Schnip Building Co. v. United States

645 F.2d 950, 28 Cont. Cas. Fed. 81,231, 227 Ct. Cl. 148, 1981 U.S. Ct. Cl. LEXIS 178
CourtUnited States Court of Claims
DecidedMarch 25, 1981
DocketNo. 128-79C
StatusPublished
Cited by19 cases

This text of 645 F.2d 950 (Schnip Building 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
Schnip Building Co. v. United States, 645 F.2d 950, 28 Cont. Cas. Fed. 81,231, 227 Ct. Cl. 148, 1981 U.S. Ct. Cl. LEXIS 178 (cc 1981).

Opinion

PER CURIAM:

This case comes before the court on plaintiffs request, filed June 30, 1980, for review by the court of the recommended decision of Senior Trial Judge Mastin G. White, filed April 28, 1980, pursuant to Rules 54 and 166, on plaintiffs motion and defendant’s cross-motion for summary judgment, having been submitted on the briefs and oral argument of counsel. Upon consideration thereof, since the court agrees with the trial judge’s recommended decision, as hereinafter set forth, it hereby affirms and adopts the decision as the basis for its judgment in this case. Accordingly, plaintiffs motion for summary judgment is denied, defendant’s cross-motion for summary judgment is granted, and the petition is dismissed.

opinion of the trial judge

WHITE, Senior Trial Judge:

The plaintiff in this case requests the court to review, under the provisions of the Wunderlich Act (41 U.S.C. §§ 321, 322 (1976)), a decision (ASBCA No. 21637) that was rendered on June 20, 1978, by the Armed Services Board of Contract Appeals ("the Board”).

The case arose under a contract (No. N62472-74-C-0200) between the plaintiff and the Navy Department. Pursuant to the contract, the plaintiff was to perform, in accordance with government-furnished specifications and drawings, the excavation and the other necessary work involved in the construction of a hobby shop at the Navy’s Submarine Base, Groton, Connecticut, for a fixed price of $1,551,323. The contract was awarded to the plaintiff on August 4, 1975.

[150]*150One of the government-furnished specifications (which had been included in the invitation for bids on the contract) stated with respect to subsurface conditions at the building site that "hard material will be encountered as indicated from the borings” (six separate borings had been done at the building site to depths ranging from 6 feet to 7 feet 5 inches); and the specification defined "hard material” as "solid rock, firmly cemented unstratified masses or conglomerate deposits possessing the characteristics of solid rock not ordinarily removed without systematic drilling and blasting* * *.”

The blasting and excavation at the building site were begun on September 29, 1975, and finished on January 2, 1976.

By means of a letter dated January 4, 1976, and addressed to the Navy’s Assistant Resident Officer in Charge of Construction, the plaintiff submitted a claim for a $63,357 increase in the contract price and a 30-day extension of the 540-day period allowed for the completion of the work under the contract. In support of the claim, the plaintiffs letter asserted that the subsoil conditions at the building site differed materially from the conditions normally to be expected from the pre-bid information furnished by the Government.

The plaintiffs claim was finally denied by the contracting officer in a decision which was dated November 2,1976, and which held that the plaintiff had "failed to conclusively establish that conditions at the site differed from those represented in the contract drawings and specifications.” The plaintiff thereupon took an appeal to the Board.

After holding a hearing and receiving extensive evidence in November and December of 1977, the Board denied the plaintiffs appeal on June 20,1978 (ASBCA No. 21637). The Board held that the plaintiff failed to give a timely notice that it allegedly had encountered unexpected subsurface conditions, and that the lack of a timely notice was prejudicial to the Government.

The present litigation was subsequently initiated by the plaintiff on April 4,1979.

It is my opinion that the plaintiff is not entitled to recover.

[151]*151 Specificity

The brief supporting the plaintiffs motion for summary judgment sets out 13 "Errors in Findings of Fact” allegedly made by the Board.

The plaintiffs brief merely identifies the challenged findings by paraphrasing them and citing the respective pages of the administrative decision on which they appear. The brief does not, with respect to any challenged finding, "state why the administrative finding is not entitled to finality,” and does not "cite the portions of the record deemed to refute the administrative finding,” as required by Rule 163(b)(3)(iii).

In reviewing the Board’s decision, it is necessary, under the plain language of the Wunderlich Act, to proceed on the premise that any factual determination made by the Board must be accepted by the court as final and conclusive for the purposes of the litigation unless such determination is shown to be fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or unsupported by substantial evidence (41 U.S.C. § 321).

Moreover, quite apart from the specific provisions of the Wunderlich Act on this point, there is a general rule that official administrative determinations are presumed to be correct. United States v. Chemical Foundation, 272 U.S. 1, 14-15 (1926); Hirsch v. United States, 205 Ct. Cl. 256, 260, 499 F. 2d 1248, 1250 (1974).

The plaintiff, as the challenger of certain of the Board’s factual findings, has the burden of persuading the court (through the procedure in Rule 163(b)(3)(iii)) that each challenged finding is not entitled to finality because it is fraudulent, or capricious, or arbitrary, or so grossly erroneous as necessarily to imply bad faith, or because it is not supported by substantial evidence. Kaminer Construction Corp. v. United States, 203 Ct. Cl. 182, 197, 488 F. 2d 980, 988 (1973). Obviously, the plaintiff has not met this burden.

It is not incumbent upon the court to make an independent search of the entire record, which is quite voluminous, in order to ascertain whether the several factual findings challenged by the plaintiff do or do not meet the finality standard set out in the Wunderlich Act. The proper [152]*152employment of judicial manpower precludes such an act of supererogation. The parties had the responsibility, under Rule 163(b)(3)(iii) and (c), of calling the court’s attention specifically to the portions of the administrative record that are relevant to the several factual findings challenged by the plaintiff.

The plaintiffs brief, in its statement of the case and in its discussion of legal points, does include references to portions of the administrative record. Also, the Board’s decision includes such references. The material thus cited by the plaintiff and the Board have been examined.

Actual Notice

It has been mentioned previously that the contract documents stated that "hard material” — defined as "solid rock, firmly cemented unstratified masses or conglomerate deposits possessing the characteristics of solid rock not ordinarily removed without systematic drilling and blasting” — would be encountered in performing the excavation work at the building site. This information was based upon log data derived from six separate borings to depths ranging from 6 feet to 7 feet 5 inches.

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Bluebook (online)
645 F.2d 950, 28 Cont. Cas. Fed. 81,231, 227 Ct. Cl. 148, 1981 U.S. Ct. Cl. LEXIS 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schnip-building-co-v-united-states-cc-1981.