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UNITED STATES v. METRO NOVELTY MFG. CO.

UNITED STATES DISTRICT COURT, SOUTHERN DISTRICT OF NEW YORK


August 27, 1954

UNITED STATES of America, Plaintiff,
v.
METRO NOVELTY MANUFACTURING CO., Inc., Defendant

The opinion of the court was delivered by: WALSH

Cross motions are presented for summary judgment. Plaintiff seeks to recover $ 12,000 damages from defendant for its failure to carry out a $ 6,000 bid for uniform ornaments. Defendant claims a mistake in the computation of the bid. Plaintiff admits that the error was so gross that it was placed on notice. It further admits that the only consequence of defendant's failure to perform was the acceptance of the second lowest bid and that there was no damage to the government from the delay in execution which resulted from defendant's participation in the bidding.

Plaintiff's purchasing agent sought to avoid the force of Kemp v. United States, D.C.Md.1941, 38 F.Supp. 568, by telephoning the defendant and asking for a 'verification' of the bid and by having it 'confirmed' by telephone and letter from defendant's president. Plaintiff, however, did not put defendant on notice of the mistake which it surmised. Reaffirmation of the bid under these circumstances does not bar the defense of rescission.

 Defendant's motion for summary judgment is granted.

19540827

© 1992-2004 VersusLaw Inc.



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