United States v. CONTINENTAL CASUALTY COMPANY, Civ. A. No. EC 6649.

• Decision Date: 26 November 1968
• Docket Number: Civ. A. No. EC 6649.
• Citation: 293 F. Supp. 816
• Court: U.S. District Court — Northern District of Mississippi
• Parties: UNITED STATES of America for the Use and Benefit of W. J. SANFORD, Jr., Plaintiff, v. CONTINENTAL CASUALTY COMPANY and G & R Construction Company, a Corporation, Defendants.

293 F. Supp. 816

UNITED STATES of America for the Use and Benefit of W. J. SANFORD, Jr., Plaintiff, v. CONTINENTAL CASUALTY COMPANY and G & R Construction Company, a Corporation, Defendants.

Civ. A. No. EC 6649.

United States District Court N. D. Mississippi, E. D.

November 26, 1968.

Shields Sims, Sims & Sims, Columbus, Miss., for plaintiff.

Hunter M. Gholson, Burgin, Gholson & Hicks, Columbus, Miss., for defendants.

MEMORANDUM OPINION

ORMA R. SMITH, District Judge.

The United States of America, for the use and benefit of W. J. Sanford, Jr., filed this suit against Continental Casualty Company and G & R Construction Company on June 7, 1966 seeking to recover a certain sum of money alleged to be due Sanford on a masonry contract performed by him for defendant G & R Construction Company in connection with the construction of a gymnasium for the United States Government at the Columbus Air Force Base, Columbus, Mississippi. Plaintiff sued for the sum of $3,258.60, together with attorneys' fees, interest and costs.

The suit was predicated on the Miller Act, 40 U.S.C.A. § 270a et seq. The Court heard the case without a jury at Aberdeen, Mississippi on November 14, 1968.

FINDINGS OF FACT

Defendant G & R Construction Company (hereinafter referred to as G & R) entered into a contract with United States of America for the construction of a gymnasium at Columbus Air Force Base, Mississippi. The contract price was $289,710.00 and is dated November 24, 1964.

Defendant, Continental Casualty Company, a surety corporation, made G & R's payment bond in connection with the contract. There is no dispute as to the validity of the construction contract between G & R and the United States or the payment bond executed in connection with the contract.

On March 11, 1965 G & R entered into a subcontract with plaintiff to perform the masonry work necessary to be done in constructing the gymnasium. This work was completed prior to the filing of suit. The controversy arises as to the sum of money which G & R contracted to pay plaintiff for the work.

Before submitting its bid to the United States, G & R calculated the estimated cost of the project. In making its calculation, G & R estimated that 92,000 face brick, a certain number of concrete blocks and other masonry materials would be required in the construction.

G & R, through its Vice-President, Basil G. Dishongh, Jr., contacted plaintiff and solicited a proposal from him to furnish all necessary labor, scaffolding and tools to perform this work; and thereafter the parties entered into a written contract, the essential portions of which are as follows:

                     Quantity           Item               Unit           Total
                Furnish all necessary supervision, labor, equipment and perform all
                work for the complete installation of Brick, Structural Glazed Tile
                and Concrete Masonry Units, in strict accordance with contract plans
                and Sections 4 and 5 of contract specifications and all amendments pertaining
                thereto, and written proposal attached, hereto, and made a part
                of this subcontract/purchase order, as follows
                  92,000 Face Brick             at 72.50 per M              $6,670.00
                   4" CMU                   2100 at .23 cents                  483.00
                   6" CMU                   1350 at .25 cents                  337.50
                   8" CMU                  18,900 at .25 cents               4,725.00
                  12" CMU                   3,100 at .30 cents                 930.00
                Glazed Structural Tile      12,295 at .27 cents              3,319.65
                Mortar                      160 Cubic Yards at 9.00
                                                 per Cu. Yd.                 1,440.00
                Mortar Fill at Jambs        26 Cubic Yards at 12.00
                                                 Cu. Yd.                       312.00
                Joint Reinforcing           17,300 L/F at .01 cents
                                                 L. F.                         173.00
                Saw Blades                                                     180.00
                Painting & Cleaning                                            300.00
                11½% Payroll Taxes & Insurance                        2,170.00
                                                                           __________
                                               TOTAL AMOUNT ........       $21,040.15
                                                                           ==========
                

Mr. Sanford, at the applicable wage rate will personally supervise all necessary labor used to do the above work, and his payrolls will be carried on G&R Construction Company's payroll, and this payroll cost, plus 11½% will be charged against the subcontract amount.

G & R CONSTRUCTION COMPANY (CONTINUED NEXT PAGE) By /s/ Basil G. Dishongh, Jr. Quantity Item Unit Total (CONTINUED FROM PAGE ONE) Also, any increases or decreases imposed by government modifications will be made at the unit price per item, as listed above. ACKNOWLEDGED & ACCEPTED W. J. SANFORD, JR. BY /s/ W. J. Sanford, Jr. DATE G & R CONSTRUCTION COMPANY BY /s/ Basil G. Dishongh, Jr. Basil G. Dishongh, Jr., Vice President "G & R Construction Company Columbus, Mississippi Re: Construction of Base Gymnasium Contract DA-01-076-ENG-6381 Columbus, AFB, Mississippi Subcontractor to furnish all necessary labor, scaffolding, and tools and Contractor to carry Subcontractor on payroll and furnish all Insurance necessary at the unit prices as indicated below.

                                                           72.50*
                $4600.00*     Face Brick     50.00*    92,000     85.00          $ 6,670.00*
                ---------------------------------------------------------------------------
                  420.00*     4" CMU                    2,100       .23              483.00*
                ---------------------------------------------------------------------------
                  337.50*     6"  "                     1,350       .25              337.50*
                ---------------------------------------------------------------------------
                 5,670.00*    8"  "                    18,900       .27   25*       4,725.00*
                ---------------------------------------------------------------------------
                 1,085.00*    12"  "                    3,100       .32  30*         930.00*
                ---------------------------------------------------------------------------
                3,385.50*     Glazed Structural
                ---------------------------------------------------------------------------
                               Tile                    12,295       .33  27*       3,319.65*
                ---------------------------------------------------------------------------
                 1600.00*    Mortar                    160 C.Y.    9.00*            1440.00*
                ---------------------------------------------------------------------------
                  325.00*    Mortar Fill at jams        26 C.Y.*  12.00 C.Y.         312.00*
                ---------------------------------------------------------------------------
                  173.00*    Joint Run                 17,300*      .02 Lin.Ft.      173.00*
                ---------------------------------------------------------------------------
                             Saw Blades                          180.00              180.00*
                ---------------------------------------------------------------------------
                  313.00*    Painting & Cleaning**               468.00 300.00*      300.00*
                ---------------------------------------------------------------------------
                1,793.99*    Payroll Tax & Ins.**                 11½%           2,170.00*
                ---------------------------------------------------------------------------
                19,702.99*                                       Approx.*        *21,040.15
                ============================================================================
                             W. J. SANFORD                 G & R CONSTRUCTION COMPANY
                                                            3,000**                    "
                * Written with pencil
                ** Encircled with pencil
                

With one exception, there is no dispute that the contract was signed by the parties in the form in which it was introduced in evidence. The unsigned proposal attached to and made a part of the contract contains opposite the contract price the abbreviated word "Approx." Mr. Dishongh, who executed the contract on behalf of G & R, testified that this notation was placed upon the proposal before the contract was signed. Plaintiff testified that this word was not written upon the proposal at the time the contract was signed. The contract introduced in evidence is G & R's copy of the contract. Plaintiff produced and there was introduced in evidence a Thermofax copy of the proposal which does not have this word upon it. Plaintiff contends that the Thermofax copy is the copy retained by him when the contract was signed.

The proposal form shown above is typed in part and written in part. An asterisk designates the portion which is written. The remaining, or balance of the proposal, is typed. The column of figures on the left represents the calculations of defendant G & R. Those on the right represent calculations based upon unit prices finally negotiated. It is to be noted that some of the typed figures opposite the unit prices are marked through and written unit prices inserted.

The Court finds on conflicting evidence that the abbreviated word "Approx." was not inserted on the proposal at the time the contract was executed; and that the proposal form was furnished by plaintiff.

G & R urges that if the Court finds that the proposal form was prepared by plaintiff, the contract in its entirety should be strictly construed against him. It is to be noted, however, that only the typed portion of the proposal is shown to have been drafted by plaintiff. The parties then used the proposal as a worksheet and attached it to the contract which they jointly prepared on a form used by G & R. Under such circumstances the Court cannot apply the strict construction rule against plaintiff as to the contract in its entirety but only to the typed portion of the proposal attached to and made a part of the contract.

Before submitting a proposal to G & R plaintiff secured and checked plans and specifications for the job in order to verify estimates which had been made by G & R in bidding the...