Vulcanite Portland Cement Co. v. United States

74 Ct. Cl. 692, 1931 U.S. Ct. Cl. LEXIS 377, 1931 WL 2351
CourtUnited States Court of Claims
DecidedApril 6, 1931
DocketNo. H-259
StatusPublished
Cited by12 cases

This text of 74 Ct. Cl. 692 (Vulcanite Portland Cement Co. v. 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
Vulcanite Portland Cement Co. v. United States, 74 Ct. Cl. 692, 1931 U.S. Ct. Cl. LEXIS 377, 1931 WL 2351 (cc 1931).

Opinion

Green, Judge,

delivered the opinion:

Plaintiff brings this suit to recover $6,530.51 balances unpaid the plaintiff for cement delivered to the Government pursuant to two written contracts. The defendant sets up certain counterclaims, which will hereinafter be set forth, based upon alleged overpayments to the plaintiff upon other contracts. There is no dispute about the amount unpaid under the two contracts upon which plaintiff brings suit. The controversy in the case is wholly with relation to the counterclaims set up by the defendant. All of these counterclaims pertain to contracts made by plaintiff for the delivery of cement to the defendant.

defendant’s first counterclaim

Taking up the first counterclaim, we find that on January 22, 1918, the plaintiff entered into a written contract, No. 34650, for the delivery to the defendant of 6,000 barrels of cement in cloth bags at $1.55 per barrel, amounting to a total of $9,300. Plaintiff completed delivery in accordance with the contract on May 29, 1918, and was fully paid therefor in accordance with the terms and provisions of the contract, the final payment being made on July 22, 1918.

On May 1, 1918, the plaintiff wrote defendant that there was a balance due of 4,499 barrels on contract No. 34650, and that invoices would be rendered at the “present commercial price,” but that “This price is subject to revision in the event that a different price is agreed upon either between ourselves or the Portland Cement Committee and the War Industries Board.” To this communication an answer was [704]*704returned by the Paymaster General through whom the contracts had been made with the defendant, containing the following statement:

“With regard to the above reference, please be advised that delivery of cement on Contract 34650 will be required as specified in that contract and invoices rendered at the price agreed upon. The question of increased unit price due to advance in freight rates or an increased price agreed upon by the War Industries Board and approved by the Secretary of the Navy, will be made the subject of an amendment to this contract and all deliveries made that are subject to such increase will be adjusted later.”

On May 10, 1918, a supplemental contract was executed between the parties amending contract No. 34650, as follows:

“The price for Portland cement on the original of contract No. 34650 is composed of an approved f. o. b. plant price plus the freight charges per barrel at destination. The delivered price specified is therefore subject to adjustment for any increase or decrease in freight rate authorized by the Interstate Commerce Commission or by competent authority during the life of the contract.
“Accordingly the contractor will be reimbursed for the advance rate made effective by direction of the Interstate Commerce Commission at a general session held March 12, 1918, and providing that ‘commodity rates on cement may be increased by one cent per hundred pounds.' The commission’s order affects all the commodity cement rates in official classification territory.”

On September 1, 1918, the parties entered into another contract supplemental to No. 34650, which provided among other things, that on all shipments of cement on and after May 1, 1918, the price stated in the original contract would be changed to $2.18 f. o. b. Northampton, Pa., and that freight charges between Northampton, Pa., and destination would be added to face of invoice as a separate item, but freight charges were to be prepaid to destination. Also, that cloth bags in good condition would be returned to the contractor, and for such bags the cement company would remit at the rate of 10 cents each.

The Government, on January 14, 1919, paid the plaintiff, pursuant to the terms of the supplemental contracts above set forth, the sum of $4,249.01 over and above the amount required to be paid by the original contract No. 34650. [705]*705By these supplemental contracts the Government officials, acting on behalf of the defendant, agreed to make certain payments in addition to those provided in the original contract. The defendant contends that these agreements to make additional payments were without consideration, in that plaintiff agreed to do nothing but that which was required by the original contract; that consequently there was no authority on the part of the officers acting for the Government to enter into these supplemental contracts, and defendant is entitled to receive back the additional payments so made.

It needs no argument to show that no officer of the defendant had any authority to make a contract on behalf of the Government for which it received no benefit or consideration. It is equally well settled that where the provisions of a contract are changed by a subsequent agreement between the same parties such agreement has no force and effect unless there is some consideration moving to the party adversely affected by such changes. See J. J. Preis & Co. v. United States, 58 C. Cls. 81, 86; Cohen, Endel & Co. v. United States, 60 C. Cls. 513, 518; and Yale & Towne Mfg. Co. v. United States, 67 C. Cls. 618, 625. Nor will the fact that the contract had not been completely performed at the time the plaintiff asked for or demanded increased compensation, to which the other party acceded, make the supplemental contract for an additional payment valid. Alaska Packers’ Ass’n v. Domenico et al., 117 Fed. 99, 102.

The soundness of the principles upon which counsel for defendant base their argument must be conceded, but the fundamental question still remains as to whether the rule contended for on behalf of defendant has any application in the case now before us.

In this connection it should be observed that the claim made on behalf of defendant that it is entitled to receive back the additional payments made pursuant to the supplemental contracts rests upon the contention that the two supplemental contracts amending contract No. 34650 were of no contractual force and that therefore the payments so made can be recovered back. For the purposes of the argument it may be conceded that these two instruments have no [706]*706contractual force, but plaintiff’s case, as we view it, does not depend upon whether these instruments were valid as contracts, which we find unnecessary to determine. The fundamental question in the case is whether there was a preliminary agreement between the parties which applied to any contract thereafter executed between them for the purchase of cement. In determining this question we will next consider the somewhat peculiar circumstances of the case at bar.

The original written contract, No. 34650, signed by both parties, involved in the first counterclaim and contract No. 35890 involved in the third counterclaim, were preceded by communications with reference to the purchase of cement which passed between plaintiff and defendant and a series of acts and announcements done and made by defendant in accordance with statements made in the communications. The plaintiff contends that all this brought about an understanding between the parties to the effect that the price stated in contract No. 34650 for cement was tentative only, and subject to prices and terms fixed by the price-fixing committee of the War Industries Board.

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Cite This Page — Counsel Stack

Bluebook (online)
74 Ct. Cl. 692, 1931 U.S. Ct. Cl. LEXIS 377, 1931 WL 2351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vulcanite-portland-cement-co-v-united-states-cc-1931.