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Woodcrest Construction Company, Inc. And the Home Indemnity Company, as Completing Surety v. The United States
408 F.2d 406
Ct. Cl.
1969
Check Treatment

*1 invention, equivalents, claimed or their

functioning substantially the same

way produce substantially the same

result. Straussler v. Rich- 168 Ct.Cl. 852 are relates to

ards microtomes slicing thin off

instruments sections biologi-

pieces organic matter, such as specimens, microscopic

cal examina- normally specimen, tion. The soft

pliant, workplate is frozen solid to a bond, knife ice then with a sliced which top back and forth across moves Freezing specimen. speci- JJ., Laramore, Davis and dissented only workplate men secures it to part; Collins, J., dissented. slicing. rigid easy but also makes gem nothing Richards teaches about relating problems nor to their stones

manufacture. As claims 1 and 3 must invalidity

be construed to avoid above,

section discussed Richards biological speci- anticipate

does not since gem equivalent are

mens stones

“difficultly manageable workpieces,” slicing equivalent polishing,

nor is

grinding buffing “precision treat-

ment.” an- therefore does not Richards

ticipate 1 and 3 as claims claims those

are herein construed.

WOODCREST COM CONSTRUCTION PANY, Indemnity Inc. and the Home Company, Surety Completing

The UNITED STATES.

No. 32-67.

United States Court Claims.

March 1969. *2 Foreman, City,

Albert York at- New torney record, plaintiffs. M. Carl Levine, Morgulas Foreman, & New York City, of counsel.

Douglas Smith, M. with whom was Atty. Weisl, Jr., Asst. Gen. Edwin L. Greene, for defendant. H. Thomas Wash- ington, C., D. of counsel. COWEN, Judge,

Before Chief LARAMORE, DURFEE, DAVIS, COL- LINS, SKELTON, NICHOLS, Judges. FOR claimed MOTION

ON PLAINTIFFS’ information contained bidding AND DE- documents JUDGMENT was false SUMMARY MOTION erroneous it didn’t CROSS since FENDANT’S disclose subsur- face water on the JUDGMENT site re- FOR SUMMARY quire dewatering pumping extensive *3 Judge* DURFEE, operations, It claims that it relied the received, it information basically The herein was a when it later discovered the subsurface unit the construction water, defendant, it notified in accord- the of modifications and additions to ance with Article 4 of the contract. Building Tele- Central Control and the contracting officer disallowed claim phone Exchange Building Cape the the compensation. for additional Kennedy) Woodcrest (now Cape Canaveral Missile proceeded protest, requested under Base, but Test Annex at Air Force Patrick perform extension time of the to Florida. After a number of contract required by work the extensions, contract. Defend- modifications time request, ant denied the insisted Wooderest’s contract was terminated Woodcrest maintain the default, Indemnity the Home Com- schedule. Woodcrest pany, surety, claims that completed Wooderest’s the thus to incur job. alleged increased completions, ex- late Because of penses, for which it now contracting seeks reim- speci- the officer withheld bursement. liquidated damages fied from Wood- Indemnity’s progress crest’s and Home appeal by The denial of the BCA the payments. plain- on the conclusion based tiff knew or the should have known of separate causes of Plaintiffs four high ground-water existence of a action. the con- The determinations of site, project at the and thus it tracting appealed to the officer were misled defendant’s erroneous failure Corps Engineers of Board of Contract ground-water to show the the table on Appeals, a rendered af- which decision boring logs. firming contracting find- the officer’s Although may ings. there appealed some evidence This decision was to support plaintiff Appeals, this conclusion Board of Contract knew or appeal should have known ex- Board on the of dismissed ground-water high istence of a appeal Corps level, we of particular think Engineers Appeals facts of case Board of Contract finding make such Board appeal was the erroneous last administrative au- supporting Thus, thorized under contract. evidence is sub- attacking stantial. tiff is here of Engineers Corps of Board of Contract claim “under” Since the is one Appeals supported by as not substantial governed by suit is evidence. Since are several causes there Act, 41 Wunderlich U.S.C. §§ sepa- each one action, discuss will we (1964), finality which accords rately. by a Board’s decision on matters covered Disputes Clause unless is “fraudulent “Changed Conditions” Claim I — capricious arbitrary grossly or or so July 15, 1966, On necessarily imply bad erroneous Board faith, supported by or is not substantial (hereinafter BCA). referred to as the de scope evidence.” court’s review This “Changed appeal nied Wooderest’s under the Act Wunderlich same Conditions” cause action. appeals of Federal courts of opinion incorporates portions This Conditions,” court reaches different opinion prepared by Commissioner Mastín result from Commissioner. respect G. opinion. White. With to the The facts are stated Corp. nished with information should Universal Camera the standards Board, have alerted him to the existence of Relations Labor National ground, L.Ed. 456 mafrost below the was aware 71 S.Ct. U.S. Co., permafrost some Inc. be en- (1951). Bianchi See Carlo countered. court stated: States, 167 Ct.Cl. 86 S.Ct. U.S. cert. denied 382 These data furnished L.Ed.2d defendant in connec- clearly supra, papers Camera, with the bid issue In Universal reviewability reasonably sufficient indicate to orders of was the prudent permafrost bidder light Administrative NLRB Taft-Hartley widespread in the area of the Act. two ex- Procedure Act and might cavation en- sites well be was whether test enunciated *4 performing in countered the excava- record substantial evidence ** sites, tion at work the two *. a whole. In instant considered as Id. case, at F.2d at 541. evidence not substantial there is a plaintiff “knew” that there was borings Had rectly Government core cor- addition, ground-water high In level. indicated that water was actually relatively affect- area small say present, plaintiff we could ground-water mili- by high level known con- should have of subsurface plaintiff against finding a tates ditions. general known” of the “should have argues although Government ground-water high level or presence of may plaintiff, it pres- have misled the con- danger may that it have been specifications whole, a in as addi- ent. general knowledge expert tion and to only one-third of The BCA found readily knowledge plaintiff, to available Telephone area of the addition to the the Exchange Building required put plaintiff on should have the alert. dewatering, Board, denying plaintiff’s appeal in a of the area that mere one-tenth and argument, point, made same this Building addition the Central when that: it said fact, operation. In view of such an * * * Camera, in Universal su- what said many factors there were so pra, special has relevance : readily appellant to known available * * * presence high a water substantiality of evidence predicted, that could have been in must take into account whatever appellant knew have known fairly or should its record detracts from ** * BCA, weight. of the existence thereof. at S.Ct. Id. 26,696. p. 5726, at at 464. pro- looking By large, the various area not have and did sub- visions, ex- that the we are not convinced it, how surface water high a nec- table must istence water a “con- should have known such tiff essarily them. The refer- by follow from is the facts. dition” not demonstrated dewatering draining attempt ence to may An to show there have just easily could as been have water in or- been subsurface condition operations referring to necessitated plaintiff prove have der what should dewatering rainfall; moreover, known, flies of the fact that face general, equipment by condition did not be exist. ordered could used to remove as a rainwater well In Morrison-Knudsen Co. v. United high As- table’s water subsurface water. 170 Ct.Cl. 712 however, suming just as one could plaintiff, court held that hav- easily possibility of have inferred ing been warned about the likelihood of from rainwater the various contract permafrost encountering exca- having project, easily fur- been visions vation as one could dredged high presence table material a certain water be was of ferred the kind, water, reality, whereas, belief our shown is and subsurface given by they impression borings, inescapable were of different logs kind, expensive dredge. furnished more bidders thus the core Here, only logs have led furnished bidder could the Government water, no sub- showed no and a subsurface con- one conclusion —that there assumption BCA tractor's condition. The concluded therefore surface only always step otherwise, no bound was subsurface water is one we are Supreme representation Court removed from an actual their decision. The by the Government to that effect. In a stated: here, situation such as we have where Congress merely has made shown, they test results are are con- reviewing court is not that a clear trary to what the Government knows to setting de aside Board from barred true, what this court said in Atlantic conscientiously when it cannot cision Dredging supra, Co., applies as well: supporting that find the evidence ** substantial, It when seems to viewed the court that the light bidder rely had a record in its en informa- * * given, including body tirety furnishes, so *. Id. at 502. opposed the Board’s view. evidence represen The effect of an actual Corp., supra, Universal Camera U. *5 tation is to make the statements of the 488, S. at 71 at 465. S.Ct. binding despite upon it, Government ex culpatory guarantee clauses which do not There are a number of reasons accuracy description. of a Id. at 503. why provides the Government informa Here, although there no is statement One is to to contractors. reason upon which can binding be made provide bid. a basis for a accurate more Government, there was in effect a de presented Thus, the contractor is when scription site, upon plain of the which may may specifications or with which rely, had tiff to which condition, and, not a subsurface indicate exculpatory was misled. Nor does the boring logs addition, presented in with clause the instant case absolve the showing that no water was subsurface Government, since: encountered, we cannot conclude that ** * known exculpatory contractor should have such broad clauses ** * pur especially condition, given the main cannot since be their full borings pose reach, sub literal of such is to indicate and “do not relieve the liability not changed surface conditions which would defendant of con language be discovered. ditions as otherwise the broad thereof would seem to indicate.” Fehlhaber Although representation was no actual Corp. States, F.Supp. 151 made the Government there 817, 825, 571, 584, 138 Ct.Cl. ground water, thus, no we cannot denied, cert. 877, 355 U.S. 78 S.Ct. say warranty, ef- there was a 2 L.Ed.2d said, 108. As Fehlhaber furnishing upon fect the contractor of general portions specifications of the indicating boring logs without lightly should not be read to ground override borings water such shown Changed Conditions may clause Ibid. representation the same if a be as United Contractors et al. v. Dredging had been made. In Atlantic 585, 598, 368 F.2d (1918) Ct.Cl. Co. v. United Ct.Cl. aff’d 253 U.S. L.Ed. S.Ct. (1920), map expert knowledge The was furnished to available legends plaintiff plaintiff. persuasive Government to was not so and con- map plaintiff did contain a true de- sistent should have fol- dredged, scription it, sought of the material lowed much be less it. The “ex- perts” borings as encountered when the who stated that subsurface water specifications made. anticipated stated should have been based their

4H knowledge changes drawings personal spec- in the opinion own on their and/or “general” knowl- ifications of if this within its area. When of the logs, general scope. changes, against If edge up such cause is lined plaintiff, an increase or decrease conclude that the Con- difficult it is of, required for, experts, sought should tractor’s cost time or he out had logs. equita- rather than an believed them adjustment only testify there experts ble shall be made and could water; writing possibility modified of subsurface accord- awas * * * ingly. parties however, We none. If borings, showed fail wrong agree upon adjustment made, say plaintiff cannot dispute following most shall be determined as “The most reliable borings provided *.” specific Clause 6 of these indicator —the General —* supra,, [relating See, “Disputes”] al. Provisions et United Contractors 166-167, at 598. 368 F.2d Although contracting mislead- fact did view of the officer boring logs not, ing contemplated lead a contractor in the as provision, change conclude no written orders issue water, coupled respect when with other evidence with matters to the now under way, evidently consideration, we was inconclusive either Wood- theory determination BCA’s crest’s extra find that items work, materials, expensive known is knew or should have or the more supported by alleged evidence. substantial of it result Accordingly, ly interpretations Condi- erroneous of contract drawings specifications action, we re tions” cause of find or should be garded flowing time. tiff was entitled to extension of from constructive changes pertinent contract draw “Changes” Claims ings specifications and, therefore, II — *6 compensable “Changes” pro under the July 15, 1966, the opinion dated In its vision of the contract. Jack Stone Cf. Engineers Contract Board of Corps of States, 376, Co. United 370, 344 F.2d claims Appeals decisions rendered also 281, (1965) ; Gholson, 170 Ct.Cl. allega- by under Woodcrest submitted Byars and Holmes Construction Co. v. that, of erroneous the result as tions States, 987, 994-996, 351 F.2d per- terpretations by defendant’s the ; 374, 388-390, (1965) 173 Ct.Cl. specifi- drawings or contract of sonnel Turnbull, States, 1007, Inc. v. United 389 F.2d required to cations, had been 1012, 1010, (1967). 180 Ct.Cl. 1020 types ma- work, of or to use extra do terials, contemplated the “changes” Woodcrest’s claims drawings specifica- or tinent contract Corps Engineers were denied the of tions, interpreted. properly These as 15, Appeals July Board of sought contract increases the claims 1966. As the these Board’s decisions on for extensions the and also time (with exception) the claims involved one con- the the work under of drawings interpretation contract (with resulting diminutions specifications, administrative deci damages liquidated de- assessed questions law, and sions related to delay comple- fendant because binding the Board’s are decisions work). tion of court, is authorized preceding mentioned The claims (41 section Act second the Wunderlich “equita- apparently paragraph were for (1964)) to consider U.S.C. these § adjustments” under ble legal questions de novo. v. Unit Schmid provision provision contract. This of the 654, 351 F.2d 173 Ct.Cl. part as follows: stated 302, 309, (1965) ; Merritt-Chapman & may, any Corp. Contracting Officer Scott time, by order make 174 Ct.Cl. written “changes” (among claims will be tion.” This sheet contained The several things) diagrams subsequent para- indicating separately in other discussed opinion. manner of graphs construction for five com- this manholes, C-l, C-2, munication Nos. C- of Woodcrest’s Manholes: One 3, C-4, and C-5. question “changes” involved claims presentation particular In the of this drawings, as contract of whether claim, Woodcrest asserted before the upon Wood- properly interpreted, called Board of Contract couple of communi construct a crest to preparation of its designated manholes, at C-l cation bid, drawings it relied on sheet 2 of the C-4. showing that communication manholes calling contract, for in addition to C-2, C-3, Nos. and C-5 were “new” and to the Cen- additions the construction of were to be constructed the con- Telephone Building and the tral Control tract, showing that manhole No. C-4 Building, Exchange also involved “existing” facility was an and was thus related works. construction of certain scope outside the Among communication these were some implying that manhole No. C-l was and manholes. ducts “existing” facility an was not since it which the de- invitation bids plan. However, shown on the site to Woodcrest furnished fendant subsequently turned out that communi- prior to submission of bids others cation Nos. C-l and C-4 manholes were proposed numerous included contract existence, not in re- Woodcrest was drawings relating to the work that quired by the defendant to construct performed under contract. Woodcrest, these manholes. To this drawings subsequently in- These amounted to extra work which entitled it of, in, corporated and became compensation to additional and addition- contract. completion al time the con- drawings con- However, 1 of the contract Sheet tract. claim, the Board denied things) legend (among tained other holding that “Sheet was the meaning explained of various controlling drawing that symbols for construction of drawings. used on other system.” the manhole In connection with “Communication case, an obvious dis- Manhole,” legend indicated & Ducts hand, crepancy between, on the one sheet “existing” symbol com- drawings “Site —the square *7 manhole small munication clearly Plan” —which indicated com- clear, space and that with the inner munication manhole No. isting” facility an “ex- C-4 was symbol man- communication for a “new” and, C-l, and omitted No. square the inner with hole was a small hand, relating on the other sheet 33-— space cross-hatched. “Communication Distribution —which drawings was Sheet 2 the contract concerning furnished instructions Plan.” This denominated the “Site manner in which communication man- things) (among depicted other sheet holes C-l and were be con- Nos. C-4 symbolized squares com- small four clearly structed thus indicated C-2, C-3, C- munication manholes. Nos. 4, they scope were within work symbolizing squares and C-5. The performed to be under contract. In C-3, C-2, were cross- Nos. and C-5 situation, upon such a it was incumbent indicating that were hatched thus these Woodcrest, in with the connection sub- “new” communication manholes. bid, of its a clarifica- mission obtain symbol- clear, for No. in- C-4 was thus making an tion from defendant “existing” dicating this was an inquiry as whether communication manhole. C-4 ac- manholes Nos. C-l and drawings tually in existence and thus outside the

Sheet 33 of the contract scope under the Distribu- work to be done denominated “Communication ** bolstering [Emphasis fa new these were or whether fabric. supplied.] bidder successful cilities which the con expected to construct Paragraph required shop 37-03 Co. v. Unit Beacon Construction tract. drawings approval, be submitted for 501, 504, 161 Ct.Cl. F.2d “Drawings further said shall (1963) ; Bros. Construc see Blount shop drawings, clude and erection includ- tion Co. ” * * * ing type of fabric 496, (1965). 972-973, Ct.Cl. (emphasis supplied). circumstances, appears Under the Paragraph provided 37-04 that “Sam- justified in not be court would that the ples required shall be submitted to the overruling reasonable administrative Contracting approval.” Officer for interpretation to effect that sheet proposed to furnish the TC- drawings, re- 33 of the 616 SCHOLASTIC chairs manufactured specifically to communication lated system, Heywood-Wakefield Company. controlling drawing for “was the produced The manufacturer this chair as system.” of the manhole construction covering, a standard item with a muslin Covering: produced slightly higher The addition to and Chair also at a Building price to con the Central Control with rather wide choice fab- theater, covering. rics for tain a by with chairs installed Woodcrest desired One of Wooderest’s to use the Woodcrest. standard chair with the muslin question covering, claims involved the defendant insisted that provisions pertinent technical it had the of whether certain under the tech- proper-' specifications, provisions nical in the contract to select a fabric for the necessary ly covering. interpreted, for chair made it Woodcrest was ultimate- ly op provide Woodcrest to afford the defendant theater chairs covering portunity as with select the fabric use made fabric selected covering the defendant. the theater chairs. Corps Engineers provisions Board Con- Section 37 of the technical introductory denied “Seating.” claim Wooderest’s related to portion for an increase in 37-02, dealing paragraph be- with requirement “Materials,” cause of the that the more declared that: expensive covering fabric be used as the shall Chairs be constructed as here- theater chairs. specified equal in after to TC- [sic] interpretation The Board’s of the 616 SCHOLASTIC chairs as manufac- provisions proper. technical by Heywood-Wakefield tinent Paragraph tured pany, Com- clearly 37-03 Michigan. indicated [sic], Menominee shop drawings should include a Subparagraph paragraph “b” of 37-02 posed “type approval of fabric” for the provided as follows: defendant, subparagraph “b” parts The back shall consist of two paragraph provided for the use —upholstered panel and metal back. *8 upholstering of “the selected fabric.” upholstered panel ply- shall be of Duct Bank: Another of the 3" wood and covered with a “changes” sought extending layer- claims an increase in wide of cotton felted price the contract and top a extension the time across and down both sides se- allegations curely on plywood. the basis of The entire after fastened plywood Woodcrest had drilled the be holes front surface of shall then for duet bank in the hair cable the covered with rubberized curled vault of addi- overall, Telephone Exchange pad tion to the one inch in thickness Build- topper approxi- ing, required by with a rubberized wool the defendant to up- mately thick, and the redrill the selected holes and reinstall the ducts. i/4" sustaining Engineers tive Con- record as this statement. Corps Board of of Furthermore, proof no such on the noted Appeals this claim denied during original the course of examination of ground the installation in accomplished the administrative record. not duct bank the requirements of the with the accordance necessarily It follows that there is no drawing. pertinent contract proper particular basis on which this in motion and plaintiffs, their decision could be administrative over- point- memorandum, supporting ruled. respect the administra- in what out erroneous, point tive decision Ill —Other Claims portions the administrative the disposing In of the consolidated ad- any prop- do not disclose record examined proceedings July 15, ministrative the could which er basis on Engineers Corps the Board of overruled. Appeals by Contract denied a claim Woodcrest extension for a time because In Asbestos-Cement Sheets: part delay sought claim, from Woodcrest another alleged- the work under contract was agency an increase the administrative ly attributable to weather con- adverse price and a extension the contract time ditions, a claim and also denied for a specifications called contract because time extension and an increase in the type material asbestos-cement for a price alleged contract because dimen- manufactured, longer being no that was discrepancies sional draw- necessary to use a substitute and it was ings. material. summary specifications plaintiffs’ for called motion The contract As judgment supporting con- sheets memorandum asbestos-cement use of the forming Specification to Federal SS-S- ask court to review ad- do not began mentioned in the 283. After Woodcrest ministrative decisions unnecessary preceding paragraph, work under the it is formance Specification Federal it SS-S-283, discuss them. was learned related a solid as- which sheet, superseded had been bestos-cement DAVIS, Judge (concurring in SS-B-755, Specification Federal dissenting part): perforated related to asbestos- join opinion I claims the court’s perforated as- The new cement sheet. As for clause. Wood- sheets used bestos-cement aspect, agree I Conditions” crest, approval of with the the defendant. that “the with Commissioner White for an claim increase Woodcrest’s accept, did, reasonably Board could time extension toas the date the Government’s evidence was de- on account of this substitution ground first encoun- when water was nied Board by Woodcrest, and the Govern- tered indicating ment's circumstantial evidence prove had failed to misled that Woodcrest was perforated asbestos- substitution of to show erroneous failure defendant’s ground-water delay any cement sheets caused actual completion of the work or logs.” important Perhaps piece most any cost additional to Woodcrest. volved could, Board of evidence on which the testimony did, rely supporting their Wood- memorandum summary judgment, placed its order crest initial motion plaintiffs *9 dewatering equipment ma- curement of five the substitute state that days ground they prior expensive,” time when do to the more

terial “was any in the water was first encountered administra- not cite evidence

415 378, my opin As 149 Ct.Cl. 451 work.1 the excavation formance ion indicated the board “This had substantial evi said: the commissioner expected concluding dence for contractor Board that Woodcrest (compare id. with mis not was misled ground and was Wood water encounter Co., 5726, failure crest Constr. 66-2 erroneous BCA defendant’s ¶ led 26,694-96 (ENG 1966)). See Mor ground-water BCA to show addition, States, rison-Knudsen logs.” Board Co. v. United 345 535, (in (1965) ; F.2d found, Commission 170 Ct.Cl. 712 permissibly, States, words) presi cf. Fort Sill “Woodcrest’s Associates United er White’s 301, charge prepara 183 Ct.Cl. (who dent bid of Woodcrest’s and submission tion contract) familiar proposed on the CONCLUSION OF LAW per supervised and had Florida with out, For set reasons we conclude jobs dif of construction formance Board of knew State, parts he of that ferent Appeals’ project located between site “Changed Conditions” cause of action fairly Atlantic Ocean close to evidence, was not based substantial River, he knew the Banana thus, its determination lowlying, was flat the terrain tiffs were not entitled to recover is re- heavy an had a the area knew that he uphold decision, versed. We the Board’s rainfall, sub he knew that nual however, “Changes” cause of ac- in connec excavated which was to soil tion, supported by since it was substan- the contract with tial evidence. sand, that he knew that consisted of sandy than water rather land absorbs Accordingly, plaintiffs’ motion me, up to repels it.” all of this adds To summary judgment basis for the administra a substantial denied, cause of action is defendant’s tive conclusion that granted, cross-motion is and the case is Mfg. See United Co. v. misled. Centre as to dismissed this cause of action. 239, 240-241, States, 229, 183 392 F.2d As to the Conditions” cause (dis 115, 133-134, (1968) Ct.Cl. action, grants plaintiffs’ court mo- Sternberger senting opinion); summary judgment tion for on the issue Ct.Cl. liability, and denies defendant’s cross- 1968) ; (Oct. Koppers Co. v. motion, proceedings suspended with Ct.Cl.-(Dec. States, 405 F.2d days pending the Board’s determina- 1968). uphold I would deter Board’s plaintiffs’ recovery tion of consistent petition. mination and entire dismiss the opinion. with our com- Plaintiffs will ply appropriate with Rule 100 and the LARAMORE, Judge, concurs provisions of General Order of the foregoing opinion concurring April implementing court it. dissenting part. Upon the conclusion of the Board’s (cid:127) ceedings, plaintiffs report will the re- COLLINS, Judge (dissenting): court, parties sult to the and the will authority On the of the factual situa- dispo- take further action for the final tion in Leal v. United 276 F.2d sition of the case in this court. 1. do) There was a conflict as to when the Government’s witnesses rather met; point, plaintiff’s president. water was first on this than (as Board chose to believe it had a

Case Details

Case Name: Woodcrest Construction Company, Inc. And the Home Indemnity Company, as Completing Surety v. The United States
Court Name: United States Court of Claims
Date Published: Mar 14, 1969
Citation: 408 F.2d 406
Docket Number: 32-67
Court Abbreviation: Ct. Cl.
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