1. Home
  2. |Insights
  3. |Government Liable for $99 Million in Indemnification Under Government Contracts

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.”

Insights

Client Alert | 6 min read | 01.24.25

Brace for Impact: Final SBA Rule Changes to Recertification and Negative Controls Will Reverberate in GovCon M&A and Investment Market

On December 17, 2024, the Small Business Administration (SBA) published a final rule amending multiple aspects of all of the SBA’s small business size and status programs.  Among other notable changes, SBA (1) introduced a new rule that changes the impact of a recertification as other than small or as other than the relevant small business status following a merger or acquisition, and (2) introduced a standardized set of permissible negative controls for minority shareholders in all types of small businesses, thereby significantly expanding the controls investors may have in service-disabled veteran-owned small businesses (SDVOSBs), women-owned small businesses (WOSBs), and participants in the SBA’s 8(a) Business Development Program. ...