Simpson Bros., Inc. v. District of Columbia

179 F.2d 430
Court of Appeals for the D.C. Circuit·Decided January 9, 1950·No. 9745·Published·Cited by 26 cases

Opinion

STEPHENS, Chief Judge.

On June 5, 1946, the appellee District of Columbia, hereafter referred to as the District, invited bids for the supplying of milk, cream and buttermilk, sometimes hereafter referred to as dairy products, from July 1 to September 30, 1946, inclusive, to various institutions maintained by the District. On June 21, 1946, the appellant Simpson Bros., Inc., hereafter referred to as Simpson, a distributor of dairy products, submitted a bid on a form prepared by the District- *431 This form included a so-called “escalator clause” reading as follows:

It is the intention of these specifications to obtain competitive proposals from dairies quoting prices for delivery of milk, cream, and buttermilk to institutions, schools, child day care centers, listed herein, in the quantities set forth in the attached schedule for the period beginning July 1, 1946, and ending September 30, 1946.
Should the maximum prices as promulgated by the Office of Price Administration, which are in effect on the date of the opening of these bids, be increased or decreased during the life of the contract, payment will be made by the District of Columbia at a rate of increase or decrease, not to exceed the same ratio that the prices herein quoted bear to the maximum prices authorized by the Office of Price Administration.

On June 26, by a letter from the District’s Purchasing Officer, Simpson was notified that an “award” had been made to it for the supplying of dairy products to certain District institutions. Delivery of the dairy products was commenced by Simpson on July 1 and continued to and including September 30, although a formal contract was not executed by Simpson until August 17, and not by the Purchasing Officer until September 20, and although a required approval of the contract by the Board of Commissioners of the District did not take place until September 24. 1 The formal contract as executed and approved contained the escalator clause. Upon the theory that the prices bid by Simpson and set forth in the formal contract were controlling, the District paid those prices in the total sum of $21,369.21 for the dairy products delivered. Simpson then commenced suit in the District Court of the United States for the District of Columbia (now the United States District Court for the District of Columbia) to recover an additional $4,485.-92, alleging in its complaint and in a supporting bill of particulars that this amount, additional to the bid prices, covered an “increase . . . approved by the Office of Price Administration and its successors . ” and was due it under the escalator clause. By way of answer to the complaint and bill of particulars the District admitted execution of the formal contract and admitted that the dairy products were supplied by Simpson, but denied that the increased amount sued for was approved by the Office of Price Administration or its successors and denied liability for the additional amount claimed. The District then moved, under Rule • 56, Federal Rules of Civil Procedure, 28 U.S.C.A., for a summary judgment on the complaint, bill of particulars and answer upon the ground that there was no genuine issue of material fact, and that the District was entitled to judgment as a matter of law. In addition to the pleadings above mentioned a stipulation between the parties was filed 'to the effect that “upon final determination of this case the Court is requested to refer the matter to the Auditor of the Court for determination of the amount, if any, due plaintiff by the defendant, upon the basis of the ruling of the Court on the law.” Simpson also moved for a summary judgment on the complaint, bill of particulars, answer and stipulation, and in this motion asserted that “since the parties hereto have by stipulation arrived at a definite amount on the account involved, which amount plaintiff claims is owing to it by defendant by reason of the provisions of the contract between said parties, this plaintiff concurs with the defendant that there is no genuine issue of material fact; and the plaintiff, Simpson . is entitled to judgment as a matter of law.”

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Simpson Bros., Inc. v. District of Columbia, 179 F.2d 430 (D.C. Cir. 1950).

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