United States v. Penn Foundry & Mfg. Co., Inc.
337 U.S. 198 (1949)

Annotate this Case

U.S. Supreme Court

United States v. Penn Foundry & Mfg. Co., Inc., 337 U.S. 198 (1949)

United States v. Penn Foundry & Manufacturing Co., Inc.

No. 253

Argued January 7, 10, 1949

Decided May 31, 1949

337 U.S. 198

Syllabus

It was error for the Court of Claims to give a judgment to a manufacturer against the United States for loss of anticipated profits under a contract for the manufacture of gun mounts for the Navy which was canceled a few days after it was awarded when the Court failed to make any affirmative finding that the manufacturer was ready and able to perform its contractual obligations and when it made affirmative findings which precluded any inference that such readiness and capacity existed. Pp. 337 U. S. 199, 337 U. S. 210-214.

(a) In the absence of actual tenders of the required gun mounts, the manufacturer's readiness and capacity to deliver them in the quantities and at the times required by the contract was essential to its right to receive payments under the contract. Pp. 337 U. S. 210-211.

(b) The affirmative findings in this case add up to an inescapable ultimate finding that the manufacturer was neither ready nor able to make the deliveries required by the contract. Pp. 337 U. S. 202-203, 337 U. S. 212-213.

(c) A finding that, "[i]f the plaintiff had been permitted to perform its contract, it would have made a net profit of not less than $80,000" was no more than a rough estimate of the amount of its reasonably anticipated profits (if the contract were completed), and cannot be taken as a finding that it was ready and able to make the deliveries upon which such profits depended. P. 337 U. S. 213.

(d) The mere hope of being able to obtain from the Government gratuitous extensions of time or concessions in the numbers of gun mounts to be delivered cannot justify an award of money damages for loss of unearned anticipated profits dependent upon such gratuitous extensions or concessions. Pp. 337 U. S. 213-214.

110 Ct.Cl. 374, 75 F.2d 319, reversed.

The Court of Claims awarded a judgment to a manufacturer for loss of anticipated profits under a contract for the manufacture of gun mounts for the Navy which was cancelled a few days after it was awarded. 110 Ct.Cl.

Page 337 U. S. 199

374, 75 F.2d 319. This Court granted certiorari. 335 U.S. 857. Reversed, p. 337 U. S. 214.

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