Rosenberg v. United States

76 Ct. Cl. 662, 1933 U.S. Ct. Cl. LEXIS 361, 1933 WL 1837
CourtUnited States Court of Claims
DecidedJanuary 9, 1933
DocketNo. K-479
StatusPublished
Cited by9 cases

This text of 76 Ct. Cl. 662 (Rosenberg 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
Rosenberg v. United States, 76 Ct. Cl. 662, 1933 U.S. Ct. Cl. LEXIS 361, 1933 WL 1837 (cc 1933).

Opinion

Booth, Chief Justice,

delivered the opinion of the court: The plaintiff, responding to public advertisements for bids to furnish certain specified merchandise for the Army .■and Navy, was the lowest bidder therefor, and did on the dates hereinafter mentioned enter into separate contracts to supply the same. The first contract was with the Army, and by its terms the plaintiff agreed to furnish five distinct items of cotton goods of a specified character and deliver the same in accord with a schedule of deliveries set out in the -contract. The plaintiff concedes that deliveries were delayed beyond the time limit prescribed as to four of the items, contending, however, that the period of delay upon which liquidated damages were assessed was erroneously found by the defendant to be 281 days instead of 98, resulting in an overassessment of liquidated damages of $915.00 for which amount, under this contract, plaintiff asks judgment.

The contract was dated August 5, 1921. The plaintiff •agreed as to item one to furnish the goods and complete -delivery thereof by November 10, 1921; this was not done, •and an admitted delay of 70 days occurred. The defendant assessed liquidated damages at the rate of $5 per day, and thereafter withheld from sums due the plaintiff the total amount of $350.00. This precise situation obtained as to items 2, 3 and 4, except as to the period of delay. As to item 2 the delay was 86 days, for item 3 it was 68 days, and item 4, 57 days, and in each instance liquidated damages were assessed at the contract rate of $5 a day. The total amount assessed and withheld by the defendant was $1,405.

[674]*674Paragraph 16 of the contract provided as follows:

“ 16. Liquidated damages. — The time herein specified for the complete performance of this contract being one of material consideration inducing its execution by the Government, and the amount of damage which the Government will sustain in case of the failure of the contractor to make-deliveries of articles or complete the work herein contracted for within the time specified being difficult of ascertainment,, the parties hereto have carefully estimated the probable damages which the Government will suffer by reason of such delay, and it is agreed that in the event of such delay the contractor shall pay to the United States as liquidated damages and not as a penalty the amounts hereinafter stated;: and it is agreed that such sums may be deducted from any payments to be made contractor, if the contractor shall be in unexcused default in the delivery of articles or the completion of the work in strict accordance with the date set for completion or the schedule of deliveries set forth herein.. Such deductions as a liquidation of damages shall be as follows:
“ The sum of five dollars ($5.00) for each and every day’s delay beyond the rate specified herein for completion of deliveries.
“ When one or more parts of an article or articles of a set or lot are not delivered on the proper date, the complete article or the entire set or lot, as the case may be, shall be-classed and considered as undelivered for the purpose of' calculating liquidated damages.”

The plaintiff insists that the contract is to be considered as an entirety, and that delays in delivery should run upon all items concurrently, i.e., that the total period of delay in performing the contract as a whole constitutes the basis-for reckoning liquidated damages and not the delay period, as to each item. If plaintiff’s position is tenable the total period of delay would be 98 days, and not 281.

Plaintiff’s argument is rested upon a premise that the-contract provision as to liquidated damages is ambiguous,, thus exacting a judicial construction, and that the rule of law applicable in such a case is to construe the same- “ strongly against the party who prepared the paper,” i.e.,. the defendant.

Paragraph 16 is, we think, plain and expressive. The legal effect of such provisions has been established by in[675]*675numerable decisions of this and the Supreme Court. The ambiguity which the plaintiff seeks to translate into it is not to be found in the language used, if any exists. The contract as a whole reflects it in what might under the facts have been the real intention of the parties as to the assessment of liquidated damages.

The plaintiff obligated himself to furnish 469,250 yards of textiles, segregated into five items, each specifying in detail the quality, quantity, and varying prices to be paid, and setting out the precise dates upon which each item was to be delivered. There is no other time limit for performance other than the ones specified as to eách item to be furnished, and to sustain the plaintiff’s case we would be required to ignore the express terms of the contract as to dates for delivery of each item and write into the contract a time limit provision predicated upon conjecture and inferences. This we cannot do. Laidlaw-Dunn-Gordon Co. v. United States, 47 C.Cls 271.

Paragraph 16 of the contract explicitly sets forth that liquidated damages at the rate of five dollars per day will accrue “ for each and every day’s delay ” beyond the date specified for delivery. What the plaintiff agreed to do was limited as to time and to quantity and quality of goods to be delivered. The undertaking was segregated, and we think it manifest from the terms of the contract that it was the intention of the parties, known at the time, that delivery of each item on time was of the essence of the contract.

On January 20, 1927, the plaintiff entered into his second contract with the Army Air Service. October 22, 1926, the Air Corps of the War Department issued an advertisement soliciting bids for furnishing and delivering two types of balloon cloth, one type known as “KK” and the other as “ LL ” cloth. This advertisement specified the maximum weight per square yard, the maximum and minimum width,, the tensile strength per inch, the minimum threads per inch in the warp, and the yarn sizes of the warp of the cloths-The specifications in each instance were minute and complete, for the cloth to be furnished had to be manufactured as it was not a commercial one in any respect.

[676]*676The plaintiff received the advertisement and immediately ■entered into negotiations with American and English textile mills for the manufacture of the cloth. He obtained a •quotation from an English mill, and following its receipt entered his bid for furnishing 17,000 yards of the “ LL ” and 10,000 yards of the “ KK ” cloth, agreeing to furnish the “ LL ” cloth for $0.4455 per yard and the “ KK ” cloth for $0.5115 per yard. His bid was accepted and a written ■contract was executed.

As soon as the plaintiff received notice that the contract had been awarded to him an order was placed with the mill in England to manufacture the cloth according to the .specifications of the contract. Later it developed that the cloth could not be manufactured in accord with the specifications, i.e., that if the manufacturer was compelled to manufacture the cloth without deviation from the express specifications as to weights and figures, the same were so proportioned that the result was absolutely unattainable.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Armour of America v. United States
96 Fed. Cl. 726 (Federal Claims, 2011)
H. B. Zachry Co. v. Travelers Indemnity Co.
262 F. Supp. 237 (N.D. Texas, 1966)
Schwartz v. United States
65 F. Supp. 391 (Court of Claims, 1946)
Doehler Metal Furniture Co. v. United States
149 F.2d 130 (Second Circuit, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
76 Ct. Cl. 662, 1933 U.S. Ct. Cl. LEXIS 361, 1933 WL 1837, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosenberg-v-united-states-cc-1933.