Government Liable for $99 Million in Indemnification Under Government Contracts
Client Alert | 1 min read | 01.26.17
In Shell Oil Co. et al. v. U.S. (Jan. 6, 2017), the Court of Federal Claims held that the U.S. Government was liable for over $99 million in breach of contract damages when it “reneged on contractual promises” to indemnify several oil companies under a Taxes Clause for certain costs incurred as a result of environmental damage arising out of WWII-era contracts for the production of military aviation gas (see previous discussion here and here). The decision, which may encourage other contractors to pursue recovery under similar contract provisions such as “hold harmless” clauses in facilities contracts, and indemnification clauses authorized under Public Law 85-804, admonished the Government that the damages included “$30,991,111.02 in interest which the U.S. taxpayers could have avoided paying, if the Government had lived up to its obligations, instead of wasting years in litigation.”
Contacts
Insights
Client Alert | 3 min read | 04.14.26
On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded.
Client Alert | 4 min read | 04.14.26
FedRAMP Solicits Public Comment on Overhaul to Incident Communications Procedures
Client Alert | 5 min read | 04.14.26
Client Alert | 4 min read | 04.14.26
