Ronald J. Rhen v. United States
Case: Ronald J. Rhen v. United States 17 Cl. Ct. 140
Being the lowest bidder, the plaintiff, Rhen won in the Invitation to Bid issued by the Bureau of Land Management, Department of the Interior (BLM) for the “One Time through Precommercial Thinning.” However, the contract to cut and thin the bushes was thereafter terminated because of the default of the plaintiff in finishing the job within the stipulated time. As to the plaintiff, the delay in the project was caused by several problems encountered with his men, his subcontractors and with the BLM.
Legal issues presented before the court:
Is the plaintiff entitled for damager caused him by the default termination of the contract?
Holding of the Court: No.
Courts Rationale or Reasoning:
In denying the recovery of the damages, the court held that the plaintiff’s claim for unearned but anticipated profits is not, under the law, is not recoverable. Aside from that, the claimed profit is of general loss, speculative, and consequential that is not guaranteed by law to be recovered. It is also noteworthy that the plaintiff was in default and the delay was inexcusable.
Additionally, the plaintiff’s claim for the pre-commercial thinning is moot. In the interpretation of the contract, the roadways which were thinned by the plaintiff were not among the covered areas of the project. Furthermore, the plaintiff was also in default in failing to request for the remeasurement of the project acreage. Hence, the plaintiff’s claim for the pre-commercial thinning service cannot be granted.