Department of Labor to make a “determination of the wage rates to be paid laborers and mechanics” on the construction at Bear Creek for the “entire schedule” of crafts in contemplation of the invitation for bids on the contract in suit. This was in accordance with the Davis-Bacon Act, 40 U.S.C. § 276a (1952 ed.) which required the payment of wages “ * * * computed at * * * rates not less than those stated in the advertised specifications * * ” as having been “ * * * determined by the Secretary of Labor to be prevailing * * * on projects of a character similar to the contract work in the city, town, village, or other civil subdivision of the State * * The Department of Labor responded on January 17, 1957, with Wage Decision No. R-10,416. The invitation for bids on the contract was issued on March 1, 1957 by the Corps of Engineers. Wage Decision No. R-10,416 was incorporated as part of Paragraph SC-17 2 of the Special Conditions.

On March 6, 1957, the Corps of Engineers requested the Department of Labor to make another wage determination for the project. In the request, the Corps of Engineers certified to the Department of Labor that no highway type work requiring the use of power equipment would be involved. This certification was in error, as in actuality a minor portion (4 percent) of the project work was highway-type construction. The Department of Labor responded on March 11, 1957, with Wage Decision No. R-13,689. On March 18,1957, the Corps of Engineers issued Addendum No. 1 to the invitation for bids, substituting Wage Decision No. R-13,689 for Wage Decision No. R-10,416, and directing bidders to acknowledge its receipt prior to opening of bids.

The similarities and differences of these two wage decisions pertinent to the problem in the case at bar are as follows: (a) Both had sections under the heading “Heavy and Highway Construction.” Neither decision listed power equipment operators under this heading; (b) Both had sections entitled “Building and Heavy Construction,” under which was listed “power equipment operators” followed by 35 separate crafts. These sections were identical; (c) A section of the first decision, Decision No. R-10,416, carried the heading “Highway Construction” under which was listed “power equipment operators” followed by 27 crafts. Decision No. R-13,689 omitted this section; (d) The rates for power equipment operators under “Highway Construction” in Decision No. R-10,416 were lower than rates for power equipment operators listed under “Building and Heavy Construction.”

Prior to submitting its bid plaintiff's president and engineers inspected the work site and made an inspection of working conditions, labor practices and prevailing wages. They reasonably concluded that power equipment operators engaged in the type of work called for in [536]*536the project, “Heavy construction” work,3 were to be paid a rate of wages lower than the scale of wages sometimes paid to the same operators when engaged in the Heavy Construction work incidental to Building Construction. Plaintiff’s bid was prepared on the basis of the foregoing. The bid was submitted on April 9, 1957. At the appropriate place therein, plaintiff acknowledged receipt of Addendum No. 1. The contract was awarded to plaintiff on April 26. On April 30, plaintiff entered into a contract with District 50, establishing wage rates for power equipment operators identical with the rates for “Heavy and Highway Construction” then in force through the master contract between the union and Associated Pennsylvania Constructors (see footnote 1).

Thereafter, the controversy arose. Plaintiff maintained that the applicable class of power equipment operators had been omitted from Wage Decision No. R-13,689. Plaintiff contended that the power equipment operators should be paid under the heading “Heavy and' Highway Construction.”4

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Nello L. Teer Company v. The United States
348 F.2d 533 (Court of Claims, 1965)

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Bluebook (online)
348 F.2d 533, 172 Ct. Cl. 255, 1965 U.S. Ct. Cl. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nello-l-teer-company-v-the-united-states-cc-1965.