MERRILL-RUCKGABER COMPANY
v.
UNITED STATES

U.S. | 1916-06-05
No. 281
Me. Justice McReynolds took no part in the consideration or decision of this case.
241 U.S. 387 Supreme Court of the United States (1916) Negative Treatment
Also reported at: 60 L. Ed. 1058 · 36 S. Ct. 662 · SCDB 1915-166 · 1916 U.S. LEXIS 1718
Cited by 66 cases

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Synopsis

Merrill-Ruckgaber Company contracted with the United States to perform excavation and construction work, including underpinning main rear walls to rock for buildings adjoining a site's north line, with disputes to be resolved by the Supervising Architect. The contractor argued that specifications requiring underpinning of "the building" (singular) meant only one of two adjoining structures and that one building had only a metallic curtain wall rather than a rear wall, but the Supreme Court affirmed the Architect's and Secretary of the Treasury's interpretation requiring underpinning of both buildings' main rear walls, holding that contract language must be construed as a whole in light of material conditions known to the parties and that the Architect's decision was final under the contract terms.


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Opinion of the Court
Mb. Justice McKenna,

Mb. Justice McKenna,

after stating the case as above, delivered the opinion of the court.

The case is in narrow compass, It involves for its solution the construction of a contract, and the rules to guide such, construction we need not rehearse. To its. words we at first resort, but not to one or a few of them but to all of them as associated, and as well to the conditions to which they were addressed and intended to provide for. The argument of appellant ignores this rule. As we shall see, it makes one word dominant, controls all others by it, and puts out of view the demands of the physical conditions.

The contract provided that whatever walls would have to be removed and excavations made would have to be done in such manner as not to endanger adjoining property, and that all necessary shoring and underpinning, etc., in connection therewith had to be done. To this provision there was subsequently added that “in the case of the building [italics ours] joining the north line of the site the underpinning of the main rear walls must be carried to rock by a method satisfactory to the Supervising Architect,”

But there were two buildings “joining the north line of the site,” and appellant selected one as the full measure of its obligation to carry the underpinning to rock as required by the specifications, giving as a reason, in a communication to the Architect’s office, that it did not consider that there was any rear wall in No. 25 Pine Street, but only a metallic curtain wall.

The Architect’s office was not impressed with the distinction between walls and the selection of one building joining the north line of the site but insisted that the underpinning of the main rear walls of both of the buildings joining such line must be carried to rock by a method satisfactory to the Supervising Architect. Appellant filed its appeal to the Secretary of the Treasury, who affirmed the action of the Architect.

Counsel intimates unfairness on the part of the Supervising Architect, but there is no just, foundation for it; and, besides, there is no attempt to impugn the good faith of the Secretary of the Treasury who sustained the decision of the Architect, and the contract explicitly provides that “the decision of the Supervising Architect as to the proper interpretation of the drawings and specifications shall be final.” If we may concede to appellant an ambiguity in the specifications arising from the use of the singular word “building” instead of the plural word “buildings” against the material conditions which appellant’s officers had inspected and knew of and against as well the other parts of the specifications which among other things call for “rear walls” instead of a “rear wall,” seemingly implying two buildings and not one only, at the utmost it could only be said that there was ground for dispute, and under the contract the decision of the Architect upon the dispute was final.

Judgment affirmed. The facts, which involve the construction and application of the act of December 17, 1914, relating to registration of, and tax on, persons producing and dealing in opium and-other specified drugs, are stated in the opinion. Mr. Justice McReynolds took no part in the consideration or decision of this case.


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Citator

Cited By (19 total)

  • S&E Contractors, Inc. v. United States, 406 U.S. 1 (U.S. 1972)
    …s. Martinsburg & Potomac Railroad v. March; Chicago, Sante Fe &c. Railroad v. Price.” Id., at 602. The Court also followed the Kihlberg rule in Ripley v. United States, 223 U. S. 695, 701-702, 704 (1912), and Merrill-Ruckgaber Co. v. United States, 241 U. S. 387 (1916). In United States v. Mason & Hanger Co., 260 U. S. 323 (1922), the contractor was paid in accordance with a disputes decision in his favor, but the Comptroller of the Treasury disagreed with the decision and subsequently deducted the amount…
  • United States v. Moorman, 338 U.S. 457 (U.S. 1950)
    …the subject. One of the cited cases had enforced a contract provision that “the decision of the Supervising Architect as to the proper interpretation of the drawings and [*462] specifications shall be final.” Merrill-Ruckgaber Co. v. United States, 241 U. S. 387, 393. Similar agreements have been held enforceable in almost every state. See cases collected in Note, 54 A. L. R. 1255 et seq. In one state, Indiana, the courts do seem to hold differently, on the ground that permitting engineers or other persons…
  • …98, 18 S. Ct. 140, 42 L. Ed. 469; Green County, Ky., v. Quinlan, 211 U. S. 582, 594, 29 S. Ct. 162, 53 L. Ed. 335; United States v. Ansonia Brass & Copper Co., 218 U. S. 452, 467, 31 S. Ct. 49, 54 L. Ed. 1107; Merrill-Ruckgaber Co. v. United States, 241 U. S. 387, 392, 36 S. Ct. 662, 60 L. Ed. 1058; Mutual Life Ins. Co. of N. Y. v. Kelly (C. C. A. 8) 114 F. 268, 278; Hearin v. Standard Life Ins. Co. (D. C.) 8 F.(2d) 202, 203; 2 Williston, [*228] Contracts (1920) § 618; 13 Corpus. Juris, 525, and cases cited.…
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