Wender Presses, Inc. v. The United States

343 F.2d 961, 170 Ct. Cl. 483, 1965 U.S. Ct. Cl. LEXIS 96
CourtUnited States Court of Claims
DecidedApril 16, 1965
Docket134-63
StatusPublished
Cited by41 cases

This text of 343 F.2d 961 (Wender Presses, Inc. 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
Wender Presses, Inc. v. The United States, 343 F.2d 961, 170 Ct. Cl. 483, 1965 U.S. Ct. Cl. LEXIS 96 (cc 1965).

Opinion

*962 PER CURIAM:

This case was referred pursuant to Rule 54(b) to Trial Commissioner Saul Richard Gamer, with directions to make a recommendation for conclusion of law on plaintiff’s motion and defendant’s cross-motion for summary judgment. The commissioner has done so in an opinion filed October 23, 1964. Plaintiff sought review of the commissioner’s opinion and recommendation for conclusion of law and the case was submitted to the court on oral argument by counsel. Since the court is in agreement with the opinion and recommendation of the trial commissioner, as hereinafter set forth, it hereby adopts the same as the basis for its judgment in this case. Plaintiff is, therefore, not entitled to recover and its motion for summary judgment is denied, defendant’s cross-motion for summary judgment is granted and plaintiff’s petition is dismissed.

OPINION OF COMMISSIONER

This is another case in which a contractor claims it should be relieved of its contract obligations on the ground that it made a mistake in its bid. 1 With respect to its failure to consummate the purchase of one item of surplus property included in its contract, plaintiff seeks rescission of this portion of the contract and recovery of its bid deposit of $1,550.-30 made on such item. Plaintiff did not claim a mistake nor advise defendant of it until after the contract came into being.

It is plain that plaintiff may recover only if defendant’s responsible officials knew or should have known of the mistake at the time the bid was accepted. This court has so held many times. Allied Contractors, Inc. v. United States, 310 F.2d 945, 159 Ct.Cl. 548 (1962); Alabama Shirt & Trouser Co. v. United States, 121 Ct.Cl. 313 (1952); Hyde Park Clothes, Inc. v. United States, 84 F.Supp. 589, 114 Ct.Cl. 424 (1949); Massman Construction Co. v. United States, 60 F.Supp. 635, 102 Ct.Cl. 699, cert. denied, 325 U.S. 866, 65 S.Ct. 1403, 89 L.Ed. 1985 (1945); Dougherty & Ogden v. United States, 102 Ct.Cl. 249 (1944); Rappoli Co., Inc. v. United States, 98 Ct.Cl. 499 (1943); Alta Electric & Mechanical Co. v. United States, 90 Ct.Cl. 466 (1940).

Since plaintiff did not directly apprise defendant of the mistake prior to the acceptance of plaintiff's bid, as was, for instance, the situation in Rhode Island Tool Co. v. United States, 128 F. Supp. 417, 130 Ct.Cl. 698 (1955), Alta Electric & Mechanical Co., supra, and Rappoli Co., Inc., supra, so that there is no showing of any actual knowledge, the only question is whether defendant’s officials should have known of the mistake. Included in this problem is the question of whether, even though they could not have known with certainty from the bid data that a mistake had been made, there nevertheless was enough to have reasonably cast upon defendant’s officials the duty to make inquiry, which inquiry would have led to the requisite knowledge. See Doke, Mistakes in Government Contracts — Error Detection Duty of Contracting Officers, 18 Sw.L.J. 1 (1964). For although an award normally results in a binding contract fixing the parties' rights and obligations (United States v. Purcell Envelope Co., 249 U.S. 313, 39 S.Ct. 300, 63 L.Ed. 620 (1919)), so that “Ordinarily no relief will be granted to a party to an executory contract in the case of a unilateral mistake”, Saligman v. United States, 56 F.Supp. 505, 507 (E.D. Pa., 1944), nevertheless an acceptance of *963 a bid containing a palpable, inadvertent, error cannot result in an enforceable contract. Moffett, Hodgkins & Clarke Co. v. City of Rochester, 178 U.S. 373, 20 S.Ct. 957, 44 L.Ed. 1108 (1900); United States v. Metro Novelty Manufacturing Co., 125 F.Supp. 713 (S.D. N.Y., 1954); Kemp v. United States, 38 F.Supp. 568 (D.Md., 1941). An “offeree will not be permitted to snap up an offer that is too good to be true; no agreement based on such an offer can then be enforced by the acceptor.” 1 Williston, Contracts (3d ed. 1957) § 94.

The task of ascertaining what an official in charge of accepting bids “should” have known or suspected is, of course, not always an easy one. Mistake-making contractors will naturally seek to impose upon such officials a rather high level of brillance for the purpose of detecting the error. If, for instance, the knowledge of the Government’s “staff of experts” available to the contracting officer is imputed to such officer (Saligman v. United States, supra, 56 F.Supp. p. 507) then what the contracting officer “should” have known would cover a very wide range indeed. However, the test here, as in so many areas, must be that of reasonableness, i. e., whether under the facts and circumstances of “the particular case there were any factors which reasonably should have raised the presumption of error in the mind of the contracting officer”, Welch, Mistakes in Bids, 18 Fed.B.J. 75, 83 (1958), without making it necessary for the agency’s experts in every case to assume “the burden of examining every * * * bid for possible error by the bidder.” Saligman v. United States, supra, p. 508.

There is here no contention that the contracting officer had himself, prior to the bid opening, estimated a price for the property in question substantially different from that of plaintiff’s bid (cf. Allied Contractors, Inc. v. United States, supra; Frazier-Davis Construction Co. v. United States, 100 Ct.Cl. 120 (1943)) or that he had knowledge of previous purchases of the same or similar article at substantially different price's. Welch, Mistakes in Bids, supra, at p. 83. Instead, reliance is placed only on the alleged wide range in the bids and the inferences that defendant’s contracting officer should have drawn therefrom. Limiting ourselves to this one factor, plaintiff is correct that where it is obvious from the range of bids itself that a mistake must have been made, or that there is a real possibility of such error, and the Government has done nothing by way of making appropriate inquiry, relief will be afforded. Universal Transistor Products Corp. v. United States, 214 F.Supp. 486 (E.D.N.Y.1963); Alta Electric & Mechanical Co. v. United States, supra; Kemp v. United States, supra; Saligman v. United States, supra; C. N. Monroe Manufacturing Co. v. United States, 143 F.Supp. 449 (E.D.Mich.1956).

Applying the above tests to the instant fact situation, it cannot be concluded, upon the basis of the record pre- . sented on these motions, that the disparity in bids constituted constructive notice of the possibility of error.

Bid Item 34 of the surplus Government property herein involved, denominated a “lathe, chucking right angle carriage”, was accompanied by a long description of its type and equipment. The description closed with the information that the lathe’s condition was “Used-Fair” and that defendant’s acquisition cost had been $50,072.

Plaintiff’s bid set forth the figure of $7,751.51 for this item. The second highest bid was $3,441. Three other bids; were also received in the amounts of $2,-429.99, $1,511 and $288, respectively.

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Bluebook (online)
343 F.2d 961, 170 Ct. Cl. 483, 1965 U.S. Ct. Cl. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wender-presses-inc-v-the-united-states-cc-1965.