Surplus Properties Corp. v. United States

100 F. Supp. 939, 120 Ct. Cl. 709, 1951 U.S. Ct. Cl. LEXIS 91
CourtUnited States Court of Claims
DecidedNovember 6, 1951
DocketNo. 49052
StatusPublished
Cited by2 cases

This text of 100 F. Supp. 939 (Surplus Properties Corp. 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
Surplus Properties Corp. v. United States, 100 F. Supp. 939, 120 Ct. Cl. 709, 1951 U.S. Ct. Cl. LEXIS 91 (cc 1951).

Opinion

Littleton, Judge,

delivered the opinion of the court:

Plaintiff herein seeks to recover $8,350.58, arising out of two separate claims for freight and demurrage paid by plaintiff on shipments made by the War Assets Administration, under a surplus property sales contract. The Government has admitted liability upon one claim of $1,328.35, which resulted from an erroneous shipment of the wrong type property. The second claim is for $7,022.23 freight and demur-rage charges paid by plaintiff on twenty-seven carloads of storage tanks shipped to it about July 2, 1946, by the War Assets Administration after plaintiff failed, after repeated requests, to issue shipping instructions for the bulk of its purchase.

On April 26,1946, following a period of negotiations, plaintiff, a Seattle, Washington, surplus dealer, entered into a written agreement with the War Assets Administration, represented by officials of its Seattle regional office, to purchase 450 storage tanks of various capacities for $72,000. These tanks were located at South Tacoma Naval Base, Washington. The agreement, which consisted of a standard form surplus sales contract, provided that the purchaser should accept delivery and issue shipping instructions within ten days from the date of the sale, unless a longer period of time was expressly permitted in writing by the War Assets Administration. If the acceptance of delivery was not made within the above-mentioned period, War Assets Administration, without limiting any other rights it might have, reserved the right to cancel the contract, or to charge storage for the goods sold. The right to ship in the event plaintiff delayed unreasonably to furnish shipping orders, was one of the rights of defendant under the contract. The agreement further provided that any other terms, or variations of the written terms, had to be agreed upon in writing by both parties. In a blank space on the agreement marked “Shipping Instructions— Kouting and Delivery,” the statement “Hold for shipping instructions,” was filled in.

[717]*717During the period from May 7,1946, to July 2,1946, plaintiff issued a series of nine shipping orders or instructions to defendant, all of which called for small lot shipments to various destinations. Such instructions issued through June 27,. 1946, were accepted and executed by the defendant. However, in one instance, War Assets Administration erroneously shipped eight tanks of the wrong size to Savage, Minnesota, and it is the demurrage and freight charges for this shipment-that constitute plaintiff’s claim of $1,328.35. This item is not here in controversy.

Sometime in May 1946, about a month after purchase and after plaintiff had issued several small lot shipping instructions, an authorized agent of War Assets Administration informed plaintiff’s secretary that these tanks had been sold for immediate bulk shipment and that War Assets Administration could not henceforth honor requests for individual shipments. Thereafter, defendant’s agents constantly protested to plaintiff about this practice, but these protests by defendant were disregarded by plaintiff which insisted that the salesman of defendant had promised that small lot shipments might be made. War Assets Administration continued to ship tanks under small lot shipping instructions.

Sometime between June 10 and 15, 1946, following the-erroneous Minnesota shipment, a War Assets Administration agent once again notified plaintiff that the Government would only fulfill instructions calling for the shipment of the balance of the tanks on hand. At this time plaintiff agreed to issue such shipping instruction if defendant would honor the small orders then before it. Defendant complied with, plaintiff’s request, but never received the promised shipping order. By July 1, 1946, War Assets Administration had made shipment of all small lot orders on hand, and on that date the subregional director of the South Tacoma Naval Base again contacted plaintiff and requested the immediate issuance of the promised shipping instructions for the balance of the tanks to one destination. Despite this request, plaintiff on July 2, 1946, again issued shipping instructions-for a small order. On the same day, July 2, the field supervisor of'War Assets Administration assigned to the South. [718]*718Tacoma Base, issued an order authorizing and directing the loading and shipment of the balance of the tanks to plaintiff’s Seattle address, freight collect, although no instructions as to the hulk of the purchase had been issued by plaintiff. Plaintiff was not notified that this order was being issued.

On July 12,1946, this shipment, consisting of twenty-seven carloads of tanks, arrived in Seattle, and on July 18, 1946, pursuant to an agreement betwen the parties, plaintiff, without prejudice to its claim for freight and demurrage resulting from this allegedly unauthorized shipment, unloaded the cars to prevent the further accumulation of demurrage charges.

Thereafter, plaintiff filed claims totaling $8,350.58 with the War Assets Administration, which amount represented a claim of $1,328.35 arising out of the erroneous shipment, and a claim of $7,022.23 representing the combined total of the freight and demurrage charges on the final shipment. The Seattle regional office, on January 9, 1947, admitted liability for the $1,328.35, but disallowed the claim arising out of the final shipment because of plaintiff’s failure to issue shipping instructions in accordance with the contract. Plaintiff’s appeal to the Washington, D. 0., office of War Assets Administration resulted in a denial of both claims.

Plaintiff then took a further appeal to the Office of the General Counsel for War Assets Administration on November 13, 1947, and submitted with the appeal additional evi- , dence in support of the $1,328.35 claim arising out of the erroneous shipment. By a decision dated August 16, 1943, the War Assets Administration allowed the full amount of both of plaintiff’s claims, that is, $8,350.58, on the grounds that War Assets Administration was at fault on the claim for $1,328.35 in making the erroneous shipment, and that it was negligent in not notifying plaintiff that shipment of the balance of plaintiff’s purchase was being made. However, the War Assets Administration also found that under the terms of the contract, it was entitled to charge plaintiff storage on the tanks for the period from May 12 to July 2, 1946, pursuant to paragraph (13) (2) of the terms and conditions of the contract (finding 2). Consequently, War As[719]*719sets Administration entered a decision in the amount of $12,065.48 in favor of itself and against plaintiff, thereby-leaving a balance, after deduction of plaintiff’s claims of $8,350.58, of $3,714.90 due and owing from plaintiff to defendant, and payment of this balance was demanded.

Plaintiff obtained from the Office of the General Counsel a further review of the August 16, 1948, decision in so far as it permitted War Assets Administration to recover storage charges. Although plaintiff insisted that War Assets Administration had neither made the necessary election to assert its contract right to charge storage, nor given plaintiff notice of this election, the War Assets Administration, on November 24, 1948, affirmed its prior decision of August 16, 1948. The decision of August 16 was found to constitute sufficient timely notice to plaintiff that the claim for storage charges was being asserted.

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100 F. Supp. 939, 120 Ct. Cl. 709, 1951 U.S. Ct. Cl. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/surplus-properties-corp-v-united-states-cc-1951.