Palumbo v. United States

113 F. Supp. 450, 125 Ct. Cl. 678
CourtUnited States Court of Claims
DecidedJuly 13, 1953
Docket49391
StatusPublished
Cited by6 cases

This text of 113 F. Supp. 450 (Palumbo 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
Palumbo v. United States, 113 F. Supp. 450, 125 Ct. Cl. 678 (cc 1953).

Opinion

LITTLETON, Judge.

Plaintiff sues to recover the sum of $105,-265.80 which he alleges is due him from the defendant under a construction contract as a remission of liquidated damages assessed against him under the contract and as additional compensation for work performed, for which he alleges he was not compensated.

On June 29, 1943, Samuel S. Palumbo, Joseph Palumbo and Carmella C. Palumbo, a partnership, doing business as Palumbo Excavating Company, and Maurice Chernus, Joseph Sharf, and Lena Chernus, a partnership, doing business under the name of Chernus Construction Company, entered into a contract with the defendant acting throrrgh the Department of Commerce, Civil Aeronautics Administration, for the grading, draining, fencing, conditioning, and seeding of the El Dorado, Arkansas Airport. This was a unit price contract and *452 the total consideration was to be based on the quantity of work performed.

On July 1, 1943, defendant gave the contractors notice to proceed with the work. They began the work July 12, 1943. The contract was completed and accepted by the defendant August 11, 1944.

March 18, 1944, the partners comprising Chernus Construction Company, assigned all of their interest and claims in the contract to Palumbo Excavating Company. Subsequently, on January 2, 1945, all the interest and claims of the Palumbo Excavating Company in the contract were assigned to the plaintiff, Samuel S. Palumbo.

The contract provided for completion of the work within 100 calendar days after the effective date of notice to proceed. The work was thus scheduled to be completed on October 8, 1943, but it was actually completed on August 11, 1944. This was 408 days after the effective date of the notice to proceed. The contract time of 100 days was extended 176]4 days by the defendant through issuance of stop orders, as provided for in the contract and plaintiff was charged with 131]4 days’ delay.

Shortly after the work had been completed and accepted by the defendant, the plaintiff was informed by the defendant’s contracting officer that liquidated damages in the sum of $26,300 would be assessed against him for alleged delays of 131]4 days in completing the work required under the contract. The contract provided that the contractor was to be assessed liquidated damages at the rate of $200 per day for each day of inexcusable delay in completing the work.

The plaintiff immediately obj ected to the decision of the contracting officer relating to liquidated damages, and on November 17, 1944-, the contracting officer allowed the plaintiff an additional extension of 24 days on the contract completion time and liquidated damages were assessed against the plaintiff in the sum of $21,500, based on alleged delays of 107^4 days, at the rate of $200 per day. The time was extended 14 days for delay encountered by plaintiff in getting its equipment moved to the site and 10 days because of an overrun of approximately ten percent of the expected contracted quantities. The plaintiff had also made claims, after completion of the work, involving the alleged performance of extra work under the contract which were considered and denied by the contracting officer on the merits.

The plaintiff appealed the decision of the contracting officer to the head of the department who, after consideration of the claims on the merits, affirmed the contracting officer’s findings and decision on July 11, 1946, and stated that the entire matter was being forwarded to the General Accounting Office for final settlement. The General Accounting Office, on May 22,1947, made final settlement in accordance with the decision of the head of the department except that the amount of liquidated damages was reduced by the sum of $100, for the reason that the contract did not provide for the assessment of liquidated damages for less than an entire day. In making final payment to the plaintiff, there was deducted from the contract price, otherwise due, the sum of $21,400 as liquidated damages and no payment was made on plaintiff’s claims for alleged extra work, all of which claims were specifically excepted by plaintiff from the final release executed December 4, 1944.

Plaintiff contends that the late completion of the work was not chargeable to him, and that the contracting officer acted unreasonably in assessing the liquidated damages instead of granting adequate time extensions to cover the periods of delay. He further alleges that he was not fully compensated because of the failure of the contracting officer to properly credit him with extra work performed under the contract, and to pay him therefor.

The defendant asserts (1) that the plaintiff has failed to prove that proper time extensions were not given for all periods when his men were unable to work; (2) that the plaintiff is now estopped to assert these claims since he failed to make timely objections or requests for extensions as required under the contract; (3) that plaintiff iwas in fact fully compensated for all work completed under the contract; and (4) that in -any event the decision of the head of the department which upheld the *453 findings and decision of the contracting officer is final and conclusive on all of the plaintiff’s claims.

Tihe plaintiff has specifically abandoned several of the claims set forth in his petition, while as to others no proof was presented at trial. Hereinafter, under appropriate 'headings, we will discuss briefly only those items of claims upon which evidence was introduced.

Delay Surrounding The Notice To Proceed

Plaintiff asserts that this notice to begin work was issued too soon following the execution of the contract, i. e., 2 days, although the contract contained no restriction as to when this notice could or should be given. Plaintiff began work within 15 days after such notice to proceed, and made no objection at the time. After completion of the work plaintiff complained that this notice did not allow him sufficient time to move his equipment to the site in order to begin work effectively. An extension of 14 days was later allowed the plaintiff on this basis. The proof fails to show that plaintiff lost 'any working time because of this situation for which the 14-day extension did not fully compensate him.

Stop Orders

Plaintiff alleges that he was not given credit for the time consumed in getting ready to resume work after -each of the stop orders was lifted. Plaintiff at no time objected to the release of any of the orders with the exception of one, 'and the proof shows that none of the stop orders was actually released until the plaintiff had resumed work in a substantially normal matter. In fact, the defendant’s resident engineer, who was in charge of the construction work, permitted the plaintiff to do substantial progress work during periods when the stop orders were in effect. Stop Order No. 10 halted work for a long period during the winter months and the plaintiff did object to its release on the basis that he did not have sufficient funds to proceed. As a result, an extension of one week was granted after which work was resumed without further objection on the part of the plaintiff.

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Bluebook (online)
113 F. Supp. 450, 125 Ct. Cl. 678, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palumbo-v-united-states-cc-1953.