Early & Daniel Co. v. United States
Headline: Hay supplier cannot recover extra pay after delivering under protest and accepting contract price; court affirms that contractors who continue supplying on disputed government calls cannot force higher payment.
Holding: The Court affirmed the judgment denying $22,000, holding that a contractor who continued performance under protest but accepted the contract price cannot later claim additional payment for disputed government calls.
- Bars contractors from recovering extra pay after accepting disputed government payment.
- Encourages suppliers to refuse performance or make timely objections to preserve claims.
- Clarifies risk for vendors delivering under disputed government calls.
Summary
Background
A hay supplier contracted with the United States on July 31, 1917, to deliver hay to Newport News between August 1 and September 30 at set prices and with calls limited to 1,000,000 pounds per lot. The Government made several calls, some larger than that limit, and the supplier filled the early calls without protest. When a final call demanded 4,000,000 pounds the supplier objected but ultimately shipped the remaining 4,000,000 pounds under protest and later accepted $38,000, the contract price.
Reasoning
The core question was whether the supplier could recover an extra $22,000 after delivering under protest and accepting payment. The Court explained that the supplier had the option to refuse further delivery or to perform; it chose to deliver. Because the supplier continued performance, lodged protests that were not pressed to a different payment, and then accepted the contract price without preserving a timely, effective objection, the Court found no basis to imply a promise by the Government to pay more. Administrative officials and reviewing boards had denied the supplier’s claim, and the Court affirmed that result.
Real world impact
The decision means suppliers who continue to perform on disputed government contracts and then accept contract payment will generally be unable to demand additional money afterward. Parties who believe a government call exceeds contract limits should refuse performance or make immediate, documented objections to preserve a claim. The Court affirmed the lower court’s judgment denying the supplier’s $22,000 claim.
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