Wholesale Service Supply Corp. v. State

201 Misc. 56, 103 N.Y.S.2d 820, 1951 N.Y. Misc. LEXIS 1681
CourtNew York Court of Claims
DecidedApril 4, 1951
DocketClaim No. 29789
StatusPublished

This text of 201 Misc. 56 (Wholesale Service Supply Corp. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wholesale Service Supply Corp. v. State, 201 Misc. 56, 103 N.Y.S.2d 820, 1951 N.Y. Misc. LEXIS 1681 (N.Y. Super. Ct. 1951).

Opinion

Gorman, J.

The present action arises out of the alleged breach of a contract between claimant, a domestic corporation, and the State of New York.

There is little dispute as to the facts. Prior to August 10, 1948, the State of New York, through the Division of Standards and Purchase, advertised for bids in connection with the contemplated procurement of twenty-two items of fencing, posts and accessories. Claimant’s bids were accepted on several of these items, including item No. 18, which is our present concern. Item No. 18 embraced the purchase of wire fencing to be used by the Conservation Department in connection with a wildlife project at the Delmar Game Farm. The item was set forth in the proposal as follows: “ Item #18 Delmar Game Farm, Delmar, N. Y. WOVEN WIRE FENCE FABRIC (Galvanized), 2" x 4" mesh, top and bottom wires 9 gauge, filler wires 11 gauge. (Similar to Keystone Non-Climbable Fence) — (150 ft. Rolls) 36" height — Quantity: 200 rolls Unit Price per roll: -72" height — quantity: 200 rolls — Unit Price per roll:-.”

In submitting its bid on the above item, claimant made certain alterations. “WOVEN” was crossed out and the words “ CLOSE MESH, WELDED ” were inserted. The figure “ 9 ” before “ gauge ” was replaced by the figure “ 11 ”, and the figure “ 100 ” before “ ft. Rolls ” was substituted for the figure “ 150 ”. Upon returning its bid, claimant in an accompanying letter, made a part of its bid, called specific attention to item No. 18 as follows: “ Item #18 — We are quoting on close mesh welded wire fabric galvanized 2" x 4" mesh. All wires being 11 gauge. Also, please note that this material is furnished in 100 lineal feet rolls.”

Bids were opened on August 10, 1948, and an award and contract, dated October 1, 1948, and approved by the State Comptroller on October 6,1948, was sent out to the claimant on October 11,1948. The contract, by its terms, expired on March 31,1949.

Item No. 18 in the award conformed to the alterations made by claimant wdth an additional change, made by the State agency preparing the award, in the “ quantity ” from “ 200 ” rolls for each height to “ 300 ” rolls, necessitated by the difference in the number of feet in the rolls. Upon receipt of the award and contract, claimant placed an order for the fencing, [59]*59which was not a stock item, but had to be specially fabricated, with the Pittsburg Steel Company. Deliveries to the claimant were made on October 23, 30, November 1, and December 2, 1948.

On November 17, 1948, the claimant requested the Delmar Came Farm to issue a delivery order for the fencing. No order was made, and on December 20, 1948, claimant contacted John T. Higgins, deputy commissioner of the Division of Standards and Purchase, about the failure to receive a delivery order. Claimant was referred to the Conservation Department, the agency which had initiated the request for the fencing. Deputy Commissioner Skiff of the Conservation Department informed claimant that the department required only thirty rolls of each size of the wire fencing. It thus became apparent to claimant for the first time, that an error had been made in setting up the quantity required — that the proposal and award had contemplated 600 rolls, or 60,000 feet, of fencing but that the actual requirement of the Conservation Department had been only 60 rolls, or 6,000 feet. On the same date the Conservation Department obtained an amended certificate of allocation from the Director of the Budget and subsequently placed delivery orders for only 120 rolls of fencing. The department refused to accept any additional quantity. Seventeen rolls of the material were later ordered by other State agencies, and the claimant through its own efforts eventually disposed of seven additional rolls of the thirty-six-inch material and nineteen rolls of the seventy-two-inch fencing. Claimant was unable to dispose of 437 rolls of fencing which the Pittsburg Steel Company refused to take back.

Under the procedure set up by the State for the purchase of material by a State agency, the purchasing agency sends a requisition of its needs to the Division of Standards and Purchase which, in the proper case, solicits bids and makes awards, sending out a formal notice of award, approved by the State Comptroller, to the successful bidder, a copy of which is forwarded to the purchasing agency. The purchasing agency then applies to the Budget Director for an allocation of funds to cover the contract. The allocation is then transmitted to the State Comptroller, and the Comptroller honors the purchase order if there are sufficient funds in the appropriation.

The fencing herein involved was required in a certain project, known as deer management research, a unit in the wildlife restoration project. This project was partly financed from an [60]*60appropriation made by the State, and partly from an advance appropriation made by the State to be reimbursed by the Federal Government in the amount of 75%. The appropriation was authorized bv chapter 468 of the Laws of 1948 in the lump sum of $653,025. "

The proposal and award, as shown above, set forth a specific quantity of fencing to be supplied by the claimant. There are certain clauses in the award and general specifications which must be construed to ascertain if such specific amount was in any way qualified. The following clause appears in the award in a section headed “ Quantities ”: “The quantities listed herein are based on requirements on file in the Div. of Standards and Purchase. The contract, however, is for quantities as actually ordered by any State Agency during the contract period.”

The general specifications contained the following clause: “ 39. Each bid will be received with the understanding that the acceptance thereof in writing by the Commissioner, approved by the Comptroller, to furnish any or all of the items described therein shall constitute a contract between the bidder and the State and shall bind the Bidder on his part to furnish and deliver at the prices and in accordance with the conditions of his bid; the State on its part to order from such contractor (except in the case of emergency) and to pay for at the contract prices, all items ordered and delivered, within ten (10) per cent over or under the award quantity.”

In construing a contract, it is the province of the court to give effect to the whole contract and to reconcile all of its provisions if it is in any way possible to do so. (Fleischman v. Furgueson, 223 N. Y. 235; Fox Film Corp. v. Hirschman, 122 Misc. 354, affd. 212 App. Div. 837.) To give credence to the State’s contention that the contract provided for conditional quantities and was only for such amounts as were actually ordered by the State agencies requiring* the material would necessitate decreeing the contract unenforcible for want of certainty. It would, by such a construction, fall into that category of unenforcible contracts wherein the will, wish or want of one of the parties determines absolutely the quantity to be delivered (12 Am. Jur., Contracts, § 69, p. 560) because the State would be under no obligation to order any quantity at all if it did not choose. Such an interpretation would place the claimant entirely at the mercy of the State, and equity does not favor such a construction. (Gillet v. Bank of America, 160 N. Y. 549; Russell v. Allerton, 108 N. Y. [61]*61288; Wright v. Reusens, 133 N. Y. 298, 305; Jugla v. Trouttet, 120 N. Y. 21, 28; Campbell v. State of New York, 240 App. Div.

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201 Misc. 56, 103 N.Y.S.2d 820, 1951 N.Y. Misc. LEXIS 1681, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wholesale-service-supply-corp-v-state-nyclaimsct-1951.