Purcell Envelope Co. v. United States

48 Ct. Cl. 66, 1913 U.S. Ct. Cl. LEXIS 171, 1912 WL 1170
CourtUnited States Court of Claims
DecidedJanuary 6, 1913
DocketNo. 22855
StatusPublished
Cited by2 cases

This text of 48 Ct. Cl. 66 (Purcell Envelope 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
Purcell Envelope Co. v. United States, 48 Ct. Cl. 66, 1913 U.S. Ct. Cl. LEXIS 171, 1912 WL 1170 (cc 1913).

Opinion

Howrv, J.,

delivered the opinion of the court:

Plaintiff, as an envelope manufacturer, in response to a proposal of the Postmaster General, made a bid for supplying the Government with a large quantity of envelopes and newspaper wrappers. Within 10 days from the date of the acceptance of its bid plaintiff. agreed to. enter into con[68]*68tract according to the conditions and requirements • of the specifications accompanying the proposal; and, furthermore, that if it should fail to perform the stipulations and agreements of any contract into which it might enter the said company and its sureties would forfeit and pay to the United States $200,000 as damages. Accompanying this bid was a. guaranty by a solvent corporation that in the event that a contract for furnishing stamped envelopes and newspaper wrappers according to the advertisement and specifications should be awarded to the plaintiff it would, within the time limited by the specifications, execute such contract, and in case of failure, the surety company agreed to forfeit and pay the sum of $25,000 to the United States. Eleven proposals were submitted, but plaintiff’s bid being the lowest, according to the departmental formulas, it was accepted and the contract to do the work was awarded on April 20, 1898, to plaintiff by the Postmaster General. The clay after the award the Third Assistant Postmaster General made to plaintiff a contract in quadruplicate, requesting it to sign, execute, and return the same. This plaintiff did on the day following the receipt of the contract, and accompanied the same with the required bond. The Postmaster General who made the award retired from office without signing the agreement and was immediately succeeded by another. The retirement of the one and the coming in of the other Postmaster General was April 21, 1898. Six days thereafter plaintiff telegraphed the department that it had made arrangements for the necessary drawings and had, contracted for certain paper for the term of the contract period. That day the Third Assistant replied by saying that the new Postmaster General had not signed the contract but was holding the matter in abeyance, at the same time requesting plaintiff to suspend, all action until further orders. The following month the new Postmaster General rescinded the order of his predecessor, who had practically made the contract with plaintiff,- and new proposals were called for by departmental advertisement. October 25, following, a 'new contract was let to-two-companies covering the period for which .plaintiff--had contracted. Plaintiff, by its contract,' [69]*69was to have received $2,460,556.22- and the estimated cost of furnishing the material approximated two millions of dollars, thereby indicating a considerable anticipated profit.

• Subsequently, plaintiff company brought suit in this court, and the defense that the contract had never been completed and was not binding as such until actually signed by the Postmaster General was overruled ■ and plaintiff recovered a judgment in the sum of $185,381.76 upon the authority of the case of Garfielde v. United States, 93 U. S. R., 242.

By section 3744 of the Revised Statutes all contracts of the Secretary of War, the Secretary of the Navy, and the Secretary of the Interior with individuals must be in writing and signed by the contracting parties with their names at the end thereof. Such is not the case with contracts made between individuals and the Post Office' Department. • In Garfielde’s case, sufra, it appeared that for conveying the mails proposals were invited, and the acceptance by the Post Office Department of the proposal of a bidder to so carry the mails created a contract of the same force and effect as if a formal contract had been written out and signed by the parties.

The court does not find it material now to review the circumstances upon which liability was declared, but makes allusion to the distinction existing in the draft of contracts between the several departments of the Government that the court’s reasons for rendering judgment at all may be better understood on the present motion.

The questions now presented arise upon the motion of the plaintiff and the countermotion of the defendants to amend the findings and for a new trial.

Plaintiff’s motion contains an objection to omit paper of air-dried quality; the cost of gum, ink, stamp dies, and pasteboard boxes; the cost of labor and incidental expenses; and ask that the judgment be increased. There is an infinite variety of detail connected with the motion which, in the view we are compelled to take, need not now be noticed.

The motion on behalf of the United States relates to the ldnd of machines contemplated in the performance of the work; as to how the envelopes were to be made; alleged [70]*70error of the court in stating that the Norman Paper Company, of Holyoke, entered into a contract with plaintiff for the supply of air-dried paper, for want of consideration. Defendants deny that anticipated profits can be recovered. Connected with the. motion there is a multitude of detail, also'unnecessary novV to be considered. The reasons for new trial alleged on the part of the defendants are errors of fact, error of law, newly discovered evidence, and because fraud, wrong, and injustice have been done in the rendition of the judgment to the United States.

The alleged errors of law and fact may be eliminated in considering newly discovered testimony under what is known as. the two years’ statute relating to the granting of new trials in this court.

Section 1088 of the Revised Statutes provides that—

“The Court of Claims, at any time while any claim is pending before it or on appeal from it or within two years next after the final disposition of such claim, may, on motion on behalf of the United States, grant a new trial and stay the payment of any judgment therein, upon such evidence, cumulative or otherwise, as shall satisfy the court that any fraud, wrong, or injustice in the premises has been done to the United States; but until an order is made staying the payment of a judgment, the same shall be payable and paid as now provided by law.”

The section cited was the original act of June 25, 1868, 15 Stat., 75. Where fraud, wrong, or injustice be charged it was never contemplated that the statute should be applied where ,an error of law might be corrected- on appeal. But where facts are involved it is difficult to attach conditions to the right of the Government to a new trial. The word “may,” as used in the statute, means “shall” under the principle that where a statute directs the doing of a thing for the sake of justice or the public good the word may is the same as the word shall. Rex v. Barlow, 2 Salk., 609; Henry v. United States, 15 C. Cls. R., 162. The statute does not so much give the court discretion as it does .confer a power, and this power must be exercised whenever a prima facie case is shown.

[71]*71The court is without power to deprive the United States of the benefit of a law designed to prevent fraud, wrong, or injustice when, in the opinion of the court, new testimony will change the result.

It will be seen that the relief contemplated is in respect to matters of fact. In United States v. Young, 94 U.

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Cite This Page — Counsel Stack

Bluebook (online)
48 Ct. Cl. 66, 1913 U.S. Ct. Cl. LEXIS 171, 1912 WL 1170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/purcell-envelope-co-v-united-states-cc-1913.