Silas Mason Co. v. United States

62 F. Supp. 432, 105 Ct. Cl. 27, 1945 U.S. Ct. Cl. LEXIS 115
CourtUnited States Court of Claims
DecidedOctober 1, 1945
DocketNo. 44659
StatusPublished
Cited by4 cases

This text of 62 F. Supp. 432 (Silas Mason 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
Silas Mason Co. v. United States, 62 F. Supp. 432, 105 Ct. Cl. 27, 1945 U.S. Ct. Cl. LEXIS 115 (cc 1945).

Opinion

Madden, Judge,

delivered the opinion of the court:

The plaintiffs, three firms of contractors, made a contract with the Government on July 16, 1934, for the construction [43]*43of the “first development” of the Grand Coulee Dam and Power Plant on the Columbia River in the State of Washington. The consideration was an estimated one of $29,-339,301.50, the actual payments to depend on the number of units of excavation, concrete, etc., the plaintiffs having bid certain prices per unit of work. Work was begun in October 1934. Early in 1935 the Government decided that the dam should be built to its full ultimate height, and by a' change order assigned to the plaintiffs the job, considerably larger than the one for which they had contracted, of building the lower part of the ultimate complete project. The plaintiffs were paid approximately $40,000,000 for their work as so changed. It was intended that another contract would be let for the completion of the project so that that work could follow the plaintiffs’ completion of its job.

The plaintiffs completed their work on March 21,1938, one year and twelve days before the date set in the contract. Another contractor got the contract for the building of the rest of the project and completed it in 1941. The dam is 500 feet wide at the base, 550 feet high, and 4,300 feet long at the crest. It is the largest man-made structure in the world. It impounds the water of the Columbia River for 151 miles, to the Canadian border. It contains 10,500,000 cubic yards of concrete, of which the plaintiffs placed 4,524,000 cubic yards.

The plaintiffs worked more than 5,000 men at the peak of the work in three shifts. The Government had from 500 to 1,000 employees at the job. Discussions and controversies occurred as to whether the Government was, in its inspections and directions, requiring more of the contractors than the contract called for, or otherwise impairing their rights. Many of these controversies were settled at the site of the work. The contracting officer designated in the contract to act for the Government was the Chief Engineer of the Bureau of Reclamation, whose headquarters were in Denver. He was not often at the site of the work, where a “construction engineer” was in charge for the Government. The plaintiffs’ job superintendent did not pay much attention to the provisions of the contract papers that protests concerning matters in controversy be made promptly and in writing. [44]*44Such written protests as he made concerning the matters here in litigation were temperate and well stated.

In November 1937, when the work was substantially completed, some 93 percent of the concrete having been poured, the plaintiffs addressed two communications to the Secretary of the Interior, who was the head of the department which had jurisdiction of the building of the dam. The second of these letters, dated November 22, contained an appendix setting forth sixteen items of claimed breaches of contract by the Government. The claims were based on asserted arbitrary and unreasonable requirements and interpretations made by the contracting officer and his subordinates during the course of the work, which had increased the costs of performance or had denied compensation to the plaintiffs for work done. On November 26 the plaintiffs’ counsel requested of the Secretary an opportunity to discuss the claims orally with him. On December 18 counsel was informed that under the provisions of the contract the claims had to be submitted to the contracting officer for his decision, and that the claims previously sent by the plaintiffs to the Secretary had been forwarded by him to the contracting officer with directions that he proceed with them under Article 15 of the contract.1 The letter suggested that any additional claims be sent directly to the contracting officer. On December 21, counsel replied that plaintiffs had not in terms invoked Article 15 because, in their view, it was “without binding force and effect in respect of the matters we have presented”; that the plaintiffs did desire, however, to try to reach a satisfactory administrative settlement; that “the methods and procedure to be adopted and the officials to be designated for bringing these matters under full and fair departmental consideration are, of course, for your determinationbut that “We assume that such methods and procedure will accord us a full and fair opportunity to be heard in person and by counsel and other representatives, and, upon such assumption, we shall be pleased to participate in such hearings in a spirit of helpful cooperation.”

Apparently because of the plaintiffs’ nonrecognition of the validity of Article 15, they sent ten additional claims [45]*45direct to the Secretary, who forwarded them to the contracting officer and so advised the plaintiffs. Between February 14 and April 18,1938, three additional claims, and additional details in support of the claims previously filed, were filed with the contracting officer. Between March 4 and May 3 statements of the amounts of damages claimed, under all of the claims previously filed, were submitted. The amount involved in the claims sued for here is $5,283,526.28.

The plaintiffs’ counsel sought to have the contracting officer hear witnesses and counsel on behalf of the plaintiffs and give plaintiffs’ counsel an opportunity to examine the Government’s witnesses. The contracting officer denied these requests, and ultimately made his findings and decisions on the basis of the detailed statements of the plaintiffs in support of their claims, and the information which was available to him from the files of the job and his observation of the work as it progressed. Beginning with a letter of July 14,1938, plaintiffs’ counsel complained bitterly to the Secretary about the proposed procedure of the contracting officer, and what counsel asserted as the contracting officer’s intention to delay action on the claims, and his intention to decide them adversely to the plaintiffs. Counsel, in the first of these letters on July 14 requested the Secretary to direct the contracting officer “to submit to you his findings of fact together with all pertinent matters within sixty days from today, a period of time which we believe to be amply sufficient for that purpose.”

Counsel was advised that inquiry would be made as to whether the findings could be made within sixty days. On August 11 counsel repeated his earlier complaints and told the Secretary that it was his duty to appoint a representative other than the contracting officer to hear the claims and said:

We respectfully insist that such a representative be appointed by you; that we be permitted to present to him our evidence of the facts and our views of the law and the contracting officer be permitted to do likewise; and that each party be permitted to hear and examine the other’s witnesses.

Counsel was advised that every effort was being made to expedite the findings, but that the claims were extensive and the amounts involved were large. Another letter from coun[46]*46sel on October 12 was followed by a long telegram on October 23 to the Secretary, addressed to a hotel in Portland, Oregon, where he seems to have been stopping in the course of a trip. The telegram was highly accusatory of the contracting officer, and contained the statements: “When the findings of fact are made they will as such be inherently worthless. * * * There can be no justification for the procedure being used by Mr.

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Related

WRB Corp. v. United States
183 Ct. Cl. 409 (Court of Claims, 1968)
Silas Mason Co. v. United States
116 Ct. Cl. 1 (Court of Claims, 1950)
Cauld Well-Wingate Co. v. United States
109 Ct. Cl. 193 (Court of Claims, 1947)
United States v. Johnson
153 F.2d 846 (Ninth Circuit, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
62 F. Supp. 432, 105 Ct. Cl. 27, 1945 U.S. Ct. Cl. LEXIS 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silas-mason-co-v-united-states-cc-1945.