Smith v. United States

48 Ct. Cl. 235, 1913 U.S. Ct. Cl. LEXIS 116, 1912 WL 1189
CourtUnited States Court of Claims
DecidedMarch 24, 1913
DocketNo. 29849
StatusPublished

This text of 48 Ct. Cl. 235 (Smith 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
Smith v. United States, 48 Ct. Cl. 235, 1913 U.S. Ct. Cl. LEXIS 116, 1912 WL 1189 (cc 1913).

Opinion

Booth, J.,

delivered the opinion of the court:

The claimant, Augustus Smith, entered into a written agreement on November 18,1901, to furnish all materials and labor necessary to construct a coal-storage plant at the New York Navy Yard. The work was to be completed within 12 calendar months from the date of the contract. The coal-storage plant contemplated by the contract was to be a steel structure containing four panels or pockets so arranged that movable machinery above the same could be used in hoisting and depositing coal inside these pockets, the purpose being to coal vessels from said pockets expeditiously. At the timé of the proposals for and the letting of the contract the defendants had $60,000 available for the purpose. It was contemplated, however, and well known to both parties to the contract, that the defendants had requested an additional appropriation of $100,000 for the expressed purpose of enlarging the plant, and the claimant included within his bid, which was also included within the contract, an expressed agreement to construct additional coal pockets or panels for the sum of $7,500 each. The consideration for the construction of the four panels and other portions of the plant, as authorized by the available money on hand, was $60,000. Immediately after the claimant received notice of the acceptance of his bid he made his plans for the materials necessary to be used and took the necessary steps to execute the contract; in fact, he anticipated a $100,000 appropriation, and ordered necessary materials for, the same before the amount was appropriated by Congress.

On July 1, 1902, Congress made the necessary appropriation, and on August 12, 1902, defendants notified the claimant that he would be required to construct 13 additional coal pockets or panels. By the terms of the agreement the defendants were to construct the pier upon which the struc[251]*251ture was to rest. This pier was to be properly filled, leveled off, and the foundation for the superstructure fully completed before the claimant could commence his work. The pier was sufficiently advanced to permit the claimant to commence work on June 1, 1903, on which date he did commence work, completing the structure on July 25,1904, which, after proper tests, was finally accepted and paid for, except the sum of $1,375, which was deducted by the defendants because of delays chargeable to the claimants under the liquidated-damage clause of the contract. This suit is to recover said sum, together with two other small items for expense in maintaining the plant during a period of delay and for certain spare parts which the defendants claim the claimant failed to supply.

It is not difficult to glean from the findings the indisputable circumstances surrounding the making and execution of this contract. The contractor knew at the time he executed the specific writing that he might be called upon to do additional work; in fact, he so certainly anticipated this event that he' acted upon it at a time previous to the granting of any authority so to act. The Government, on the other hand, while acting in the execution of the contract strictly within its then authority, provided by express terms for a contingency which it was then urging and which, when it did happen, would be covered by the consideration stated in this single written instrument. The Government, fully aware of the uncertainties of legislation respecting appropriations of public funds, contracted for a coal-storage plant to be erected at a cost of $60,000 to be completed within a year from the date of the contract. That was the subject matter of the contract at the time of its execution, it was the limit of the Government’s authority in the premises, and exhausted the public funds available for the purposes of the contract. Until Congress appropriated an additional sum no other stipulations respecting the price or extent of the work to be done were in effect. Subsequent to the additional appropriation and after the defendants had decided to enlarge the plant, the claimant’s obligations under the contract expanded accordingly. The contingency anticipated by both parties had hap[252]*252pened, the time limit in the contract had no reference to the enlarged work, and the defendants never so construed it. At the time of the execution of the contract they had no authority to do more than contemplate its possibility and provide for its happening. It would be utterly absurd to impute such an intention, for the work itself was increased more than threefold and the consideration for it more than doubled.

It was a conceded physical impossibility for the defendants themselves to execute their preliminary obligations upon which the claimant’s commencing of the work absolutely depended, within or even approximately within any date mentioned in the contract. With manifest fairness the defendants admit that the pier upon which the whole structure to be erected was to rest was not ready for the commencement of work until June 1,1903. With an apparent spirit of fairness and conciliation the defendants compute the period of claimant’s delay upon a basis of compromise. Making the most of it, the computation manifests decided uncertainty, adopts arbitrary dates, and finally' concedes an allowance to the claimant of 30 days, which, under the contract they claim the right to deduct for but which deduction they remit to make certain they have in no way exceeded their rights under the contract. No better compromise could have been proposed, perhaps, nor is bad faith in anywise imputed, but it is quite difficulty to understand just why July 1, 1902, was taken as the date for the commencement of the enlarged work, when the same was not ordered to be done until August 12, 1902. It is quite true the legislation making the increased appropriation became effective on that date, but it is equally true that the claimant had no knowledge of the extent of the additional work he was to perform or the obligations he must incur. The defendants’ counsel does not insist upon this date, but commences the work on June 1, 1903, gives the claimant one year from that date for performance, and by a strange coincidence reaches the same result, i. e., if you deduct the 30 days deducted by the Bureau of Yards and Docks. (See Finding vm.) Thus the claimant is charged with 55 days’ delay and liquidated damages assessed at $25 per diem, [253]*253amounting in all to $1,375. Viewed then in all its aspects the undertaking involved primarily the erection of a coal-storage plant costing $60,000 to be completed within one year from the date of the contract with a distinct provision therein that any enlargement of the plant thereafter authorized should be constructed at the additional expense of $7,500 for each panel. The very words of the contract conclusively show that the work intended by the $7,500 proposition was to be work in addition, to the $60,000 plant. A fixed unit price was stated without in any way signifying the number of units to be ordered. Neither party having any knowledge at the time as to the final extent of the whole work. Each contracting party so understood the agreement and each construed the contract as giving additional time in the event of additional work.

The defendants obligated themselves to erect and prepare the site, a precedent condition upon which the commencement of the erection of the plant depended. To do this under the enlarged work required an increase in the volume of work in proportion to that required of the claimant, and in performing it they consumed nine months and nineteen days from the time it was decided to do it, viz, from August 12, 1902, to-June 1, 1903.

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

Related

McGowan v. American Pressed Tan Bark Co.
121 U.S. 575 (Supreme Court, 1887)
District of Columbia v. Camden Iron Works
181 U.S. 453 (Supreme Court, 1901)
Laidlaw-Dunn-Gordon Co. v. United States
47 Ct. Cl. 271 (Court of Claims, 1912)

Cite This Page — Counsel Stack

Bluebook (online)
48 Ct. Cl. 235, 1913 U.S. Ct. Cl. LEXIS 116, 1912 WL 1189, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-united-states-cc-1913.