William Clamp & Sons Ship v. United States

41 Ct. Cl. 164
CourtUnited States Court of Claims
DecidedJanuary 29, 1906
DocketNo. 20858
StatusPublished
Cited by3 cases

This text of 41 Ct. Cl. 164 (William Clamp & Sons Ship 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
William Clamp & Sons Ship v. United States, 41 Ct. Cl. 164 (cc 1906).

Opinion

Peelle, Ch. J.,

delivered the opinion of the court:

The claimant alleges, and the findings show, that through the fault of the officers and agents of the United States it was delayed two years in the execution of its contract for'the construction of the coast-line battle ship Indiana, by reason of which, notwithstanding a corresponding extension of time was allowed, it suffered great damage; hence this action.

A contract was entered into November 18, 1890, by the terms of which the claimant was, for the consideration of $3,063,000, to construct and complete within three years from that date, in accordance with the specifications made a part of the contract, a seagoing coast-line battle ship, designated as No. 1, and subsequently named the Indiana.

On December 4, 1895, and after the vessel had been completed and delivered, the Secretary of the Navy decided that the cause of the delay for the two years in the completion of the vessel was due to the failure of the United States to furnish the materials which by the terms of the contract they had agreed to furnish, in the order required, to properly [188]*188carry on the work; and. for that reason the claimant was granted a corresponding extension of time for the completion of the vessel.

On May 10, 1894, before the Secretary of the Navy had determined the cause of the delay and before the vessel had been preliminarily accepted, the contract had been modified, as set forth in finding v, by which the United States had agreed that, in consideration of the claimant releasing them “ from all and every claim for loss or damage hitherto sustained by reason of any failure ” on their part or “ on account of any delay hitherto occasioned by ” their action, and giving security against any loss on account thereof, they would pay or advance to it the sum of $234,880, said sum being the amount of the reservations of the first twenty-three installments which, under the terms of the original contract, were not payable until after the preliminary acceptance of the vessel;

On June 20, 1894, the installments as agreed upon had been paid to the claimant, who had executed the required release and given security against loss as aforesaid; but no demand for any refund of the sum so paid, or any part thereof, was ever made upon the claimant, nor was any objection or protest made by it to the release so required as a condition of such payment.

Subsequently, May 10, 1896, and in accordance with the sixth paragraph of the nineteenth clause of the contract, the balance of the money due, but which, pending the decision of the Secretary as to the cause of the delay, had been withheld, was paid to the claimant, who, without protest or objection, executed, as required by said paragraph and clause of the contract, a release as follows:

“The William Cramp & Sons Ship and Engine Building Company, represented by me, Charles H. Cr^mp, president of said corporation; does hereby, for itself and its successors and assigns and its legal representatives, remise, release, and forever discharge the United States of and from all and all manner of debts, dues, sum and sums of money, accounts, reckonings, claims, and demands whatsoever, in law or in equity, for or by reason of, or on account of, the construction of said vessel under the contract aforesaid.”

[189]*189The vessel, as stated, was to have been completed within three years from the date of the contract, but was not completed or delivered until two years thereafter, or until November 19, 1895. In view of the penalties provided for in case of delay, as set forth in the ninth clause of the contract, it became important to determine the' cause of such delay. That question, as required by the same clause of the contract, was submitted to the Secretary of the Navy, whose decision, as before stated, was that the two years’ delay had been caused by the failure of the Government to furnish the materials in the order required as agreed upon. Iiis decision under that clause of the contract, it was provided, “ shall be conclusive and binding upon the parties.”

The ruling of the Secretary, coupled with the corresponding extension of time for the completion of the vessel, operated to release the claimant from the penalties otherwise provided for by the contract. But while this is conceded by the defendants, they contend that the Secretary had no authority over the question of the liability of the United States for damages for such delay. That is to say, when the Secretary decided that the delay was caused by the fault of the Government, and for that reason granted the claimant a corresponding extension of time, his authority under the contract was exhausted; that while by the terms of the contract all questions arising thereunder concerning deductions from the contract price of the vessel were to be submitted to the Secretary and his decision thereon was to be “ com elusive and binding upon the parties,” still he had no jurisdiction to consider or determine whether the cause of delay so decided by him would form the basis of a liability for damages against the Government for breach of contract.

On the other hand, the claimant contends that as by the terms of the contract the Secretary was given exclusive jurisdiction to determine the-cause of delay, and as he had decided that question in its favor, and thereby released it from the penalties provided for under the contract, the question was res juclioata, and being res judicata, was conclusive on the Government in respect of the cause of delay, whether such delay be made the basis for damages for breach of contract or for the release of penalties thereby imposed.

[190]*190But whether the decision of the Secretary in respect of the cause of delay be conclusive on the Government in this action for breach of contract we need not now decide, as the findings otherwise show that the delay -was caused by the Government.

The more important question arising on the facts is as to the effect of the' extension of the contract, and in this respect the defendants contend that when the Secretary extended the' contract for the period equal to the delay caused by the Government, and thereby relieved the claimant from any penalties, it was thereby granted the full measure of relief contemplated by the contract.

That contention is based on the ninth clause of the contract, which, after reciting the various penalties to be imposed in case of the claimant’s failure to complete the vessel within the contract time, and of the finality of the decision of the Secretary in respect to the cause of delay, provides:

“All delays which the Secretary of the Navy shall find to be properly attributable to the Navy Department, or to its authorized officers or agents, or any or either of them, and to have been a delay operating upon the final completion of the vessel within the time specified therefor in this contract, shall entitle the party of the first part to a corresponding extension of the period herein prescribed for the completion of the vessel.”

In- support of the contention arising under that provision of the contract the defendants cite the case of Haydnville Mining and Manufacturing Co. v. Art Institute (39 Fed. Rep., 484), which arose in the Circuit Court for the Northern District of Illinois. That was an action to recover a balance claimed to be due for extra work over and above that required by the contract.

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Related

Litchfield Manufacturing Corp. v. United States
338 F.2d 94 (Court of Claims, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
41 Ct. Cl. 164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-clamp-sons-ship-v-united-states-cc-1906.