B-161116, APR. 6, 1967

B-161116: Apr 6, 1967

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED MARCH 2. BIDDERS WERE NOT REQUIRED TO SUBMIT A BID DEPOSIT. PADGETT SUBMITTED BIDS ON ALL THE ITEMS OFFERED AND HIS BIDS WERE ACCEPTED AS TO 9 PICKUP TRUCKS AND THE STATION WAGON FOR A TOTAL PRICE OF $6. HE WAS PAID FOR AND TAKEN POSSESSION OF ONLY ONE OF THE VEHICLES. IT IS REPORTED THAT MR. PADGETT FAILED TO MAKE PAYMENT FOR AND REMOVE THE REMAINING 9 VEHICLES AS REQUIRED AND WAS GIVEN A 15-DAY WRITTEN NOTICE OF DEFAULT. HE WAS INFORMED THAT UNLESS THE DEFAULT WAS CURED WITHIN 15 DAYS HE WOULD LOSE ALL RIGHT. 105 WAS ASSESSED AS LIQUIDATED DAMAGES. PADGETT REQUESTS RELIEF FROM THE ASSESSED DAMAGES FOR THE STATED REASON THAT HE FAILED TO UNDERSTAND THAT AT THE TIME THE BIDS WERE SUBMITTED HE HAD COMMITTED HIMSELF TO ACCEPT ALL THE VEHICLES AWARDED TO HIM OR PAY LIQUIDATED DAMAGES.

B-161116, APR. 6, 1967

TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED MARCH 2, 1967, WITH ENCLOSURES, FROM YOUR ASSISTANT GENERAL COUNSEL, FURNISHING A REPORT CONCERNING THE REQUEST OF MR. JAMES W. PADGETT, AIKEN, SOUTH CAROLINA, FOR RELIEF FROM THE ASSESSMENT OF LIQUIDATED DAMAGES ARISING FROM HIS DEFAULT UNDER SALE NO. 4DPS 67-93 COVERING THE SALE OF USED PICKUP TRUCKS.

THE GENERAL SERVICES ADMINISTRATION, PERSONAL PROPERTY DIVISION, ATLANTA, GEORGIA, REQUESTED BIDS UNDER THE ABOVE REFERENCED SALE ON 24 PICKUP TRUCKS AND A STATION WAGON. BIDDERS WERE NOT REQUIRED TO SUBMIT A BID DEPOSIT. MR. JAMES W. PADGETT SUBMITTED BIDS ON ALL THE ITEMS OFFERED AND HIS BIDS WERE ACCEPTED AS TO 9 PICKUP TRUCKS AND THE STATION WAGON FOR A TOTAL PRICE OF $6,250.00. HE WAS PAID FOR AND TAKEN POSSESSION OF ONLY ONE OF THE VEHICLES.

IT IS REPORTED THAT MR. PADGETT FAILED TO MAKE PAYMENT FOR AND REMOVE THE REMAINING 9 VEHICLES AS REQUIRED AND WAS GIVEN A 15-DAY WRITTEN NOTICE OF DEFAULT. HE WAS INFORMED THAT UNLESS THE DEFAULT WAS CURED WITHIN 15 DAYS HE WOULD LOSE ALL RIGHT, TITLE AND INTEREST IN AND TO THE 9 VEHICLES AND, PURSUANT TO THE TERMS AND CONDITIONS OF SALE, THE GOVERNMENT WOULD BE ENTITLED TO COLLECT FROM HIM LIQUIDATED DAMAGES EQUAL TO 20 PERCENT OF THE PURCHASE PRICE. BECAUSE OF HIS SUBSEQUENT FAILURE TO ACT, $1,105 WAS ASSESSED AS LIQUIDATED DAMAGES.

IN A LETTER DATED DECEMBER 7, 1967, TO YOUR CHIEF, SALES BRANCH, PERSONAL PROPERTY DIVISION AND IN A LETTER DATED JANUARY 28, 1967, TO THIS OFFICE, MR. PADGETT REQUESTS RELIEF FROM THE ASSESSED DAMAGES FOR THE STATED REASON THAT HE FAILED TO UNDERSTAND THAT AT THE TIME THE BIDS WERE SUBMITTED HE HAD COMMITTED HIMSELF TO ACCEPT ALL THE VEHICLES AWARDED TO HIM OR PAY LIQUIDATED DAMAGES. IT WAS HIS STATED BELIEF THAT IF HE WERE THE HIGH BIDDER ON MORE THAN ONE ITEM HE COULD SELECT ONLY THE ONE VEHICLE HE WANTED.

IT IS REPORTED THAT UPON MR. PADGETT'S DEFAULT, THE 9 VEHICLES WERE READVERTISED FOR SALE AND THAT THE TOTAL RESALE PRICE WAS $5,453.38, OR $71.62 LESS THAN MR. PADGETT'S TOTAL BID PRICE.

UNDER THE PARTICULAR CIRCUMSTANCES OF THIS CASE AND IN VIEW OF THE SMALL AMOUNT OF ACTUAL DAMAGES SUFFERED BY THE GOVERNMENT UPON RESALE OF THE VEHICLES, WE AGREE WITH THE RECOMMENDATION FOR RESCISSION OF THE CONTRACTS, AS STATED IN YOUR COUNSEL'S LETTER OF MARCH 2. ACCORDINGLY, NO FURTHER ACTION NEED BE TAKEN TO EFFECT ANY RECOVERY UNDER THE CONTRACTS WITH MR. PADGETT.