Ray D. Bolander Co. v. United States

186 Ct. Cl. 398, 1968 U.S. Ct. Cl. LEXIS 193, 1968 WL 9164
CourtUnited States Court of Claims
DecidedDecember 13, 1968
DocketNo. 51-66
StatusPublished
Cited by23 cases

This text of 186 Ct. Cl. 398 (Ray D. Bolander 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
Ray D. Bolander Co. v. United States, 186 Ct. Cl. 398, 1968 U.S. Ct. Cl. LEXIS 193, 1968 WL 9164 (cc 1968).

Opinion

Pee Cueiam:

This case was referred to Trial Commissioner Louis Spector with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Rule 57(a). The commissioner has done so in an opinion and report filed on April 10,1968, .in which necessary facts are set forth. Exceptions to the commissioner’s opinion, findings and recommended conclusion of law were filed by defendant and the case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court is in agreement with the commissioner’s opinion, findings and recommendation, with modifications, it hereby adopts the same, as modified, as the basis for its [401]*401judgment in this case as hereinafter set forth. Therefore, plaintiff is entitled to recover, as hereinafter set forth, with the present proceedings stayed for a period of 90 days under Rule 100 to permit further administrative proceedings in the Interior Department, leading to a determination of the amount by which the contract price should be equitably adjusted. Plaintiff shall comply with Rule 100 'and the General Order of April 1,1988.

Commissioner Spector’s opinion, as modified by the court, is as follows:

This is a contract claim growing out of 'an agreement between plaintiff and the United States Department of the Interior, National Park Service. The contract was dated January 28, 1958, and it was executed on a unit-price (estimated quantity) basis in the original estimated amount of $667,355. It provided for the replacement of an existing section of Route U.S. 441 where it crosses the Great Smoky Mountains National Park from Gatlinburg, Tennessee, to Cherokee, North Carolina.

The project was located in a park area featuring heavily wooded mountains. It consisted of construction of 3.893 miles of highway, descending generally from elevation 4,260 at the western end of the section to 2,740 at the eastern end, although attaining an elevation of approximately 1 mile above sea level at one point. The new highway followed alignments and grades that were separate from the old road, but crossed or impinged upon the latter at a number of locations. Involved were many cuts and corresponding fills in earth. It is the nature and properties of the soils encountered which for the most part underlies this dispute.

It is noteworthy that although executed by the Department of Interior, this contract was actually advertised for bids and fully administered by the Department of Commerce, Bureau of Public Roads, on behalf of Interior. Incorporated by reference are the provisions of the January 1957 edition of the “Standard Specifications for Construction of Roads and Bridges on Federal Highway Projects (FP-57) ” issued by the Bureau of Public Roads. A regional engineer of that bureau administered the contract as authorized representa[402]*402tive of the contracting officer, an official of the National Park Service, Department of the Interior.

By letters dated April 27, 1960, and November 18, 1960, the plaintiff formally presented sis claims for additional compensation under the contract, totaling $893,137.26. About 2 years later, on June 1, 1962, they were denied in their entirety by decision of the aforementioned regional engineer of the Bureau of Public Eoads, and duly appealed within 30 days pursuant to the “Disputes” article contained in the contract. The appeal was to the Interior Department’s Board of Contract Appeals representing the Secretary of Interior. Some 3 years later, that board, with certain minor exceptions not pertinent here, also denied the claims in a decision dated November 16,1965.

As originally filed in this court, February 14, 1966, plaintiff’s petition sought recovery of $329,082.22 on the basis of four of the six claims above mentioned. In addition to attacking the finality of the board decision, the petition charged breach of contract based on unexplained delay in rendering a decision. Late in 1965, during this period of delay, the hearing member, who had observed the demeanor of the witnesses and viewed demonstrations and explanations not spread on the record, passed away, and the case was then decided 32 months after close of the hearing 'by three members of the board, two of whom were not members at the time of hearing. This, the petition charged, constituted a denial of due process. The case initially proceeded, without objection, toward a trial de novo in this court.

However, immediately following the decisions of the Supreme Court in TJtah and Grace, June 6, 1966,1 this case took a different turn. Defendant successfully moved to vacate the court’s pretrial order under Eule 43 (e), and the parties were instead ordered to explore the relationship of the Wunderlich Act2 to the relief sought. An assignment of er[403]*403rors procedure3 was outlined for tbe guidance of the parties, and they were asked to define those areas not entitled to de novo trial, to distinguish decisions of fact from those of law, and to highlight in the record those conclusions of fact not supported when measured by the Wunderlich Act tests, and those conclusions of law deemed to be in error.

Plaintiff thereafter, and on June 21,1967, filed an assignment of errors which has served somewhat to simplify and to clarify the issues before the court. It urges that certain factual determinations by the Interior Board were arbitrary, capricious, and not supported by substantial evidence, and that certain conclusions of law were erroneous.

In addition, it contends that defendant breached the contract, but it does not seek a de novo trial on this account, relying instead on certain of the board’s factual determinations to support the contention that there has been a breach.

Finally, plaintiff withdraws all claims in its petition save that described in Count One and Count Two, both referred to in the record as the “wet soils” claim. Count One is predicated upon the “Changed Conditions” article in the contract4 and on both aspects thereof, commonly characterized as “category one” and “category two” changed conditions, as follows:

* * * (1) subsurf ace or latent physical conditions at the site differing materially from those indicated in this contract, or (2) unknown physical conditions at the [404]*404site, of an unusual nature, differing materially from those ordinarily encountered ¡and generally recognized as inhering in work of the character provided for m this contract. * * *

Count Two of the petition, briefly summarized, alleges that defendant had in its possession information portraying the unusual characteristics of the subsurface soils at the project site, and withheld that information from plaintiff despite the brief period afforded for preparation of bids in mid-winter when soils were frozen and heavy snow covered the site, thus impeding plaintiff’s opportunity to discover this nondisclosure. Plaintiff charges that this constituted a misrepresentation and breach of contract.

On either count, plaintiff prays for judgment in the sum of $297,132.49, that being the same amount ascribed to Claim One of the six claims previously submitted for administrative determination.

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Bluebook (online)
186 Ct. Cl. 398, 1968 U.S. Ct. Cl. LEXIS 193, 1968 WL 9164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ray-d-bolander-co-v-united-states-cc-1968.