martas --
The name of the case and its complete citation is:
Eichleay Corp., 60-2 B.C.A. (CCH) para.2688, aff d on
reconsideration, 61-1 B.C.A. (CCH) para.2894 (ASBCA 1960)
As indicated in the citation above, the case was decided in 1960 by
the Armed Services Board of Contract Appeals and upheld on
reconsideration by that agency.
The case established the so-called "Eichleay formula," which has been
described in an article published by a very prominent Washington, D.C.
law firm, as follows:
"The Eichleay formula is used to calculate damages based upon a ratio
of the delayed contract's billings to the value of all work performed
during the period of the delayed contract. A contractor receives
damages for home office overhead incurred during a delay because the
contractor had presumed that the home office resources would be
needed."
If you are interested in the evolution of the application of the
"Eichleay formula," I commend that brief 1994 article to your
attention:
Arnold & Porter: "New Life For The Eichleay Formula Recovering Home
Office Overhead in Government - Caused Delay Claims"
http://www.arnoldporter.com/publications_articles.cfm?publication_id=482&pf=1
The Eichleay case was cited by the Justice Department in a brief to
the U.S. Supreme Court as recently as 2000, so the "formula" is
apparently still good law:
Department of Justice: Brief: Melka Marine, Inc. v. U.S. (Page 7)
http://www.usdoj.gov/osg/briefs/1999/0responses/99-1134.resp.pdf
(This is a PDF document, so you need Adobe Acrobat Reader to access
it. If you don't have that installed now, it can be downloaded free
here:
Adobe Reader
http://www.adobe.com/products/acrobat/readstep2.html )
Finally, here is a link to the site of the Armed Forces Board of
Contract Appeals. Although their online decision archives only go
back to 1996, you might be able to get a copy of the Eichleay
decision, or information on getting convenient access to it, by
contacting that small agency:
Armed Services Board of Contract Appeals
http://www.law.gwu.edu/ASBCA/
Additional Site:
Here is another law firm's article about the Eichleay case and its
damage calculation formula:
Findlaw.com: Last, Harrelson & Fiaro: CALCULATING DELAY CLAIMS: An
Overview of the Components
http://library.lp.findlaw.com/articles/file/00330/002736/title/Subject/topic/Construction%20Law_Construction%20Contracts/filename/constructionlaw_1_395
Search Strategy:
The hardest part of this project, of course, was finding the name that
"sounds like Eckley." After a lot of trial and error, I struck pay
dirt at the (very useful) Findlaw.com site. At the following linked
page on that site, I entered the search terms "construction" "delay"
"case":
FindLaw: Cases and Codes
http://www.findlaw.com/casecode/
The first search result returned was a California case that cited the
Eichleay decision. In order to get more information about the
decision, I conducted various Google searchs, including:
eichleay formula
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=eichleay++formula
eichleay asbca no. 5183
://www.google.com/search?q=Eichleay+ASBCA+No.+5183+&hl=en&lr=&ie=UTF-8&start=20&sa=N
I am confident that this is the information you are seeking. If any
of the above is unclear, please ask for clarification before rating
this answer.
markj-ga |