United States v. Lundstrom

139 F.2d 792, 1943 U.S. App. LEXIS 4067
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 20, 1943
Docket10322
StatusPublished
Cited by12 cases

This text of 139 F.2d 792 (United States v. Lundstrom) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Lundstrom, 139 F.2d 792, 1943 U.S. App. LEXIS 4067 (9th Cir. 1943).

Opinions

STEPHENS, Circuit Judge.

For the period herein concerned John G. and W. B. Lundstrom constitute a copartnership under the firm name and style of Western Auto Express. The copartners as plaintiffs in the district court were awarded a money judgment against the United States under the Tucker Act of March 3, 1887, c. 359, 24 Stat. 505, Title 28 U.S.C.A. Sec. 41(20), for the reasonable value of services performed under a contract. The United States, defendant below, appeals claiming that nothing is owing to plaintiffs, and the plaintiffs appeal claiming that the award, under the evidence, should be larger.

The defendant below and the plaintiffs below are designated as appellants and appellees, respectively in the briefs, but we think it more understandable to refer to the plaintiffs below, who are both appellees and cross-appellants here, as Lundstroms and to the defendant below, which is both appellant and cross-appellee here, as United States or as the government.

The District Quartermaster, Civilian Conservation Corps at Vancouver, Washington, mailed to Lundstroms and others a written invitation for bids for “Commercial hauling of C.C.C. Camp Buildings” from various places to other localities. There is a note to the specification furnished the bidders as follows: “The above supplies are composed of about 75 Ton of Lumber (Portable Knocked Down buildings and building material) and about 200 Ton of Lumber for each shipment.” Lundstroms’ bid was accepted, and they entered upon the performance of the contract.

One of their truck men who was assigned to the job promptly informed them that the whole job consisted of hauling knocked down sections of C.C.C. houses located in out-of-the-way places and that there was no lumber to haul as the word “lumber” is customarily understood. There seems to be no controversy over the asser[794]*794tion of Lundstroms that the hauling of this sort of material is much more expensive than ordinary lumber. The compensation for hauling was fixed by the contract upon a base payment per hundred weight which covered both lumber and knocked down sections of houses. Upon learning the nature of the materials Lundstroms promptly notified the Quartermaster, but the latter refused to consider any adjustment. The evidence seems to establish that the official bruskly demanded full and prompt performance of the contract upon the penalty of having private trucks employed and charged to Lundstroms’ account and upon threats to withhold payments including due payments from other jobs.’

Lundstroms were not financially able to weather these penalties and threats so proceeded to perform the service, protesting, however, that the nature of the materials was not in accord with specifications. The contract provided for progress payments. Accordingly, vouchers were regularly made out upon government blanks, forwarded to the government and honored by it. It will be important to note that the vouchers contained the following printed statement upon their faces. “I certify that the above bill is correct and just and that payment therefor has not been received.” It may be well, too, at this junction to recite that the invitation to bid and the ensuing contract contained the following provision: “It is the duty of each prospective bidder to familiarize himself with all the terms and conditions of this proposal and satisfy himself completely before submitting his bid. All prospective bidders are invited to consult with the District Quartermaster, C.C.C. Vancouver Barracks, Washington, for any information desired.” The contract also contained a provision for referring disputes and a provision for “Variation of Quantities,” both of which we shall discuss later.

After the hauling had been completed and payment had been fully made as provided in the contract, Lundstroms brought suit upon the contract claiming, however, that the variation of the material as above indicated had greatly increased the cost of handling it and demanded judgment upon the quantum meruit value of the services less the sums already paid.

It is not seriously contended by the government that in ordinary parlance knocked down sections of houses would be classed as lumber. It does claim, however, that a directive was shown Lundstroms before the contract was entered into to the effect that such material is classed as lumber and further that the bidding rules required them to familiarize themselves with the terms of the proposal. (The full provision on this point has already been set out.)

As to the directive it is sufficient to say that the evidence is completely conflicting as to whether or not it was ever seen by or called to the attention of Lundstroms. The court found that Lundstroms knew nothing about the directive, and we cannot disturb this finding. The court also' found against the contention of the government that the requirement regarding the bidder’s duty to familiarize himself etcetera assists it. The representation as to materials were clear, and Lundstroms had a right to rely upon them. There is no claim as to the condition of the materials or as to any other situation out of the normal. As was said in United States v. Utah, Nevada & California Stage Co., 199 U.S. 414, 26 S.Ct. 69, 73, 50 L.Ed. 251, in referring to the necessity of the bidder’s making investigation beyond the government representations: “We do not think, when the statement was thus unequivocal, and the document was prepared for the guidance of bidders for government service, that the general statement that the contractor must investigate for himself, and of nonresponsibility for mistakes, would require an independent investigation of a fact which the government had left in no doubt.” Hollerbach v. United States, 233 U.S. 165, 34 S.Ct. 553, 58 L.Ed. 898. See Christie v. United States, 237 U.S. 234, 35 S.Ct. 565, 59 L.Ed. 933; Freund v. United States, 260 U.S. 60, 43 S.Ct. 70, 67 L.Ed. 131.

The latter case is authority also for the proposition that the acceptance of payments as the work progresses under a comparable provision does not preclude additional recovery upon the quantum meruit. We shall therefore not further notice the government’s claim that this is an action in tort and therefore not within the purview of the Tucker Act.

In connection with the acceptance of progress payments and the printed statement that the amount stated upon the voucher is correct and just and not already received we consider the government’s claim that the facts constitute an accord and satisfaction. We think the essentials of an accord and satisfaction are [795]*795not present, but we are not required to go that far. There can be no doubt that the issue of accord and satisfaction must be pleaded, and this issue does not appear in the case, so far as we have seen, until it is argued in the government’s opening brief.

Furthermore, there is no substantial evidence in support of acquiescence by Lundstroms. The protests were in effect continuously. See St. Louis, Brownsville & Mexico R. Co. v. United States, 268 U.S. 169, 45 S.Ct. 472, 69 L.Ed. 899.

The contract contains the following provision :

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Eastern Service Management Company v. United States
363 F.2d 729 (Fourth Circuit, 1966)
Giustina v. United States
190 F. Supp. 303 (D. Oregon, 1960)
Lowell O. West Lumber Sales v. United States
160 F. Supp. 429 (N.D. California, 1958)
United States v. Williams
162 F. Supp. 903 (M.D. Alabama, 1957)
Halvorson v. United States
126 F. Supp. 898 (E.D. Washington, 1954)
Lindsay v. United States
181 F.2d 582 (Ninth Circuit, 1950)
Vance v. Arnold
201 P.2d 475 (Utah Supreme Court, 1949)
United States v. Gallagher
151 F.2d 556 (Ninth Circuit, 1945)
United States v. Lundstrom
139 F.2d 792 (Ninth Circuit, 1943)

Cite This Page — Counsel Stack

Bluebook (online)
139 F.2d 792, 1943 U.S. App. LEXIS 4067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-lundstrom-ca9-1943.