Document: 342 U.S. 98 72 S.Ct. 154 96 L.Ed. 113 UNITED STATESv.WUNDERLICH et al. No. 11. Argued Nov. 6, 1951. Decided 26, Paul A. Sweeney, Washington, D.C., for petitioner. Harry D. Ruddiman, respondents. Mr. Justice MINTON delivered the opinion of Court. 1 This Court is again called upon to determine meaning 'finality clause' a standard form government contract. Respondents agreed build dam United States under contract containing usual 'Article 15.'1 That Article provides that all disputes involving questions fact shall be decided by contracting officer, with right appeal head department 'whose decision final and conclusive parties thereto.' Dissatisfied resolution various head, in this instance Secretary Interior, respondents brought suit Claims. court reviewed their contentions, one claim involved proceeding set aside head. 117 Ct.Cl. 92. Although there was some dispute below, now agree question fact. We granted certiorari, 341 924, 71 795, 95 1356 clarify rule which created an exception conclusiveness such administrative decision. 2 The same 15 before recently, we held, after review authorities, valid. v. Moorman, 338 457, 70 288, 94 256. Nor Moorman case first impression. Contracts, both governmental private, have been several cases provisions equivalent approved enforced 'in absence fraud or gross mistake as would necessarily imply bad faith, failure exercise honest judgment * *.' Kihlberg States, 97 398, 402, 24 1106; Sweeney 109 618, 620, 3 344, 27 1053; Martinsburg & P.R. Co. March, 114 549, 553, 5 1035, 1037, 29 255; Chicago, S.F. C.R. Price, 138 185, 195, 11 290, 292, 34 917. In Ripley 223 695, 704, 750, 32 352, 356, 56 614, implying faith equated 'fraud.' Despite other words 'negligence,' 'incompetence,' 'capriciousness,' 'arbitrary' used course opinions, has consistently upheld finality head's unless it founded on fraud, alleged proved. So essence exception. By mean conscious wrongdoing, intention cheat dishonest. absent fraudulent conduct, must stand plain 4 If should proved, never presumed. Colorado Anthracite Co., 225 219, 226, 617, 1063. at bar, no allegation fraud. There finding nor request finding. Claims 'arbitrary,' 'capricious,' 'grossly erroneous.' But these are not heretofore laid down adheres without qualification. were compelled coerced into making It voluntary undertaking part. As competent they contracted settlement arbitral manner. This, said Congress left them free do. supra, page 462, 291. limitation process placed adhere too limited, matter Congress. 6 Since pleading finding, disposed remand any further findings, urge. assume if evidence had sufficient constitute so found. conclusive, reversed. 7 Reversed. 8 DOUGLAS, whom REED concurs, dissenting. 9 Law reached its finest moments when freed man from unlimited discretion ruler, civil military official, bureaucrat. Where absolute, always suffered. At times his property invaded; times, privacy; liberty movement; freedom thought; life. Absolute ruthless master. more destructive than man's inventions. 10 instant reveals only minor facet age-long struggle. result can rationalized made plausible casting terms law: need contract; those who Government turn square corners; will where engagement them. And may equities Government, contractor. announce wide application devastating effect. makes tyrant out every officer. He power even though he stubborn, perverse captions. allowed incompetent negligent. life death over private business grossly erroneous. Power seldom neglected. principle checks balances healthy one. An official accountable act prudently. A citizen body independent controversy protection against passion, obstinacy, irrational incompetency official. Judge Madden expresses revulsion allowing uncontrolled another's fiscal affairs. allow Claims, agency close disputes, reverse whose conduct plainly bounds whether fraudulent, perverse, captious, incompetent, just palpably wrong. oppressive. espouses gives justice government. 12 JACKSON, 13 apparent deals many while deal few, conclusion officers heads departments sometimes abusing deciding own lawsuits give also does believe our 256, completely closed door judicial relief arbitrary action sense 'conscious dishonest.' could I believed it. 14 Granted contracts legal, follow takes public puts himself wholly heads. When recently repeated decisions "conclusive, impeached ground implied faith", Id., 461, 290 (emphasis supplied), supposed meant part reservation supplied emphasis. Today's seems read decision, but add exceedingly rigid word Undoubtedly put hands undertakes judge or, what amounts thing, department, fiduciary obligation position assumes. make reckless use power, disregard evidence, shield consequences blunders expense contractors. somewhat lawyer dealing client doctor patient, superiority imposes restraints appropriate trust. Though contractor convenanted satisfied adversay renders him, true bargains cause assumes do justice. petty disagreement readjudged, courts hold old vanishing good care. 16 think officer shows 'such faith' remedy origin overzeal negligence misrepresentations—however innocent—by subordinates, prejudice contractor, causes fall short actual corruption. Men often bribed loyalties ambitions money. still hearing destroyed action, although thinks otherwise. Cf. Ewing Mytinger Casselberry, 339 594, 604, 870, 875, 1088. 15. Disputes.—Except otherwise specifically provided contract, concerning arising subject written within 30 days concerned duly authorized representative, thereto. meantime diligently proceed work directed.'

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