Section 16.34 Governmental Tort Liability

• Library: Construction Law 2016 Supp

E. (§16.34) Governmental Tort Liability

Gemsco, Inc. v. United States, 115 Ct. Cl. 209 (1950), held that courts should hold the government to a high standard of good faith when interpreting indefinite quantity contracts. Thus, the court held that the United States had breached its contract with the plaintiff.

In United States v. Neustadt, 366 U.S. 696 (1961), the Court held that misrepresentation allegations are claims in tort, which are beyond Tucker Act, 24 Stat. 505, jurisdiction. See 28 U.S.C. § 1491.

Bird & Sons, Inc. v. United States, 420 F.2d 1051 (Ct. Cl. 1970), held that when an alleged “negligent” act of a governmental entity constitutes a breach of contractually created duty, the Tucker Act does not preclude relief. An action may be maintained that arises primarily from a contractual undertaking regardless of the fact that the loss resulted from the negligent manner in which the defendant performed its contract.

In H.F. Allen Orchards v. United States, 749 F.2d 1571 (Fed. Cir. 1984), no contractual duty existed; negligent performance of a noncontractual duty cannot be the basis of a breach of contract claim...