Parker v. United States

26 Ct. Cl. 344, 1891 U.S. Ct. Cl. LEXIS 33, 1800 WL 1794
CourtUnited States Court of Claims
DecidedMay 18, 1891
DocketNo. 15704
StatusPublished
Cited by2 cases

This text of 26 Ct. Cl. 344 (Parker 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
Parker v. United States, 26 Ct. Cl. 344, 1891 U.S. Ct. Cl. LEXIS 33, 1800 WL 1794 (cc 1891).

Opinion

Nott, J.,

delivered the opinion of the court:

This case presents and involves a number of distinct propositions, which may be set forth and discussed without its being necessary to narrate the history of the controversy.

1. The statutes regulating “ contracts for carrying the mail” contain this provision:

“ 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.” (Rev. Stat., § 3962.)

That is to say, the Postmaster-General “may deduct” the price of a trip from a contractor’s compensation if the failure to perform was not his own fault, and he “ may deduct ” not exceeding three times the price if the failure was occasioned by the fault of the contractor or his carrier. It is not to be supposed that this power to deduct from the compensation of a contractor is a magisterial power or that the Postmaster-General is invested with judicial authority to impose forfeitures and penalties as such upon the individual citizen. No man is obliged to be a'mail contractor against his will; and the statute is operative against no man until by voluntarily entering into a contract or performing a mail transportation service he expressly or impliedly agrees to submit the differences which may arise to the arbitrament of the Postmaster-Gen eral. The only effect [358]*358of the statute is that it requires the Post-Office Department to exact this agreement from all mail-carriers, and that it takes such contracts to this extent out of the ordinary rules of law which regulate penalties and liquidated damages. When any contractor fails to perform, he of course loses his right to compensation 5 but when a mail contractor fails to carry the mails as he has agreed to do, he causes a public inconvenience, the value of which can not be proved in dollars and cents or estimated by courts and juries. Accordingly this system has been devised, whereby the decision of the Postmaster-G-eneral is made final as to fines and deductions — as to whether the contractor was in fault or was not iu fault.

If the Postmaster-General determines that the failure to perform was not caused by negligence, he loses only the compensation which he has not earned; if it be determined that the failure was through his fault, he loses what is termed a fine, but what is really a limited amount, more in the nature of liquidated damages for the public inconvenience which his negligence has caused. And these' decisions of the Postmaster-General in cases properly within his jurisdiction are final, though it may well be that where the failure to perform was due to some cause for which the law will not allow a contractor to be held responsible, the decision will be subject to review iu the courts. The vast area of the Post-Office system, its complexity of routes, the remoteness and distance of its operations from the seat of the Government, require that a summary method of dealing with its innumerable contractors and subcontractors shall exist, though its administration may often involve instances of individual injustice. The present case, as will hereafter appear, illustrates the necessity of such a system and the effective manner in which it can be administered.

2. The power to impose a fine can be exercised as long as there is money remaining due upon the contract. The fact that an account of a certain quarter has been transmitted to the accounting officers of the Treasury and adjusted and a balance certified and paid does not preclude the Postmaster-General from imposing a fine for a previously committed but subsequently discovered delinquency. A mail transportation contract is an entirety for entire period of service. The payment by installments is merely for the convenience of the parties, and the adjustment of quarterly accounts is merely to enable [359]*359tbe payment to be made by installments. So long as any money remains due to the contractor it will be the duty of the Postmaster-General to protect the Government by withholding money for services not rendered or by imposing fines for delinquencies previously unknown. The fact that the contractor concealed Ms delinquency until his quarterly account had passed does not relieve him from this liability; and if a part of the consideration of the contract remains unpaid, it is just as effective authority for the action of the Postmaster-General as if the whole remained unpaid. Tn other words, the accounts between the contractor and the Government remain open so long as anything remains to be adjusted or paid.

3. Conversely, the authority to impose fines is limited to the subject-matter of the contract and to the payments which would otherwise be due to the contractor. A fine is neither an award upon which an action can be maintained nor the judicial determination of a legal right which can be enforced in another forum. Whatever the form may be, the fine is simply the withholding of moneys due to the contractor. Such is the language of the statute and the reasonable import of these contracts. The Postmaster-General “ may deduct the price of the trip in all cases, and [he may deduct] not exceeding three times the price if the failure be occasioned by the fault of the contract- or,” but he can do nothing more than “ deduct.” The power to impose a fine is one which is not known to the common law and can not be enlarged by inference or intendment. Its remedy must be found in the specific contract which authorizes it. The Postmaster-General can not satisfy it out of the property of the contractor nor deduct it from other moneys which the Government may happen to owe him. The liability of a contractor in this matter of fines begins and ends with his contract.

4. The court is of the opinion that the power of the Postmaster-General to impose a fine was properly exercised in this case.

It appears that in 1881 the claimant held a contract to carry the mail seven times a week between Ooulson and White Sul-phur Springs, in Montana. Between these termini were two intermediate post-offices, Olden and Martinsdale. There was little or no passenger travel over the route, and the contractor simplified the performance of the service by sending out the [360]*360mail daily from each terminus, but sending it no farther daily than to the' next intermediate post-office, where it would lie over from one to six days and then be sent on sometimes once and sometimes twice a week. The distance between Olden and Martinsdale of seventy miles was seven-sixteenths of the route, so that on one-half of the route the service was seven times a week and on the other once or twice. The mails thus arrived and departed seven times a week from each terminus, and the postmaster at each terminus certified to the daily arrivals and departures seven times a week, and the Post-Office Department paid for carrying the mails seven times a week. This state of things continued until an inspector chanced to go over the route on a day when there was no through mail, and was greatly astonished to find when he reached an intermediate post-office that he could go no farther, and would have to wait two or three days until this daily mail resumed its weekly transit. The manner in which the service was performed and the semicivilized condition of the country through which the mail was carried will be best understood by an extract from the narrative of the witness:

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Related

Needles ex rel. Needles v. United States
101 Ct. Cl. 535 (Court of Claims, 1944)
Louisville & Nashville Railroad v. United States
53 Ct. Cl. 238 (Court of Claims, 1918)

Cite This Page — Counsel Stack

Bluebook (online)
26 Ct. Cl. 344, 1891 U.S. Ct. Cl. LEXIS 33, 1800 WL 1794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-united-states-cc-1891.