United States Ex Rel. Westinghouse Electric Corp. v. Marietta Manufacturing Co.

339 F. Supp. 18, 1972 U.S. Dist. LEXIS 15007
CourtDistrict Court, S.D. West Virginia
DecidedFebruary 22, 1972
DocketCiv. A. 2228
StatusPublished
Cited by6 cases

This text of 339 F. Supp. 18 (United States Ex Rel. Westinghouse Electric Corp. v. Marietta Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. West 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. Westinghouse Electric Corp. v. Marietta Manufacturing Co., 339 F. Supp. 18, 1972 U.S. Dist. LEXIS 15007 (S.D.W. Va. 1972).

Opinion

CHRISTIE, District Judge:

The use plaintiff, Westinghouse Electric Corporation (Westinghouse), insti *21 tuted this Miller Act suit, 40 U.S.C. § 270b, against Marietta Manufacturing Company (Marietta) and its surety, The Travelers Indemnity Company (Travelers), seeking judgment for $89,006.80, claimed to be the balance owing it by Marietta for machinery and equipment furnished. The machinery and equipment were used by Marietta in the construction of two oceanographic research ships it had contracted to build for the Department of the Navy. In its answer to the complaint, Marietta denied that it owed Westinghouse the amount claimed, asserting that the machinery, equipment and materials furnished by Westinghouse failed to meet applicable specifications of the various contracts involved, that Marietta was required to incur expenses in order to make the equipment functional and that delivery thereof was made after the times required by the contract. In addition to its denial of liability, Marietta reasserts in a counterclaim that the electrical and mechanical equipment furnished by Westinghouse was not delivered to it in good mechanical and workable condition and did not meet applicable contractual specifications^ As a consequence, Marietta allegedly was required to expend a total of $191,949.85 in order to correct such deficiencies. Based upon these expenditures, Marietta demands judgment against Westinghouse in the sum of $191,949.85 “plus any amounts which might be disclosed by subsequent investigation and discovery.”

The case is presently before the Court on motion of Westinghouse for partial summary judgment pursuant to the provisions of Rule 56 of the Federal Rules of Civil Procedure. Westinghouse alleges that, as to certain items of damage contained in Marietta's counterclaim, there is no genuine issue as to any material fact and that Westinghouse, therefore, is entitled to judgment as a matter of law.

FACTUAL BACKGROUND

Viewing the facts in the light most favorable to Marietta, as required on motion for summary judgment, the relevant facts involved may be summarized as follows:

In December of 1961, Marietta entered into a contract with the Department of the Navy whereby Marietta agreed, for a stated consideration, to construct two oceanographic research ships, designated AGOR #6 and AGOR #7. Pursuant to the requirements of the Miller Act, Marietta furnished a payment bond to the United States, with Travelers as surety, in the amount of $2,721,052.

Subsequent to entering into the contract for construction of the two ships, Marietta received a proposal from Westinghouse whereby the latter agreed to furnish certain electrical propulsion and auxiliary equipment for the two ships at a cost of $300,000 per ship. In February of 1962, Marietta accepted the offer, however, in March of the same year, Marietta cancelled its previous acceptance, requesting Westinghouse to' forward cancellation charges or, in the alternative, an offer with respect to the same equipment at a reduced price. The parties then agreed on an order from Westinghouse covering this same equipment at a total price of $515,000. On March 20, 1962, Westinghouse, by letter, confirmed this agreement, stating that electrical equipment would be supplied “as outlined in our proposal dated 8 November 1961 and detailed in our quotation letter of 15 November 1961, for two (2) ships designated AGOR 6 and 7.” According to this letter, the equipment to be supplied was to meet the Specifications for Building Oceanographic Research Ship AGOR-3 Class as written by the Department of the Navy Bureau of Ships, and as “interpreted and supplemented by our proposal dated 8 November 1961.” By a document entitled “Purchase Order,” dated September 20, 1962, Marietta confirmed its agreement to purchase the equipment contained in Purchase Order AG-2900 from Westinghouse at the reduced price of $515,000.

Westinghouse, on the back of its letter dated March 20, 1962, in which it confirmed its agreement to supply the equip *22 ment at a total price of $515,000 set forth the following “Warranty”:

“Westinghouse, in connection with apparatus sold hereunder, agrees to correct any defect or defects in workmanship or material which may develop under proper or normal use during the period of one year from the date of shipment, by repair or by replacement f. o. b. factory of the defective part or parts and such correction shall constitute a fulfillment of all Westinghouse liabilities in respect to said apparatus, unless otherwise stated hereunder. Westinghouse shall not be liable for consequential damages.”

The purchase order from Marietta, dated September 20, 1962, contained the following “Guarantees”:

“(a) If at any time within six months after the delivery of the vessel or such longer period as may be required by the Plans and Specifications, or as to an item of material installed in the vessel if at any time within the longer period agreed to by the Vendor, any weakness, deficiency, defect, failure, breaking down, or deterioration in the workmanship or material furnished by the Vendor in performing the contract work (herein called ‘defective workmanship’ or ‘defective material’), other than that due to ordinary wear or tear where such weakness, deficiency, defect, failure, breaking down or deterioration is due solely to the negligence or other improper act of the Buyer or any operator of the vessel during said six month period, shall appear or be discovered, such defective workmanship or defective material shall, at the Vendor’s expense, be made good to the satisfaction of the Buyer. The liability of the Vendor to the Buyer hereunder on account of such defective workmanship or defective material shall not extend beyond the actual repair or replacement thereof. The Vendor shall not be liable to the Buyer for any damage to the vessel or its equipment or cargo or other property of the Buyer or for consequential damages of the Buyer arising out of such defective workmanship or defective material, except that in the event that any defective workmanship or defective material in any item of machinery or equipment furnished by the Vendor or any defective workmanship or defective material furnished by the Vendor in the performance of work on any of the vessel's machinery or equipment, causes any damage to such item of machinery or equipment the Vendor shall be liable not only for the cost of correcting or repairing such defective workmanship or defective material, but also shall be liable for the costs of correcting or repairing any damage to such item of machinery or equipment caused by such defect.”

The items of damage for which Marietta seeks to recover, and to which the motion of Westinghouse is directed, fall generally, with some exceptions to be noted hereafter, into three broad types or classifications. Initially, Marietta seeks recovery of the expenses incurred by it in removing and subsequently reinstalling defective machinery. Included in this category are the claims set forth in paragraphs numbered 2, 3, 4, 8, 11 and 13, and parts of 7 and 10. 1

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Cite This Page — Counsel Stack

Bluebook (online)
339 F. Supp. 18, 1972 U.S. Dist. LEXIS 15007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-westinghouse-electric-corp-v-marietta-manufacturing-wvsd-1972.