Silverton v. United States

118 Ct. Cl. 232, 1951 U.S. Ct. Cl. LEXIS 99, 1951 WL 5351
CourtUnited States Court of Claims
DecidedJanuary 9, 1951
DocketNo. 47674
StatusPublished
Cited by3 cases

This text of 118 Ct. Cl. 232 (Silverton 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
Silverton v. United States, 118 Ct. Cl. 232, 1951 U.S. Ct. Cl. LEXIS 99, 1951 WL 5351 (cc 1951).

Opinion

JoNes, Chief Judge,

delivered the opinion of the court:

The several plaintiffs ask for damages for alleged breach of contracts, due to defendant’s failure to deliver the number of mattresses which the plaintiffs claim the defendant was obligated to deliver under their several similar contracts with the Office of Surplus Property, Department of Commerce.

[242]*242Under Rule 9 (a) the hearings have been limited to the claim of A. Allan Silverton, doing business under the name of A. A. Silverton & Company, who will be referred to as plaintiff.

About September 21, 1945, the Office of Surplus Property sent circulars to dealers in rags and waste materials offering to sell used cotton-filled mattresses in lots of 1,000 or designated multiples thereof up to a maximum of 160,000 to any one purchaser. The prices varied from $1.30 to $1.00 per mattress depending on the quantity purchased.

Plaintiff by telegram, letter and telephone offered to purchase 160,000 such mattresses.

On October 1, 1945, plaintiff and the defendant, through the Office of Surplus Property, entered into a contract for the purchase by plaintiff of 160,000 mattresses, or such lesser quantity as the Government might make available for delivery under that and other similar contracts with other purchasers.

Among the material provisions of the contract were the following:

I. During the period beginning with the date of this contract and ending on January 31,1946, the Government agrees to sell and the Purchaser agrees to buy 160,000 used mattresses, or such lesser quantity as the Government may make available for delivery under this and similar contracts entered into by the Government with other, purchasers.
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4. * * * It is further understood, that, if at the termination date of this agreement, deliveries have not been made in the amount of 160,000 mattresses, the parties hereto by mutual agreement may continue deliveries of mattresses hereunder until Purchaser has received 160,000 mattresses.
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II. Except as modified herein, this contract includes the terms and conditions set forth in Commerce Department Sales Conditions No. 1, dated July 9,1945, a copy of which is attached hereto.

Commerce Department Sales Conditions No. 1, referred to in said contract, provided in part as follows:

[243]*243The Government also reserves the right to withdraw from sale any property prior to the removal thereof without incurring any liability except to refund to the purchaser any amount paid with respect to such property.

Plaintiff executed the contract and returned it, together with a deposit of $40,000 as provided in the contract.

In early October plaintiff entered into three contracts with paper mills for the sale to them of a total of 95 carloads of 1,000 mattresses each at 5% cents per pound. One of the contracts had first stated 5% cents per pound, but before delivery started the price was changed to 5% cents per pound. The mattresses weighed approximately 23 pounds each.

Two other contracts were entered into in November 1945 with other mills for the delivery of a total of 36 carloads.

On January 31,1946, plaintiff made another contract with one of the same mills for a delivery of “six or seven carloads” at 6% cents per pound.

Plaintiff made deliveries on all these contracts, but as of October 20,1946, had completed deliveries only on the contract dated January 31, 1946.

In the meantime by a series of executive orders and one legislative enactment the functions of the Office of Surplus Property were transferred to and vested in the War Assets Corporation and finally in the War Assets Administration.

On January 31, 1946, the War Assets Corporation and plaintiff executed an amendment to the contract extending the time of delivery to June 30, 1946, or to such time before that date as 160,000 mattresses might be delivered to plaintiff. And on June 29, 1946, the War Assets Administration and plaintiff executed a similar amendment changing the final expiration date to December 31, 1946.

Section 16 of the Surplus Property Act of 1944, 58 Stat. 765-773, in respect to veterans’ priorities, is as follows:

Sec. 16. The Board shall prescribe regulations to effectuate the objectives of this Act to aid veterans to establish and maintain their own small business, professional, or agricultural enterprises, by affording veterans suitable preferences to the extent feasible and consistent with the policies of this Act in the acqui'si[244]*244tion of the types of surplus property useful in such enterprises.

By the act of May 8, 1946, 60 Stat. 168, Public Law 375, the Surplus Property Act of 1944 in respect to veterans’ priorities was amended by substituting Section 16 (a), which as thus amended, reads as follows:

Sec. 16 (a). The Administrator shall prescribe regulations to effectuate the objectives of this Act to aid veterans in the acquisition of surplus property, in appropriate quantities and types, to enable them to establish and maintain their own small business, professional, or agricultural enterprises. Disposals of surplus property (except real property) to veterans under this subsection shall be given priority over all other disposals of property provided for in this Act except transfers to Government agencies under section 12.

On the same day, May 3, 1946, the War Assets Administration issued its amended Regulation No. 2 which directed each disposal agency to set aside all surplus property in its possession for exclusive disposal to veterans for their own personal use or for enabling them to establish and maintain their own small business, professional, or agricultural enterprises. Such property was directed to be held for not less than 15 days, or for such longer period as the Administrator might direct, after public notice of its availability for disposal to veterans holding certificates.

The defendant continued to make some deliveries under the contracts with the several plaintiffs until October 30, 1946, but on that date defendant failed and refused to make any further deliveries to plaintiff under his contract. This action was taken on account of a ruling by the legal staff of the War Assets Administration that the act of May 3, 1946, required that used mattresses must be tendered to veterans, plus the fact that the exercise by veterans of their priority to purchase such mattresses was so extensive that it became clear to those in charge that none of them would be available for other purchasers.

On November 12, 1946, plaintiff wrote to the War Assets Administrator requesting fulfillment of his contract. The Administrator replied on November 25, 1946, calling attention to the escape provisions of the contract, reciting that [245]*245every effort had been made to fairly distribute the available surplus mattresses to the several persons or firms holding contracts; but stating that after the passage of Public Law No. 375 the preference to veterans and other claimants became mandatory and that the War Assets Administration had no alternative but to satisfy first the priority claimants.

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Related

Freedman v. United States
162 Ct. Cl. 390 (Court of Claims, 1963)
Dulien Steel Products, Inc. v. United States
143 Ct. Cl. 484 (Court of Claims, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
118 Ct. Cl. 232, 1951 U.S. Ct. Cl. LEXIS 99, 1951 WL 5351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silverton-v-united-states-cc-1951.