Vitro Electronics v. The United States

408 F.2d 1038, 187 Ct. Cl. 428, 1969 U.S. Ct. Cl. LEXIS 141
CourtUnited States Court of Claims
DecidedMarch 14, 1969
Docket5-66
StatusPublished
Cited by1 cases

This text of 408 F.2d 1038 (Vitro Electronics v. The United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vitro Electronics v. The United States, 408 F.2d 1038, 187 Ct. Cl. 428, 1969 U.S. Ct. Cl. LEXIS 141 (cc 1969).

Opinion

OPINION

PER CURIAM:

This case was referred to Trial Commissioner Richard Arens with directions to make findings of fact and recommendation for conclusions of law under the order of reference and Rule 57(a). The commissioner has done so in an opinion and report filed on June 7, 1968. Exceptions to the commissioner’s findings of fact, opinion and recommended conclusions of law were filed by plaintiff and the case has been submitted to the court on oral argument of counsel and the briefs of the parties. Since the court is in agreement with the commissioner’s opinion, findings and recommended conclusion of law, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Therefore, plaintiff is not entitled to recover and the petition is dismissed.

ARENS, Commissioner:

This case involves a radio receiver, one of several which plaintiff delivered from its plant in Silver Spring, Maryland, to the Department of the Air Force at Kelly Air Force Base, San Antonio, Texas, under a negotiated supply contract entered into on April 27, 1962, at a unit price of $3,510. The receiver in question was, upon inspection by defendant, found to be damaged, and was, at plaintiff’s suggestion, returned to and replaced by plaintiff under a warranty clause of the contract. Plaintiff claims that it is entitled to recover from defendant the amount of the damage to the receiver on various theories hereinafter considered.

Defendant not only takes issue with plaintiff on the merits of its claim, but asserts that plaintiff has no standing in this court because it did not pursue the administrative remedy provided under the disputes article of the contract. Since this assertion, if found to be valid, would be dispositive of the ease at the outset, we consider it first. It is clear that under the facts, which are here capsuled but detailed in the accompanying findings, the controversy did not come within the purview of the disputes article and that under the pronouncements of this court in Universal Ecsco Corp. v. United States, 385 F.2d 421, 181 Ct.Cl. 10 (1967), plaintiff is now entitled to an adjudication in this court.

On September 10, 1962, plaintiff’s agent, Roadway Express, Inc. (hereinafter referred to as Roadway), delivered the receiver to the receiving station at Kelly Air Force Base where defendant’s agent acknowledged receipt thereof, without exception, on a copy of the freight bill. Shortly thereafter, in accordance with the established procedure upon receipt of technical equipment, defendant’s *1040 engineering laboratory division was notified so that an inspection by a laboratory technician would be made.

On September 13, 1962, due to a combination of clerical mistakes which occurred at the Base, an intrabase form DD 250 was filled out in which it was erroneously stated that the receiver had been inspected and approved by the engineering laboratory division, that the receiver conformed to the contract and was accepted without exceptions. The form DD 250 was then routed to defendant’s finance office for payment which was made on December 14, 1962. It does not appear that the form DD 250 was sent as a matter of established procedure to the consignor of equipment or that it was sent to plaintiff.

In the meantime, on September 18, 1962, Mr. Joe Bean, a technician of defendant’s engineering laboratory division, broke the original seals and opened the three separate containers in which the receiver was packaged. He noticed that one of the meters was out of place and that there was. only one dial where there should have been two. On removing the receiver from the packaging and removing the top of the receiver, he noticed that a meter was loose and that a tuning unit was out of place. Since he concluded that the defects which he noticed were sufficient to warrant rejection of the receiver, Mr. Bean did not look for other defects in it, but thereupon rejected the receiver. Two days later, on September 20, 1962, he signed a Government form DD 6 (report of damaged or improper shipment) in which it was noted that there was a deficiency in the preservation or packaging of the receiver and that a meter and inductor had been shifted out of position. The form DD 6 contained spaces for an indication of whether the carrier (Roadway) had been notified or had inspected the damage, but these spaces were not marked. A copy of this form DD 6 as filled out showed plaintiff as addressee and. was sent to and received by plaintiff.

On December 19, 1962, Staff Sargeant Albert Johnson, who was in charge of the receiving station at Kelly Air Force Base, telephoned plaintiff’s superintendent of manufacturing, engineering and production control, Mr. Robert Ellenberger, regarding the receiver and stated that it had been paid for by defendant inadvertently. Mr. Ellenberger acknowledged that plaintiff had received a copy of the form DD 6 regarding the receiver and stated that since the receiver was still under warranty, defendant should return it to plaintiff for repair or replacement.

On December 21, 1962, defendant shipped the receiver back to plaintiff via another carrier, Railway Express Agency, on a Government bill of lading. After its receipt at plaintiff’s plant on January 2, 1963, the receiver was, on January 25, 1963, unpacked in the presence of a Roadway (the original carrier) inspector and plaintiff’s agents who took photographs of it. Thereafter, on February 18, 1963, plaintiff’s service section recommended that the receiver not be repaired because the only part of worth was a certain section which was valued at $250.

Thereafter, plaintiff shipped to defendant a replacement for the receiver and filed a claim for $2,140 against Roadway which declined payment on the ground that:

We tendered a shipment to your customer at San Antonio, Texas, with shipping container apparently in good condition and no visible signs of damage or negligence and a clear receipt was given to us, September 1962.
This shipment then was in the possession of your customer for several months after which time it was returned by railway express, another carrier, and it was not until January 25, 1963 that our company was asked to make an inspection.

At the trial the testimony produced by both plaintiff and defendant was to the effect that there was no additional damage to the receiver while it was being returned to plaintiff.

We come then to a consideration of the various theories which from time *1041 to time have been advanced by plaintiff as a basis for recovery:

(1) By accepting the receiver from the delivering carrier, defendant foreclosed an action by plaintiff against the carrier. Plaintiff has cited no authority to support this theory; nor has plaintiff established that defendant owed a duty to advise Roadway, the delivering carrier, of the damage which the evidence clearly establishes was not evident except upon the subsequent opening of the packaging. 1

(2) Defendant did not give plaintiff timely notice of the damage to the receiver. Plaintiff cites Cudahy Packing Co. v. United States, 75 F.Supp. 239, 109 Ct.Cl.

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5 Cl. Ct. 524 (Court of Claims, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
408 F.2d 1038, 187 Ct. Cl. 428, 1969 U.S. Ct. Cl. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vitro-electronics-v-the-united-states-cc-1969.