Steel Products Engineering Co. v. United States

71 Ct. Cl. 457, 1931 U.S. Ct. Cl. LEXIS 396, 1931 WL 2454
CourtUnited States Court of Claims
DecidedFebruary 9, 1931
DocketNo. H-27
StatusPublished
Cited by10 cases

This text of 71 Ct. Cl. 457 (Steel Products Engineering 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
Steel Products Engineering Co. v. United States, 71 Ct. Cl. 457, 1931 U.S. Ct. Cl. LEXIS 396, 1931 WL 2454 (cc 1931).

Opinion

Williams, Judge,

delivered the opinion:

The plaintiff sues to recover damages in the sum of $31,520.28, growing out of a contract between the plaintiff and the defendant for the reconditioning of five hundred Liberty engines.

Article I of the contract provides:

“ The contractor hereby agrees to recondition five hundred (500) New Liberty engines from storage, in accordance with Air Service Specifications No. 28303-A, the Government to provide the contractor with five hundred (500) Liberty engines, f. o. b. Little Rock Air Intermediate Depot, Little Eock, Ark., and the contractor to recondition the same in accordance with terms and conditions set forth in Air Service Order No. 816-23, photostatic copy of which is hereby attached and made a part of this contract, and in compliance with Air Service drawings and specifications, all of which are attached hereto, as a part hereof.”

The plaintiff claims damages in three respects: (1) Delaj in the commencement of the work because of the failure of the defendant to furnish necessary parts; (2) damages resulting from defective specifications; and (3) damages for extra freight charges incurred and paid for transportation of the engines from Little Eock, Arkansas, to the plaintiff’s plant at Springfield, Ohio.

These claims will be considered in the order of their statement.

(1) Damages because of delay. — The contract was executed January 21, 1923. The plaintiff immediately began the necessary preliminary work to enable it to perform the contract.

[470]*470The necessary tools, fixtures, and equipment were pro-curred; assembly and testing stands were erected; floor space for the work was provided; motor cleaning and motor-testing buildings were erected, and expert mechanics to do the work were employed.

This preliminary work was all performed and completed during the months of February and March, 1923. The plaintiff was ready and able to begin the actual work of reconditioning the engines in the latter part of March, 1923.

The defendant by the terms of the contract was required to furnish all new replacement parts, and parts necessary for the modification of the said engines. It was impossible for plaintiff to proceed with the work until the required parts were furnished.

When the plaintiff was ready to proceed with the work it developed that the defendant was not in possession of the necessary parts and could not furnish them to the plaintiff. On March 28, 1923, the plaintiff protested against the delay of defendant in furnishing the parts necessary to enable it to proceed with the work and was advised by the defendant that the parts would be furnished within sixty days. The parts, however, were not furnished within the sixty days as promised, and it was not until February 27, 1924, that the plaintiff received sufficient parts to enable it to begin actual work on the engines. Thus a period of one year elapsed after the plaintiff was ready and fully equipped to proceed with the work of reconditioning the said engines and the time when it was able to begin such work, because of the failure of the defendant to furnish the necessary parts.

During this delay the defendant from time to time extended the time of the performance of the contract, the plaintiff in the meantime keeping the organization it had created to do the work intact, holding itself ready to proceed and repeatedly protesting the delay.

The plaintiff seeks to recover its actual loss resulting from this delay. We think it is entitled to recover.

The law is well settled by the decisions of this and other courts that when the Government enters into a contract with one of its citizens it divests itself of the sovereign char[471]*471acter and, so far as that particular transaction is concerned, takes on that of an ordinary citizen, and has no immunity which permits it to recede from the fulfillment of its obligation. Purcell Envelope Co. v. United States, 47 C. Cls. 1; Cooke v. United States, 91 U. S. 389.

The defendant obligated itself to furnish the replacement parts to be used by the plaintiff in reconditioning the engines. The plaintiff could not proceed with the work until such parts were furnished. Notwithstanding the fact the defendant in its advertisement for bids emphasized the urgency of prompt performance, it delayed the plaintiff for a year in beginning the work by its failure to furnish such parts. The plaintiff is entitled to recover damages for actual losses resulting to it from such delay. United States v. Wychoff Pipe & C. Co., 271 U. S. 263; Cramp & Sons v. United States, 216 U. S. 494; Worthington Pump & Mach. Corp. v. United States, 66 C. Cls. 230; McCloskey, Jr., v. United States, 66 C. Cls. 105; Fore River Shipbuilding Co. v. United States, 62 C. Cls. 307; Moran Brothers Co. v. United States, 61 C. Cls. 73; Julius Goldstone et al. v. United States, 61 C. Cls. 401; Crook Co. v. United States, 59 C. Cls. 348.

These losses are fixed in the findings as follows:

Labor costs (Finding VIII)_$8,554.65

Bent of testing sbed (Finding IX)_ 181.25

Bental value of floor space (Finding X)_ 2, 663.96

Loss of service of special employees, (Finding XI)_ 2,487.79

(2) Damages resulting from defective specifications.— Upon the receipt of the necessary parts, March 1, 1924, plaintiff proceeded with the work of reconditioning the engines. Necessarily, in this work the plaintiff followed the specifications prepared and furnished by the defendant. Great difficulty was encountered from the first in securing oil-tight joints between the upper and lower halves of the crank case by the method prescribed in the specifications. The specifications in this respect were admittedly defective, as they also were found to be in other respects. These deficiencies were so obvious that on August 15, 1924, Change Order No. X-40 was issued in which deficiencies in the original specifications were corrected. The change order states:

[472]*472“ The specific methods of reconditioning Liberty motors prescribed in Specifications 28, 303-A, dated November 20, 1922, and in Change Order 182, dated February 27, 1923, having been found insufficiently comprehensive to secure the performance required of Liberty motors by the Air Service, new specifications are hereby prescribed as set forth below.”

A detailed recitation of the various changes made in the amended specifications is unnecessary. The changes were made necessary because of the demonstrated impossibility of reconditioning the engines satisfactorily in accordance with the original specifications.

From March 1, 1924, to July 26, 1924, the plaintiff, as shown in the findings, made every reasonable effort to perform the work and furnish reconditioned engines that would pass the test and function in accordance with the service requirements.

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Bluebook (online)
71 Ct. Cl. 457, 1931 U.S. Ct. Cl. LEXIS 396, 1931 WL 2454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steel-products-engineering-co-v-united-states-cc-1931.