United States for the Use of Ascher Corporation, a Corporation v. Bradley-Dodson Co., a Partnership

281 F.2d 676, 1960 U.S. App. LEXIS 3839, 41 Lab. Cas. (CCH) 31,013
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 16, 1960
Docket16370
StatusPublished
Cited by4 cases

This text of 281 F.2d 676 (United States for the Use of Ascher Corporation, a Corporation v. Bradley-Dodson Co., a Partnership) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States for the Use of Ascher Corporation, a Corporation v. Bradley-Dodson Co., a Partnership, 281 F.2d 676, 1960 U.S. App. LEXIS 3839, 41 Lab. Cas. (CCH) 31,013 (8th Cir. 1960).

Opinions

BLACKMUN, Circuit Judge.

This action under the Miller Act, 40 U.S.C. § 270a to 270e, is brought by Ascher Corporation, as use-plaintiff, against Bradley-Dodson Co., a partnership, and the surety upon the latter’s payment bond. Jurisdiction is established.

Bradley-Dodson, referred to herein as the defendant, was the successful bidder in 1953 for the construction of an electrical distribution system at the Lincoln Air Force Base in Nebraska. Ascher sold the defendant the primary cable needed for this work. The cable was installed, was rejected by the Army Engineers, and was removed and replaced. The action, so far as pertinent here, is for the unpaid portion of the purchase price of that cable. The defendant by its amended answer alleged that the cable failed to meet the government specifications that it be shielded and, alternatively, that it was not of merchantable quality. The plaintiff by its amended reply denied the application of the government specifications. The defendant counterclaimed for the additional cost it incurred for replacement cable and for amounts already paid to Ascher for the original cable.

The parties stipulated that the cable furnished by Ascher to the defendant was not shielded and thus did not conform to the government specifications.

The case was tried to the court. Judgment was rendered for the defendant on both the main claim and the counterclaim. The plaintiff has appealed.

Ascher’s position is that the government specifications were never submitted to it although there were formal references to them in correspondence; that in effect there were other specifications privately formulated and agreed upon by the parties; that the cable it furnished conformed to those substitute specifications; and that in any event the defendant accepted the cable and is not in a position to rescind its contract.

[678]*678The case presents the following questions: (1) Under the contract between the parties was Ascher required to furnish shielded cable? (2) If so, is Ascher responsible for the difference between the price of the cable it supplied and the greater cost to the defendant of replacement shielded cable? (3) Was the cable of merchantable quality?

1. We are aware that, as suggested by the plaintiff, the furnishing of supplies not in conformity with specifications does not, in and of itself and as a matter of law, defeat the obligation of the prime contractor to pay for those supplies or render the Miller Act unavailable to the supplier. Dow v. United States, 10 Cir., 154 F.2d 707, 709; United States for Use of Ardmore Concrete Material Co. v. Williams, 10 Cir., 240 F.2d 561, 564. We are also aware that the Miller Act is to be liberally construed, United States for Benefit and on Behalf of Sherman v. Carter, 353 U.S. 210, 216, 77 S.Ct. 793, 1 L.Ed.2d 776, and that its benefits are available even though the materials supplied are not directly or ultimately incorporated into the project. United States for Use and Benefit of Westinghouse Electric Supply Co. v. Endebrock-White Co., 4 Cir., 275 F.2d 57, 60; Glassell-Taylor Co. v. Magnolia Petroleum Co., 5 Cir., 153 F.2d 527, 529; United States for Use of Ardmore Concrete Co v. Williams, supra.

Our initial question here, however, is whether the contract between these parties, that is, the defendant’s order which was accepted by Ascher, embraced the specifications for shielded cable and an accompanying guaranty. The trial court held that it did.

The government contract was awarded to the defendant on May 13, 1953. It incorporated specifications numbered ENG-25-066-53-113 stating in part:

“4.07. Primary Cable System. The primary cable system shall consist of polyehloroprene-sheathed cable, * * * Polyehloroprenesheathed cables shall conform to the applicable requirements of the latest edition of IP CEA.1 Conductor insulation for polychloroprene sheathed cables shall be suitable for a maximum operating temperature of 75° C. for 5 KV cable, shall be moisture-resistant, and shall be ozone-resistant grade of insulation for 5 KV cables. Polycholoroprene sheathed cable shall be shielded in accordance with the recommendation of the latest edition of IP CEA, and the method of accomplishment shall be in accordance with the current practice of industry.” 2

Within the next 2 days Newton Weiss, who was Aseher’s sales manager and who possessed authority to act on behalf of Ascher, telephoned to Ed Bradley, a partner in the defendant, to solicit an order for cable required on the Lincoln project. Although Bradley was initially somewhat adverse to dealing with so distant a supplier, a written order was sent to Ascher by Bradley on June 16, 1953, and was accepted by Weiss on the following day. There is testimony as to various negotiatory letters and conversations between May 15 and June 16; some are challenged by the parties as to their existence and import. Since their interpretation is decisive of the first factual issue, we mention them chronologically rather than in summary:

a. May 14 or 15, 1953. Weiss telephoned Bradley a second time. Bradley testified that during this conversation [679]*679Weiss asked him to read the government specifications concerning shielding and that he did read them to' Weiss. Weiss denied this aspect of that conversation.

b. May 15,1953. Letter from Ascher (Weiss) to defendant quoting prices for electrical materials. This letter makes no reference to shielded cable.

c. May 15, 1953. H. P. Underwood, an accountant employed by the defendant, testified that on this day he sent a copy of the government specifications to Ascher by first class mail posted from Omaha. Sufficient postage was attached and a proper return address was affixed. There was no accompanying letter of transmittal. These specifications were not returned to the defendant. Weiss denied receiving them.

d. May or June, 1953. Sam C. Dodson, an employee but not a partner of the defendant, testified that he had 2 telephone conversations with Weiss and that he read the cable specifications to Weiss. Weiss also denied this.

e. May 29, 1953. Letter from defendant (Bradley) to Ascher requesting quotations for specified electrical materials. These included “4/0-5 KV for duct”, “2/0-5 KV for duct”, and “6-5 KV wire for duct”. The reference at the top of the letter read: “RE: Utilities Electrical Distribution, Serial No. ENG-25-066-53-113, Lincoln Air Force Base, Lincoln, Nebr.” The letter itself stated “This quotation is to be based upon the following stipulations: Will meet all requirements of the above subject specifications. * * * ”

f. June 4, 1953. Letter from Ascher (Weiss) to defendant. This supplied the requested quotations, contained the same reference in its heading to the serial number of the specifications, and repeated the cable descriptions. It made no other reference to the specifications.

g. June 16, 1953. Letter from the defendant (Bradley) to Ascher. This enclosed the order for the cable. The letter stated:

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281 F.2d 676, 1960 U.S. App. LEXIS 3839, 41 Lab. Cas. (CCH) 31,013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-for-the-use-of-ascher-corporation-a-corporation-v-ca8-1960.