US SUPREME COURT DECISIONS

Under the standard provision of a government contract that all disputes involving questions of fact shall be decided by the contracting officer, with the right of appeal to the head of the department, "whose decision shall be final and conclusive upon the parties thereto," a finding by the head of a department on a question of fact may not be set aside by the Court of Claims, unless it was founded on fraud, alleged and proved. Pp. 342 U. S. 98-101.

(a) By fraud is meant conscious wrongdoing, an intention to cheat or be dishonest. P. 342 U. S. 100.

(b) A finding by the Court of Claims that the decision of the department head was "arbitrary," "capricious" and "grossly erroneous" is not sufficient to justify setting it aside. P. 342 U. S. 100.

117 Ct.Cl. 92 reversed.

The Court of Claims set aside a decision of a department head on a question of fact arising under a standard form government contract. 117 Ct.Cl. 92. This Court granted certiorari. 341 U.S. 924. Reversed, p. 342 U. S. 101.