Security National Bank of Kansas City, Kansas City, Kansas, as Assignee of Miller Bros. Construction Company v. The United States

397 F.2d 984, 184 Ct. Cl. 741, 1968 U.S. Ct. Cl. LEXIS 131
CourtUnited States Court of Claims
DecidedJune 14, 1968
Docket350-62
StatusPublished
Cited by1 cases

This text of 397 F.2d 984 (Security National Bank of Kansas City, Kansas City, Kansas, as Assignee of Miller Bros. Construction Company v. The 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
Security National Bank of Kansas City, Kansas City, Kansas, as Assignee of Miller Bros. Construction Company v. The United States, 397 F.2d 984, 184 Ct. Cl. 741, 1968 U.S. Ct. Cl. LEXIS 131 (cc 1968).

Opinion

OPINION

PER CURIAM.

This case was referred to Chief Trial Commissioner Marion T. Bennett with directions to make findings of fact and recommendation for conclusions of law under Rule 57(a) and the order of reference. The commissioner has done so in an opinion and report filed on October 12, 1967, wherein facts necessary to the opinion are stated. Exceptions to the commissioner’s findings of fact and recommended conclusions of law were filed by the plaintiff and the case has been submitted to the court on the briefs of the parties without oral argument of counsel. Since the court is in agreement with the opinion, findings and recommendation of the commissioner, it hereby adopts the same, as supplemented by the following paragraph, as the basis for its judgment in this case as hereinafter set forth.

We held in J. A. Jones Construction Co. v. United States, decided May 10, 1968, 184 Ct.Cl. -, that a Government contractor adopts an interpretation of a contract at his peril if it is not a reasonable resolution of an ambiguity and he does not consult the contracting officer or other representative of the Government about it. That rule would seem applicable to the plaintiff’s exceptions to the commissioner’s report, herein. Plaintiff relies on its interpretation of the special conditions, SC-6d, stating that during flood periods water would be “temporarily impounded in the reservoir.” It took this to mean an inundation of not over 30 days, but this appears to be just the kind of “jumping to conclusions” that generated the trouble in J. A. Jones.

Therefore, the court concludes as a matter of law that plaintiff is not entitled to recover and the petition is dismissed.

OPINION OF COMMISSIONER

BENNETT, Chief Commissioner :

Plaintiff, Security National Bank of Kansas City, brings this action as assignee of Miller Bros. Construction Company, which entered into the contract now in question. The assignment of all moneys due under the contract was made November 8, 1956. References hereafter to plaintiff in this opinion are to Miller Bros., the contractor and assign- or, unless otherwise noted.

This opinion follows an order of the commissioner for assignment of errors and briefs. Pursuant to Rule 47 (c) of the court, the order severed liability and damages, reserving the determination of damages, if any, until liability had been decided. The order further provided that the commissioner’s review would be limited to the administrative record, a procedure which had been agreed to by the parties.

The defendant, acting through the Corps of Engineers, Department of the Army, entered into a contract (No. D A-03-050-Civeng-57-231) with Miller Bros. Construction Company of Kansas City, Kansas, on October 26, 1956, for the relocation of 6.6 miles of Missouri State Highway 86, east of Blue Eye, at Long Creek, in southwestern Missouri. *986 The relocation project was necessary because of the construction of Table Rock Dam on the White River, the completion of which would create a reservoir inundating several roadways and bridges, including the Highway 86 bridge over Long Creek. Long Creek is a tributary of the White River, entering the river a short distance above the damsite. The dam was being built by another contractor about 3y2 miles downstream “as the crow flies,” and about 10 miles downstream, along the meanders of Long Creek, from plaintiff’s jobsite.

Plaintiff’s jobsite was divided approximately in half by the creek. Because the work was divided by the creek, it was necessary for the contractor, in conjunction with L. M. Jones Company, Inc., the contractor building the substructure of the bridge, to build a low-water crossing across the small creek to transport men, equipment, and material from one side of the job to the other. Without the low-water crossing, the contractor would have had to move his equipment 65 to 70 miles to get from one side to the other.

The contractor’s job was to clear, excavate, fill, grade, lay the base course, and pave the 6.6 miles of relocated highway. A major part of the work involved building embankments for the approaches to the new highway bridge. The embankments were to be built at an elevation of approximately 950 feet above mean sea level. The creek bed, where the low-water crossing was located, was at elevation 800.

The contract, in the amount of $373, 870.20, provided that the contractor would begin work within 10 days after receiving notice to proceed, which plaintiff did, and complete the work by November 1, 1957. The contract contained the standard Government contract clauses, including a Disputes clause, a Changes clause, a Changed Conditions clause, and a Suspension-of-Work clause.

The contract also included several special conditions, most importantly SC-6 and SC-6c¿, which stated:

SC-6. Physical Data. Information and data furnished or referred to below are furnished for information only and it is expressly understood that the Government will not be responsible for any interpretation or conclusion drawn therefrom by the contractor.
■ir *X* ■K1 -If #
d. Stream Data. Hydrographs and rating curves for the White River are available for inspection at the Office of the District Engineer, Little Rock District, 300 Broadway, Little Rock, Arkansas. There are no stream flow records on Long Creek. The stream is subject to sharp-crested rises which occur most frequently in the spring. Final closure at Table Rock Dam was made on 9 September 1956 and all river flow is being diverted through the four 4- by 9-foot conduits in the dam which have invert elevations at 722. The conduit capacity is sufficient to pass the flow of White River except during flood periods when water will be temporarily impounded in the reservoir.

In preparing to bid on the contract, one of plaintiff’s partners and its job superintendent “walked the job,” observing both the site of the relocation and the progress on the dam. At this time, in October 1956, the dam was approximately 68 percent completed, with closure having taken place on September 9, 1956. In preparing the bid, the contractor did not review any of the data which was available, but instead relied primarily on the language in SC- 6d of the contract that any floods would be temporary. Plaintiff interpreted this to mean that floods would inundate the low-water crossing for no more than 30 days during the construction period.

The contractor began work upon the notice to proceed and by January 31, 1957, the job was over 2 months ahead of schedule. While experiencing some delays due to wet weather during January, February, and March, the contractor was a month and three-quarters ahead of schedule on April 1, 1957.

*987 During this time, the dam contractor also progressed rapidly at his site on the White River and was the successful bidder for the powerhouse, which was to be built below the dam. Notice to proceed with powerhouse construction was given on February 28, 1957. Commencement of construction on the powerhouse necessitated the closing of the penstocks, or sluiceways, in the dam, which are designed to direct water flow into the powerhouse to generate electricity.

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397 F.2d 984, 184 Ct. Cl. 741, 1968 U.S. Ct. Cl. LEXIS 131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-national-bank-of-kansas-city-kansas-city-kansas-as-assignee-of-cc-1968.