United States v. Mason & Hanger Co., 260 U.S. 323 (1922)

United States v. Mason & Hanger Company

No. 121

Argued November 24, 1922
Decided December 4, 1922
260 U.S. 323

APPEAL FROM THE COURT OF CLAIMS

Syllabus

A building contract, made through the War Department, provided that the contractor should be reimbursed for such actual net expenditures in the performance of the work as might be approved or ratified by the contracting officer, including "such bonds, fire, liability, and other insurance as the contracting officer may approve or require;" that monthly statements of costs should be made, upon which, in case of disagreement, the decision of the contracting officer should govern, and that statements so made and all payments made thereon should be final and binding on both parties. Held that where a payment made by the contractor as a premium on its bond to secure the performance of the contract was thus approved and repaid as part of the cost of the work, the decision and action of the officer were conclusive, and that the Comptroller of the Treasury was without power to deduct the amount from other moneys due the contractor upon the ground that the expense was not among those for which the contract promised reimbursement. P. 325.

56 Ct.Clms. 238 affirmed.

Appeal by the United States from a judgment of the Court of Claims. A rehearing was granted in this case, but, after reargument, the judgment below was again affirmed, April 9, 1923, by a per curiam decision, which will be reported in volume 261.