United States v. F. C. Hathaway

Appellee, F. C. Hathaway, brought this action in the District Court under the Tucker Act to recover $10,000 in damages from the United States for alleged breach of a contract of sale, as modified, and to have the contract reformed by reducing the purchase price by one-half. The United States denied breach; challenged plaintiff’s right to “reformation” and counterclaimed for the unpaid balance due on the contract. The District Court granted plaintiff’s prayer for a fifty percent reduction of the purchase price and entered judgment accordingly. The Government here appeals from both the judgment in favor of plaintiff, and the denial of its counterclaim.

An invitation to bid on the property involved in this controversy was issued by the United States Army Corps of Engineers on March 3, 1952. The bid of plaintiff was received March 20, 1952, and accepted on that same date. The contract called for the sale to plaintiff of four sets of steel lock gates, each of two leaves, located at Cascade Locks, Oregon. These gates were situated below the level of the waters of the lake . , , -o t. ™ formed by Bonneville Dam. The esti- . , , „ . mated gross tonnage of.the steel con- , . , 7 .7 .,…