Kelly v. United States

18203
Decided Court of Claims
Disposition
other
full scope
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Court
Court of Claims
Decided
Judge
Peelle, J.
Posture
Action for damages arising from government delay in providing a building site.
Claimants (1)
Kelly & Kelly (Kelly Brothers)
Mr. John G. Ghaney
v.
Defendant (1)
The United States
Mr. Samuel A. Putman, Mr. Assistant Attorney-General Dodge

Overview

Judgment entered for the claimants in the amount of $11,857.

Case summary

Kelly & Kelly contracted with the United States to build a post-office and court-house in Chattanooga. The government failed to provide the site for over 13 months, causing the claimants' subcontractor to fail and forcing the claimants to purchase marble at an increased cost. The Court of Claims held the government liable for these damages, including the enhanced cost of materials, office expenses, and the value of the claimants' time, as the government had a reciprocal duty to provide the site to allow performance.

Abstract

Contractors entered into a contract with the government to build a public facility, but the government delayed providing the site for over 13 months, causing the subcontractors to fail and forcing the contractors to buy materials at higher costs. The court held the government liable for breach due to its reciprocal duty to provide the site, awarding damages for increased material costs, office expenses, and the value of the contractors' time. Judgment was entered for the claimants.

Procedural posture

Posture at trial
Action for damages arising from government delay in providing a building site.
Posture on appeal
Judgment for claimants on specific items of damages.

Legal categories

Business

Case record

Full case name
Kelly & Kelly v. The United States
Docket number
18203
Court
Court of Claims
Decided
Opinion author
Peelle, J.
Opinion type
published
Precedential status
precedential
Judges on panel
Peelle

Issues & holdings

1
Issues raised
1
affirmed
2
Holdings
Standard of review

de novo

Disposition rationale

The government has a reciprocal duty to provide the site necessary for the contractor to perform; failure to do so constitutes an improper interference.

Preservation

Issue preserved for review

Holdings of the court

Liability for delay in providing site
The United States is liable for damages caused by unreasonable delay in providing a building site.
The contract imposed a reciprocal duty on the government to provide the site; failure to do so for 13 months was an improper interference with the contractor's performance.
binding precedent
Measure of damages for material
The difference between the contract price and the enhanced market price of materials purchased due to delay is a recoverable damage.
The delay caused the subcontractor's failure, forcing the claimants to purchase materials at a higher cost in the open market.
binding precedent

Timeline

No timeline recorded.

Facts & evidence

Incident

Date
Location
Chattanooga, Tennessee

Key facts

5 facts
  1. Claimants contracted to build a court-house and post-office within 22 months.
  2. Government failed to provide the building site for over 13 months.
  3. Claimants entered a subcontract with Hercules Marble Company, which failed due to the government's delay.
  4. Claimants were forced to purchase marble in the open market at an enhanced price.
  5. Claimants incurred expenses for office rent, clerk hire, and loss of their own time during the delay.

Authorities

Cited authorities (3)

8 Wall. 77
appliedprecedent
United States v. Speed: established the rule regarding the government's duty to enable contractors to comply with their contract.
94 U. S. 214
followedprecedent
United States v. Smith: established that the United States is liable for improper interference with a contractor's work.
110 U. S. 338
appliedprecedent
United States v. Behan: established the rule for damages when a party elects to go for damages for breach of contract.

Legal principles applied

  • government liability for interference
  • duty to provide site for construction
Index terms39
Summary terms
Legal mechanisms
Various actors
Legal concepts
Legal issues
Legal evidence
Legal arguments
Legal actions
Action type
other
Context
Judgment entered for the claimants for items of claim set forth in findings IV and V, totaling $11,857.
Scope
full
Geo locations
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