[Congressional Record Volume 144, Number 134 (Wednesday, September 30, 1998)]
[Senate]
[Page S11182]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRAMS:
  S. 2532. A bill for the relief of D.W. Jacobson, Ronald Karkala, and 
Paul Bjorgen of Grand Rapids, Minnesota, and for other purposes; to the 
Committee on the Judiciary.


                       private relief legislation

 Mr. GRAMS. Mr. President, today I am introducing a private 
bill addressing an inequity faced by a now dissolved Minnesota company, 
Norwood Manufacturing, Incorporated.
  Norwood entered into contract with the United States Post Office to 
produce mail pallets according to Postal Service specifications. After 
producing the pallets, the Post Office canceled the contract, 
indicating the pallets did not meet the intended use, even though 
Norwood met the specifications requirement in the contract.
  Genuine issues of material fact surround the question of whether the 
Post Office canceled the contract for cause, convenience, or possibly 
in bad faith. Surprisingly, Norwood was denied its plea to be heard in 
court. Summary judgment was awarded to the Post Office, and an appeal 
of this decision was denied.
  At this point, all avenues of relief have been exhausted, including 
my efforts in 1995 to request a Congressional Reference from the 
Judiciary Committee, back to the Claims Court for review.
  In my view, an injustice has occurred since usual legal relief has 
been precluded in the history of this case. I believe compensation by 
the United States is owed to Norwood. There is precedent for 
reimbursing companies which abide by contracts which either include 
errors, or when specifications change after a contract is signed and 
the company is not made aware of these changes. The Postal Service made 
an error, and it should have reimbursed this company, as is normal 
practice.
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