Otis v. United States

24 Ct. Cl. 61, 1889 U.S. Ct. Cl. LEXIS 105, 1800 WL 1613
CourtUnited States Court of Claims
DecidedJanuary 14, 1889
DocketNo. 15603
StatusPublished
Cited by1 cases

This text of 24 Ct. Cl. 61 (Otis 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
Otis v. United States, 24 Ct. Cl. 61, 1889 U.S. Ct. Cl. LEXIS 105, 1800 WL 1613 (cc 1889).

Opinion

Weldon, J.,

delivered the opinion of the court:

This claim is founded on two contracts made with the defendants in the year 1881 for “mail-messenger service” and “ mail-station service ” in the city of New York on mail routes Nos. 6771 and 6772. The consideration to be paid for the mail-messenger service on route No. 6771 was $63,200 per annum, and the service was to commence on the 1st of July, 1881, and extend for a period of four years. The consideration to be paid for mail-station service on route No. 6772 was $19,704 per annum, and the service was for a like period of time. The petition avers the performance of the entire service according to [70]*70the requirements of the contracts, and alleges a failure on tbe part of the defendants to pay the sum of $5,591.20, and for that amount this suit is prosecuted. The findings show that the said amount was deducted by the Sixth Auditor from the compensation of the claimant “on the order or request of the Postm aster-General” * * * “ as fines imposed for alleged delinquencies” on the part of the claimant in the prosecution of the service of said contract.

The only question submitted for our consideration and decision is, had the Postmaster-General the right, under the contract and law, to impose fines and forfeitures in diminution of the claimant’s compensation to the extent as shown by the facts of this record. In the contract on route No. 6772 it is provided:

“That for a failure to deliver the mail into the post-office or to any station mentioned in this contract; for suffering other business or engagements, or any other cause whatever, not beyond the control of the contractor, to delay or interfere with the prompt delivery of the mail at the post-office or station, or for carrying the mail in a manner different or inferior to that hereinbefore specified; for suffering the mail to become wet, injured, lost, or destroyed; for all or any of which they shall forfeit a sum, in the discretion of the Postmaster-General, according to the nature and frequency of the delinquency.”

In contract on route No. 6771 it is provided:

“And it is also further stipulated and agreed that for a failure to deliver the mail to a departing train in time to go by said train, or for not delivering the mail at the post-office immediately upon its arrival; for suffering other business or engagements, or any other cause whatever not beyond the control of the contractor, to delay or interfere with the prompt delivery of the mail at the post-office, depots, and wharfs, or for carrying the mail in a manner different or inferior.to that hereinbefore specified; for failure to provide a guard for the mail, as hereinbefore mentioned, when the same is conveyed at night; for suffering the mail to be wet, injured, lost, or destroyed ; for all or any of which they shall forfeit a sum, in the discretion of the Postm as ter-General, according to the nature and frequency of the delinquency.”

During the continuance of said contracts and upon the adjustment of the claims of said claimant the Postmaster-General, in pursuance to his alleged right, assessed asjfines against the said claimant the sum of $11,597; and, upon being satisfied that some of the fines had been improperly imposed, remitted the [71]*71sum of $6,106.49, leaving a balance of $5,591.20, as shown by the fourth finding. It is insisted by the claimant that the said amount was improperly assessed or imposed by the Postmaster-General, and that therefore he should recover that amount. It is shown by the findings that the Department, in pursuance to the power claimed under the contract and law, imposed penalties and fines for many different classifications of delinquencies, as follows: “ For failure to have wagon meet supplementary mails; ” for “ transfering mail in open wagons without screens; ” for “ delays; ” for special complaints; ” for. “ miscellaneous irregularities;” for “carelessness and drunkenness of drivers; ” for “failure to furnish advance wagon; ” “ trips in open wagon; ” “ late arrivals; ” “ missions of special service; ” “ various failures.”

The fines were imposed after the close of the quarter or month in which the service was rendered upon reports furnished the Postmaster-General from time to time, by persons having personal knowledge of the manner in which the service was performed. It will be seen from the general specifications that in many instances it is impossible to determine the exact delinquency of the contractor. For a failure to furnish advance wagons the sum of $1,958 seems to have been imposed. An advance wagon is defined by the findings to be a “ wagon in which the letter mail might be transferred from the depot to the post-office in advance of the paper and other mail matter, and also in advance of the schedule time for arrivals and departures, and also a wagon sent in advance of schedule time to carry papers from the post-office to the postal-car.” The law in force at the time the contracts were made and during their existence provides as follows:

“ Sec. 3962. The Postmaster-General may make deductions from the pay of contractors for failures to perform service according to contract, and impose fines upon them for other delinquencies. He may deduct the price of the trip in all cases where the trip is not performed; and not exceeding three times the price if the failure be occasioned by the fault of the contractor or carrier.”

By virtue of this provision of law the Postmaster-General is empowered to impose fines for “ delinquencies ” in the performance of the service, and under that power it is insisted that the fines were properly imposed in this case. The whole amount assessed under both contracts was $11,597.62, which [72]*72was afterwards remitted to the amount in controversy, to wit, $5,591.13.

The statute makes the Postmaster-General the judge when a fine shall be imposed, and unless that power is exercised incompatibly with the reasonable and legitimate use of the power, parties contracting with the Government are bound by his action. The service to be performed is of such a character that a provision of that kind is essential to the successful performance of the most important function incident to the executive branch of the Government. If the Post-Office Department were subjected to the ordinary remedy for a violated contract, the measure of protection would be incommensurate to the wrong inflicted, and the mail service might thereby be impaired in th at efficiency required by public policy, When the contracts were made they became subject to the provisions of the statute defining the powers of the Postmaster-General; and that power became a part of the contracts, with the same force as if specially provided for by the terms of the agreement.

In a case involving the question of the right of a public officer uuder a contract, the Supreme Court has said:

“ Be this supposition as it may, it is sufficient that theparties have agreed that distance should be ascertained and fixed by the chief quartermaster, and in the absence of fraud or such gross mistake as would necessarily imply bad faith, as a failure to exercise an honest judgment, his action in the premises is conclusive upon the appellant and Government.” (Kihlberg v. The United States, 97 U. S. R.., 398.)

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Related

Minneapolis & St. Louis Railway Co. v. United States
24 Ct. Cl. 350 (Court of Claims, 1889)

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Bluebook (online)
24 Ct. Cl. 61, 1889 U.S. Ct. Cl. LEXIS 105, 1800 WL 1613, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otis-v-united-states-cc-1889.