United States v. Barlow
Headline: Court limits contractors’ recovery, disallowing claims for unapproved Tenino sandstone while allowing payment for stone delivered and Navy‑ordered water‑jet experiment costs, and reduces judgment to $5,367.96.
Holding: The Court held that individual engineer approval of specific building materials controls payment, limiting recovery to stone inspected and approved, while allowing reimbursement for costs caused by the Navy‑ordered water‑jet experiment.
- Limits contractor recovery to materials individually inspected and approved.
- Allows reimbursement when Navy orders experimental work that improperly interferes.
- Reduces overall awards when large quarry claims lack specific approvals.
Summary
Background
Contractors built a dry dock for the Navy under a contract requiring materials to be "of the best kind" and "of quality approved by the engineer." The contractors used stone from the Tenino quarry; some stone was tested and rejected by the Bureau of Yards and Docks. The contractors sued for payment for quarried but undelivered Tenino stone, differences in cost, and extra expenses, including costs from a water‑jet pile‑driving experiment that the Secretary of the Navy ordered over the contractors’ protest.
Reasoning
The Court addressed who controls acceptance of materials and when a contractor can recover for rejected work. It held that the on‑site engineer’s inspection and approval of particular stones is conclusive when properly exercised, but approval of an entire quarry in advance cannot automatically substitute for inspection of individual stones. The Court limited recovery for Tenino stone to the amount actually inspected and approved (2349 cubic feet, $1,526.85) and rejected larger quarry claims. On the water‑jet experiment, the Court found the Secretary had authority but that his order amounted to improper interference; the contractors were entitled to be paid for expenses the experiment caused (the board found $1,156.76), and other measured damages were proper.
Real world impact
The decision affects contractors working for the Navy: individual stone acceptance by inspectors controls payment, not broad preapproval of a quarry. When government officials force experimental methods and those orders are improper, contractors can recover resulting costs. The Court reduced the overall award and affirmed judgment for $5,367.96.
Dissents or concurrances
Two Justices, Brewer and Peckham, dissented from the Court’s disposition; the opinion notes their disagreement but does not state their reasons in detail.
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