United States Shipping Board Emergency Fleet Corp. v. Eichberg

14 F.2d 248, 56 App. D.C. 356, 1926 U.S. App. LEXIS 2025
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 1, 1926
DocketNo. 4285
StatusPublished
Cited by1 cases

This text of 14 F.2d 248 (United States Shipping Board Emergency Fleet Corp. v. Eichberg) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Shipping Board Emergency Fleet Corp. v. Eichberg, 14 F.2d 248, 56 App. D.C. 356, 1926 U.S. App. LEXIS 2025 (D.C. Cir. 1926).

Opinion

VAN ORSDEL, Associate .Justice.

This case has been here on two former appeals, 51 App. D. C. 44, 273 F. 886, and 52 App. D. C. 194, 285 F. 928, and once on petition for mandamus filed by the present appellant, No. 984 original, which was denied without opinion.

As set forth in our former opinion, in 51 App. D. C. 44, 273 F. 886, a contract was made between the plaintiff and defendant, Emergency Fleet Corporation, in which plaintiff agreed to sell and deliver to the defendant certain lumber. Subsequently, after plaintiff had- started operations to produce the lumber, the defendant canceled the contract. This action is for damages growing out of a breach of the contract.

Defendant corporation, by way of answer to plaintiff’s petition, relied upon two pleas: (1) That the defendant, in making the contract and canceling the same, was merely an agency of the United States, and that suit would he only in the Court of Claims; and (2) the plea of general issue.

On motion of plaintiff, and without objection by defendant, the ease was referred to the auditor, “to audit and state the accounts and dealings between the parties herein.” When the matter came on before the auditor for hearing, a trial of the issues of fact was accorded, resulting in a report both of law and fact. The auditor found for the plaintiff in the sum of $116,346.13, with interest. When the report of the auditor was filed, defendant filed exceptions to the report. Plaintiff moved to strike out the exceptions, which motion was sustained as to some of the exceptions, and denied as to the others. [249]*249When the jury was impaneled, plaintiff offered the report in evidence as his prima f aeie ease, together with certain stipulations between the parties in respect of issues of faet, and moved the court for a directed verdict. The court denied the motion, and asked counsel for plaintiff if they had any evidence to offer, to which counsel replied in the negative, when the court, on motion of counsel, directed the jury to return a verdict for defendant.

On appeal to this court, in 51 App. D. C. 44, 273 F. 886, the judgment was reversed and the cause remanded for a new trial. We held that the United States Shipping Board Emergency Fleet Corporation was a private corporation, a separate entity from the government, and could be sued as such for breach of contract, notwithstanding the delegation of authority by the President “to exercise a portion of the power granted to him under the Act of June 15,1917.” It was held that certain. of the exceptions filed to the auditor’s report were perhaps good, though stated in too general terms; that others were not responsive, either to the pleadings or to the auditor’s report.

When the ease came before the court below on the mandate of this court,” plaintiff again filed a motion for judgment on the ground that there had been a common-law reference to the auditor by consent, and that the report having been accepted by the court, the exceptions filed thereto by defendant should be disregarded in that they were general, immaterial, irrelevant, and not founded upon the pleadings or the evidence adduced before the auditor. Defendant thereupon filed four motions: (1) To vacate and strike out the auditor’s report, and for a jury trial; (2) to amend the exceptions to the auditor’s report with leave to file additional exceptions; (3) to make certain findings of law; (4) to recommit the case to the auditor for additional testimony. The court denied plaintiff’s motion, and granted defendant’s motion No. 2, denying motions 1, 3, and 4.

From this order both parties came to this court by special appeal. On this appeal the order of the court was affirmed, and the cause remanded, with permission to defendant to file additional and amended exceptions to the auditor’s report, with the statement that “whether the amended and additional exceptions are responsive to the pleadings and the evidence adduced before the auditor presents matters not raised by special appeal, since they have not been passed upon by the court below.”

When the case again came on for hearing in the court below, and before a jury was called, plaintiff renewed his motion to strike out defendant’s additional and amended exceptions to the auditor’s report. This motion was sustained, and judgment for plaintiff was entered on the auditor’s report. From the judgment this appeal was taken.

Notwithstanding our opinions in the former appeals, defendant again insists upon its original plea to the jurisdiction of the court, and that, although this plea was stricken out on demurrer, it was renewed in defendant’s motion for an instructed verdict, from which the first appeal was taken; and also by motion for findings of law, from which the case came here on special appeal; and also by objection to the motion of plaintiff for judgment furnishing the basis for the present appeal. It is insisted by counsel for defendant that they are not now urging a point heretofore decided by this court, since at the time of the decision of the two previous appeals in this court the Supreme Court had not passed upon the application of the Act of June 15, 1917, 40 Stat. 182, to contracts of the character of the contract in this case.

The act of Congress in question, among other things, authorized and empowered the President “to modify, suspend, cancel, or requisition any existing or future contract for the building, production, or purchase of ships or material.” Section 1 (Comp. St. 1918, Comp. St. Ann. Supp. 1919, § 3115%64). It provided that, in the event a contract was canceled by the President, or by an agency of the government selected by the President to exercise this authority, the President should make compensation for any damages sustained as the result of the cancellation of the contract, and, in ease the amount determined was unsatisfactory to the claimant, he “shall be paid seventy-five per centum of the amount so determined by the President and shall be entitled to sue the United States to recover such further sum as, added to said seventy-five per centum, will make up such amount as will be just compensation therefor,” in the manner provided in the sections of the Judicial Code conferring jurisdiction upon the Court of Claims. Following this line of reasoning, it is insisted by counsel for defendant that the courts of the District of Columbia are without jurisdiction, and that this action should have been brought in the Court of Claims.

It is true that the present contract was made after the passage of the Act of June 15, 1917, but prior to the order of the President of August 21, 1917, in which he directed the Emergency Fleet Corporation to act for and in behalf of him in, exercising the powers con[250]*250ferred upon Mm by the Act of June 15,1917, aforesaid; but tMs is of no importance as effecting tbe question of jurisdiction. Reliance is placed by counsel for plaintiff on tbe decision of the Supreme Court in Russell Motor Car Co. v. United States, 261 U. S. 514, 43 S. Ct. 428, 67 L. Ed. 778. That ease was a suit upon a contract made by the Secretary of the Navy in pursuance of the Act of June 15, 1917, in wMeh the Secretary, as the official head of the Navy Department, acted on behalf of the United States. No corporate agency intervened. It was merely a suit upon a contract with the United States, executed by one of its duly authorized departmental heads.

Prior to the decision of the Russell Motor Case was the decision in the eases of Sloan Shipyards Corporation et al. v.

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Bluebook (online)
14 F.2d 248, 56 App. D.C. 356, 1926 U.S. App. LEXIS 2025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-shipping-board-emergency-fleet-corp-v-eichberg-cadc-1926.