Purvis

578 F.2d 1389, 24 Cont. Cas. Fed. 82,223, 216 Ct. Cl. 398, 1978 U.S. Ct. Cl. LEXIS 73
CourtUnited States Court of Claims
DecidedMarch 17, 1978
DocketNo. 207-68
StatusPublished
Cited by2 cases

This text of 578 F.2d 1389 (Purvis) 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
Purvis, 578 F.2d 1389, 24 Cont. Cas. Fed. 82,223, 216 Ct. Cl. 398, 1978 U.S. Ct. Cl. LEXIS 73 (cc 1978).

Opinion

"This case is again before the court on review of Trial Judge Spector’s opinion of March 31, 1977, which would affirm a decision of the General Services Administration Board of Contract Appeals (GSBCA or Board) insofar as it determined the quantum due plaintiff on its acceleration claim, and would hold that plaintiff is entitled to a trial on its breach of contract claims. Our difference with him is more theoretical than practical and probably will not affect the result.

"The events giving rise to this litigation occurred in 1961 and 1962, and the delays in final decision have become celebrated as among the horribles of Wunderlich Act procedure. Plaintiff was awarded a contract to construct the Federal Exhibit Buildings at the Seattle World Fair. Time was of the essence, for the buildings had to be completed for the opening of the Fair in April 1962. Thus, plaintiff was forced to accelerate performance to counteract the delaying effect of disruptions, of which there were many, in the work schedule. A good many of the delays were excusable, and most are attributed by plaintiff to indiscriminate change orders, hold orders, and stop work orders allegedly issued by defendant. The contracting officer ruled unfavorably on plaintiffs claims in 1962 and 1963. Plaintiff next brought the matter to the GSBCA, where it was pendent for seven years. To preserve its breach of contract claims, plaintiff filed a protective petition in this court in 1968. We suspended action on the petition, awaiting a decision by the GSBCA. This decision was forthcoming in June of 1969. The case was then appealed to this court and referred to the Trial Division for appropriate action pursuant to Rule 166.

"On June 9, 1972, Trial Judge Spector issued his first opinion. Following this report, the court issued an order, [400]*400dated March 19, 1973, stating that 'this case is and should be treated as governed by the Wunderlich Act, and not as a suit for breach of contract.’ We did not say 'a portion of this case.’ The trial judge was instructed to issue another report under the standards of the Wunderlich Act. He did so on August 2, 1973 [204 Ct.Cl. 801], Another order was issued by the court on March 1, 1974, adopting portions of the trial judge’s recommended decision, and remanding two claims to the Board: (1) the costs of acceleration, and (2) a minor claim pertaining to a handrail. Apparently the latter claim has been settled for $1,016.20. The Board recommended that plaintiff be compensated in the amount of $62,500 for the costs incurred in accelerating performance. The case was again referred to Trial Judge Spector, who reported favorably on the GSBCA decision, and recommended a trial on the breach of contract claims.

"In view of our express statement that this case is to be governed by the Wunderlich Act, and not treated as a breach case, we have some difficulty in understanding the approach taken by the Board, and apparently the defendant, upon remand. It is possible that some confusion may have been created by the 1974 order, which remanded to the Board specifically for the purposes of examining the acceleration and handrail claims. We intended, of course, that the Board also take into account the earlier order, however, there is no evidence that this order was ever brought to the Board’s attention. In any event, the Board noted the absence of a suspension of work clause and failed to consider, in computing the award due plaintiff, any portion of its claims other than those costs which the Board deemed attributable 'solely’ to the efforts in accelerating performance. The Board stated that '[t]he concept of acceleration does not embrace delays, stand-by or efficiency losses, rather it is the effort required to overcome these causes which have put the work behind schedule.’ After noting that much of plaintiffs proof was directed to showing that the government was responsible for delays and disruptions entitling plaintiff to time extensions, the Board proceeded to make a very limited award for acceleration costs. It is clear that plaintiff is entitled to recover more than the amount arrived at by the Board. It admitted the costs were inseparable except on a guesswork basis, which it palliated as a 'jury verdict.’

"We do not agree with the Board and Trial Judge Spector that there should be a separate trial of claims [401]*401sounding in breach of contract. In ordering that this case be decided under the standards of the Wunderlich Act, the court contemplated that plaintiff would be fully recompensed by an equitable adjustment which would include all time-related costs. Although the traditional 'suspension of work’ clause is absent from the written contract which otherwise contains most of the standard federal procurement clauses, this does not operate to preclude an equitable adjustment reflecting all the claims relating to government caused expense. The Board attempted a strict delineation of the extra costs which could be ascribed to acceleration, excluding costs it attributed instead to delays and disruptions caused by defendant, according to an arbitrary formula.

"This amounts to an excessively narrow construction of the concept of an equitable adjustment. The extra expenses incurred here are not readily susceptible of separation into individual components representing acceleration, delay and disruption. The concept of an equitable adjustment as awarded under the changes clause is flexible enough to provide full monetary relief to this plaintiff. Equitable adjustments are intended to serve as 'corrective measures * * * [which] keep a contractor whole when the government modifies a contract.’ Bruce Construction Corp. v. United States, 163 Ct. Cl. 97, 100, 324 F.2d 516, 518 (1963); see Pacific Architects & Engineers, Inc. v. United States, 203 Ct. Cl. 499, 508, 491 F.2d 734, 739 (1974). Although it is often possible to analyze a claim under more than one theory of recovery, ultimately the proper focus is on the amount of money which should be due a contractor when the transaction is completed. General Builders Supply Co. v. United States, 187 Ct. Cl. 477, 483, 409 F.2d 246, 250 (1969).

"The approach advocated by defendant and the GSBCA is questionable in light of an earlier decision of this court. In Paul Hardeman, Inc. v. United States, 186 Ct. Cl. 743, 406 F.2d 1357 (1969), the government argued that the extra costs incurred by the contractor, who had encountered a changed condition, were attributable instead to delay, and were not compensable under the changed condition article. The court said, however, that delay damage items (for which equitable adjustment is unavailable absent a suspension of work clause) are not incurred unless there is a 'prolongation of performance beyond the anticipated date [402]*402of completion.’ 186 Ct. Cl. at 749, 406 F.2d at 1361. The court went on to hold that in the absence of an actual delay the extra costs of performance were attributable to the changed condition and the contractor should be awarded an equitable adjustment under the changed condition article.

"In Merritt-Chapman & Scott Corp. v. United States, 192 Ct. Cl.

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Related

J.L. Simmons Co. v. United States
60 Fed. Cl. 388 (Federal Claims, 2004)
General Dynamics Corp. v. United States
585 F.2d 457 (Court of Claims, 1978)

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Bluebook (online)
578 F.2d 1389, 24 Cont. Cas. Fed. 82,223, 216 Ct. Cl. 398, 1978 U.S. Ct. Cl. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/purvis-cc-1978.