Patrick Warren Construction Co. v. United States

129 Ct. Cl. 1, 1954 U.S. Ct. Cl. LEXIS 72, 1954 WL 6082
CourtUnited States Court of Claims
DecidedJuly 13, 1954
DocketNo. 41-52
StatusPublished

This text of 129 Ct. Cl. 1 (Patrick Warren Construction Co. 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
Patrick Warren Construction Co. v. United States, 129 Ct. Cl. 1, 1954 U.S. Ct. Cl. LEXIS 72, 1954 WL 6082 (cc 1954).

Opinion

Laeamokb, Judge,

delivered the opinion of the court:

This claim is presented under the War Contract Hardship Claims Act, known as the Lucas Act, 60 Stat. 902, as amended 62 Stat. 869, 992, 41 U. S. C. § 106 note, to recover from the [2]*2United States the net loss alleged to have been sustained by plaintiff in the performance of Government contracts between September 16,1940, and August 14,1945. The Government moves for summary judgment on the ground that plaintiff did not file an adequate written request for relief under the Lucas Act, supra, prior to August 14,1945.

Plaintiff, on January 29,1952, filed a petition in the Court of Claims consisting of 14 paragraphs.

The first paragraph alleges that under date of June 9,1944, the plaintiff entered into a contract with the United States of America1 to construct certain buildings and appurtenances thereto. Plaintiff further contends that in reliance upon the provisions of the contract, bids were submitted on the basis of a 40-hour week. Contrary to that provision, the War Manpower Commission, on January 1, 1944, had established a 48-hour week in the area in which the said project was constructed. Because of this alleged misrepresentation it became necessary for plaintiff to pay its workmen premium time and as a result thereof plaintiff was damaged in the sum of $27,916.31.

The second cause of action alleges that the Wage Adjustment Board granted increases in wages, plaintiff was forced to pay higher wages, and plaintiff was damaged to the extent of $14,346.88.

The third cause of action alleges that the War Manpower Commission set a ceiling on the number of men allowed to work on the project, which was approximately 50 percent of the labor necessary. The Wage Adjustment Board established wage rates for workmen employed on the project, which were approximately 10 percent below the wage rates set by the Wage Adjustment Board for the surrounding area. The plaintiff was unable to secure sufficient mechanics and workmen and as a result completion of the project was delayed. Plaintiff was unable to properly maintain the project and was forced to expend large sums of money in its effort to recruit skilled mechanics. Plaintiff has been damaged in the sum of $81,185.35.

For a fourth cause of action plaintiff alleges that the defendant, through the Office of Price Administration, granted [3]*3increases in material prices which increased the cost to plaintiff over and above the cost as figured at the time of the contract. The defendant, through the War Production Board, controlled the distribution of materials and issued allotment numbers and preference ratings which were insufficient to secure necessary materials. By reason thereof, plaintiff has been damaged to the extent of $15,216.86.

The fifth cause of action is for delay occasioned by acts of the defendant and asks damages in the sum of $47,425.39.

The sixth cause of action alleges that because of delays plaintiff was forced to. pay increased cost of insurance and state and federal taxes. Plaintiff has been damaged to the extent of $17,087.39.

The seventh cause of action alleges that because of delays it was necessary for plaintiff to maintain a general office staff during the extended period and the plaintiff was damaged to the extent of $110,278.77.

The eighth cause of action is similar to the first cause of action except that it calls for the construction of a different project. This paragraph asks for damages in the sum of $13,504.56 upon the same grounds as those alleged in paragraph 1.

The allegations in the ninth cause of action are similar to those in the second cause of action and ask for damages in the amount of $3,610.23.

The allegations in the tenth cause of action are similar to those in the third cause of action and ask for damages in the sum of $57,039.85.

The allegations in the eleventh cause of action are similar to those contained in the fourth cause of action and ask for damages in the sum of $4,689.58.

The allegations in the twelfth cause of action are similar to those contained in the fifth cause of action and ask for damages in the amount of $9,065.07.

The allegations contained in the thirteenth cause of action are similar to those contained in the sixth cause of action and ask for damages in the amount of $8,321.97.

The allegations contained in the fourteenth cause of action are similar to those contained in the seventh cause of action and ask for damages in the amount of $56,842.06.

[4]*4The complaint in each cause of action alleges that plaintiff submitted a claim to the contracting officer, which claim was denied. Plaintiff filed a claim with the Veterans’ Administration for relief under the Act of August 7, 1946, ch. 864, 60 Stat. 902, on January 25,1947, and no action has been taken on this claim.

Section 3 of the Act of August 7,1946, supra, provides:

Claims for losses * * * shall be limited to losses with respect to which a written request for relief was filed with such department or agency on or before August 14, 1945, * * *.

On February 15, 1954, plaintiff filed an amended petition in the Court of Claims realleging and reaffirming each and every allegation set forth in the original petition and stating further that plaintiff was proceeding under the Lucas Act, supra, for recovery of moneys due it under various contracts with the United States, on which contracts plaintiff has suffered a net loss. The petition further recites various contracts upon which the plaintiff either suffered a loss or realized a profit. The petition further alleges that on June 22,1945, plaintiff addressed a communication to the Veterans’ Administration in which it specifically requested relief and that subsequently, on July 18,1945, plaintiff consulted in the offices of Joseph A. Fahy, Chief, Project Supervision Construction Service, and advised him that it did not intend to proceed with construction because of delays and difficulties encountered. Upon the assurance of Mr. Fahy that plaintiff would be reimbursed for any additional expenses and costs which might be incurred, plaintiff proceeded with the construction. Plaintiff asserts that under the terms of the Lucas Act, supra, it is entitled to recover the actual losses on contracts entered into with the United States Government, after having first deducted from such losses any actual profits which may have been credited in its books of accounts and asks for judgment in the amount of $305,925.39.

The claim filed by plaintiff has attached thereto the letter of June 22,1945, upon which plaintiff relies in the amended petition as its written request for relief. The letter reads as follows: ■ '

[5]*5Patrick Warren Construction Company
Builders
815 N. Kedzie Ave., Chicago 51, Ill.,
Sacramento 2863-4-5,
Chicago Fort Custer, Michigan.
June 22,1945
VAc-1279, VAc-1297 — Fort Custer, Mich. Construction Service,
Veterans’ Administration,
Washington 25, D. C.

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Related

Fogarty v. United States
340 U.S. 8 (Supreme Court, 1950)
Owens v. United States
104 F. Supp. 1015 (Court of Claims, 1952)

Cite This Page — Counsel Stack

Bluebook (online)
129 Ct. Cl. 1, 1954 U.S. Ct. Cl. LEXIS 72, 1954 WL 6082, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patrick-warren-construction-co-v-united-states-cc-1954.