Pearson, Dickerson, Inc. v. United States

115 Ct. Cl. 236, 1950 U.S. Ct. Cl. LEXIS 55, 1950 WL 5011
CourtUnited States Court of Claims
DecidedJanuary 3, 1950
DocketNo. 46319
StatusPublished
Cited by11 cases

This text of 115 Ct. Cl. 236 (Pearson, Dickerson, Inc. 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
Pearson, Dickerson, Inc. v. United States, 115 Ct. Cl. 236, 1950 U.S. Ct. Cl. LEXIS 55, 1950 WL 5011 (cc 1950).

Opinion

LittletoN, Judge,

delivered the opinion of the court.

The claim involved in this case for $58,552.43, plus 10% for profit, for alleged breach by defendant of the terms of a construction contract of April 8,1942, between plaintiffs and defendant, is made by plaintiffs for and on behalf of their subcontractor, known as William E. Orr, Contractors, a partnership. Findings 6,7 and 8. Under the unit price contract between plaintiffs and defendant the plaintiffs agreed to furnish the materials and perform the work for the construction of a railroad at the Navajo Ordnance Depot in strict accordance with the specifications, plans, and drawings, in consideration of the payment to them by defendant of the estimated sum of $1,462,272.

The Navajo Ordnance Depot project consisted of the construction of a depot for the storage of ammunition, covering an area of approximately forty-eight square miles about 11 miles west of Flagstaff, Arizona. It had a frontage on the main line of the Santa Fe Railroad of eight miles, and was approximately six miles deep. The project embraced the erection of between 700 and 800 buildings, of which 600 were magazines for the storage of ammunition, the construction of the railroad, and the building of approximately 175 miles of roads to serve the various buildings. There was also a combat equipment area.

There were approximately 30 prime contracts made in connection with the construction of the Navajo Ordnance Depot. The contract in suit was for the construction by plaintiffs of approximately 17 miles of main line track and about 1034 miles side track, including the necessary excavation, culverts, turnouts (switches), highway crossings, whistle posts and other items, at unit prices estimated to cost [259]*259$1,462,272. The total length of the railroad, including main and side track, turnouts and bridges, was to be about 31 miles.

It was necessary to have the railroad completed at the earliest possible moment, since the construction of the entire project was dependent to a large extent on having the railroad in operation so that other contractors would have a means of receiving their material, and thus facilitate work on the balance of the project.

Article 1 of the contract provided that the work should be commenced on or before April 8, 1942, and completed on or before June 21, 1942. On December 15, 1942, the work was accepted as having been substantially completed on December 1, 1942. Only minor deficiencies in the work remained to be completed after that date. The final estimate and voucher for $93,509.81 were made and executed March 10, 1943, and plaintiffs received payment April 5, 1943. On December 1, 1942, plaintiffs, by their general manager, signed an unqualified release of all claims against the Government under the contract.

Plaintiffs base their right to recover upon the contentions that the contract, which required them to procure materials only from sources designated by the Government, expressly represented that the allocation of such materials had been made by the Government, when in fact no such allocation had been made at that time; that by reason of the failure of defendant to make allocations in sufficient time to enable plaintiffs to receive the materials as needed for the orderly and efficient progress of the work, the completion of the contract was delayed and increased costs were incurred, and that such delay on the part of the Government was imreasonable and constituted a breach of the contract.

This was a war contract and plaintiffs knew that the materials to be used in the performance thereof were under strict controls by the War Department and they must have known that such materials were being or would be allocated for use on various defense projects on the basis of the greatest need. The contract contemplated that delay by reason of such controls, priorities and allocations would probably occur. Plaintiffs say that they interpreted the contract specifi[260]*260cations as expressly stating, in paragraph. 5-02, that the materials necessary for tbe performance of tbis contract in an orderly and efficient manner bad already been made by tbe War Department. In view of all tbe facts and circumstances we doubt that tbey did so interpret the specifications at tbe time tbeir bid was submitted or during the progress of tbe work, but even if they did, such an interpretation was not, in our opinion, a reasonable one.

Certain pertinent provisions of the specifications are set forth in full in finding 5. So far as here material, these specifications provided in paragraph 1-11 (a), entitled “Material, procurement of which is arranged by the Government,” as follows:

The Government will designate the source or sources of and allocate to the contractor the materials listed below in sufficient quantity to construct the Railroad as set forth in the invitation for bids or any addition or additions thereto. The material to be thus allocated in the name of the contractor is:

Paragraph 5-02, upon which plaintiffs especially rely, provided as follows:

GENERAL. — The contractor shall procure from sources designated by the Government, cross-ties, rail material, switches, frogs, tie plates, and spikes for which an allocation has been made.

Paragraph 1-14 of the specifications stated:

Priorities. — Attention of the contractor is called to the fact that a priority rating of A-l-b will be established for this contract. In case the contractor is unable to obtain the required delivery materials and/or equipment which are to become a permanent part of the construction, the contractor shall notify the contracting officer, submitting with his notification supporting data to his claim that the required delivery of such materials or equipment cannot be obtained.
If the completion of the undertaking to be performed under the terms of this contract be delayed by reason of delay in the delivery of materials or supplies essential to such performance because of national-defense priorities and without the fault or negligence of the contractor, the time of performance will be extended for a period equal to such delay, as determined by the contracting [261]*261officer, and subject to appeal, as provided in Article 9 of the contract.

Paragraph 1-26 of the specifications provided:

Claims, protests, and appeals. — If the contractor considers * * * any action or ruling of the contracting officer * * * to be unfair, the contractor shall, without undue delay, upon such * * * action, or ruling, submit his protests thereto in writing, to the contracting officer stating clearly and in detail the basis of his objections. _ The contracting officer shall thereupon promptly investigate the complaint and furnish the contractor his decision, in writing, thereon. If the contractor is not satisfied with the decision of the contracting officer, he may, within thirty (30) days, appeal in writing to the Secretary of War * * *. Except for such protests or objections as are made of record in the manner herein specified and within the time limit stated, the records, rulings, instructions, or decisions of the contracting officer shall be final and conclusive.

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Bluebook (online)
115 Ct. Cl. 236, 1950 U.S. Ct. Cl. LEXIS 55, 1950 WL 5011, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pearson-dickerson-inc-v-united-states-cc-1950.