New York Market Gardeners' Ass'n v. United States

43 Ct. Cl. 114, 1908 U.S. Ct. Cl. LEXIS 99, 1907 WL 832
CourtUnited States Court of Claims
DecidedJanuary 6, 1908
DocketNo. 22742
StatusPublished
Cited by21 cases

This text of 43 Ct. Cl. 114 (New York Market Gardeners' Ass'n 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
New York Market Gardeners' Ass'n v. United States, 43 Ct. Cl. 114, 1908 U.S. Ct. Cl. LEXIS 99, 1907 WL 832 (cc 1908).

Opinion

Howry, J.,

delivered the opinion of the court:

Plaintiff is a corporation and sues to recover the balance on the contract set forth in the findings, whereby it obligated itself for the sum of $108,874.12 to supply about twenty-three millions of packets of certain vegetable, field, lawn grass, and flower seeds for distribution by the United States. Ten per cent of all amounts becoming due under the contract was to be withheld to cover delinquencies which might' arise and for deductions from the rates named in the contract if there were deficiencies in the seeds delivered either in quantity or quality. Defendants having withheld this 10 per cent, together with other sums claimed not to be due, plaintiff asks for judgment in the sum of $18,299.57. Defendants urge fraud in the methods adopted by plaintiff in the execution of the contract, as well as failure to perform, out of which counterclaims have arisen, and for which judgment is asked against the corporation in various sums.

The suggestion of fraud rests upon the allegation that plaintiff’s manager and superintendent, with intent to defraud, instructed the employees engaged in filling seed packets to fill at a weight lighter than that provided for by the agreement, and that pursuant to these instructions the packets were filled at light weight, by means of which defendants were materially defrauded. Practically, the charge is conspiracy, inasmuch as it is alleged that the superintendent was to notify the girls engaged in filling the packets that they were to let the weights run lighter than the contract rates, and that if the department inspectors complained of [136]*136short weights the superintendent “ was to pacify and to smooth it over ” and let the short weights continue; and that when the manager of the company was told that these packets were being put up at light weight he instructed plaintiff’s superintendent to let the improper work go on, in consequence of which the packets of seeds ran short all the time. Though there is no formal plea, the suggestions of fraud in this connection, supplemented by testimony and requests for findings, is authority enough to enable the court to give the matter consideration. As no surprise is suggested, the court has proceeded on the record as presented regardless of a formal plea.

Parenthetically we may say here that, could the court sustain the charge, the results would be far more consequential than those indicated by the assertion of limited counterclaims. The Revised Statutes provide that any person who corruptly practices or attempts to practice any fraud against the United States in the proof, statement, establishment, or allowance of any part of any claim against the Government shall ipso facto forfeit the same. It would be the duty of ■ the court to declare forfeited the entire contract if the proof certainly established the charge made. Harsh as the statutes are which impose such severe penalties for fraud in making up a claim, it is yet a necessary statute for the protection of the Government, and when such a charge is established this court will not only not hesitate to enforce such penalties but will go to whatever extreme under the law which can be justified by the facts proven.

Plaintiff alleges that in the calls for twenty-three millions of packets, which in the case of small vegetable seeds ranged from 64 to 128 packets to the pound; and in the case of large seeds ran 24:0 packets to the bushel, it was impossible to weigh each packet within the time limit and that the only practicable manner of executing the contract was to devise a system of filling by which a fair approximation to the required weights would be reached. It seems that the packets were filled, according to the custom of prior distributions, by a large number of girls seated at tables and using spoons graded in size so as to take the requisite quantity of seed. A forewoman had charge of this room and passed from table [137]*137to table and tested the work by weighing such a number of packages as was required to make up a quarter of a pound of the seed on which each employee was engaged. Government inspectors, two in number, and the representative of plaintiff were in the room making repeated weighings. When packets were made too heavy or too light, numbers of them were thrown aside; and there seems to have been a considerable accumulation of such packets in baskets, which were left over at the close of the distribution. Under this system plaintiff claims to have made complete deliveries of the requisite number of packets in pounds. Defendants, however, made general estimates, and allege that weighings of packets were made out of the bags of packets and not out of the packages containing 5 packets each. Quantities of packets were rejected from time to time by the inspectors for being light weight, and these were put in baskets, bags, and heaps around the warehouse and at the end of the distribution were gathered up with what remained in the bins and then transferred in boxes to the department. Elaborate calculations and weighings and estimates have been presented to the court to prove light weights, and general averages have been presented upon which deductions have been made to prove failure to deliver the requisite quantity of seeds. There is also much evidence, in the form of depositions, tending to show improper conduct in the deliveries and distribution of seeds and detailing circumstances indicative of an intent to cheat the Government and deprive it of its just dues.

But out of this voluminous record, comprising several hundred pages of printed testimony, of accusation and denial, of tabulated statements and averages, of circumstances and deductions arising out of the competent evidence, the court is unable to find that there was any fraud in the matter of quantity of seed deliveries. It is true that it is not necessary in order to establish fraud that it is incumbent upon the party making the allegation to prove it by direct and positive evidence. Indeed, in a matter of this kind circumstantial evidence would likely afford the only proof that could be adduced, and circumstantial evidence is frequently of more force than direct testimony. Circumstances altogether incon-[138]*138elusive, if separately considered, may, by their number and joint operation, be sufficient to constitute conclusive proof. But the burden of proof rests upon defendants to make good the charge, and the circumstances-ought to be so clear and convincing that the mind can rest with safety upon the result.

The court has not been able to bring itself to the belief that this charge has been made out.

Though the fraud charged is not proven, the court can not for that reason refuse to make deductions for such deficiencies in the quantity of seeds delivered from causes not resulting from fraudulent intent. But here again the court is confronted with great uncertainty. In adopting the tables of average light-weight percentages the findings would show that plaintiff had not established the delivery of the contract quantities, but manifestly the court can not do this unless it first be shown that these percentages truly represent the weights of the sum total of seeds deliverable. These lightweight percentages were made when plaintiff’s representatives had made the deliveries and gone; they are predicated upon hearsay testimony, and the witnesses who present them do not identify any particular lots of the seeds on which the estimates are gathered.

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Cite This Page — Counsel Stack

Bluebook (online)
43 Ct. Cl. 114, 1908 U.S. Ct. Cl. LEXIS 99, 1907 WL 832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-market-gardeners-assn-v-united-states-cc-1908.