GSA argued the contractor was liable for damage caused by a burst pipe in a courthouse. The contractor said the damage was an Act of God. CBCA rejected the contractor’s argument.
United Facility Services Corporation v. General Services Administration, CBCA 7618
- GSA’s Claim – The contractor provided operations and maintenance service for a federal courthouse. The contractor was required to ensure services were not disrupted. But one afternoon, a frozen pipe burst in the courthouse. The contractor’s onsite project manager was out to lunch when the pipe burst. He was gone for the next few hours due to “something personal.” The building flooded for hours. GSA asserted a claim against the contractor for over $500,000 in damages.
- Contractor Breached – The board found the contractor breached. The contract required the contractor to provide services without disruption. The contract also required the contractor to respond to any emergency request from the government within 30 minutes. The contractor had plainly not complied with those requirements.
- Act of God – The contractor invoked the contract’s force majeure clause arguing the burst pipe was an Act of God. The board rejected the argument. The contract required the contractor to anticipate frozen pipes and the need to address burst pipes. The force majeure clause does not excuse a contractor from the consequences of risk it expressly assumed.
- Severe Weather – The contractor asserted an alternative Act of God argument—namely, that it was prevented from addressing the pipe due to severe weather. The board didn’t buy it, noting the fire department and GSA employees had no problem reaching the building when the pipe burst.
The contractor is represented by William Weisberg of the Law Offices of William Weisberg. Justin S. Hawkins of the General Services Administration represents the government.
--Case summary by Craig LaChance, Senior Edito