1. The rules touching the effect of the findings of fact by the
Court of Claims do not apply to the hearing of an appeal from its
adjudication on a claim whereof it took cognizance under a special
act of Congress which required
it to exercise equity Jurisdiction. This Court, on such an
appeal, must determine the facts as well as the law applicable
thereto.
2. The advertisement by the officer in command of the arsenal of
the United States at Rock Island, Illinois, inviting proposals, and
the written bid in connection therewith which he accepted,
constitute the terms agreed on by the United States and the
successful bidder for building the masonry of the piers and
abutments of the bridge at Rock Island. It appearing that the
formal contract subsequently drawn up was intended to embody only
those terms, but that by accident or mistake it varied essentially
therefrom,
held: 1. that it was competent for the Court of
Claims, proceeding as a court of equity jurisdiction under the
authority of the act of Aug. 14, 1870, c. 273 (
infra, p.
105 U. S.
680), to reform the contract and then determine and
adjust the accounts of the parties thereunder arising; 2. that the
accepted bid did not embrace the coffer dam work.
The facts are stated in the opinion of the Court.
Page 105 U. S. 672
MR. JUSTICE BLATCHFORD delivered the opinion of the Court.
On the 12th of May, 1869, General Rodman, in command of the
United States Arsenal at Rock Island, Illinois, caused to be
published the following advertisement, in pursuance of law:
"
PROPOSALS FOR BRIDGE MASONRY"
"Sealed proposals will be received at this arsenal up to 10
o'clock A.M. on the twenty-fifth day of May, 1869, for the
construction of the piers and abutments of the railroad and wagon
road bridge to be built to connect the island of Rock Island with
the City of Davenport. It is proposed to build, say, five common
piers, one draw pier, and two abutments. The stone and cement
required for the work will be furnished on railroad cars, on
arsenal switch, near the island end of the proposed bridge, and the
sand required for the cement will be furnished by the United States
at or near the same point. All the masonry must be of the best
quality of bridge masonry, the stones in each course must be well
banded, and each course well secured by dowels to the course below
under cut water, and at lower end of piers, and the foundation
courses must be fairly bedded and well secured to the rock bed of
the river, the work as it progresses being subject to the
inspection and approval of the commanding officer of the arsenal or
such other officer or person as may be designated by proper
authority. Detailed information with regard to the general form and
dimensions of the piers and abutments, and a profile of bed of
river, can be obtained by personal application at the arsenal. The
total amount of masonry is estimated at about 10,000 cubic yards.
All the piers and abutments will be required to be completed prior
to the first day of December, 1869. Parties making bids will state
the price per cubic yard of solid masonry at which they are willing
to complete the work, the United States furnishing the stone,
cement, and sand, as above stipulated, and nothing more. They will
also make a bid stating separately the price per cubic yard of
solid masonry at which they will undertake to build the piers and
abutments, the United States furnishing the stone, cement, and
sand, as above, and the price at which they will agree to put in
the necessary coffer dams with their protections. Proposals will be
endorsed 'Proposals for Bridge Masonry,' and addressed to the
undersigned. The United States reserves the right to reject any bid
not deemed satisfactory."
"T. J. RODMAN"
"
Lt.Col. and Bvt.Brig.Gen. U.S.A., Commanding"
Page 105 U. S. 673
The appellants put in the following proposal:
"ROCK ISLAND, May 25th, 1869"
"We propose to build the masonry of piers and abutments of the
Rock Island bridge, as per annexed advertisement:"
Small piers and abutments, per yard . . . . $11.00
Draw pier, per yard . . . . . . . . . . . . 13.00
"HARVEY & LIVESEY"
"Madison, Wisconsin"
The only other proposal put in was one by Reynolds, Saulpaugh,
& Co., as follows:
"ROCK ISLAND, ILL., May 25th, 1869"
"Brig. Gen'l T. J. RODMAN,
Com'd'g Rock Island
Arsenal"
"SIR -- We respectfully propose to build your piers and
abutments for the rail and wagon road bridge between the island of
Rock Island and the City of Davenport, in accordance with the terms
of your advertisement of May 12, 1869, at prices as follows:"
"Solid masonry at $19.10 per cubic yard in the work complete,
the United States furnishing the stone, cement, and sand, as
stipulated, and nothing more. This price is based on 10,000 cubic
yards of masonry in the work when completed. Or, as per your second
plan, at prices as follows:"
"Solid masonry at $12.70 per cubic yard in the work complete,
the United States furnishing the stone, cement, and sand, as above,
and build the coffer dams at prices as follows:"
For pier No. 1, dam 18 feet high . . . . . $ 7,800
For " 2, " 15 " " . . . . . 34,900
For " 3, " 13 " " . . . . . 6,000
For " 4, 5 & 6, 12 " " . . . . . 15,000
-------
$63,700
"The above prices for dams include the protections to the same,
complete."
"Respectfully yours,"
"REYNOLDS, SAULPAUGH, & CO."
The bid of the appellants was accepted. A contract was then
drawn by a clerk of General Rodman's. A rough draft of it was
submitted to the appellants and, on their returning it as
satisfactory, the engrossed copies were prepared for signature and
the contracts were executed and interchanged, bearing
Page 105 U. S. 674
date June 1, 1869. The following are the provisions of the
contract which are material to this case:
"The parties of the first part do hereby contract and engage
with the said United States to construct the piers and abutments
for the new rail and wagon bridge, to be built to connect the
Island of Rock Island with the City of Davenport, in accordance
with such plans and specifications as may be fixed by proper
authority acting for the United States, the United States to
furnish stone, cement, sand, and all necessary templets required
for the work, and nothing more; the stone and cement to be
delivered in cars at the government switch on the island, near the
site of the work. . . . The character of the work to be daily
inspected as it progresses by such officer or other person as the
commanding officer of the Rock Island Arsenal or other authority
appointed by the United States, may designate; such inspector to
have full authority to give any directions with regard to the
character or manner of conducting the work. The whole work to be
completed prior to the first day of December next, provided that
the stone shall be delivered at the rate of 2,000 cubic yards per
month, and in case of any failure on the part of the United States
to deliver this amount of stone, then the work to be completed as
soon after the first day of December next as practicable. . . .
Payment in such funds as the Treasury Department may provide, at
the rate of thirteen (13) dollars per cubic yard for all masonry in
the draw pier, and at the rate of eleven (11) dollars per cubic
yard for all other masonry. . . . It is further stipulated and
agreed that if any default shall be made by the parties of the
first part in the performance of their work specified in this
contract, of the quality and at the times and places therein
provided, that then, in that case, the United States shall have the
right to take entire and exclusive charge of the work, and to
complete it in accordance with the conditions prescribed by this
contract, charging us with the entire cost of completing it and
crediting us with the amount per cubic yard heretofore stipulated
to be paid us for the completing of the work."
On the 14th of December, 1870, the appellants filed a petition
in the Court of Claims praying a judgment against the United States
for $200,400. The petition set forth that the contract
Page 105 U. S. 675
was one for doing the masonry work in and about the construction
of the piers and abutments; that proposals were invited for said
work, and also separate proposals for putting in the necessary
coffer dams and their protections, but the petitioners bid only for
said masonry work in the construction of said piers and abutments;
and that their bid, being the lowest one for said masonry work, was
accepted, and the contract was awarded thereon. The petition made
the following claims, by items, against the United States: 1. For
damages incurred by reason of the unreasonable delay caused by
defendants from June 7, 1869, to Sept. 4, 1869, $25,000; 2. For
putting in coffer dams and protections, for pumping the water
therefrom, and for preparing the beds for the piers and abutments,
$75,000; 3. For loss of profits incurred by the unlawful reduction
of the dimensions of the piers and abutments, $33,600; 4. For
increase in the cost of the work, by having been compelled to do it
in cold weather, $15,000; 5. For constructing 4,400 cubic yards of
masonry, at say $12 per yard, $52,800; 6. For loss caused by
neglect of defendants to furnish materials and locate piers and
abutments, whereby the plaintiffs, their workmen and tools, were
kept idle, $15,000; 7. For loss of machinery, vessels, and tools
caused by the ejectment of the plaintiffs from the work, $25,000;
8. For dressing coping and corners of abutments and dressing noses
of piers under water, not required by contract, $5,000. This made a
total of $246,400, on which $46,000 was credited as paid, leaving a
balance of $200,400. The petition contained allegations bearing
upon each one of the eight items claimed, but it is not necessary
here to refer to any but those in respect to items 2 and 3, which
allegations were as follows:
"That about the thirteenth day of September, 1869, the United
States having furnished materials sufficient to commence the
construction of said piers and abutments, the petitioners requested
the agent of the defendants to put in or cause to be put in the
necessary coffer dams and to pump the water therefrom and prepare
beds for said piers and abutments to enable petitioners to proceed
with the performance of their contract. But the United States
refused to put in such coffer dams and pump the water therefrom,
and refused to prepare said beds, pretending that petitioners were
bound under said contract to
Page 105 U. S. 676
put in said coffer dams. The petitioners thereupon protested
against such wrongful construction of said contract, but, at the
special request of the defendants and relying upon the good faith
of the United States, they undertook to and did put in the
necessary coffer dams and protections, and pump the water
therefrom, and did prepare the beds for said piers and abutments.
That the labor and materials expended in putting in said coffer
dams and protections and pumping water and preparing beds as
aforesaid was reasonably worth, and they are entitled to recover
for the same from the United States, the sum of seventy-five
thousand dollars. That they were informed by the United States
prior to the making of said proposal that the draw pier would be
four hundred and seventy-four feet long and fifty-six feet wide,
and that the five common piers would be each seventy-four feet long
and fourteen feet wide, and that, with the abutments, there would
not be less than ten thousand cubic yards of masonry work, and that
petitioners based their estimates for said work upon such
information, and made their said proposal in the belief that said
piers and abutments would be constructed according to such
dimensions. But they allege that the defendants, on or about the
twenty-second day of July, 1869, transferred the supervision of
said work from the Ordnance Bureau to the Bureau of Engineers, and
that the petitioners, although they were at all times ready and
anxious to proceed with said work, kept waiting from the seventh
day of June, 1869, until September 7th, 1869, as aforesaid, and
that, on or about the said seventh day of September, 1869, the
defendants marked out the location for one pier and one abutment
only, and wrongfully reduced the dimensions of all the said piers
and abutments, so that, instead of measuring ten thousand cubic
yards, they measured only about six thousand five hundred, and that
by reason of said reduction by said defendants in the dimensions of
said piers and abutments, the petitioners have been damaged in the
full sum of thirty three thousand six hundred dollars."
Subsequently the petitioners amended their petition as to item 5
so as to make it read as follows: "For handling, cutting,
preparing, and setting stone for and in the piers and abutments,
$82,000." The United States, by answer, denied every
Page 105 U. S. 677
allegation in the petition and set up a counterclaim for
$33,681.35, alleging that under the contract, the petitioners being
in default, the United States took charge of the work and completed
it and charged the petitioners with the entire cost of completing
it, $142,457.17, and credited them with the amount per cubic yard
stipulated in the contract to be paid them for completing the work,
$108,775.82, leaving a balance due to the United States from the
petitioners of $33,681.35.
Proofs were taken and the case was heard by the Court of Claims.
It awarded to the petitioners $20,068 in respect of items 1 and 6.
As item 2, the court found that it was necessary in order to the
laying of the abutments and piers that a coffer dam should be built
for each abutment and pier and the water pumped out of it and the
bed of the river prepared for laying the masonry of the abutment or
pier thereon; that without such coffer dams, it was impracticable
to construct any of the abutments or piers; that the petitioners,
on the 13th of September, 1869, requested that United States to
forthwith construct the requisite coffer dams, exhaust the water
therefrom, and prepare the bed for the piers and abutments where
necessary for the commencement of the work; that the United States
on the next day refused so to do on the ground that, under the
contract, it was the business of the petitioners to do the work;
that on the next day the petitioners protested against such refusal
and notified the United States that they should proceed at once to
build the dams, pump the water therefrom, and prepare the beds, and
should hold the United States for the payment of the costs and
expenses of the same; that on the next day, General Warren, in
charge of the construction of the bridge, consented, in order not
to delay the work, to its going on until the matter could be
referred to the Attorney General of the United States, but stated
that in such consent it must be considered that nothing was
admitted in favor of the claim of the petitioners to their
interpretation of the contract; that immediately upon such refusal
of the United States, the petitioners proceeded to build the
requisite coffer dams; and that all that was required in that
respect while the work was in their hands was done by them. But the
court found as a conclusion of law that the contract did not
require the United States, but
Page 105 U. S. 678
required petitioners, to do the work named in item 2. As to item
3, the court found that about the 17th of July, 1869, General
Rodman was relieved from the charge of the construction of the
bridge by General Warren, of the Corps of Engineers; that General
Warren, on the 22d of August, 1869, caused notice to be given to
the petitioners that the position of the abutment and first pier of
the bridge on the Iowa side was determined and marked, ready for
them to commence their construction; that when proposals were so
invited by advertisement, General Rodman had prepared certain plans
of the bridge intended to show the general forms and dimensions of
the piers and abutments and a profile of the bed of the river; that
those plans were seen and inspected by the petitioners before they
sent in their said proposal; that the dimensions of the piers of
the bridge which were fixed upon on the 22d of August, 1869, and
those which were, after that date, from time to time fixed upon,
were less than the dimensions indicated in the plans prepared by
General Rodman and shown to the petitioners before they made their
said proposal; but that there was no reduction of the sizes which
were fixed upon on the last-named day, nor was there any reduction
of the sizes thereafter adopted. The court found, however, as a
conclusion of law that the reduction made in the dimensions of the
piers and abutments of the bridge as originally projected was not,
by the legal construction of the contract, wrongful to the
petitioners. As to item 4, the court found that the petitioners
were not subjected to any increase in the cost of the work by
having been compelled to do it in cold weather. The court also
found that on the 6th of October, 1870, the petitioners were
notified in writing by the officer in charge of the work on the
bridge that in consequence of complaints which had reached the
chief of engineers of the United States army of the tardy progress
of the work on the masonry of the bridge, the said officer had been
required to take suitable and efficient measures to expedite the
work, and that, in view of that requirement, he would take the work
as it stood and carry it on under the provision of the contract
which contemplated such a change; that on the next day, the
petitioners, in writing, refused to give up the work, whereupon, on
that day, the said officer
Page 105 U. S. 679
notified them in writing that he would on the next day take
possession of the work for the government, which he did, against
the assent and protest of the petitioners, and that thenceforward
the work was prosecuted by the officers of the government. In
regard to item 5, as amended, the court found that the petitioners,
before their ejectment from the work, had done work upon and for
the bridge, under the contract, to the amount of $76,344.47, and
had been paid on account of said work $54,105.98, leaving due to
them under item 5 $22,238.49. As to item 7, the court found that
the petitioners did not sustain any damage by reason of the
idleness of their tools, machinery, and vessels after Oct. 8, 1870,
which they would not have sustained had they on that day completed
their work under the contract or whiich was not incident to the
termination at any time of their work under the contract. As to
item 8, the court found that the petitioners were paid in full for
all the extra work they did on or about the abutments and piers of
the bridge. The court awarded to the petitioners $42,306.49, being
$20,068 on account of items 1 and 6 and $22,238.49 on account of
item 5, and rejected their claims under items 2, 3, 4, 7, and
8.
The opinion of the Court of Claims, in deciding the case, is
found in 8 Ct. of Cl. 501. From that it appears that, in regard to
item 2, the court held that neither the advertisement nor the bid
could be invoked to interpret the contract, and that the proper
construction of the contract was that it was the duty of the
petitioners to build the coffer dams, pump the water therefrom, and
prepare the bed of the river for the piers and abutments which they
were bound to construct. In regard to item 3, the court held that
under the contract, the officer in charge had the power to make the
alterations in the dimensions of the piers which made the profits
to the petitioners less.
The Court of Claims having no equitable jurisdiction to reform a
contract, the petitioners acquiesced in the decision made so far as
not to take an appeal to this Court, and to receive payment from
the United States of the amount of the judgment for $42,306.49, but
they applied to Congress, and procured the passage of the act of
Aug. 14, 1876, c. 279, 19
Page 105 U. S. 680
Stat. 490, which provides as follows:
"That the claim of James W. Harvey and James Livesey for alleged
labor done and materials furnished under their contract with the
United States for the building of the masonry work for the piers
and abutments of the bridge across the Mississippi River from Rock
Island to Davenport, Iowa, bearing date June first, eighteen
hundred and sixty-nine be, and the same is hereby, referred to the
Court of Claims for hearing and adjudication, and to that end
jurisdiction is hereby conferred on said court to proceed in the
adjustment of the accounts between said claimants and the United
States, as a court of equity jurisdiction, and may, if according to
the rules and principles of equity jurisprudence, in its judicial
discretion, reform said contract and render such judgment as
justice and right between the claimants and the said government may
require."
On the 30th of August, 1876, the petitioners filed in the Court
of Claims a petition which recites the former proceedings, and the
judgment, and its payment, and the contents of the said act of
Congress, and then proceeds as follows:
"The plaintiffs allege that there is still justly due to them
from the United States a large sum of money for damages and for
work and materials, and, in addition to the charges made in the
aforesaid original petition, they say that connected with the pivot
pier of said bridge there were large walls of stone masonry and
crib work, connecting the upper and lower rests of the pivot pier
with the pivot thereof, which were constructed mainly of irregular
or rip-rap masonry, and that, to finish the abutment on the Iowa
shore, wing walls, constructed of 'rip-rap' masonry, were
necessary, all of which was part of the plaintiffs' work under the
contract; that, this work being cheap and easily done, the officers
in charge of said work in behalf of the United States refused to
permit the plaintiffs to do it, and employed laborers and
constructed the same for the United States, and thus unjustly and
unlawfully deprived the plaintiffs of large profits which they
otherwise would have made. They allege that they could have made,
on the said work, the sum of $51,000 in profits. The plaintiffs
aver that there is justly and equitably due to them from the United
States, on account of the premises, and in addition to the
Page 105 U. S. 681
amount already paid to them, the sum of $239,600, with interest,
according to the following specifications, to-wit: 1. For labor
done, and materials furnished by the plaintiffs in constructing the
coffer dams and in performing the work necessarily connected
therewith, and, preliminary to the masonry work for said piers and
abutments, $75,000; 2. For loss and damages resulting to the
claimants in consequence of the reduction of the dimensions of the
piers and abutments, made subsequently to the making of the
contract, $33,600; 3. For loss of machinery, vessels, and tools,
caused by taking from the plaintiffs the work under their contract,
$25,000; 4. For extra work, dressing coping and corners of
abutments, and dressing noses of piers under water (this work not
being required by the contract), $5,000; 5. For the profits they
could have made had they been permitted to build the cross walls
and crib work connecting the upper and lower rests with the pivot
(part of the contract), $48,000; 6. For profits they might have
made had they been permitted to construct the wing walls for the
Iowa shore abutment; these walls were 'rip-rap,' and a part of the
work under the contract, out of which liberal profits could have
been made; the agents of the United States performed the work,
$3,000; 7. For profits they might have made had they been permitted
to complete the work according to the intention of the parties and
the terms of the contract, in addition to the foregoing charges,
$50,000; 8. For interest on the amount found due to the claimants
on an equitable adjustment of accounts between the parties, from
October 6th, 1870, until the date of the judgment of this Court, at
the rate of six percentum per annum. The petitioners therefore
claim judgment against the United States for the sum of $239,600,
with interest thereon at six percentum per annum, and they pray the
court to reform the said contract, if the same be necessary, so as
to make the same conform to the intention of the parties and to be
in consonance with justice and equity, and for such other and
further or general relief as in justice and right they may be
entitled to have."
The United States demurred to this petition on the ground that
it did not allege facts sufficient to constitute a cause of action.
The court sustained the demurrer and gave leave to the petitioners
to amend the petition.
Page 105 U. S. 682
12 Ct. of Cl. 141. One of the grounds on which the court
proceeded was that so far as the demands covered by the new
petition are legal demands under the contract, enforceable in a
suit at law founded on the contract, such demands cannot, under the
special act of Congress, come under the cognizance of the court.
This view is, in our judgment, correct. The court further held that
there were no averments in the petition showing a title to
equitable relief founded on the view that the written contract did
not set forth the true agreement, and no facts alleged showing a
right to recover on the reformed agreement. It was held that the
court was to proceed simply "as a court of equity jurisdiction,"
and that the accounts which it could adjust and the relief which it
could give must be limited to matters which, because of its
inability to sit as a court of equity, it could not and did not
before determine.
A comparison of the new petition with the first petition shows
that items 1, 2, 3, and 4 in the new petition are severally
reproductions of items 2, 3, 7, and 8 of the first petition; that
items 5, 6, 7, and 8 in the new petition are entirely new; and that
items 1, 4, 5, and 6 in the first petition are not reproduced in
the new petition, an award having been made in the judgment in
respect of items 1, 5, and 6 in the first petition, and item 4
therein being abandoned.
The petitioners proceeded, under the leave granted, to amend
their petition in equity by adding thereto the following
allegations:
"The contract mentioned in the original petition in this cause
was intended to carry out and execute the specifications and
agreements contained in a certain advertisement or invitation for
proposals for constructing the piers and abutments of the said
bridge, published by the defendants, and in a bid made in pursuance
thereof by the plaintiffs. The agents of the United States, by said
advertisement, requested the persons bidding in pursuance thereof
to state (1) the price per cubic yard of solid masonry at which
they were willing to complete the work; (2) the price per cubic
yard of solid masonry at which they were willing to build the piers
and abutments; and (3) the price at which they were willing to put
in the necessary coffer dams and protections. The said invitation
for proposals also apprised the bidders that detailed information
as to the
Page 105 U. S. 683
general form and dimensions of the piers and abutments, and a
profile of the bed of the river, would be exhibited to them at the
arsenal. In pursuance of that part of the said invitation which
referred to the work of building the solid masonry of the piers and
abutments, and after having first obtained from the defendants'
agents detailed information touching the form and dimensions of the
proposed piers and abutments, and after having examined the profile
of the bed of the river exhibited by the defendants, the
plaintiffs, on the twenty-fifth day of May, 1869, submitted to the
proper officers of the United States a proposal in writing whereby
they offered to build (only) the masonry of the said piers and
abutments, upon the terms following, to-wit, the small piers and
abutments at and for the sum of eleven dollars per yard, and the
draw pier at and for the sum of thirteen dollars per yard. The said
proposal was accepted by the defendants, and the said contract, in
the original petition described, was prepared in the office of the
agent of the United States by a clerk therein employed, but, in
consequence of accident and mistake, the said contract was so drawn
as to depart from the intention of the parties and from the terms
and specifications in said invitation and proposal contained.
Instead of requiring the plaintiffs to perform the labor and
furnish the materials contemplated by the said invitation and
proposal, and in the manner specified therein, the language
employed in said contract inequitably required the plaintiffs"
"to construct the said piers and abutments in accordance with
such plans and specifications as may (might) be fixed by proper
authority acting for the United States."
The plaintiffs did not discover the peculiar language of the
said contract until long after the work had been in progress, nor
did they ever believe that they were bound by said contract to do
any more work, or furnish any more materials, or that they were
obliged to perform the work in any other manner, than as specified
and contemplated in the said invitation and proposal, until the
judgment of this court compelled them to submit to said
construction. When the officers of the defendants first claimed for
the said contract the strict construction aforesaid, the plaintiffs
protested and refused to proceed any further with the work, but the
said officers, by promises (which they never
Page 105 U. S. 684
kept), induced the plaintiffs to go on notwithstanding the
dispute, and they accordingly did proceed, and they were required
by the agents of the United States to construct the coffer dams and
do all other work and furnish all other materials preliminary to
building the solid masonry for said piers and abutments and to
construct said piers and abutments on very materially different
plans and in different localities from those contemplated by the
parties at the time of making said proposal, and said piers and
abutments so built were, in consequence of the alterations in the
form and locality thereof, much more expensive to the plaintiffs,
for which no allowance has ever been made to them. Through the
error and mistake aforesaid, the defendants were given an unfair
and unconscionable advantage over the plaintiffs, and have obtained
the materials, labor, and skill of the plaintiffs of great value,
and have paid nothing for them. The labor performed and the
materials furnished by the plaintiffs for the United States in
putting in said coffer dams and furnishing the other materials and
performing the other work preliminary to building the masonry of
said piers and abutments were reasonably worth the sum of
seventy-five thousand dollars, and the work done and materials
furnished by them for the United States in and about the masonry of
said piers and abutments were reasonably worth, in consequence of
the change of locality and of plans and specifications unlawfully
made by the defendants under the erroneous provisions of said
contract, the sum of thirty-three thousand and six hundred dollars
over and above the sums which the plaintiffs have already been paid
therefor. The plaintiffs therefore pray that the said contract may
be so reformed as to correspond with the intention of the parties,
and that they may be paid for the labor and materials by them
performed and furnished upon the said bridge. They further pray
that they may have such other and further relief, and be paid such
other and further sums of money, as may be agreeable to equity and
good conscience and as the provisions of said act of Congress may
authorize and require.
By leave of the court, the petitioners filed a second amendment
to the petition in equity, stating as follows, in addition to what
was contained in said petition and the first amendment
Page 105 U. S. 685
thereto:
"
First, by the terms of the advertisement inviting
proposals, the proposal of the plaintiffs, and the acceptance
thereof by the defendants, as alleged in the original petition
herein and the amendment thereto, a preliminary agreement was made
between the plaintiffs and the defendants by which the plaintiffs
agreed to build the masonry work of the piers and abutments of the
said bridge at Rock Island for the prices stated in the said
original petition and the amendment thereto, and according to
certain plans showing the general form and dimensions of the piers
and abutments and their locations in the river, and according to a
profile showing the bed of the river at the place where the work
was to be done, which plans and profile were, before the making of
the proposal, exhibited by the defendants to the plaintiffs, and
were by them inspected, to enable them to prepare their estimates
for making their said proposal. And the United States thereby
agreed to furnish the stone, cement, and sand for said masonry and
also to erect and put in the necessary coffer dams, with their
protections, and to perform the preliminary work necessary to
enable the plaintiffs to build the said masonry work according to
their said proposal and according to said general plans, and at the
location in the river indicated by said plans and profile.
Second, for the purpose and with the intent and design of
carrying into effect said agreement thus made as aforesaid, a
formal contract was prepared by officers of the United States,
which was afterwards signed and delivered by both parties, but, by
accident and mistake, the said contract did not conform to the
terms of said previous agreement nor to the intention of the
parties. The said contract was, by such accident and mistake, so
drawn as to impose upon the plaintiffs the burden and expense of
constructing and putting in the necessary coffer dams with their
protections, and of performing the preliminary work connected
therewith, instead of requiring the United States to put in said
coffer dams and perform said preliminary work, as had been
previously agreed upon and as was intended by the parties. The cost
of constructing and putting in said coffer dams with their
protections and doing the preliminary work connected therewith was
as great, if not greater, than the cost of building the masonry
work, and in consequence of the said
Page 105 U. S. 686
accident and mistake, the United States obtained an
unconscionable advantage over the defendants and compelled them to
do work and furnish materials which they never intended to do, and
for one-half the compensation the said work and materials were
really worth. And the said contract, through accident and mistake,
was so drawn as to require the plaintiffs to build the said piers
and abutments in accordance with such plans and specifications as
might be fixed by the officers of the United States, instead of
requiring the United States to provide plans, and the plaintiffs to
do their work, according to the general plans and profile exhibited
to the plaintiffs, as aforesaid, and at the location in the river
agreed upon, as was the intention of the parties, and as had been
previously agreed upon by the parties. And the defendants, through
said accident and mistake, have obtained an inequitable and
unconscionable advantage over the plaintiffs and, in the
construction of the said bridge, changed its locality further down
the river and into deep water, and reduced the dimensions of the
piers and abutments as prescribed by said original plans in such a
manner as to preserve the cut stone or expensive portion of the
work, and to greatly reduce the quantity of rough inexpensive work
through which alone profit could be derived by the plaintiffs, and
thereby inflicted great injury upon the plaintiffs. The petitioners
submit to the court that they are entitled to have said contract
reformed so as to make it conform to the intention and to the
agreement of the parties as expressed in the said invitation for
proposals and the bid of the plaintiffs submitted in response
thereto and the acceptance thereof by the defendants, and to have
the same judgment and relief as to the said coffer dams and the
work of constructing the piers and abutments as if the said formal
contract had conformed to the said preliminary agreement and had
contained the necessary provisions requiring the defendants to
construct and put in the necessary coffer dams and to perform the
preliminary work connected therewith, and so as to conform in all
things in reference to the construction of the said bridge and
piers and abutments, to the said original and general plans of said
bridge, and to the profile of said river bed, and to the location
thereby indicated. And the petitioners claim such other and
further
Page 105 U. S. 687
relief in the premises as their case may require and as may be
authorized by the terms of the said act of Congress passed for
their relief."
The United States, by answer, denied all the allegations of the
petition and the amendments. The evidence in the first case was
used as evidence in the second case, and no new evidence was taken.
The court entered a general finding in favor of the defendants and
dismissed the petition. From the decree of dismissal the
petitioners have appealed to this Court.
The reasons assigned for that decree are contained in the
opinion of the Court of Claims, which is a part of the record and
is also reported in 13 Ct. of Cl. 322. The court says that because
of the decision on the demurrer, it regards the present proceedings
as relating only to the claims for the cost of the coffer dams and
for the loss of profits resulting from the reduction of the
dimensions of the piers and abutments, being items 1 and 2 in the
new petition. In regard to item 1, the decision is that the
petitioners have not shown that the written contract does not
express the intent of both parties as to the coffer dams, and that
even if the court were satisfied that the petitioners executed the
contract in mistake of their rights, there is no evidence that the
defendants shared the mistake. In regard to item 2, the decision is
that the court would be disposed to regard the case, on the facts,
as one for equitable interposition for the purpose of further
inquiry, and the ascertainment of the rights of the parties in
equity if it had jurisdiction, but that the statute does not
authorize it to entertain those considerations, because in these
proceedings it can hear and determine only claims for labor done
and materials furnished by the plaintiffs under their contract with
the defendants.
In regard to the coffer dams, it seems clear to us that the
ruling of the Court of Claims was erroneous. The advertisement
begins by inviting proposals for the construction of the piers and
abutments of the bridge. Standing alone, this would involve
proposals to make coffer dams and do and furnish everything else
necessary to finished work. But this is qualified by what follows.
The advertisement goes on to say that parties making bids will
state (1) the price per cubic yard of
Page 105 U. S. 688
solid masonry at which they are willing "to complete the work,"
the United States furnishing the stone, cement, and sand, "and
nothing more." "To complete the work" there means to construct the
piers and abutments complete, including the making of coffer dams
and doing and furnishing everything necessary for completed work
except furnishing stone, cement, and sand, the United States
furnishing those and furnishing nothing more. Then parties making
bids are "also" to make a bid stating (2) separately the price per
cubic yard of solid masonry at which they will undertake to build
the piers and abutments, the United States furnishing stone,
cement, and sand, and "also" to make a bid stating (3) separately
the price at which they will agree to put in the necessary coffer
dams, with their protections. Here are three distinct classes of
bids: bid 1 for the whole work, including all that is embraced in
the work specified in bids 2 and 3; bid 2 for a part of the whole
work specified in bid 1 and excluding what is embraced in bid 3;
and bid 3 for another part of the whole work specified in bid 1 and
excluding what is embraced in bid 2. There is no implication in the
advertisement from the use of the word "also," or from any other
language, that a bidder could not make bid 2 or bid 3 unless he
likewise put in a bid for bid 1, or that he could not bid for the
specified parts of the work unless he should bid for the whole
complete. The appellants did not make a bid for the work complete,
or say in their bid that they were willing to complete the work.
They bid only under bid 2. They stated separately in their bid the
price per yard at which they would build the masonry of the piers
and abutments. They excluded bid 3 and the coffer dams, and they
excluded bid 1 and the coffer dams in it. This is quite enough to
determine the question. The written bid in connection with the
advertisement, and the acceptance of that bid, constituted the
contract between the parties so far as regards the question whether
the contract prices embraced the coffer dam work.
Garfielde v.
United States, 93 U. S. 242;
Equitable Insurance Co. v.
Hearne, 20 Wall. 494. The written contract in that
respect was intended by both parties to be merely a reduction to
form of the statement as to work and prices contained in the bid.
If the formal contract is susceptible
Page 105 U. S. 689
of a different construction, to the prejudice of the
contractors, it is very plain that not only the contractors but the
officers of the government were under a mistake. It is shown that
the work of making and putting in the coffer dams, and doing
whatever else was necessary in connection with them before the
laying of the masonry could be commenced was so expensive as to
make it impossible that the prices named in the bid of the
appellants could have covered that expense and the laying of the
masonry also. There is no evidence to show that the parties
intended to alter the terms of the bid as to work and prices. There
are other considerations dwelt upon in the dissenting opinion of
Judge Nott in the Court of Claims, and to which it is necessary
only to refer, which enforce the conclusion thus reached. One of
those considerations is the terms of the only other bid, as showing
by the price therein named for bid 1, bid 2, and bid 3, each
separately, that the appellants could not have been bidding for the
work complete. The evidence on the point in question on the part of
the appellants is largely in documents, while that relied on by the
United States is oral, and some of it consists of recollections of
conversations with the appellants, who are debarred by statute from
being witnesses in their own behalf. We are of opinion that by the
actual contract between the parties, the appellants were not to do
any of the work covered by the claim made by them under item 1 of
the petition herein, and that the written contract must be reformed
accordingly.
We are also of opinion that the Court of Claims placed too
limited a construction upon the special act of Congress. The act
speaks of the claim of the appellants as a claim
"for alleged labor done and materials furnished under their
contract with the United States for the building of the masonry
work for the piers and abutments of the bridge,"
giving the date of the contract. The Court of Claims had
rejected item 2 in the first case because the formal written
contract required the petitioners to do the work named in it. It
had rejected item 3 because that contract gave the government power
to reduce the dimensions of the piers and abutments. It was to
obtain equitable relief in respect to those two items that the
appellants applied to Congress. Their claim had been made in
the
Page 105 U. S. 690
eight items embraced in their petition in the first case. It had
been made as a claim under their contract. It cannot be properly
inferred unless there is language necessarily leading to a contrary
conclusion that the claim referred to the Court of Claims by the
act is to embrace less than what was embraced in items 2 and 3 in
the first case, although item 3 is made out as for "loss of
profits." The act refers "the claim" "under the contract," for
hearing and adjudication; and jurisdiction is conferred on the
court to proceed in the adjustment of "the accounts" between the
persons making the claim and the United States, as a court of
equity jurisdiction. The court had decided that it could not take
cognizance of item 3 because it was not a court of equity
jurisdiction, and therefore could not proceed to adjust the
accounts any further than it had adjusted them. One object of the
act was to remedy this defect. There is nothing in the use of the
words "for alleged labor done and materials furnished," or of the
words "to that end," which can limit or control the scope of the
act, as above explained. That scope is still further shown by the
enactment that the court
"may, if according to the rules and principles of equity
jurisprudence, in its judicial discretion, reform said contract and
render such judgments as justice and right between the claimants
and the said government may require."
The words "for alleged labor done and materials furnished" are,
in view of the language of the entire act, not words of limitation,
but words of description. The court is authorized to adjust "the
accounts" between the parties, so far as they were not legal
demands and so far as they were equitable demands, unadjusted or
unadjudicated, growing out of the contract, as a court of equity,
and for that purpose to reform the contract according to the
principles of equity and then render judgment upon it as reformed.
This power of the Court of Claims under the act extends to
reforming the contract in respect to permitting the officers of the
United States to materially vary the plans for the piers so as to
essentially change the obligations of the parties.
As to items 3 and 4 in the new petition, which are the same as
items 7 and 8 in the former case, not only were they legal demands,
but they were adjudicated upon fully in that case and
Page 105 U. S. 691
cannot be reopened. As to items 5, 6, and 7 in the new petition,
they cannot, in view of the principles laid down in this opinion,
be considered by the Court of Claims. The question of interest,
under item 8, remains for that court to consider.
It is contended on the part of the United States that this Court
cannot, under its rules, hear this appeal because there is not in
the record any finding by the Court of Claims of the facts in the
case in the nature of a special verdict, with a separate statement
of the conclusions of law upon such facts. But the rule in regard
to findings of fact has no reference to a case like the present, of
equity jurisdiction conferred in a special case by a special act,
and in such a case, where an appeal lies and is taken under sec.
707 of the Revised Statutes, this Court must review the facts and
the law as in other cases in equity, appealed from other
courts.
Judgment and decree reversed, and the case is remanded with
directions to proceed in it according to law and in conformity with
the opinion of this Court.