United States ex rel. Spikes v. Americ Inc.

416 F. Supp. 456
CourtDistrict Court, M.D. Louisiana
DecidedJune 14, 1976
DocketCiv. A. No. 74-228
StatusPublished
Cited by2 cases

This text of 416 F. Supp. 456 (United States ex rel. Spikes v. Americ Inc.) is published on Counsel Stack Legal Research, covering District Court, M.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. Spikes v. Americ Inc., 416 F. Supp. 456 (M.D. La. 1976).

Opinion

E. GORDON WEST, District Judge:

Plaintiff Herman Spikes sues under the Miller Act, 40 U.S.C. §§ 270a-270d, to recover monies allegedly due him from Americ, Inc., for “fill” hauling which he al[457]*457legedly orally sub-contracted to perform for Americ under its primary contract with the U. S. Army Corps of Engineers for emergency levee topping construction at Morganza, Louisiana, in 1974. Spikes claims that Americ owes him for monies withheld from his payments during the project, and for work which he claims was performed but was totally unpaid at the project’s completion. Americ denies that it owes plaintiff anything, and counterclaims for damages it allegedly sustained as a result of what it claims was Spikes’ breach of the alleged oral contract, which required it, Americ, to engage additional trucks at greater expense to complete the job. This Court has exclusive jurisdiction over plaintiff’s claim for monies allegedly due him as a sub-contractor. 40 U.S.C. § 270b(b). We have ancillary jurisdiction over the counterclaim asserted against plaintiff which arose out of the same transaction. F.R.C.P. § 13(a).

On July 15, 1975, on defendants’ motion, the Court dismissed the claim of Curtis Spurlock for failure to answer interrogatories as ordered by the Court. The Court was informed on January 13, 1976, that the claim of Thomas Vandiver had been amicably settled.

This case was tried to the Court without a jury on January 13, 1976, and now after due consideration of the evidence and arguments of counsel, this Court concludes that neither plaintiff nor defendant has proved by a preponderance of the evidence the existence of an oral contract. Each party’s claims based on breach of contract theory necessarily must fall, and plaintiff’s claim for monies due him must be measured on a quantum meruit basis, i. e., by the reasonable value of his services.

Herman Spikes and Americ, Inc., each submitted bids for an emergency levee topping contract pursuant to the U. S. Army Corps of Engineers bid solicitation of March 14, 1974 (No. DACW29-74-R-2032), which was awarded to Americ on or about March 20, 1974. Shortly thereafter, Herman Spikes contacted James H. Hutchinson, Americ’s officer, about the possibility of his (Spikes’) sub-contracting with Americ to haul “fill” from borrow pits to various predesignated points along the levees where the dirt would be put in place and compacted by Americ or one of its sub-contractors. Spikes and Hutchinson met at the jobsite near Morganza, Louisiana, a few days later and after discussions were had as to the terms of their tentative agreement, they purportedly contracted orally that Spikes would have the job of transporting the “fill” necessary to raise the levee heights to the levels required by the Corps’ contract specifications.

Following their “handshake on the deal”, and after the commencement of construction on April 1, 1974, the relationship between Spikes and Americ quickly broke down. Spikes allegedly failed to have enough trucks on the jobsite to get the work accomplished, due to either mechanical difficulties, non-compliance with Corps’ safety regulations, or sheer inability, thereby forcing Americ to retain additional trucks in order to move the volume of dirt required by that phase of the contract. Pri- or to its efforts to secure additional trucks to move the dirt, Americ requested Spikes to honor his “obligations”, including complying with Corps’ safety requirements and having the necessary trucks to do the job. Americ sent telegrams to Spikes on April 22 and April 23,1974, which he never acknowledged, informing him that he was in default of his “contractual obligations”. On April 30, 1974, again by telegram, Americ notified Spikes that if he did not have the minimum number of trucks on the jobsite the next morning, their “contractual” relationship would be terminated. Spikes did not procure the number of trucks requested by the morning of May 1, 1974, and Americ proceeded to retain its own truckers thereafter until construction was completed on or about June 17, 1974.

No one other than Spikes and Hutchinson was present when their “bargain” was struck in Hutchinson’s two-seater Porsche automobile, and thus, the very existence of a contract must be judged by these parties’ testimony and by circumstantial evidence [458]*458since the agreement was never reduced to writing. La.R.C.C. § 22771 Spikes testified that he and Hutchinson agreed that he would “move all of the dirt to be moved.” Hutchinson too testified that he and Spikes contracted for Spikes “to do all the hauling on the job and take that problem off my back.” As far as this Court is able to discern, Americ’s motive for contracting was all that was mutually agreed upon. The completely divergent testimony and circumstantial evidence fails to establish the existence of mutual consent as to Spikes’ principal cause for contracting, Americ’s promise to pay a fixed unit price for his services.

Spikes testified that Americ promised to pay him $1.50 per cubic yard of dirt hauled, whereas Hutchinson testified that Americ agreed to pay Spikes $1.50 per cubic yard of dirt in place. The difference is considerable, since dirt in place is much more compact than when being hauled, and, naturally, yields much less volume. Spikes testified that he planned to pay his drivers $1.25 per cubic yard hauled on “long runs”, and 90 cents per cu. yd. on “short runs”, thereby profiting 25 cents and 60 cents for each cubic yard of dirt hauled by his drivers on “long runs” and “short runs” respectively. Yet Spikes offered nothing to corroborate his testimony, and in fact, an examination of the payments to him individually both before and after “termination” of the “contract” on May 1, 1974, shows that they consistently were computed at the rate of $1.25 per cu. yd. of dirt actually hauled.

The proposed AGC standard form subcontract, prepared by Hutchinson but which Spikes refused to sign when submitted to him, listed the price to be paid simply as “One Dollar & 50/100 Per Cubic Yard”, and then stated that “payment is on a unit price basis and quantity is to be based on cross-sections taken before and after embankment construction per paragraphs 1-5.2 and 1-6.2 of the specifications.” This proposed subcontract serves only to indicate Americ’s belief of what it understood the price to be, since it never became the law between the parties. La.R.C.C. § 1901. Spikes testified that he refused to sign the proposed subcontract because it contained terms that were not orally agreed to, including the price per unit.

What we are left with then is plaintiff’s version as to what unit price was to be paid for his work, $1.50 per cu. yd. hauled, versus Hutchinson’s account as to the unit price Americ was bound to pay, $1.50 per cu. yd. in place, versus what was actually paid Spikes both before and after “termination”, $1.25 per cu. yd. hauled. Although we have an idea of what probably was agreed upon, based on judicial experience, we cannot take judicial notice of industry practice where no evidence was introduced to establish such. Nor can we supply evidence since that is the duty of counsel. Unfortunately, in a suit on an oral contract, parol and circumstantial evidence is all we have to rely upon, and in this case, the evidence is inconclusive to establish in either side’s favor a condition critical to the existence of the purported contract.

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416 F. Supp. 456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-spikes-v-americ-inc-lamd-1976.