B-130939, AUG. 15, 1957

B-130939, AUG. 15, 1957

TO PATTERSON AIRCRAFT COMPANY:

REFERENCE IS MADE TO YOUR LETTER DATED JUNE 28, 1957, REQUESTING REVIEW OF THAT PART OF SETTLEMENT DATED MAY 24, 1957, WHICH DISALLOWED $495.04 OF YOUR CLAIM FOR $990.66 ALLEGED TO BE DUE IN CONNECTION WITH THE SALE OF AN AIRPLANE SOLD TO THE DEPARTMENT OF AGRICULTURE UNDER CONTRACT NO. FS-23- 56, DATED MARCH 21, 1956.

UNDER THE TERMS OF THE CONTRACT YOU AGREED TO FURNISH THE AIRPLANE DELIVERED AT SACRAMENTO, CALIFORNIA, FOR A PRICE OF $17,534, LESS A TRADE- IN ALLOWANCE ON USED EQUIPMENT OF $8,125. THE CESSNA AIRCRAFT COMPANY, MANUFACTURER OF THE AIRPLANE, GUARANTEED THE AIRPLANE, ENGINE AND ACCESSORIES AGAINST DEFECTIVE MATERIAL AND WORKMANSHIP FOR A PERIOD OF THREE MONTHS OR 250 HOURS OF FLIGHT, WHICHEVER WAS FIRST ATTAINED AFTER DELIVERY. IN FLIGHT FROM SACRAMENTO TO MISSOULA, MONTANA, THE ENGINE BECAME NOISY AND FINALLY QUIT RUNNING, RESULTING IN A FORCED LANDING FROM WHICH THE PLANE SUFFERED STRUCTURAL DAMAGES, IN ADDITION TO REQUIRING A NEW ENGINE WHICH WAS REPLACED BY THE MANUFACTURER. THE ADMINISTRATIVE OFFICE IN EFFECTING PAYMENT OF THE PURCHASE PRICE OF THE PLANS DEDUCTED $510.62 TO COVER THE ADDITIONAL EXPENSES INCURRED IN REPAIRING THE PLANE. YOU MADE CLAIM FOR REFUND OF THIS AMOUNT PLUS $155.04 FOR TELEPHONE CALLS AND TELEGRAMS, AND $325 FOR FURNISHING A NEW STABILIZER. THE AMOUNT OF $340, REPRESENTING THE COSTS INCURRED IN CONNECTION WITH THE SERVICING OF THE DAMAGED PLANE AND MOTOR, THE DIRECT COSTS INVOLVED IN TRANSPORTING THE PLANE FROM THE PLACE IT CRASHED TO MISSOULA AND INSTALLING THE NEW ENGINE, AND THE AMOUNT OF $155.04, REPRESENTING TELEPHONE AND TELEGRAPH CHARGES, OR A TOTAL OF $495.04 WERE DISALLOWED IN THE SETTLEMENT OF MAY 24, 1957.

IN YOUR LETTER YOU AGREED THAT THE $155.04 FOR TELEPHONE AND TELEGRAPH CHARGES WAS PROPERLY DISALLOWED. WITH REGARD TO THE COSTS INCURRED IN TRANSPORTING THE AIRCRAFT TO MISSOULA AND INSTALLING THE NEW ENGINE THE OWNER'S SERVICE POLICY, WHICH WAS MADE A PART OF THE CONTRACT, PROVIDES THAT THE LABOR FOR INSTALLATION OF PARTS SUPPLIED UNDER THE MANUFACTURER'S WARRANTY WOULD BE SUPPLIED BY THE DEALER WHO SOLD THE AIRPLANE. THUS, UNDER THE TERMS OF THE CONTRACT YOU WERE REQUIRED TO SUPPLY THE LABOR FOR THE INSTALLATION OF THE NEW MOTOR, WHICH WAS SUPPLIED BY THE MANUFACTURER. SINCE, IT WAS IMPOSSIBLE TO REPAIR THE AIRPLANE AT THE SPOT IT CRASHED, YOU AUTHORIZED ITS REMOVAL TO MISSOULA FOR REPAIR BY THE JOHNSON FLYING SERVICE.

THE ACCEPTANCE OF YOUR OFFER TO FURNISH THE AIRPLANE UNDER THE CONDITIONS STATED GAVE RISE TO A BINDING CONTRACT. OUR OFFICE, AS WELL AS ALL AGENTS AND OFFICERS OF THE UNITED STATES, HAS NO AUTHORITY TO WAIVE CONTRACTUAL RIGHTS WHICH HAVE ACCRUED TO THE GOVERNMENT. SEE AMERICAN SALES CORP. V. UNITED STATES, 27 F.2D 389, AND PACIFIC HARDWARE AND STEEL COMPANY V. UNITED STATES, 49 C.CLS. 327, 335. ..END :