Overview
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
Legal categories
Case record
Issues & holdings
de novo
The government has a reciprocal duty to provide the site necessary for the contractor to perform; failure to do so constitutes an improper interference.
Issue preserved for review
Holdings of the court
Timeline
No timeline recorded.
Facts & evidence
Incident
Key facts
5 facts- Claimants contracted to build a court-house and post-office within 22 months.
- Government failed to provide the building site for over 13 months.
- Claimants entered a subcontract with Hercules Marble Company, which failed due to the government's delay.
- Claimants were forced to purchase marble in the open market at an enhanced price.
- Claimants incurred expenses for office rent, clerk hire, and loss of their own time during the delay.
Authorities
Cited authorities (3)
Legal principles applied
- government liability for interference
- duty to provide site for construction