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 | 10 min read | 12.24.25
Since the signing of Executive Order 14187 (“Protecting Children from Chemical & Surgical Mutilation”) in late January 2025, the Trump Administration has made its skeptical stance on gender-affirming care—especially regarding services provided to minors—clear.
Client Alert | 3 min read | 12.24.25
Keeping it Real: FTC Targets Fake Reviews in First Consumer Review Rule
Client Alert | 5 min read | 12.23.25
An ITAR-ly Critical Reminder of Cybersecurity Requirements: DOJ Settles with Swiss Automation, Inc.
Client Alert | 2 min read | 12.23.25
Record-Setting False Claims Act Settlement Highlights DOJ Commitment to Customs Enforcement



