United Contractors, a Co-Partnership Consisting of James E. Ward, Elkin Morris and Andrew J. Dickies v. The United States

368 F.2d 585, 177 Ct. Cl. 151, 1966 U.S. Ct. Cl. LEXIS 267
CourtUnited States Court of Claims
DecidedOctober 14, 1966
Docket42-63
StatusPublished
Cited by75 cases

This text of 368 F.2d 585 (United Contractors, a Co-Partnership Consisting of James E. Ward, Elkin Morris and Andrew J. Dickies v. The 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
United Contractors, a Co-Partnership Consisting of James E. Ward, Elkin Morris and Andrew J. Dickies v. The United States, 368 F.2d 585, 177 Ct. Cl. 151, 1966 U.S. Ct. Cl. LEXIS 267 (cc 1966).

Opinion

OPINION

DAVIS, Judge *

On August 13, 1953, the Corps of Engineers awarded plaintiff, United Contractors, a contract to build outside utilities at Eielson Air Force Base, Alaska, at a price of $738,382.50. The agreement called for construction below ground of over a mile of concrete tunnels (“utilidors”) with heights and widths varying between two and six feet. The depth of the tunnel excavation ranged from five and one-half feet to nine feet. The utilidors were to be built by pouring reinforced concrete into pre-set forms on the sides and floor of the excavation. Inside the utilidors, the contractor was to install water supply pipes, steam pipes, steam return pipes, and sewer lines which connected with existing facilities at the Base. When this was done, the concrete-lined trench was to be covered with premolded concrete lids and with earth to ground level. The major portion of the project was to be ready by December 1, 1953, and the entire contract was to be completed by June 1, 1954. The work was finished on schedule and accepted.

During performance, United encountered a number of obstacles which greatly swelled the cost of completing the project. The most troublesome was a condition of underground water which hindered the progress of excavation, and which, plaintiff alleges, amounted to a changed condition. United also says that it was hampered by a variety of lesser, unexpected hurdles. As a result of these difficulties, plaintiff submitted thirty claims to the contracting officer totaling $404,702.26. He decided that the contractor was entitled to be reimbursed in part, and modified the contract (by a “Change Order” dated May 29,1954), increasing the price by $136,652.70. On April 15, 1957, plaintiff appealed to the Corps of Engineers Board of Contract Appeals which, after a full hearing, denied some of the contractor’s claims, allowed others in stated amounts, and granted still others in principle but remanded them to the contracting officer for determination of the amount due. United again appealed, this time to the Armed Services Board of Contract Appeals which (on February 28, 1962) allowed some counts and denied others. The Board held plaintiff entitled to $10,-194.60, which the Engineers Board had earlier awarded (on items not presented to the ASBCA), and a further sum of $42,270.19. 1962 BCA fl 3314. This amount ($52,464.79) has been paid. On February 14, 1963, the present suit was filed, seeking recovery of an additional $230,155.91 on the ground that aspects of the ASBCA decision are erroneous under the Wunderlich Act standards (41 U.S.C. §§ 321, 322).

*593 The case has been presented solely on the administrative record. 1 Our trial commissioner instructed plaintiff to file an “Assignment of Errors” pointing out specifically the errors which, in its view, the Armed Services Board committed and citing the portions of the record on which this position rests. This method of proceeding was implicitly approved in H. R. Henderson & Co. v. United States, 169 Ct.Cl. 228, 231-35 (1965), and more explicitly sanctioned in Norfolk Dredging Co. v. United States, 360 F.2d 619, 620 & n. 1, 175 Ct.Cl. -, - (1966). Plaintiff’s assignment specified eleven alleged defects in the ASBCA decision; defendant responded issue by issue. The trial commissioner then filed a recommended opinion, rejecting some of plaintiff’s claims and granting others. Both parties challenge one or another of these conclusions.

We discuss, in Part I, infra, the Government’s defense that the entire claim is barred by the statute of limitations. Part II treats United’s primary contention — that the Armed Services Board erred in not finding that plaintiff met changed subsurface water conditions. Part III deals seriatim with plaintiff’s ten specific claims for reimbursement.

I

THE STATUTE OF LIMITATIONS

The work was completed and accepted in June 1954. Suit was begun on February 14, 1963, more than six years after the completion date. Although the defendant did not argue in its brief that the entire claim was therefore barred by limitations (and in fact confessed judgment on one item — Claim 2 in Part III, infra), it did raise that over-all defense at oral argument — after it had clarified its general position on the statute of limitations for contract cases, in connection with the presentation of Nager Elec. Co. v. United States, Ct.Cl., 368 F.2d 847, 851, and we consider the argument.

In Nager Elec. Co. v. United States, Ct.Cl., 368 F.2d 847, decided today, we reject the position that a contract claim is necessarily barred by 28 U.S.C. § 2501 if suit is not brought within six years after completion and acceptance. We adhere, instead, to the consistent view of this court that, where an administrative remedy is required by the contract, such as the “disputes” process culminating in an appeal to the Armed Services Board of Contract Appeals, the statute of limitations does not run until the determination of the designated administrative agency. In this case the decision of the Armed Services Board of Contract Appeals was handed down on February 28, 1962, less than a year before the petition was filed here. The suit is therefore timely.

We do not have in the present case any item (or sub-claim) which is not “under the contract” (within the meaning of United States v. Utah Constr. & Mining Co., 384 U.S. 394, 86 S.Ct. 1545, 16 L.Ed.2d 642 (1966)) but is solely a “breach claim” outside of the authority of the ASBCA. Each of the ten specific claims now before us (see Part III, infra) was considered and determined by the Board of Contract Appeals, under one or another contract adjustment provision giving redress to the contractor (e. g., Changed Conditions clause; Changes clause; Suspension of Work clause). In each instance the Board acted within its jurisdiction to determine the controversy and to grant monetary relief if warranted. But even if we were to deem some of the items to be “breach claims”, we would nevertheless hold, under the Nager Electric Co. decision, that no part of the single cause of action un *594 der this indivisible contract was time-barred when suit was filed on February 14, 1963.

If the proper rule is that the cause of action accrued on completion of the work in June 1954, but that limitations was tolled during the administrative consideration of plaintiff’s claims (see the dissenting opinion of Judge Anderson in Crown Coat Front Co. v. United States, 363 F.2d 407 (C.A. 2, decided June 22, 1966); and the opinion of the Third Circuit in Northern Metal Co. v.

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Bluebook (online)
368 F.2d 585, 177 Ct. Cl. 151, 1966 U.S. Ct. Cl. LEXIS 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-contractors-a-co-partnership-consisting-of-james-e-ward-elkin-cc-1966.