BALTIMORE & OHIO RAILROAD COMPANY
v.
UNITED STATES

U.S. | 1923-03-19
No. 208
261 U.S. 385 Supreme Court of the United States (1923) Positive Treatment
Also reported at: 67 L. Ed. 711 · 43 S. Ct. 384 · SCDB 1922-133 · 1923 U.S. LEXIS 2570
Cited by 13 cases

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Synopsis

The Baltimore & Ohio Railroad Company sought reimbursement from the United States for extraordinary expenses incurred in accelerating construction of a branch railroad to an Army Ordnance Depot at Curtis Bay, Maryland, claiming an informal or implied agreement with the War Department to cover such costs under the Dent Act. The Supreme Court affirmed dismissal of the claim, holding that the company's unilateral decision to switch to a more expensive construction method, made without notice to the Department or any indication that the government would reimburse the additional expenses, did not establish an express or implied agreement necessary to recover under the Dent Act.


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Opinion of the Court
Mr. Justice Sanford

Mr. Justice Sanford delivered the opinion of the Court.

The Railroad Company filed its petition in the Court of Claims asking judgment for the amount of certain “ extraordinary expenses ” which it claimed to have incurred in constructing a branch railroad to the Ordnance Depot at Curtis Bay, Maryland, under “ an informal or implied agreement ” with officers of the War Department for the reimbursement of such expenses by "the United States. The Dent Act, March 2, 1919, c. 94, 40 Stat. 1272. A demurrer to this petition was sustained. 56 Ct. Clms.. 377 The Allegations of the petition setting forth specifically “ the nature, terms and conditions ” of the “ agreement ”, may be thus summarized: Having previously determined to build a branch railroad into the Curtis Bay region, for the purpose of developing new-territory, the Railroad Company, in the summer of 1917, at the request of the War Department, changed in part the location of the proposed line so as to pass alongside the Ordnance Depot which the War Department planned to build. The company then contracted with a construction company for the building of the railroad to the site of the Depot, on a unit-price basis. The work was greatly delayed by the relocation of the line, and carried into the winter months. After numerous conferences as to means of expediting the work, the officers of the Department, in December, insisted that the operations at the Depot would be seriously hampered unless the company could greatly increase progress on the construction of the railroad, and that, in order to furnish track facilities for handling construction materials and freight at the Depot, it was very urgent that the railroad be completed at the earliest possible nioment. Thereupon, in order to meet the urgent needs of the Department, the company, in January, 1918, determined to and did cancel the contract for constructing the railroad on a unit-price basis, and made a contract with another construction company for completing it on a cost plus basis. By working continuously, day and night, the new contractor completed the railroad to the Depot in the latter part of February, before it would have been completed under the original contract. The excess cost' of thus constructing the railroad under the cost plus plan and the extraordinary expense incurred in hurrying its completion, amounted to $85,474.06; for which judgment was prayed.

These allegations show no “ agreement, express or implied ” for the payment of these expenses, which is essential to an award in plaintiff’s favor under the provisions of the Dent Act. No express agreement is alleged. And manifestly the mere fact that, on. the urgent insistence of the officers of the Department that the construction of the railroad be hastened so as to handle construction materials for the Depot and other freight (necessarily yielding revenue to the railroad), the company, on its own determination, substituted the cost plan of construction for the unit-price plan, without any notice to the Department of its intention so to do or of the increased expenses that would result, does not, in the absence of any intimation that it would look to the United States for reimbursement of such increased expenses of of any suggestion by the Department that such reimbursement would be made, afford any substantial basis upon which an agreement for the payment of such expenses can .be implied. ...

The judgment of the Court of Claims dismissing the petition is accordingly

Affirmed.


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Citator

Cited By

  • Amos v. United States, 255 U.S. 313 (U.S. 1921)
    …nd Fifth Amendments to the Constitution of the United States, as they have been interpreted and applied by this court in Boyd v. United States, 116 U. S. 616, in Weeks v. United States, 232 U. S. 383, and in Silverthorne Lumber Co. v. United States, 261 U. S. 385; and also denied his motion to exclude such property and the testimony relating thereto given by the Government agents after both were introduced in evidence against him, when he was on •trial for a crime as to which they constituted relevant and ma…
  • Merritt v. United States, 267 U.S. 338 (U.S. 1925)
    …agreement with the plaintiff, express or implied, was entered into by the Secretary of War, or “ by any officer or agent acting under his authority, direction, or instruction, or that of the President.” Baltimore & Ohio R. R. Co. v. United States, 261 U. S. 385; Baltimore & Ohio R. R. Co. v. United States, 261 U. S. 592. It does not appear; as required by § 1, that any such agreement had been “performed . . , or expenditures . . made or obligations incurred upon the faith, of the same . . prior to ” Nove…
  • Nelson v. United States (two cases), 208 F.2d 505 (D.C. Cir. 1953)
    …son v. Zerbst, 1938, 304 U.S. 458, 58 S.Ct. 1019, 82 L.Ed. 1461. . Goldman v. United States, 1942, 316 U.S. 129, 142, 62 S.Ct. 993, 999, 86 L.Ed. 1322 (dissenting opinion). . Record, pp. 994-1012. . Silverthorne Lumber Co. v. United States, 1920, 261 U.S. 385, 391-392, 40 S.Ct. 182, 64 L.Ed. 319. There Mr. Justice Holmes, speaking for the Court, said: “The proposition * * * is that although of course its seizure was an outrage which the Government now regrets, it may study the papers before it returns th…

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