Silberblatt & Lasker, Inc. v. United States

101 Ct. Cl. 54, 1944 WL 3708
CourtUnited States Court of Claims
DecidedFebruary 7, 1944
DocketNo. 45302
StatusPublished
Cited by13 cases

This text of 101 Ct. Cl. 54 (Silberblatt & Lasker, Inc. 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
Silberblatt & Lasker, Inc. v. United States, 101 Ct. Cl. 54, 1944 WL 3708 (cc 1944).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiff sues the defendant for the sum of $31,875.28, alleging that it breached its contract with plaintiff for the construction of a post office at Poughkeepsie, New York, in that it changed the stone to be used in the construction of the building from bluestone and granite to rubble stone. Plaintiff also says that liquidated damages for 4 days’ delay were improperly deducted, and that it was required to use a bluestone which was more expensive than that specified in the specifications.

The building was originally designed to be faced with bluestone below the level of the first floor and with split-face granite above the level of the first floor, with a belt course, quoins, window sills, lintels, and arches of bluestone. This was changed to call for a building constructed of rubble or field stone and certain bluestone.

The original contract provided for a consideration of $330,000. The head of the department found that the changes entitled plaintiff to an equitable adjustment of its contract price in the amount of $30,393.93. Plaintiff says [80]*80¡that these changes were beyond the scope of the contract and, therefore, do not come within the provisions of article 3 thereof permitting the contracting officer to make changes within the general scope of the contract. The change was merely from one character of stone to another, and in our opinion was within the general scope of the contract. Cf. General Contracting and Construction Co. v. United States, 84 C. Cls. 570. Even if the change was beyond the scope of those permitted, the plaintiff acquiesced in the making of it; it claimed no breach of contract, but continued performance of it as changed. The change made, therefore, is go,v-erned by articles 3 and 15 of the contract.

Article 3 permits the making of changes and provides for an equitable adjustment in the amount due under the contract and for an adjustment in the time required for its performance. Plaintiff originally submitted a proposal for an increase in the contract price of $86,568.97 for doing the work as changed, but later increased this to $92,959.26. However, this was later reduced to $45,395.57, but this figure did not include additional, overhead due to delays incident to the changes made, additional temporary heat, and other items. The contracting officer considered this proposal excessive and proceeded to determine the dispute under article 15 of the contract. This article provided, in part:

* * * all disputes concerning questions of fact arising under this contract shall be decided by the contracting officer subject to written appeal by the contractor within 30 days to the head of the department concerned or his duly authorized representative, * * *.

Since what constitutes an equitable adjustment is a question of fact (United States v. Callahan-Walker Construction Co., 317 U. S. 56), this article authorized the contracting officer and the head of the department to settle the dispute. It was a dispute over the equitable adjustment to be made for a change authorized by article 3, and, therefore, was a dispute arising under the contract, except for any damages that may have been incurred because of any unreasonable delay in deciding on the change. Article 3 contemplates that changes desired should be made without unreasonably delaying the contractor. If there was an [81]*81unreasonable delay, there was a breach of the contract. Magoba Construction Co. v. United States, 99 C. Cls. 662, 690. Such a dispute the contracting officer is not authorized to decide finally; his authority is limited to disputes “arising under the contract”; it does not extend to disputes over a breach of the contract, for this is one arising outside of the contract. Cf. Langevin v. United States, No. 43903, decided May 3, 1943 (100 C. Cls. 15).

Plaintiff, however, does not claim there was an unreasonable delay in making the changes and we assume there was none. Therefore, the dispute over what was an equitable adjustment on account of the change was a dispute arising under the contract, which the contracting officer was authorized to decide.

The contracting officer found that an equitable adjustment of $23,000 was proper. Plaintiff appealed to the head of the department, who, after evidently careful consideration, rendered an opinion holding that $30,393.93 was the proper equitable adjustment.

Article 15 makes his decision on such a question final and conclusive. There is nothing in the record to show that his action was arbitrary or capricious or was grossly erroneous; on the contrary, the authorized representative of the head of the department, the Honorable John W. Hanes, then Under Secretary of the Treasury, evidently gave the matter careful and painstaking consideration. We, therefore, are concluded by his findings, with the exception above stated, unless the plaintiff is correct in saying that they are void and of no effect because concurred in by John M. Carmody, Administrator of the Federal Works Agency.

At the time the contract was entered into the Public Buildings branch of the Procurement Division was under the jurisdiction of the Treasury Department, but on July 1, 1939, its functions were vested by Executive Order in the Public Buildings Administration of the Federal Works Agency. For fear there might be some question as to the proper person to settle disputes arising under the contract, it was arranged between the Under Secretary of the Treasury and the Administrator of the Federal Works Agency that the Under Secretary would render a decision in the [82]*82case and would submit it to the Administrator for review. This was done, and the Administrator concurred in the decision of the Under Secretary. The fact that he agreed with the Under Secretary’s decision did not make it any the less the decision of the Under Secretary. The proof shows that his decision was rendered without prior conference with the Administrator and was uninfluenced by the views of the Administrator. But even though there had been a prior conference between these two men, there is nothing whatever in the proof to show that the judgment of the Administrator of the Federal Works Agency was substituted for the judgment of the Under Secretary. Whether or not in arriving at his judgment he may have secured the opinion and advice of a stranger to the contract, there is nevertheless nothing to show that the judgment rendered by him was not his own independent judgment. Jacob Schlesinger, Inc. v. United States, 94 C. Cls. 289, 307; cf. Public Service Commission of Missouri, et al., v. Brashear Freight Lines, Inc., et al., 312 U. S. 621, 626.

We are of opinion that the provisions of the contract have been complied with and that the plaintiff is bound by the decision made. Plaintiff claims damages for the delay caused it by making the change. Such damages cannot be recovered unless there was unreasonable delay in making the change. Magoba Construction Co. v. United States, supra. Cf. United States v. Rice and Burton, Receivers, 317 U. S. 61.

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

Related

Alliance Roofing & Sheet Metal, Inc.
Armed Services Board of Contract Appeals, 2015
Redland Co. v. United States
97 Fed. Cl. 736 (Federal Claims, 2011)
F. S. Jones Construction Co. v. Duncan Crane & Rigging, Inc.
468 P.2d 699 (Court of Appeals of Washington, 1970)
Commercial Cable Co. v. United States
170 Ct. Cl. 813 (Court of Claims, 1965)
Utah Construction & Mining Co. v. United States
339 F.2d 606 (Court of Claims, 1964)
Robert E. Lee & Co. v. United States
164 Ct. Cl. 365 (Court of Claims, 1964)
United States v. Heaton
195 F. Supp. 742 (D. Nebraska, 1961)
F. H. McGraw & Co. v. United States
130 F. Supp. 394 (Court of Claims, 1955)
FH McGraw and Company v. United States
130 F. Supp. 394 (Court of Claims, 1955)
Boomer v. Abbett
263 P.2d 476 (California Court of Appeal, 1953)
James Stewart & Co. v. United States
63 F. Supp. 653 (Court of Claims, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
101 Ct. Cl. 54, 1944 WL 3708, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silberblatt-lasker-inc-v-united-states-cc-1944.