United States ex rel. International Contracting Co. v. Lamont

2 App. D.C. 532, 1894 U.S. App. LEXIS 3257
CourtDistrict of Columbia Court of Appeals
DecidedMarch 5, 1894
DocketNo. 284
StatusPublished

This text of 2 App. D.C. 532 (United States ex rel. International Contracting Co. v. Lamont) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. International Contracting Co. v. Lamont, 2 App. D.C. 532, 1894 U.S. App. LEXIS 3257 (D.C. 1894).

Opinion

Mr. Chief Justice Alvey

delivered the opinion of the Court:

Upon the statement of the case, three questions arise for consideration:

1. Whether the appellant is not effectually concluded, as to any supposed rights it may have had under its first proposal for the work, by making the second proposal therefor, and entering into the contract upon the basis of such last proposal.

2. Whether, as there was no contract made and executed as required by the statute, the whole subject-matter was not within the judgment and discretion of the Secretary of War, as to the right of having the formal contract executed, and therefore not the subject of mandamus. ,

3. Whether, by the terms and-conditions under which the first proposal was made^ there was not full reserved right and power in the Secretary of War to disapprove and reject the bid or proposal of the appellant.

1. With respect to the first of these questions, the position of the appellant is certainly anomalous. Upon the rejection by the Secretary of War of the first proposal by the [543]*543appellant, the latter elected to become a bidder at-a second letting of the work, and at a different price, and has not only entered into the formal contract as required upon the basis of the second bid, but has partly executed the work under that contract; and it now seeks to revert back to its first proposal, and to have that formulated into a regular binding contract upon the United States; and thus have two subsisting contracts for the same work, and calling for compensation at essentially different rates. To justify this there must be shown to exist some peculiar and extraordinary element in the’ transaction, that would take it out of the ordinary course of affairs, and warrant a legal construction of the facts that does not often arise. There is no pretence that there was any mistake that led the appellant into the making of the second bid or proposal and the entering into the contract awarded thereon for doing the work. Nor is there the slightest ground for contending that there was duress, either legal or moral, which coerced the appellant into making the second bid, and complying with the terms of the specifications and conditions prescribed to those who desired to contract for doing the work, at prices supposed to be profitable to themselves.

The Government, in rejecting the first proposal and re-advertising the work for new proposals, put the appellant to its election, either to stand by its first proposal, and take the chance of maintaining it, or to waive all claim or pretension thereunder, and become a new bidder under the second offer of the work. This election the appellant made. If it did not intend to stand by the second bid or proposal in good faith, it ought to have refrained from bidding altogether at the second offer. A remedy was then open to it, and which would have afforded adequate redress, if the present claim was well founded. For, as said by the Supreme Court, in the case of Board of Liquidation v. McComb, 92 U. S., 531, 541, when a plain ministerial duty is threatened to be violated by some positive official act, “any person who will sustain personal injury thereby, for [544]*544which adequate compensation cannot be had at law, may have an injunction to prevent it. In such cases the writs of mandamus and injunction are somewhat correlative to each other.” The court is not asked to displace the contract made on the second bid by the contract to be executed under the first proposal made; but .the two contracts are, according to the contention of the appellant, to coexist, and the Government to be held bound upon both, and made to respond for the difference in the price of the work between the two contracts. This cannot be done upon any well recognized principle of law. If the appellant had any valid objection to the provision of the contract that it actually signed, it should have refused to sign it. But, “having made it and executed it, the mouth of the appellant is closed against any denial that it superseded all previous arrangements.” Parish v. United States, 8 Wall., 489, 490.

2. The second question presented is equally conclusive as the first against the contention of the appellant, though upon- broader grounds. The contract initiated under the first proposal by the appellant for the work was never completed, as required by the statute, and therefore was never binding upon the Government. Rev. Stat. United States, Sec. 3744, which embodies the act'of Congress of June 2, 1862, Ch. 93, provides that:

“ It shall be the duty of the Secretary of War, of the Secretary of the Navy, and of the Secretary of the Interior to cause and require every contract made by them severally on behalf of the Government, or by their officers under them appointed to make such contracts, to be reduced to writing, and signed by the contracting parties with their names at the end thereof, a copy of which shall be filed by the officer making and signing the contract in the Returns Office of the Department of the Interior, as soon after the contract is made as possible, and within thirty days, together with all bids, offers and proposals to him made by persons to obtain the same, and with a copy of any advertisement he may have published inviting bids, offers or proposals for the ■ same. [545]*545All the copies and papers in relation to each contract shall be attached together by a ribbon and seal, and marked by numbers in regular order according to the number of papers composing the whole return.”

All contracts,-of the class and character of the one alleged in this case, are required by the section of the statute just recited to be in writing and formally signed by the contracting parties; and in effect this provision of the statute prohibits and renders unlawful any other mode of making such contracts. Clark v. United States, 95 U. S., 539; South Boston Iron Co. v. United States, 118 U. S., 37, 42. The contract is not complete until reduced to written form and signed by the contracting parties, in the manner prescribed by the statute; and it is not within the power of the court, on mandamus, to declare that to be a completed and binding contract, which the statute declares in effect shall not be so without certain formalities. These formalities are intended for the protection of the Government, and to preclude all contentions as to what shall be regarded as valid contracts to bind the Government. But all the beneficial uses and protection afforded by the statute would be nullified, if the courts were to assume the right or power to compel the agents of the Government to give form and effect to alleged contracts, notwithstanding the mandatory effect of the statute upon the validity of the contract, and the opposition of the Government’s agents. In this case, no written agreement, such as that contemplated by the statute, was signed and executed by either of the parties. The local engineer, and the chief of engineers, it is true, both appear to have approved of the proposal of the appellant, and to have accepted the proposals so far as they were competent, and the appellant was notified of the fact. But the ultimate decision of the matter rested with the Secretary of War. Indeed, this application against the Secretary alone, concedes his authority to be paramount, and nothing that was done, either by' the local engineer in New York, or the engineer-in-chief in Washington, concluded [546]*546the action of the Secretary of War.

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2 App. D.C. 532, 1894 U.S. App. LEXIS 3257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-international-contracting-co-v-lamont-dc-1894.