United States ex rel. Lanehart v. United Enterprises, Inc.

118 F. Supp. 427, 1954 U.S. Dist. LEXIS 4521
CourtDistrict Court, W.D. Louisiana
DecidedFebruary 4, 1954
DocketCiv. No. 3761
StatusPublished
Cited by2 cases

This text of 118 F. Supp. 427 (United States ex rel. Lanehart v. United Enterprises, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana 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. Lanehart v. United Enterprises, Inc., 118 F. Supp. 427, 1954 U.S. Dist. LEXIS 4521 (W.D. La. 1954).

Opinion

DAWKINS, District Judge.

Defendant, United Enterprises, Inc. (called United), entered into a general contract with the Government to repair or remodel certain buildings at Camp Polk, Louisiana, and in turn sublet the painting to plaintiff. In this suit the latter claims a balance due him of $11,-663.96. He alleges that although his original bid for the painting was $90,000, under the terms of the primary agreement, the Government had the right to increase or diminish the quantities as follows:

“SC-15-Estimated Quantities. The quantities listed below are estimates only. The contractor will be required to complete the work specified herein in accordance with the contract. The contract unit price will not be changed within the limit of 50 percent less than the estimated quantities listed below, nor within the limit of 100 per cent more than the estimated quantities listed below.”

and at the end of the contract work thereunder the amount due him for painting was the sum of $93,861.53 as shown by Schedule A of the complaint. He alleges that in addition, his subcontract required him to do certain painting under the heading of “carpentry” which was not included in the lump sum contract price, amounting to $2,356.43 which he designates “Schedule B”; and for extra work according to “verbal agreement” the sum of $1,616.60; thus making an aggregate of $97,834.56 due him, upon which payments had been made totaling $86,170.60, and leaving the balance sued for.

Defendant disputed these figures and attached to its answer “Schedule A” showing the “total value of the contract” (presumably meaning plaintiff’s earnings thereunder) as $87,978.82, against which it had made payments of $86,170.-60, leaving a balance due of $1,808.22.

Thus the amount alleged to be due the plaintiff of $97,834.56, less that admitted by defendant of $86,170.60, is exactly the sum sued for.

However, in his brief, his counsel lists the items of “difference between the parties” as follows:

(1) Items 173 and 174 $3,294.00

(2) Item 143 3,168.00

(3) Painting under carpentry 1,070.05

(4) Extras 1,616.60

(5) Difference in counts on items 333.39

(6) Difference between unit prices and total lump sum of contract, as provided in contract 381.00

$9,863.04

all of which were denied in the answer.

No. 1 above “Items 173 and 174” (bearing numbers 7213 and 1801 in the general contract) represented the breakdown for painting the inside of two buildings bearing those numbers, in the defendant’s original contract with the Government for the entire job. There [429]*429was a disagreement between the plaintiff and defendant as to whether under that contract this interior painting was required. To be on the safe side it was included in the subcontract, and plaintiff’s break-down valued it at $1,647 for each of the two buildings, or $3,294 for the two. The evidence reasonably established that this interior painting of these buildings would have cost about $1,500, leaving a gross profit of some $294.

The representative of the Government, whose interpretation of the original contract was conclusive, held that it did not include painting of the insides of these buildings. The total figures for all work on items 173 and 174, including whatever painting was required, shown in defendant’s break-down, under its original contract with the Government, was for No. 173 “exterior and interior alterations and additions to T-1801 complete ; including exterior painting of new woodwork . .$ 3,600.00 No. 174 — “exterior and interior alterations and additions to T-7213, including exterior painting on new woodwork................ 4,201.00”

Total $ 7,801.00.”

DeVillentroy, who was the representative of defendant in executing both the original contract with the Government and the subcontract for the painting with the plaintiff, testified as follows:

“ ‘A Mr. T. Snyder, and we had a meeting and he asked me if we had figured the interior painting of those two buildings, and I told him yes, as he could readily see by our proposal submitted and the unit price in our contract agreement, that we had figured the painting of the interior of these buildings, and thereupon, as these buildings were to be used for ladies and the bathrooms were found inadequate for ladies to use, we agreed to build the bathrooms in lieu of just placing a tub in a comer for use. In these alterations there was quite additional moneys involved, which is evidenced by the deviation from the original plan as existing, and can be found in the building, and also a slight alteration to the four nurses’ quarters buildings.’ ”

On December 26, 1951, the Government and defendants signed “Supplemental Agreement No. 3”, offered in evidence as P-8 (the original was dated June 27, 1951).

“Whereas, it is found advantageous and in the best interest of the Government to modify said contract for the following reasons:
“Twenty-one (21) contract items have been found unnecessary and were not used in the rehabilitation of hospital facilities, also the Contractor offered a credit for interior painting of Buildings No. T-1801 and T-7213 which was not required under the specifications.
“The additional work cannot be delayed incident to the time required to prepare plans and specifications and to advertise for separate bids, because with this work time is of the essence, and the above-mentioned process would excessively delay completion of the work.
“The Contractor has available the necessary equipment and labor to accomplish the work and has agreed to perform the work at a fair and reasonable price.
“Now, therefore, the contract is modified in the following particulars but in no others.”

The agreement thus enumerates some 23 items by number in which decimations or reductions in “quantity units” which were decreased by a total of $4,-480.72. In this list were included items 173 and 174 as to which the Government was given a “credit on omission of interior painting” of $300 each. The supplemental agreement then recited:

“B. Contract Costs and Quantities
[430]*430“Due to changes required by Paragraph A above, the contract costs and quantities are modified as follows

There follows a list of the same numbered items and deductions and the agreement concludes:

“Because of the modifications required by this Supplemental Agreement, the net amount of the contract is decreased in the amount of $4,-480.72.
“It is understood and agreed that on account of the foregoing modification of said contract, additional time will not be allowed.”

As early as July 26, 1951, and before plaintiff had done any painting on items 173 and 174 (numbers T-1801 and T-7213 in the primary contract), the Resident Engineer for the Government wrote the defendant as follows:

“In answer to your verbal request of today, we advise that the interior painting of buildings 1801 and 7213 is not authorized by your contract.

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118 F. Supp. 427, 1954 U.S. Dist. LEXIS 4521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-lanehart-v-united-enterprises-inc-lawd-1954.