United States ex rel. R. E. Lee Electric Co. v. Stack

308 F. Supp. 46, 1968 U.S. Dist. LEXIS 9815
CourtDistrict Court, E.D. Virginia
DecidedAugust 20, 1968
DocketCiv. A. No. 4434
StatusPublished
Cited by6 cases

This text of 308 F. Supp. 46 (United States ex rel. R. E. Lee Electric Co. v. Stack) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia 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. R. E. Lee Electric Co. v. Stack, 308 F. Supp. 46, 1968 U.S. Dist. LEXIS 9815 (E.D. Va. 1968).

Opinion

MEMORANDUM

WALTER E. HOFFMAN, Chief Judge.

In this action under the Miller Act, 40 U.S.C. section 270b, R. E. Lee Electric Company, Inc., the use plaintiff herein, seeks a recovery from Clifford W. Stack, trading as C. W. Stack Company, and Stack’s surety, Hartford Accident and Indemnity Company, for the balance due on a subcontract between the use plaintiff and Stack, together with a claim for the loss of profits occasioned by Stack’s alleged wrongful removal of certain logs which the use plaintiff had agreed to sell to a third party. The total subcontract price was $11,500, and Stack had made one payment thereon in the sum of $5,175, thereby leaving a balance allegedly due in the sum of $6,325, plus interest, eliminating for the moment the claim for loss of profits with respect to the removal of the logs. Stack has filed a counterclaim seeking the recovery of $209.22, same representing the excess over and above the sum of $6,325 by way of expense in completing the use plaintiff’s contract.

Stack, the prime contractor, entered into a contract with the United States of America on April 27, 1966. On the same day a payment bond was executed with Hartford Accident and Indemnity Company as surety thereon.1 The contract called for the conversion of 25 acres of Section 29 to a park-like area in the Arlington National Cemetery. The contract became effective on May 13, 1966, at which time Stack received a “Notice to Proceed.” Under the terms of the prime contract, all work other than landscape planting was to be completed “not later than 90 calendar days after the date of receipt of the Notice to Proceed.” Thus, the completion date specified by the prime contract was August 11, 1966.

The description of the work was divided into seven categories, to-wit, (1) selective clearing and cleanup, (2) regrading of designated areas, (3) realignment and stabilization of stream bed, (4) improvement of storm drainage system, (5) repair and reconstruction of stone boundary wall and flagstone walls [48]*48and steps, (6) topsoiling, seeding, and sodding, and (7) landscape planting. It is significant to note, however, that the item designated as “selective clearing and grading,” with which we are here concerned, was not contemplated to be done in advance of the other work. A physical construction progress chart prepared by Stack — not finally approved by the Government until July 5, 1966— demonstrates that, with a completion date of August 11, 1966, the “clearing” was not to be finished until August 2, 1966 — nine days before the final completion date.

Reasonably liberal provisions were contained within the prime contract authorizing time extensions, change orders, etc. A $30 per day liquidated damage clause was likewise inserted into this contract.

On May 31, 1966, Stack and Lee entered into a subcontract wherein Lee agreed to do the “selective clearing and clean-up” as specified in Section 1 of the prime contract. Apparently the present use plaintiff entered into this contract after Stack and a prior contractor had failed to reach an agreement. While the subcontract makes no specific reference to the prime contract, other than by Government contract number, it is clear that the parties intended for Lee to do all the work under the item “selective clearing and clean-up,” designated as Section 1, paragraphs 1-01 and 1-02. No completion date is specified in the subcontract. It is admitted, however, that Lee was aware of the August 11, 1966, completion date for the entire contract.

The daily job reports, beginning May 23 and ending October 4, reflect in general the nature of the work being done by the prime and subcontractors as well as the weather conditions for each day. Lee told Stack at the time that the subcontract was executed that he, Lee, could not start his work for one month. This is indirectly substantiated by a note on the Government’s daily job report for July 5, 1966.2 On July 11, 1966, Lee’s men reported on the job site, all of which conforms with Stack’s statement to Safriet, the Government representative. Each working day thereafter, until August 4, Lee’s men were on the job. On August 4, there is no explanation as to why Lee’s men were not working. On August 5, neither the prime nor subcontractors did any work. The following Monday, August 8, Lee’s men again reported and worked daily thereafter until September 6, 1966, believed to be the day after Labor Day — a difficult time to get laborers to report for work. September 7-9 completed that work week and Lee’s men were on the job on these days. Monday, September 12, they worked. On September 13, with overcast and light rain, Lee’s men did not report to the job site. Wednesday, September 14, the rain came in torrents and no one could get near the area. The weather report reflects that 4.07 inches of rain fell on that day. With such a proverbial flood, it is understandable that, at least for a few days, it was impracticable to get into the woods to haul out logs. Some rain fell thereafter — but less than one inch on each day — on September 15, 19, 20, 21, 22, 25, 27, 28, and 29, with traces of rain on two other days during that period. The daily job reports indicate that neither contractor worked on September 20 “because of rain;” on September 21 “because of rain and muddy soil.” After September 12, Lee’s men next reported for duty on September 22 but, in the interim, Stack had terminated the subcontract and Lee was merely attempting to salvage some of the logs which he had agreed to sell to a third party.3 This same work was continued on September 23.

[49]*49This leads to a consideration of the events prior to September 16, which is the first day that Stack did any of Lee’s work, and which was confined to moving some of Lee’s logs to another area in order that Stack could seed the place where the logs had been piled.

On August 5, 1966, the Government issued a change order extending the time for completion of all work under the contract to September 30,1966. The change order was accepted by Stack on August 24. This fact was apparently not communicated to Lee until Stack’s letter of September 8, although Lee, as a businessman, must have realized that some extension had been granted. As Lee’s men worked continuously on a five-day week basis from July 11 until September 6, with the exception of August 4 and 5, there appears to be little cause for complaint on Stack’s part as Stack knew, as early as August 5 (and probably before), that an extension would be granted. On September 6, according to the Government daily job report, the estimated completion of the entire job was 96%. At all times the daily job report reflected that construction was “on schedule.” At no time did the daily job reports indicate that the job was being “held up” for any cause.

By letter dated September 8, 1966, Stack wrote Lee.4 September 8 was a Thursday. Whether the letter was mailed promptly and received on September 9 or 10, we do not know. Lee replied by letter dated September 14 — written on the day of the proverbial flood — suggesting that everything was being done within reason; that he had difficulty maintaining his equipment; and that the weather had him stopped “now” and “all I can do is haul out, which I will do.” He further stated that he would complete the contract “before September 30, 1966.”

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308 F. Supp. 46, 1968 U.S. Dist. LEXIS 9815, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-r-e-lee-electric-co-v-stack-vaed-1968.